What is the potential cost savings from implementation of a new Management Operating System?

Problem

As a leading technology and engineering company, EngineeringCo is always striving to improve their operations efficiency. One of the ways doing this is eliminating lost time and guiding the saved hours into more value adding work. In practice this is done by introducing a new management operating system with concrete value targets to tackle inefficiencies in three main activities: meetings, email culture and escalation management.

Situation

New Management Operation System (MOS) implementation begun at EngineeringCo to improve efficiency of project operations. But senior management wanted to estimate the monetary cost realizations from this system before rolling it to the complete organization. Together with EngineeringCo excellence team, SprintlyWorks team was tasked to determine the monetary value potential of the new MOS and create a tool for measuring the realized efficiency improvements.

Our approach

SprintlyWorks team conducted an effort to produce tangible results that enabled EngineeringCo to have a deeper look at the value drivers of efficiency and an easy way to track the progress. The project consists of 3 phases:

• Conduct an organization-wide survey to understand the situation before the implementation of the new management operating system.
• Interview project experts & analyse company material
• Calculate the MOS value potential and creating a tool for measuring the realized value

Methodology

Phase 1: Organization-wide survey

An organization-wide survey was conducted to get an understanding of the situation before the implementation of the new management operating system. The survey provided crucial data points for in-depth calculations of current inefficiencies and time lost in project practicalities, including:

• Frequency data on common efficiency issues in the three improvement categories: meetings practices, email culture, and escalation management.
• Aggregate magnitude of the inefficiencies and lost time in the three improvement categories.

Phase 2: Interviews with EngineeringCo project experts & project documents analysis

Interviews with EngineeringCo project experts and analysis of project documents were conducted to get an understanding of how and how much is the new management operating system decreasing the inefficiencies and eliminating lost time. This was done by:

• Linking the aggregate lost time to specific efficiency issues.
• Calculating the frequency of issues after management operating system implementation.

Phase 3: Calculation of monetary value potential and tool creation

Combining the data gathered in previous phases from the survey, interviews, and project documents a final calculation of the value potential of the management operating system was made. The final deliverables included:

• Annual monetary value targets for 2021-2025
• An Excel tool for measuring the realised value at the end of each year
• Additional value potential of further expanding the implementation of management operating system

Results

SprintlyWorks team successfully provided the monetary value for the management operating system as well as a tool for measuring the realised value. This enabled EngineeringCo to easily monitor the changes on a yearly basis. Based on the above, EngineeringCo management gained a better understands of the current situation of project work and is able to further drive performance towards the target.