The company planned to invest $100M in replacing obsolescent technology. Upon analysis, it was discovered another $150M would be required to meet the necessary objectives. Business leaders were at a cross-roads and a thorough analysis was required to determine next steps and re-establish the program on the right footing. The situation was further complicated because there were binding contracts and commitments made. The original business case did not include benefits to cover the additional investment and the resulting change would impact over 10,000 frontline staff. Original estimates and program setup did not address the business process changes and change management considerations.
Approach and Solution
A cross-functional team of business and financial analysts evaluated the benefits inherent in the program using structured methods to develop a business case and a rigorous process to collect, review and analyze the data. Business stakeholders were organized into a guiding coalition and took responsibility for conducting the analysis and delivering the benefits. Multiple cross-functional issues were resolved by a dedicated business organization sourced from the operating divisions. Practices were established to ensure senior management engagement throughout the process. Critical investment decisions were made using structured evaluation techniques.
- Redefined the program in a business context
- Identified $250M in additional annualized benefits