P165 Operating Model

Case Studies

UK Retail Asset Manager

Target Operating Model

In 2014 a large UK asset management client embarked on a significant re-platforming of their Investment Operations IT architecture based on a strategy to introduce an Investment Accounting IBOR system and an in-house build of a new data warehouse to serve Front Office and Distribution users.

The objective of the strategy was to increase the quality of the data service provided to the front office whilst simultaneously providing flexibility for future operational changes and business requirements, namely globalised portfolio management and multi-asset class portfolios.

Having managed the selection process for the IBOR system Knadel were invited to develop the Target Operating Model across all operations teams to best utilise the new technology and set the operations department up to meet the demands of the business strategy.

Business Challenge

The project demanded a number of outputs all of which required presentation to senior committees and executive stakeholders across the organisation. 

  1. Review the current operating model and provide recommendations for best practice integration of an IBOR and Data Warehouse Solutions.
  2. Develop a new phased target operating model for 1, 3 and 5 year timeframes to leverage the new IT architecture.
  3. Recommend an appropriate governance structure to provide direction and authority for all operating model decisions.
  4. Recommend a five-year roadmap of technical, organisational and operational change projects to implement the TOM.

Solution Approach

Providing a small but experienced team combining operations expertise and enterprise architecture & operating model experience Knadel were able to quickly and comprehensively document the existing operating model, including all organisation, functional and technical perspectives. In conjunction with a senior stakeholder group the team developed operating principles and assessed the existing model against the business strategy to identify options for the full use of the new strategic architecture. 

To ensure good governance the team proposed the construction of an operating model authority including full terms of reference, composition and reporting lines. This recommendation was adopted and was established and supported during the project timeframe. 

Working with operational department heads the team fully developed and refine the options for transforming their capabilities leveraging the new platforms. Collaborating with both Enterprise Architecture and Change departments the team ensured that the IT strategy was sound and that all in-flight and proposed projects were sensible and supported the target operating model. 

Knadel proposed, supported and gained agreements on changes to responsibilities, team structures, the provision of services, technical architectures and the use and distribution of data all within the original remit of the project.

The team developed sequences of operating models with recommendations supported by the impacted stakeholders into final roadmap including timeframes and project scales. 

Knadel Value

  1. Experience of Investment Accounting-based operating models
  2. Refined development process for op models
  3. Approach to standard documentation
  4. Independent perspective and knowledge of market best practices
  5. Appropriate engagement at senior levels.
  6. Full delivery against all requirements. 

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