Operating Model

Design and implementation to consolidate multiple acquired organisations into an efficient, client focused and profitable business under one single brand

UK Learning Services Business

Challenge

  • Client acquired six competing learning businesses but never consolidated them
  • Six management teams
  • Organizational complexity (spans and layers)
  • Duplication of activities
  • Inconsistent processes leading to significant inefficiencies
  • Sub optimal and duplicated IT landscape with significant shadow spend
  • Multiple, competing brands with limited brand value
  • Operating separately, the businesses were not profitable

Approach

  • End to end operating model transformation from design principles through to implementation and adoption
  • Detailed organization design to meet future needs and reduce duplication of roles and responsibilities
  • Implementation of cost saving initiatives (IT landscape, headcount)
  • Removal of duplication leading to efficiency and effectiveness improvements
  • Reduction of management positions from 65 to 46, into a single, aligned team

Outcome

  • Alignment around a clear vision and strategy
  • 14% reduction in headcount with 15% cost savings
  • Improved financial reporting
  • Simpler customer propositions
  • Lower cost to serve
  • Simplified, consistent and effective processes and operations
  • Reduced organizational layers
  • Single, market focused brand
  • Better understanding of customer needs, leading to increased sales
  • Cultural transformation
  • Return to profitability for consolidated business (£150m)

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