Enterprise efficiency program to restore cost control and productivity in IT services

The IT service provider, a 100% subsidiary of a large transport and logistics group, was contractually bound to internal service obligations while the parent company’s economic crisis triggered a direct mandate from the group board to increase efficiency. Years of strong growth driven by digitalisation demand had led to complex structures, grown hierarchies and culture, as well as uncoordinated efficiency initiatives. The result: absence of a central steering logic meant that the board could neither reliably assess the cost impact of efficiency measures nor actively intervene – putting cost control, credibility and execution at risk. The core challenge was to implement a structured, group-aligned efficiency and productivity program – a classic Cost Reduction & Productivity case within Operational Excellence.

The efficiency program followed a clear cost‑ and productivity‑steering logic: establishing transparency on levers and impact as a prerequisite for board‑level decision‑making and disciplined execution across the organization:

• Agile program structure: Established workstreams along key action fields to identify, analyse and shape central efficiency measures, complemented by decentral initiatives across units
• Centralised reporting & governance: Introduced an enterprise-wide efficiency dashboard consolidating >8 central and >20 decentral measures, with clear governance and communication from business unit leadership up to the group board
• Collaborative design & enablement: Involved >30 employees in recurring formats and multi-day workshops to detail measures, including process optimisations and GenAI use in software development, ensuring feasibility, ownership and fast implementation

The program created company-wide transparency on efficiency levers and realised effects via a robust dashboard, enabling fact-based steering of >8 central and >20 decentral measures. A consistent stakeholder management and governance model restored clarity and trust between business units and the group board. Concrete efficiency gains were achieved through process optimisation and the use of GenAI in software development, contributing to a measurable reduction in personnel needs while safeguarding service delivery. The client now has a structured, repeatable productivity program and reporting framework, enabling sustained cost control and higher productivity beyond the initial crisis response.

The client is the internal IT service provider of a major German transport and logistics group, responsible for developing and operating critical digital solutions across the group. As a wholly owned subsidiary bound by internal contracts, it must continuously balance cost efficiency, innovation and reliability in a highly complex, mission-critical environment.