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Case study · IT

How an IT Organization Reduced Defects and Eliminated $55M in Costs by Improving Development Workflows

$55M
in costs eliminated over five years
At a glance
Reduced a 50% defect rate in code production, improving product quality
Eliminated $55 million in costs over five years by improving internal execution
Reduced reliance on external contractors through stronger internal capabilities
Improved development speed and collaboration by creating visibility into workflow
Industry
Technology / IT
Structure
Internal IT department supporting enterprise digital initiatives
Challenge
High defect rates, lack of process visibility, and inefficient development workflows
Engagement
Workflow improvement and leadership development using the Work Excellence Method

The challenge

A large IT department responsible for supporting digital initiatives was experiencing a 50% defect rate in code production, significantly slowing progress and increasing costs.

The team lacked clear visibility into how work moved through the development process.

Without a structured system for managing workflows and identifying issues, defects were often discovered late, leading to rework and delays.

This resulted in:

Slower delivery timelines
High reliance on external contractors
Increased operational costs
Frustration across teams due to recurring quality issues

Despite strong technical talent, the absence of clear workflows and visibility made it difficult to consistently deliver high-quality output.

Our approach

Work Excellence partnered with leadership to improve how development work was structured, managed, and executed.

Rather than focusing solely on technical fixes, the work centered on improving workflow visibility, problem-solving, and leadership capability.

We worked directly on the business by:

Creating visual systems to make development workflows and issues visible in real time
Coaching leadership to establish clearer processes and improve decision-making
Introducing structured problem-solving to identify and address root causes of defects

This approach allowed the team to move from reactive issue resolution to proactive workflow management and continuous improvement.

What the team built

The organization implemented a visual and structured workflow management system that improved both execution and collaboration.

This enabled:

Real-Time Workflow Visibility

Teams could clearly see how work progressed, where issues occurred, and how defects were introduced.

Faster Problem Identification and Resolution

Defects and inefficiencies were identified earlier, reducing rework and delays.

Improved Collaboration and Ownership

Teams worked more cohesively, with greater accountability for quality and outcomes.

Leadership also strengthened development processes by incorporating external expertise where needed, further improving code quality and consistency.

Results

The impact on quality, cost, and execution was substantial:

Significant reduction in defect rates, improving code quality and reliability
$55 million in cost savings over five years, driven by reduced rework and contractor reliance
Reduced dependence on external contractors, strengthening internal capabilities
Improved execution speed and collaboration across development teams
Leadership advancement, with the department head promoted to VP and scaling improvements across the organization
What this means for leaders

Quality issues reflect how work is structured and managed.

When teams lack visibility into workflows and a clear process for identifying issues, defects increase; rework compounds, and costs rise, even with strong talent in place.

This case shows that improving quality and reducing costs starts with improving how work flows and how problems are identified and solved.

Key takeaways
Defects increase when workflows lack visibility and structure
Rework and cost overruns are often driven by late issue detection
Improving how work is managed leads to both quality and cost improvements

Execution quality is a function of how clearly workflows are defined and managed.

Evaluating how work flows through your teams—and where issues are identified—is often where the greatest improvements in quality and cost can be achieved.

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