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Optimization of back office functions

During the post-crisis period, in many Russian companies a trend of growth in overhead expenses is being witnessed, including on the maintenance of supporting functions; finance, HR, legal and IT. These expenses are often growing quicker than income.

Of all the organizational transformations, the toughest transformations for companies are those related to reduction in expenses on the maintenance of supporting functions. This is not only due to the increase in the negative attitude towards the company management among the employee team due to the potential reduction in personnel, but it is also due to the fact that often the reduction of overheads occurs at the same time as business expansion, during which top managers usually focus their attention more on operational expenses than overhead expenses.

Initiatives to optimize expenses on the maintenance of supporting functions may only be viable and will have a long-term effect if they are attached to strategic objectives and are implemented based on a well prepared plan.
When implementing projects for the optimization of expenses on the maintenance of supporting functions (back office) of international and Russian companies, Deloitte consultants use their own methodology, which includes three consecutive stages:

  • Detailed analysis of organization of back office functions (including analysis of business processes, automation level, organizational structure, labor costs and key labor cost factors, distribution of areas of responsibility etc.), benchmarking.
  • Detailed development of operational and strategic initiatives for optimization, as well as "quick wins" to reduce costs; assessment of effect from initiative implementation.
  • Development of initiative implementation plan and direct implementation.
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