22 Jan

APS Defining Target Operating models
By:   Dave Newland

Following the success for one of the APS directors to review and define the Target Operating Model (TOM) for an International Financial Services Fund Management and Global Distribution business and also a UK Leading SiPP provider.

APS have been asked as experts to support another tier 1 financial services organisation in defining the target operating models (TOM). We have been asked to review and define an optimum model that achieves the realising of the synergies of the merger as well as the corresponding benefits that include reducing the operational complexity and overall cost.

Its important that the TOM is considered when going through a merger or acquisition, the basic design principles can support the business case when closing out a complex transaction.

At APS we can provide consultancy to deliver an improved Target Operating Models (TOM) or agreed components including;

  • Business Strategy & Business Model Definition
  • COO Strategy/Operating Model with agreed governing principles
  • Current State Analysis with associated issues (e.g. Scale, Unit Cost, Value Chain, Customer Perception)
  • Gap Analysis of Current vs Future Capabilities
  • Assessment of current Market Solution Providers
  • Costs Benefit and Delivery Roadmap

Some of the benefits of implementing a new Target Operating Model (TOM) include:

  • Centralise Core Advice Investment Models and Trading: Increase the quality and consistency of advice, remove costs from the sales force and associated control functions and increase scalability by centralising asset allocation, model portfolio development and trading
  • Factor Best Practices amongst advisors: Develop Practice Management tools and training to increase adoption (e.g. Use of STP) and harmonise value propositions.
  • Rationlise Products, Advice Platforms: Many firms have accumulated a number of different products and advice platforms as a result of M&A, New Product Dev and the demand from the D2C and Advisor market
  • Increase Operational Efficiency & Automation: Greater standardisation and Automation of Operational Processes is key to reducing risk, as well as increasing business scalability.

FinTech Solution Providers must be able to assist their clients in understanding the impact of implementing their solutions in a clients organisation, rather than just the standard requirements box ticking.  There is a lot more to implementing new core capabilities into any organisation and we recommend that this exercise be completed during the discovery period of any prospective client.

APS are change & transformation specialists in financial services. Proven delivery and experience within global banking, financial services, insurance and wealth management.

contactus@apsolutions.org.uk