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Governance

• Governance Health Check & Support
• Strategic / Business Planning
• Value for Money
• Performance Management
• Change Management

"Supporting management by quantifying value"

Background

There is a massive national deficit. The new administration is initiating its programme of radical cost savings to be made by the Public Sector that could see organisational budgets reducing by up to 40%.

While the Public Sector will find itself under extreme pressure to continue to deliver key services from ever dwindling budgets the Private Sector continues to look to find more efficient and cost effective methods of production and service delivery.

Issue

Senior management are under extreme pressure to continue to radically reduce costs.

There is a lack of information available to management to enable them to defend sound strategic decisions. The risks associated with certain courses of action may not be fully understood and, ultimately, this results in money being wasted due to inefficiencies and in unbudgeted remedial action.

In certain instances, investing in or protecting the budgets of certain departments / projects will result in wider costs savings across the organisation.

Example: An organisation is looking to achiever a 15% reduction in costs across all departments, the other option often overlooked may be to redirect funding into areas which would enable improvements in efficiency that if achieved could generate greater overall savings. The cost cutting in ICT has resulted in a considerably weaker service being provided to the organisation as a whole. This has a negative impact on the efficiency of departments that are reliant on ICT systems and the organisation incurs costs indirectly through this loss of efficiency and the costs of remedial actions and directly, through having to employ contract staff to rectify the situation. Overall, the organisation has failed to achieve the expected cost savings.

Solution

A risk based business review of the value that a service provides by performing a cost / benefit analysis which quantifies the risks associated with certain courses of action. The management report will provide an empirical review by showing what a £1 spent by a department / service area / system, could save the organisation. The report will look at the benefits in the round, the risks associated with action or inaction and the tangential impacts, wherever possible attributing a monetary value.

The report will enable management to support business cases and business decisions by being able to demonstrate how specific investments will provide a rapid and sustainable return on investment.