Optimising programme costs in a challenging internal environment

Learn how we optimised costs, renegotiated commercial positions and secured the programme funding on a large scale transformation.


Our client’s wider UK business was facing a significant financial challenge from its parent company.

Cross8 had previously been successfully engaged on design and delivery for the client’s smart meter programme in response to the UK Government mandated smart rollout. As one of the largest programmes of change, the smart programme came under intense scrutiny as a result of the tighter internal financial environment.

On top of the expected challenges in running a programme of this size the programme was experiencing repeated delays caused by regulatory factors beyond its control. The delays were leading to upward pressure on costs and introducing further change to the business.

The client needed to reduce the cost of the programme where appropriate and ultimately validate the expense it to its parent company.

Cross 8’s Approach

Cross 8 leveraged the delivery assurance function we had already implemented in order to carry out a detailed cost review of all areas of the programme.

We designed a costing model and led the cost optimisation and challenge process, working with both the wider programme and business to move to a lower cost approach

The Results

Working with the wider programme and the business, we were able to identify cost savings of more than 10% across the programme, saving the client in excess of £15 million.

More importantly we renegotiated the main supplier agreements to include gain/pain share clauses that ensured our client had a degree of protection in the event of future slippages by the UK Government.

Finally, we successfully led the internal Group negotiations and secured the necessary ongoing funding on the basis of the new controls.

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