Project Background
The client, a fortune 500 company, was seeking to prioritize the acceleration of IT operations digitization while reducing operational expenses.
Business Challenges
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 Results
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.
Before DLC
- Lack of processes
- Lack of in-house expertise
- High operational expenses
After DLC
- New established processes
- Decrease in operational expenses
- Validation from external auditors
- Compliance with accounting best practices
- Millions of dollars in savings
Services Provided
- Financial Modeling
- Process Rework
