Apr 11, 2024

Summary

A US-based provider of mutual funds and insurance products engaged Cutter Associates to identify and address gaps in its operating model specific to performance analysis and reporting.

The Challenge

The company’s performance analysis and reporting needs were serviced by multiple teams as part of their broader responsibilities in a shared services model with significant individual specialization. Shared ownership, legacy systems, and key-person dependencies created undue operational risk and limited the client’s ability to grow.

Actions Taken

Cutter completed a current-state assessment over the course of several weeks through a series of interviews, workshops, peer benchmarking, and discussions with senior leadership, and made the following conclusions:

  • Increased operational risk attributable to key-person dependencies, federated processes with disparate tools, and legacy system architecture
  • End users were dissatisfied with performance measurement’s accuracy, timeliness, and efficiency
  • Job satisfaction and retention within the performance team were a challenge
  • The operating model was not scalable or flexible to changes in system architecture

As a result of these operating model challenges, Cutter recommended that the company implement a recommended industry-leading technology which will leverage the company’s extensive expertise to improve scalability, product coverage, and innovation.

We also recommended that the company adopt a centralized performance function to standardize the process and appropriately utilize the technology solution to ensure efficiency and accuracy. These recommendations were supported by a variety of work, including the following:

  • Created an RFP based on specific performance requirements around peer grouping, manager compensation, and custom benchmarks
  • Guided the evaluation process, defined the evaluation criteria, created a vendor presentation and demo agenda, scored the RFP, and facilitated a decision process that resulted in FactSet’s selection
  • Defined future-state solution architecture outlining data flows and integration points between various applications
  • Created implementation roadmap with a release schedule, resource requirements, and estimated cost
  • Defined data governance model organization structure, roles and responsibilities, and data processes and procedures
  • Engaged in contract and fee negotiations with the vendor

Results

As a result of the Cutter engagement, the client gained improved scalability, product coverage, and innovation. The added client performance-focused team will create opportunities to improve the timeliness of the data and its delivery. The team will also create a single point of communication with the front office for new strategies and fulfill ad hoc requests.

Learn more about how Cutter can assist with your performance needs or system search. Or contact us at [email protected].