Operational Excellence

Tier 1 Russian Investment Bank

Design of a global Target Operating Model for back office operations of a global investment bank

Further to the rapid growth of this client’s Russian business operations, and intensive development of their emergent markets (inorganic growth), this Russian investment bank planned to restructure its back office operations functions and processes within the context of a continuous business transformation programme. The client asked that the current state of both its functional model as well as IT infrastructure be mapped, and asked for the design of a Global Target Operating Model (GTOM) with underlying enhanced to-be BO processes (which took into account the implications of its existing operations on the technology architecture).

What did we do?

The project team mapped a Global Target Operating Model (GTOM) with specific focus on local requirements (operations department) of all 10 countries in scope. The underlying approach for the GTOM was based on a best practice reference model that needed to be aligned to the client setup (normative model).

Through numerous workshops, interviews and questionnaires the strategic principles and business requirements of the customer were captured and evaluated. The team quickly and comprehensively defined the client’s as-is setup, and validated this with key stakeholders from each location. The GTOM was designed based on insights gained during the assessment phase, and was further enhanced with subject matter expertise / market insights provided by the consultants.

Over and above the overall GTOM stream, the engagement also focused on full application landscape mapping, a Calypso deep dive, and the overall review of the payments architecture. All findings resulted were then fed back into the GTOM. The final result outlined a high-level roadmap for the roll-out of the GTOM.

What we delivered?

Functional heatmap for all locations in scope, including an as-is factsheet with a focus on system architecture, local findings and SWOT analysis

Global Target Operating Model with a proposal of changes required to align processes and functions in each location (including centralised and decentralised functions)

Business benefits

Established a common understanding of the operating model and business functions across various locations in a multi-entity environment

Highlighted the gaps of the as-is functional model by connecting it with the reference model and defined potential future requested functions / market requirements

Analysis of strengths and weaknesses, proposal of further actions to guide the client towards a modified functional structure, with significant cost saving potential