We worked successfully with a major UK financial services retailer to deliver substantial savings by reducing its high management costs.
The organisation had a top heavy management structure that was not only costly but also ineffective. It was characterised by slow decision making because accountabilities were confused and it was unclear where the decisions needed to be taken. The situation was made worse by excessive controls in the system that stifled accountability. As a result, employees felt disengaged because they had no autonomy and were constrained in a controlling environment with a narrow task management approach.
The costs of this approach were high because it required too many expensive managers to administer those controls. There was also poor line of sight between those leaders and those staff delivering services on the front line.
PA worked with the executive team to identify options that would create a more streamlined and market-focused business. We then adopted the ‘Work Levels Approach’ to examine the management levels within the organisation and then identify opportunities for improvements. These included consolidating functional activities; clarifying lines of accountability; removing layers of management; and improving spans of control. The changes identified by PA amounted to an annual saving of £17million for the organisation.
To find out how PA can help you reshape your management structure to improve decision making and cut costs, please contact us now.