Transparency helps logistics giant to make its way out of the fog
Following a number of acquisitions, the UK division of a global logistics business was left with fragmented support services, including IT.
In an industry with little organic growth, reducing costs and creating leaner operations was key to increasing shareholder value.
One potential opportunity identified was to follow the example of some of the other divisions where IT support had been shifted to the new Global IT Division located in the Czech Republic.
However, the advantages of doing this, for the UK operation, were unknown.
The board wanted answers but were concerned over the potential reaction of the UK workforce, particularly the loss of key individuals, before any decisions had been made. The challenge was therefore to:
- create a plan to gather information that would not alienate the workforce
- understand the role and responsibilities of the IT support service and its costs
- document the findings to create a picture of the “current” support model
- alongside the Czech Data Centre Team, create a “future” support model.
What we did
The project was broken down into several steps with approval at each stage, i.e.:
- What does the service look like today?
- What could it look like tomorrow?
- What are the implications and actions required if a change is advantageous?
- If the change is advantageous, implement it.
- Review and fine-tune as necessary.
Next, we identified individuals who had previously been successfully involved with and supportive of change as key people.
Each of the above steps was then planned in detail, and a proposal was presented to and approved by the board. Once implementation started it became clear that moving to the Czech Data Centre would make substantial savings possible.
The plan was implemented, saving £3 million a year. Redundancies did occur within the UK, and we worked closely with local Human Resources teams to ensure that full support was given to those affected.