After years of working with a number of leading companies and public service agencies on total cost reduction, Accenture completely understands how to make cost reduction more strategic and sustainable. Accenture applied these lessons to enable improvements for the MTA that helped bring quick cost savings and position the agency to achieve long-term results. Specific results include:
Re-evaluating 280 projects in the operating budget and removing 141 projects for a savings of $40 million in 2010.
Working with 43 vendors and suppliers to renegotiate contracts and identify savings of nearly $40 million, including $18 million in existing contracts in 2010—all without affecting service.
The authority now plans to target additional areas of improvement moving forward, including controlling overtime, consolidating redundant functions and modernizing inventory processes.
“By creating a leaner, more efficient organization, we can restore MTA’s credibility and position ourselves to make great improvements to our system when the economy recovers.”—Jay H. Walder, chairman and chief executive officer, New York MTA (as quoted in April 15, 2010, issue of the New York Post)
Read the full report [PDF, 88KB].