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IT Division Sees 30% Savings in Operating Costs, 70% Jump in Employee Morale
Situation
A multi-billion dollar healthcare company enjoyed tremendous growth, acquiring five companies in two years with more acquisitions in the works. As a result of this expansion, the Information Technology division quadrupled in size.
While the company worked on merging cultures, people, and processes with each acquisition, the IT department remained stagnant. Energy was focused on sustaining the status quo, and no effort was put into reforming the organization, which involved businesses in various parts of the country.
No integration strategy existed, and service levels began to suffer. The individual Help Desks had somewhat, but not fully, consolidated their services. IT costs skyrocketed while employee morale plummeted.
The company sought to reduce headcount and streamline technology to enhance efficiencies. During this time, a “Best Places to Work Survey” was conducted in the IT division. Results showed that an alarming 80% of IT employees:
- Didn’t trust management.
- Saw no chance to advance within the organization.
- Didn’t have the proper tools/resources to do the job that was being asked of them.
- Were unclear of project priorities.
Approach
RCR Associates was called in to work on an operating model and all IT communications—telecom, networks, Help Desk—for the growing division.
After conducting an initial needs assessment of the entire IT organization, RCR Associates determined that a clearly defined merger integration plan did not exist. Based on discussions with Executive Management and employees several initiatives were undertaken:
- The development and implementation of an IT Operating Model to support business objectives that included: core work, competencies, tools, roles and responsibilities, organizational structure, business processes.
- The creation of an IT merger integration process.
- Enhancing Project Management skills for employees, including the implementation of a standard Project Management methodology and training coaching of Project Managers.
Results
The project management coaching and training developed employees so they could assume key leadership roles in the project to implement the new operating model.
Working with these new leaders, RCR Associates helped the company save 30% in operating costs and increase employee satisfaction by 70% in one year.
By implementing RCR Associates’ new call Center/Help Desk process adherence to service level agreements rose to 90%, a dramatic increase over the original 50%.
Finally, the processes developed became the model for future acquisitions and created a project evaluation and prioritization approach that directly links to the business planning priorities.