Transforming technology & change delivery through strategic partnering for an Asset & Wealth organisation

Challenge

Following the merger of two leading asset and investment management firms, our client needed to create a target operating model for technology that was fit for purpose, and capable of meeting ever increasing business demand for change – delivering post integration  efficiency savings, whilst improving service quality and operational risk.

With two disparate technology functions being brought together, an already high degree of complexity and risk was further compounded by low IT service maturity, a heavy reliance on temporary contract resource, and an aging legacy partnership with an incumbent service provider.

We were selected to assess the organisation’s current services against industry comparators and to help them develop and implement a future-fit target operating model and sourcing strategy for all infrastructure, application, and technology services that would allow them to meet their objectives.

Solution

Phase 1: Blueprinting

Working closely with the IT leadership team, our experienced consultants performed a rapid, robust review and assessment of current infrastructure, applications, and technology services, drawing upon our proven maturity assessment toolkit to enable the team to see where they were against industry comparators, and facilitate alignment on initial priority areas for improvement.

Rapidly building on our early analysis, we then led the development of a target operating model, defining the key functions and capabilities required. As part of this, we applied our proven “control, manage, execute” toolkit, to develop a sourcing strategy that identified and  protected crown jewel activities and capabilities to be retained, and those that could be provided through a strategic partner.

Following definition of the sourcing strategy, we facilitated a structured review of the organisation’s service catalogue – identifying packages of service that could be grouped together as part of a request for proposal from potential partners. This then enabled us to perform a rapid market scan, supplemented by our market expertise, to identify potential partners to be included within a sourcing process.

Phase 2: Sourcing Execution

Having obtained approval to proceed, we lead the execution of the end-to-end sourcing process. This included:

• Development of request for proposal documents
• Running an agile sourcing process
• Supporting legal and contract negotiations
• Production of the final business case
• Facilitating service provider transition planning
• Supporting communication & change planning
• Oversight and assurance of the transition.

Our approach to sourcing was based around the concept of joint solution design, or “joint solutioning”, driven by a “contract ready” request for proposal. This meant that the client and potential partners were jointly working together on contract artefacts from day one – collaboratively and iteratively refining supplier solutions, and reducing the likelihood of misunderstandings come service transition.

A key component of our approach was to give the client direct experience of working with the delivery resources that would remain on the account should a shortlisted partner be successful. This was an invaluable experience for our client team, who had no prior experience of working with global Tier One service providers. We were recognised by both parties for our pivotal role in bringing the client and provider teams together – coaching them, and providing ongoing insight and guidance on how build a successful partnership.

As focus moved to the execution phase, there was also an increased need for focus around compliance and regulatory activity – with our team supporting client engagement with market regulators, and ensuring compliance with e.g. SYSC8. As a global organisation, with a footprint in over 50 countries, it was imperative we ensured a controlled, structed approach was taken.

As part of the final legal and contract negotiations, we supported the client’s legal team – providing subject matter expertise to ensure that contracts correctly covered all partner obligations, and commercials were aligned to the market. As part of finalisation of the commercials, we were also able to support the final iteration of the business case.

Once final contracting was complete, focus moved quickly to transition. We provided oversight and assurance throughout the entire process – representing the client, whilst providing an independent ‘critical friend’ to ensure that all parties met their obligations in support of a successful, on time transition.

Our role included, providing an overall programme lead to drive to client and service provider teams, supported by subject matter experts providing focus to help unblock priority areas as they emerged throughout the transition programme.

As part of our role in transition, we were able to directly draw upon our deep experience of working with global Tier One service providers – continuously striving to establish successful working relationships at every level. This included relationships not just between the client and its new partners, but also between the partners themselves as part of a new multi-supplier ecosystem. Where challenges arose, we were able to help navigate both service provider and client organisations, with a philosophy of seeking win-win outcomes for all.

Outcome

The organisation now has a modern, optimised target operating model for its IT services, supported by two strategic partners, providing services including infrastructure support, applications development & maintenance, change delivery, and technology support services.

Transition to the new model was delivered successfully, on time, and within budget, enabling the client to realise:

• Cost savings of circa 20%
• A clearer model for support and change
• Access to technology expertise
• New, enhanced service levels
• Higher levels of self-service and automation
• Reduced key person dependencies
• Removal of an aging, legacy outsourcing arrangement.

“Mason Advisory were an excellent partner to help us establish a new strategy and operating model for technology. In particular, their collaborative working style, attention to detail, and ability to provide valuable external insight and challenge has really helped us accelerate the development of a new technology function. Head of Solutions Support Client quote: As well as leading the programme on the ground, Mason Advisory also acted as a trusted advisor to the IT leadership team, helping to shape and challenge our thinking throughout the programme. This resulted in a strong IT sourcing and operating model agenda for our business. We valued Mason Advisory’s ability to think both strategically and tactically – preparing us for the road ahead, through strong analytical skill, attention to detail, and critical thinking.”

Head of Business Management, Client Confidential

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