Identifying unrealized cost reduction opportunities

Chaucer / Chaucer Consulting / Case Studies / Identifying unrealized cost reduction opportunities

Our client needed help with:

  • Global pressure to reduce costs lead to a real estate portfolio rationalization program.
  • The client wanted to identify which locations to focus on first, and how much cost could be avoided without impacting productivity.
  • The program involved moving from traditional assigned seating to unassigned hoteling.

Our approach:

  • Used physical access control (security badge) data to model attendance
  • Analyzed large volumes of data from multiple facilities to identify the factors affecting attendance
  • Applied sophisticated models and space plan reviews to predict the future demands and cost saving opportunities

The results:

30%

Cost saving opportunity identified

100%

More effective than traditional methods

85%

Of maximal saving potential as measured after project was predicted by analytics

$15m

Additional annual cost savings identified beyond traditional methods

How we delivered these results:

  • Six-to-twelve months of historic security badge data was analyzed for key facilities where there were either or both high costs or known low-occupancy
  • Typical attendance behavior expectations were modelled and compared to the data collected. This allowed us to confirm which attendance patterns each individual exhibited, and also the people or days that fell outside expected patterns
  • Regression analysis was used to isolate these outliers, and the environmental factors influencing the period of analysis were identified
  • Where causality between these factors and the measured attendance could be identified, these were incorporated into the predictive model, and Monte Carlo simulations provided very accurate forecasts of demand

If you think we can help you to implement your project or programme strategy, please call us on:
+44 (0) 203 141 8400 in UK/Europe, or ​​​+1 713 821 1783 in the USA.

Alternatively, please send us some brief information and we can discuss things in more detail.