Operating model and organisational design

We helped a client reduce complexity whilst improving profitability and scaling for the future

The challenge

Our client, a leading Private Investment Office, was struggling with an over complicated and outdated operating model that was impacting profitability and scalability.

Having previously acquired a competitor and having not fully completed the integration of this business our client was effectively running two complex and resource intensive operating models.

PEN were asked to carry out a full review of the client’s operating model and determine a target operating model for the business whilst also evaluating third party partners who could assist with the delivery of the target operating model.

The scope of our work covered the client’s entire business from Client Onboarding and Relationship Management to Investment Management and Middle and Back Office functions.

Our approach

We deployed a team of two experienced investment management consultants to undertake three initial phases of work;

We first carried out a review of the client’s existing operating model with a view to identifying key risks, issues and requirements of a future operating model.

Secondly, we designed three different target operating model options for the client and assisted in the process of selecting a preferred option.

The client determined that outsourcing middle and back office functions supplemented with new technology was their preferred approach to a target operating model.

We subsequently assisted the client with a supplier selection process and implementation of the target operating model.

The outcome

Through the transition to the target operating model we helped the client achieve a number of key outcomes and benefits.

  • Marked reduction in operational risk and improved controls throughout the business.
  • Improved time to implement investment decisions.
  • Controlled costs and implemented a robust and scalable operational platform through outsourcing.
  • Improved client service delivery.
  • Reduced headcount in operations.
  • Equipped business units with significantly upgrade technology solutions.