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Cutter consultants have taken part in many outsourcing initiatives, during which we have found that firms should not overlook the following three key items to ensure they achieve a smooth transition into production.

Keys, phone, security pass … I always need to remember these three things when I’m leaving the house in the morning (because if I forget any one of them, it’s a real pain). The same can be said of operational readiness as part of outsourcing programs.

Cutter consultants have taken part in many outsourcing initiatives, during which we have found that firms should not overlook the following three key items to ensure they achieve a smooth transition into production:

1. Don't underestimate the value of implementing a robust oversight model.

An effective and robust oversight model plays a critical role in providing the right level of governance and accountability when you’re not involved in the details of day-to-day operations.

It’s important that both parties establish a clear understanding of the model and reach full agreement ahead of any service transition. This will get the partnership off to the best possible start.

Do not underestimate the effort needed to define and establish the model.

Remember to include the following:

  • A definition of specific roles and responsibilities
  • Communications: How data and issues will be communicated with clearly defined escalation paths.
  • Resources: The resources that you’ll need to retain to execute the oversight model (often your expert resources).
  • SLA, KPI, and dashboard reporting.
  • Document the new business processes, including error handling.
  • Remember this is a partnership: Ensure both parties are in total agreement with the model and understand the need to continuously review the model as you progress through your partnership.
  • Make sure each business unit is signed up to the model: The program team should not approve the model on behalf of the business.

See our infographic, 5 Keys to Successful Outsourcing.

2. Don’t forget to define a clear communications plan

Your communications plan should cover both internal and external communications and deliver coordinated, consistent, and targeted messaging to different audiences and stakeholders. Be sure your plan identifies each group, and decide the level of messaging that each group needs to receive with sufficient time to adapt their model.

Send the right level of information to each group to avoid information overload.

Remember to cover the following:

  • Define your different audiences and their information requirements
  • Define when and how often you will communicate
  • Detail the different communication channels you will utilize
  • Solicit feedback to improve your plan. Are you providing enough information? Too much? Is the frequency correct?

3. Don’t lose control of your data

This area often is where it’s assumed your supplier has a robust data governance framework. As part of your operational readiness, however, you need to ensure that you’ve clearly defined roles and responsibilities.

  • Who are the data product owners for each data domain (e.g., prices)?
  • How are data quality and timeliness measured?
  • Is the process for adhering to data regulations, such as GDPR, clearly defined and tested?
  • Has the process and reporting of data breaches been documented? Are the responsibilities clear?
  • With business requirements around data constantly changing and expanding, has the change management process been agreed upon?

Consider Your Keys

Outsourcing initiatives are often complex and multi-phased. Planning your firm’s operational readiness activities will help ensure both a smooth transition and the start of a successful relationship with your supplier.

The Cutter Consulting team has direct experience in helping asset managers navigate outsourcing challenges. To learn more, or speak with a consultant, contact us at [email protected].

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