Context / Scope of project

Our client is a health business that was formed by merging 3 businesses across Australia. Although the 3 businesses enjoyed significant market share in their respective markets, growth was slowing and a greater focus was being put on reducing costs. The 3 businesses had very different cost structures suggesting a sizeable opportunity. However, previous attempts to standardise cost structures failed due to significant regulatory differences and differences in the service mix.

PIP was engaged to cut through these differences and identify which savings opportunities actually existed and quantify how much could be saved. Our approach was based on identifying the underlying drivers of productivity in each business and adjusting these for regulation and service mix. We then workshopped these with management to ensure the benchmarking and cost savings were realisable.

Client achieved: