Summary: Restructuring the services Model for a top tier Asset Manager
Servicing an ever growing global footprint, where clients expect repeatable, consistent and transparent administration services of their Funds all while a downward pressure on margins is the driving feature, this top tier Asset manager looked as to how better to structure their services for consistent, repeatable processes at a more efficient price point. Harnessing and building expertise that could be shared over multiple teams.
Location Strategy and Change management Case Study
Location Strategy
Location Strategy is more than just moving processes to onshore/offshore locations. It involves looking at how best to service the client, dependant on the services being provided, and utilising the company’s existing or expanded footprint to optimise this. It takes into account co-locatable processes, alignment of central or core services and location as well as regulatory and business continuity best practices. It must be driven by what the key unique competencies are of existing service locations and what is repeatable, structured and requires consistency in its outputs. Pure resource cost arbitrage, is only one element to be considered, but should not be the driver.
Change Management
Moving of core processes is not just lift and drop. Level of maturity of a process, structure and quality of documentation need to be identified prior to moving. Where do the processes sit in terms of criticality of the end output? Systems required to support not just the process but also the management of process and data at arms length. Carry over of controls or adjustment of these, given that they may not be co-located. The skills available for training, oversight, management have to be re-considered as well as people impacts. This is where a thought through change management plan can assist the migration achieve the objectives, all while maintaining a stable platform from which is being built and realising the benefits to the client once migrated.
The Challenge
Move multiple locations, doing similar or various parts of core back and middle office services, into a global centre of excellence, servicing a global footprint. Design for varying cut-off times, delivery times and multiple jurisdictions. Ensure common, repeatable processes across all serviced location for better quality, timeliness and lower cost than existing. Leverage knowledge to improve.
Our Approach
Review of the organisation, to establish support, risk appetite and footprint of co-locatable processes. Commonality of processes and not how it was being done by location currently. Using the principles of Define, Measure, Analyse, Improve and Control, we brought the core common processes together. Ensured they were stable, structured and then trained via different methods to the new teams. Interaction between new and existing teams was key and the approach of extension of the team rather than hand over as a managed service was key.
Once established with KPI’s being met, the new teams were encouraged to review for efficiency of the processes and develop the model further, in conjunction with the locations they serviced. This further rounded out the transfer of knowledge and set up the teams to have trust in each other.
The Outcome
A Global service centre of excellence was created, servicing a follow the sun model with built in business continuity and a continuous improvement approach of processes. This led to further taking on more critical processes as experience was gained. In total 24+ Core processes moved, 1800 head count and servicing 12+ Regional service centres.