Simulation for Financial Services

A major European Insurance and Fund Management Company wanted to instigate a programme of cost cutting in the light of stock market collapse and consequent earnings reduction. After briefing the CEO and board members on our approach we worked with a team of 20 managers to identify the business architecture. By establishing the true profit model of the business, the team was able to find the best places to seek costs savings without damaging the fundamental ability of the company to earn cash: in other words, we helped them ensure they were cutting out fat, not slicing into muscle and bone. Moreover, we helped the management team and board see that by cutting certain business areas altogether, they could create not only a leaner business but also a healthier one with greater potential in a market upswing. In short, the approach helped them subtly remodel the business for future success.