How we helped
A global advertising agency had historically been a strong performer, but market pressures had led to low productivity across functional areas, static revenue growth, and rising costs.
Additional pressure from aggressive M&A had resulted in lower profitability than expected, duplication of leadership roles within brands, low productivity across functional areas, and poor understanding of employee productivity. Faced with these challenges, the agency sought the expertise of AlixPartners to conduct a comprehensive review and identify opportunities for cost reduction in seven of its largest global markets.
Throughout this process, we worked closely with the client to conduct workshop reviews of organizational structure, costs, and headcount by brand and line of business. Using our proprietary Radial analysis tool, our team established a baseline and quickly processed, analyzed, and interpreted vast quantities of client data across underperforming brands.
We then quantified potential savings and devised an implementation plan centered on various levers, including underperforming brands, organizational design, managerial efficiency, resource productivity, cost-efficient locations, and property.
To ensure the successful execution of identified initiatives, we established a robust project management office (PMO). The engagement delivered a total of £12 million in annualized cost savings, including a 14% baseline cost reduction of £90 million across the seven global markets and an additional £12 million cost reduction across other geographies.
Additionally, we identified further areas for future improvement, including detailed productivity study and nearshoring and offshoring opportunities, ensuring the advertising agency's resilience and competitiveness in a dynamic market.