The problem addressed by the campaign:
- Marsh conducted back-office
operations throughout its 44 North American offices. This decentralized
structure inflated claims processing costs by an estimated 40% over
competitors. Consolidating back-office operations in low-cost areas became
necessary to remain competitive.
- Two locations needed to be
identified for the administrative services centre that would supply an adequate
number and right quality level of job candidates.
- Marsh could not afford to be surprised by local
conditions once a decision was made on the service centre.
Conclusions and Recommendations:
- Have your
decision criteria spelled out up-front.
- While a
qualified supply of labour factors is needed in almost all decisions, there is
no “fixed set” of criteria.
basing decisions entirely on cost – be conservative about projected cost
savings and stick to a short time horizon.
- Do not simply look at the
location factors, but decide which processes travel well and which need to be