The push to simplify and streamline

The push to simplify and streamline

The push to simplify and streamline

Author: Elena Moynihan, Liqueo Senior Front Office Consultant

 

Everyone is familiar with the process. When the RFP for vendor selection is complete and a new Front Office system has been selected, everyone is excited about the potential of new possibilities this change will bring. 

This is the point at which the hard work starts. Plans are drawn and stakeholders are nominated. Often the focus of the new team is the software and once the latest version of it has been downloaded, everyone wants to start playing around with the blotters and configuration. 

But at this point, when people ask: “How will the new software be used?”. The answer is often “Like for like”. Nobody wants to disturb the business workflows or rethink the way business teams work, or review roles and responsibilities. After all, it took so long to put them together and they work, so why rock the boat?  

 

Why you should review the business operating model


Fund Managers and Traders are busy people and so, while it is understandable that discussing new business operating models, as a result of new tools does not rank high on their list, it could lead to missed opportunities. Often, not reviewing operating models at the same time as implementing new software, can mean potential improvements, savings, and efficiencies are overlooked. Instead of bending, and modifying, the new software to fit the existing business model, there could be a chance to adapt and improve.

At Liqueo, we can help. Our team draws on many years of experience in Front Office implementations. We’ve learned many lessons in avoiding these pitfalls…Keep reading to hear our top tips.

 

Business and technology working together 


It sounds obvious, but major Front Office implementations work best when they run as a true collaboration between business and technology. It is important to avoid rushing into a technology focus improvement and making it all about the tools. The best way to do this is to always take time to first build a TOM (Target Operating Model) owned by everyone involved. 

This ensures that right from the start:

  • The project is not viewed as an IT initiative, but a wider business change programme. Aligning operations and technology impacted by the project, with the business strategy, is the key to extracting optimal benefits from the new technology.
  • Business practices are continuously reviewed at the senior level (CIO/COO). The three TOM components of; processes, people, and technology must evolve concurrently throughout the project, reporting to a senior stakeholder from each area to build, and deliver, the future state model.
  • Always keep an eye on the goal. For the business to operate efficiently and transparently, increase volumes and launch new products at minimum marginal cost. A well-implemented model also enables clear performance indicators across the organisation, as data is clearly shared and distributed. 
  • On the IT side, a properly defined TOM ensures the system architecture is accurately designed and documented, improving support and monitoring procedures.

 

Gearing towards a streamlined implementation


With the above framework in place, the team can now gear towards a streamlined implementation. 

The closer an out-of-the-box implementation is achieved, the better the speed of programme delivery and the robustness of the final product. This can therefore further allow them to plan for future upgrades, and groundwork for onboarding new functionality. Every coding customisation and deviation from the product’s core introduces complexity and potential points of failure. So throughout the project, the team should always evaluate whether a customisation request is essential by asking these simple questions: 

  • Does it return value for money? 
  • Does it positively affect and improve business strategy? 
  • Can the same goal be achieved with a non-technology solution? 

 

In summary


Experienced Project Managers and Business Analysts bring knowledge of comparable implementations in the industry and can help your business evaluate these questions to make informed decisions and deliver the best solution. 

Get in touch
Here at Liqueo we are clear, transparent, and evident. We were established to offer a fresh and exciting approach to Management Consulting within Asset and Wealth Management, in order to be the global consulting partner of choice within Asset and Wealth Management

Our mission is client focused. We excel in working for clients managing programmes where the vendor cost is significant. We provide organisations with the skills they need to implement programmes successfully and deliver to the client strategic goals. 

To get in touch, contact us at info@liqueo.com

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