On behalf of our clients, McLagan specialists benchmark revenue, expenses and headcount by location and compare performance against peers at a granular business level. Our findings allow financial institutions to then allocate their resources in the most efficient and productive way possible.
McLagan uses benchmarking exercises to:
- Compare revenue and cost by business line, product and location against peers and competitors.
- Reallocate resources by adjusting the staffing levels in specific areas.
- Address issues in human resources grade system to improve productivity.
- Determine the efficiency and impact of internal versus external sourcing options.
- Develop location specific strategies.
- Deliver facts that drive budgeting, planning and change management decisions.
Case StudyA leading European Investment Bank was concerned that non-compensation expenses were excessive. Without access to reliable market data to validate this perception, or to inform any change plans, the organization was unable to act on this concern.
The benchmarking results confirmed their non-compensation spend was indeed above the market spend by most of their closest peers.
Due to the granular nature of the data analysis, this firm was able to use the results to identify key variances in specific expense line items by division and further by product and sub-function, and by geography. On the back of the study recommendations, an internal team was set up within the firm to implement a savings plan.
This plan realized a savings of approximately $100m over a 2-3 year period.
This firm also put in place guidelines and procedures around future non-comp spend that has been successful in controlling costs.
