Tranparency & Cost Control
A leading commercial bank improved efficiency and cost control with H&Z through structured performance and cost management, gaining transparency, benchmarks and targeted reductions
Client Challenge
Previous initiatives had failed to achieve the expected cost impact and FTE reductions. The cost base continued to rise, while transparency on cost structures, drivers and unit performance remained limited. There was no integrated, driver-based cost model, and central consolidation and steering initiatives with clear ambition levels had not been implemented. The management board lacked a robust, data-driven foundation for sustainable efficiency improvement and internal or external benchmarking.
H&Z Approach
H&Z designed and implemented a structured Performance and Cost Management Programme. First, a harmonised view of the cost base was created, including a driver-based cost model and transparency on structural (in)efficiencies across all organisational units. Costs were mapped by function, product and organisational dimension, enabling a clear link between spending, capacity and value contribution.
A tailored benchmarking framework was developed to compare units internally and against market-typical efficiency levels. Based on this, ambition levels and cost targets per division were derived. In joint workshops
with management and department heads, efficiency levers, structural measures and quick wins were identified and clustered into coherent initiatives.
These initiatives were consolidated into a robust business case with scenario analyses, showing different pathways for cost reduction and performance improvement. The resulting portfolio of measures formed the backbone of a new transformation and performance-management programme, supported by clear governance, steering routines and a PMO to track impact and benefits realisation.
Results
The bank now benefits from full cost and performance transparency across all organisational units. A unified, driver-based cost model enables systematic comparison, clear cost ownership and a direct link between cost, capacity and value contribution.
Through structured analysis, the bank identified addressable spend of 25–40% and validated savings levers of 8–15% in indirect spend and 10–15% in IT cost blocks, depending on the category.
New performance-steering routines – including regular performance dialogues, scenario-based reporting and benchmark-driven target setting – have strengthened accountability and cost discipline throughout the organisation.
The programme allowed the bank to free up budget for transformation and innovation while building a repeatable framework that enables ongoing efficiency improvements.
Procurement and IT have strengthened their position as strategic value contributors, jointly steering cost, risk and performance. Reliability, transparency and data-driven fact bases have become integral to decision-making.
Impact delivered
- Full transparency of 100% of the cost base through a harmonised Spend Cube and driver-based cost model
- Structured internal benchmarks and external reference values to assess efficiency and value contribution
- Identification and prioritisation of efficiency levers across procurement, IT, operations and support functions
- Addressable spend of 25–40% and validated savings ranges of 8–15% (indirect spend) and 10–15% (IT)
- Sustainable performance steering through recurring reviews, scenario reporting and clear cost ownership
- Strengthening procurement and IT as strategic value creators through integrated governance and data-driven decision-making
Get in Contact with our expert
If you would like to learn more performance and cost management and efficient benchmarking processes in banking, please contact our financial services team.
