Case study: Reducing costs while increasing satisfaction

The problem:

After rounds of cost reduction, the IT leader of a mid-size manufacturing company was facing a tough decision. Senior management had asked him to reduce his IT budget by 10%. The IT  budget that was already tight to begin with, cutting 10% was a huge challenge. 

The IT department was already facing an aging infrastructure and the only real option was to reduce the renewal cycles of its desktop and laptops. There was no way around it, reducing costs would reduce services and impact the users. 

The solution:

Instead of blindly cutting costs across the board, the IT leader used PÜLS IT Satisfaction Survey to identify areas where users were satisfied and where satisfaction was lower. Using survey data, the team developed a computer renewal policy based on the actual satisfaction of the users by departments. Computer replacement for departments where users were already very satisfied was slowed down while dissatisfied departments were sped up slightly. 

This information-based approach allowed the team to not only reduce the costs of equipment renewal, but also to increase satisfaction across the board. And since the survey is conducted monthly, they are able to adapt their process dynamically to maintain a healthy level of satisfaction. 

The team now uses this approach to manage their overall services, adapting service levels based on the real needs of the users. 

Related research

Posted on March 23, 2015 .