The Situation
With a new outsourced contract in place, our client, a major corporate business and a significant national brand, was unable to define, measure and report the cost savings promised by the new service provider. The relationship with the service provider was failing as the business saw no evidence of the cost savings they required.
The challenge
With significant experience in the design and management of innovative gain-share and share-of-savings models, Grosvenor was asked to develop a process to enable the client and their service provider to define and measure contractually agreed cost savings. All savings would require compliance to contractual terms and ability to withstand scrutiny to the level of internal audit, while working to improve the relationship and motivate performance.
The project
By designing a series of workshops, the Grosvenor team were able to highlight the various issues preventing the client from achieving their goals. Through the application of expert facilitation processes Grosvenor were able to articulate and define the measurement protocols, processes and frameworks required to achieve the desired outcome.
The result
Opportunities for improvement that go beyond the specifics of a consulting brief are found in almost every project. In this instance Grosvenor were able to achieve the desired management framework for performance management of multi million dollar cost savings targets as well as use the workshop and facilitation processes to build more effective working relationships and improve overall contract performance.
A fully defined and documented cost savings model was developed with a significantly improved platform for developing improved contractual relationship including an understanding on all sides of the behaviours necessary to ensure long term success.
