The client, a fortune 500 company, was seeking to prioritize the acceleration of IT operations digitization while reducing operational expenses.
The magnitude of the project encompassed a significant one-time expenditure and estimated annual savings of nearly half that number, a complex financial modeling project that exceeded the organization’s in house capabilities. In addition, a global reduction of internal teams by approximately 40% was anticipated as a result of the client’s digitization efforts.
The DLC Approach
Following analyses of the current state, the DLC team designed robust financial models to oversee both one-time costs and projected savings. In the absence of pre-existing processes, the DLC consultants assumed a pivotal role in crafting approval metrics and instituting novel procedures for the approval of funding associated with one-time costs.
DLC facilitated risk assessment meetings and created financial reporting and accounting processes that remained in full compliance with regulatory standards and industry best practices.
The DLC team implemented a rigorous spending approval process, created more reliable and accurate financial models, and streamlined other processes and procedures to help the client successfully maintain their one-time costs significantly below initial projections. After engaging DLC, actual spending totaled 10% less than anticipated, which saved millions of dollars.
Furthermore, the client outperformed their projected run-rate savings, reaching an increase of 35% in actual savings. These financial accomplishments received validation from external auditors and remained in compliance with established accounting standards.
- Lack of processes
- Lack of in-house expertise
- High operational expenses
- New established processes
- Decrease in operational expenses
- Validation from external auditors
- Compliance with accounting best practices
- Millions of dollars in savings
- Financial Modeling
- Process Rework