Operating Model for Life Sciences Client
The Challenge
The client, a medium-sized life sciences company, had quickly grown through acquisition, but had not yet integrated their new businesses. The client knew they could capture additional efficiencies and cost savings by integrating their back-office functions, but they were unsure where to start.
The Solution
Reid benchmarked the client’s headcount and spend, analyzed existing processes across business units, and conducted executive interviews to identify opportunities for integration across four dimensions: process, organization, technology, and data. He also modeled the potential return on investment of each opportunity and worked with the client to prioritize which initiatives to undertake and when.
The largest and most complex of these initiatives was shifting to centralized shared services for their back-office operations. Using detailed taxonomies to catalog the client’s processes, headcount, and technology, Reid modeled multiple scenarios to show the impact of moving different activities and headcount to shared services. He then worked collaboratively with the executive team to test each scenario and select a centralized and outsourced shared services model to maximize their potential cost savings.
The Bottom Line
By implementing a new operating model construct that included shared services, offshoring, and outsourcing, the client was able to capture over $7M in annual cost savings.