Change management can lead to cost reductions
Change management in all its guises can transform a business in many ways, often with additional benefits outside of the desired end result.
One such example is when we worked with Hospedia, who engaged us to discuss a potential new way of operating their business and to assess the size and complexity of a potential transformation to the way their people were managed.
Our initial assessment was focused on three areas:
The HR approach and service delivered to the business
The quality and efficiency of the management structure;
The best structure for the operations team to move forward
We were clear that the transformation was not about financial savings – that’s cost efficiency. Our focus was on finding better ways to manage Hospedia’s business - with one potential end outcome being a financial saving.
We delivered a review of the opportunities that changing approaches could bring to the organisation. Our proposals focused on:
Encouragement of some small investments to ensure greater productivity
Reducing conflicting activities of varying departments (silo mentality)
A range of financial efficiencies that could be achieved
At the request of Hospedia, we introduced a senior HR consultant to create and develop the employee forum and manage both the group and individual consultation processes. We managed the project from the first commitment to paper and ongoing throughout its journey.
Outcomes:
Our recommendations on management structure led to greater clarity in organisational ways to manage the business.
This gave clear focus and accountability for all managers with less management layers, the right skills and capabilities for each role and a tighter more focused team as a consequence.
Our focus on managers managing their people led to a 50% reduction in HR related costs effective within 6 months of the process review.
We managed the group and individual consultation process and finalized this change project for Hospedia with a fully scoped multi-skilled operational structure and a fair and effective process to determine existing skills for future needs.
The ongoing benefits of this reduced their operational costs in the region of 20% and they have a fully benchmarked and consistent pay structure.