Operating Model Design


Operating Model Design

There is no one size fits all operating model for the investments industry, each one is unique in some way.

Components of an Op Model

However, the process, components and design of an operating model is a standard process that Knadel has performed successfully many times.

Knadel's view of an operating model is a combination of multiple factors which must align to deliver an organisation's strategy.

  • People - an organisational structure, with well defined roles and responsibilities
  • Processes - a set of activities and associated controls which define operations
  • Services - delivered to customers
  • Data - operational data together with controls over its capture, validation, storage and use which supports delivery of processes and services
  • Technology - the application set supporting delivery of the above

Operating models are often stressed by changes such as M&A, geographic expansion, new products/activities, regulation, customer demand or technology capability.

We consider that a model is effective if it passes a series of practical tests:

  • Quality - does it support the organisation in the achievement of its mission? Can the organisation do what it needs to do?
  • Adaptability - how flexible is the model to internally or externally driven change?
  • Cost - is the model affordable and competitive?
  • Risk - does it align to the organization's risk appetite?

The Knadel approach to operating model design is driven from delivering a practical outcome satisfying the tests above.  Moreover, it must be supported by a pragmatic implementation plan that will yield tangible benefit at acceptable levels of implementation cost and risk.  We have consultants with all the skills required to deliver on the promise; organisational design, data and technology design, process design and risk management.  

We have a repeatable process which draws on our experience of leading market practice to:

  • identify and agree key strategic drivers, principles and constraints which must be satisfied by an operating model
  • identify and evaluate options, referencing practical examples
  • draw up the implementation plan

As with all aspects of working with Knadel what sets us apart is not only can we do the design work, but we can point to real world experience of successful implementation of our designs.

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Working with our alliance partner Cordium, Knadel presents a comprehensive webinar on MiFID II, bringing an integrated approach to the regulation and what it could mean for your business.