We quickly found that the CIO was right. The bank’s IT spend significantly exceeded the industry average and was almost double what the bank should be spending. We also found that FTE productivity was low, and only about 40% of IT activities were customer-facing or value-adding. The IT organization was not healthy, scoring in the third quartile of our organizational health survey.
We realized that addressing these issues would require totally transforming IT, not just finding ways to reduce costs. Such sweeping change would require balanced attention to performance and organizational health—to the IT organization’s processes and culture, as well as financial results.
We partnered with the client to plan and execute a transformation program that coupled cost optimization with sustainable improvements in IT service delivery. We supported the implementation of more than 150 initiatives over four years. These initiatives generated bottom-line savings of $180 million; improved delivery by making IT services more available, reliable, and secure; and reduced time to market by making IT operations more agile, flexible, and innovative.