What was the challenge?
The Legal Function of our client, a FTSE 100 broadcaster, was under intense pressure to reduce cost by 33% in line with broader, company-wide initiatives. Savings to date in the UK had been achieved through headcount reduction and vacancy elimination accompanied by increased standardisation, automation and business self service. Our role was to validate the extent to which this programme could be expanded to achieve targeted cost savings as well as to build out a robust roadmap and business case for change to achieve this goal.
What did we do?
Working with the senior leadership team we conducted a holistic top down assessment of the client's legal function operations and roadmap to assess whether its savings target could be achieved across the global Legal Function. In doing so we reviewed the operating model dimensions to understand the baseline costs against which savings were to be measured and quantified the savings that could be achieved through identified and costed improvement or transformation opportunities. This enabled us to help the client map out its future target operating model.
How did we do it?
Our first step was a baseline validation to gain an understanding of the client's current “as-is” state to enable opportunities to be assessed from a qualitative and quantitative perspective. We then identified and sized savings opportunities from the baseline data and analysis conducted. Working with the client we then prioritised the opportunities identified to enable the client's operating model roadmap to be recalibrated so that identified savings targets were achievable without compromising on service delivery quality.
What were the outcomes?
By undertaking this project we were able to provide the Legal Function with "options" for change to take to its senior management around cost reduction and avoidance. This resulted in the client's board deciding not to enforce its full cost take out target on the Legal Function based on its better understanding of the value that the Legal Function was providing.