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Tate

Strategic Cost Optimisation

Tate – Strategic Cost Optimisation
Client Tate
Region UK
Sector Public Sector, Health and Not For Profit
Offering Sustainable Cost Optimisation
Buzzwords
Change management Operating model Organisation design

The Challenge

As an internationally renowned institution at the heart of the arts sector, Tate operates four sites across the UK, conserving the national art collection and engaging with audiences nationally. ​

In light of the  financial pressures of the Covid-19 pandemic, the cost-of-living crisis and changing audience expectations, Tate needed to reduce costs and improve operational efficiency by prioritising their effort on mission-critical activity. They had already undertaken some initial work to identify strategic investment areas and needed to integrate this into a more streamlined business model with a stronger commercial mindset. ​

As such, Tate engaged Q5 to undertake a diagnostic review of their business model, operational processes and ways of working to identify opportunities for efficiency and align capability to activities that align to the Tate’s public commitments and organisational goals. ​

Our Approach

The Q5 team worked collaboratively with the Director and executive leadership team to:​

  • Quantitatively assess Tate’s organisational structure, using Q5’s org-maps, to size potential savings from delayering the organisation​
  • Assess all commercial activity and potential gain of investment for key income-generating activities​
  • Review the operational processes and associated costs using PnL data and evaluate the financial impact of duplicative activities, unclear accountabilities and lack of prioritisation​
  • Interview leaders and use Q5’s culture survey to evaluate the level and type of behavioural shifts required to embed the change at a practical level​
  • Model different operating model options, and assess these against potential cost savings, scale of change and organisational impact ​
  • Developed detailed costed structures and process improvements in line with agreed operating model ​
  • Evaluate the balance of risk of change against the potential return on investment and change across the business model

Key Outcomes

  • Operational savings realised, through streamlined operational processes and increased financial transparency​
  • Headcount cost reduction identified
  • Realigned and right-sized leadership portfolios aligning resources to strategic priorities and critical capabilities​
  • Agreed guiding principles to balance investment cases with risks of change to operational sustainability​
  • Prioritisation of activity, reducing non-strategic work that was driving up operational costs​
  • Recommended areas of reinvestment to support for income-generating activity ​
  • Identified the critical capabilities required to realise the savings and organisational model needed for a sustainable future ​
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