"We're probably down 400 basis points or so from that highpoint three years ago, and we've got to continue to drive that improvement," said Darlington. "The way to do it is to get more efficient and effective in how we do the work. And that's where technology comes in."

A big factor in boosting efficiency and effectiveness is centralization. BMO has long held a centralized view of technology management, but with the proliferation of PCs and open systems, it became easier for individual departments and lines of business to invest in IT on their own. Unfortunately, decentralized investments were not subjected to the same rigorous analysis that T&S applies to centralized investments. That being the case, the trend has been reversed. The IT function has now been centralized under T&S, which follows the operating principle: one organization; one set of principles - what Darlington refers to as the Power of One.

"By centralizing we are able to leverage scale, enforce standards and aggressively manage our vendors," he said. "This has allowed us to absorb 30 per cent growth in computing resources annually while keeping our costs flat."

When completed, the IT functions that are now being centralized will decrease in cost 15 to 20 percent. Centralization also streamlines governance functions, which will greatly simplify the organization's ability to demonstrate compliance with Sarbanes-Oxley.

The organization has worked closely with its business partners in effecting an investment shift from one that is heavily line-of-business focused to one that puts far greater emphasis on the good of the enterprise as a whole. Lines of business have also had their own discretionary IT budgets substantially reduced.