Hedge Fund AdministratorBanking & Professional Services
As is the norm, hiring and expenses kept pace with growth in the heady times, but when the hedge fund market turned cold, and fund managers began tightening their belts they looked to vendors for cost savings at the same time that new competitors drove prices down eroding profitability.
Breakneck growth as well as six acquisitions over five years had prevented the team from analyzing and improving upon newly antiquated or otherwise flawed processes. A business that was once quite profitable had started losing both clients and money. Members from our team worked across the business to perform a deep analysis of the teams, product and processes and then partnered with the business to drive the turnaround. The work addressed three critical issues:
- Focusing on the client:
We led the client teams to flip the conversation 180 degrees to assess and analyze where the organization was winning and losing clients, which clients drove profits and which led to unnecessary costs.
- Data Driven Recommendations:
Using sophisticated capture and statistical analysis tools client teams identified and quantified the end-to-end client value chain. Calculating true cost-to-serve, across each and every client and at every level of the process. Enabling detailed client complexity modeling as well as accurate staff capacity models.
- Cutting products and offices:
New product lines had failed to gain traction yet racked up substantial costs in investment and technology dollars as well as management’s time and attention.
The solution entailed a wholesale re-organization of several hundred staff. Stripping out and functionalizing one hugely time consuming and error prone process to create a global utility, while simultaneously centralizing locations and outsourcing or automating low value high frequency activities.
Soon, employeed had a closer and stickier connection to their clients then ever. Centers of excellence have been designed and staffed to work on clients of differing complexity and difficulty. Staff are now accurately and quantitatively evaluated against each other enabling a true meritocracy and driving a cultural chance of continuous improvement. Focusing on three core products and increasing client satisfaction enabled sales to maintain clients and use them as advocated to win new mandates.
By the numbers, the results:
- Productivity improved more than 30%
- Errors and unnecessary rework were reduced 20%
- More than $5 Million dollars in costs were saved annually.
- Sales (new new & extensions) grew 10%