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roymoggadmin
05-13-2009, 05:10 PM
Planning Cost Reduction

This service is just one of the approaches we offer to managing technology and has been applied to several large scale organisation in the UK and Europe. This action science approach also forms the basis of the creation of the internal bid of the in-house IT organisation prior to an outsourcing market testing.

A ‘Crosslight’ project is an approach that is similar to a zero-based IT service assessment. Within such a project we look very closely at the way IT services are used, and propose; projects; differing governance structures and service changes (stopping projects for example), all focused on reducing the overall cost of ownership. This is not simply a bench-marking project it is action centered with a clear focus.

Roles in Crosslight:

The supplier and the client select a representative to act as a joint project leader. This person has authority to take decisions for their company within the context of the Crosslight project. The role of a project leader is to act as ‘judge and cross examiner’ of the proposals given - with the clear focus of helping the supplier/customer teams find the money. Both the customer and the supplier appoint a responsible person to drive the opportunity and project definition - these do the work of cost reduction identification with their teams. These are usually the IT director of the client or a consultant from Crosslight consulting and the service delivery manager's of the suppliers.
Format of a Crosslight Process


In a Crosslight meeting the supplier starts with giving a detailed overview and presentation of the IT service provision (systems service and costs) and identifies cost reduction opportunities and supporting projects.
The customer then gives a presentation detailing all service and cost elements from his/her perspective and also identifies cost reductions chances.
The two project managers (and the other team) question the other; clarifying points, questioning assumptions and identifying further cost reduction activities or opportunities.

By this means a list of project activities or actions are identified that deliver the overall Crosslight project cost reduction target (normally around 20-25%). Each activity must be stated clearly, along with its cash contribution - all project pay backs more than a year away are deemed out of scope. Following this initial meeting round the two teams then work out in detail their proposals and report back.

For this method, we offer training and/or coaching