Creating an Operating Model for Global Markets Operations

We helped one of the largest banking organisations in the world increase efficiency across 24 countries.

Our client

The EMEA Head of Global Markets Operations (GMO) in one of the  largest banking and financial services organisations in the world asked us to increase efficiency, improve control and enable volume growth in 24 countries by designing an operating model for the region consistent with global strategies.

Our challenge

This was a large, complex assignment with multiple challenges. Our client’s Global Markets Operations in the EMEA region was seen as not efficient and not scalable.  There was particularly poor visibility over the region in terms of the costs of operations and technology, the quality of service, operational losses and control effectiveness. In addition, volumes of certain products were restricted by manual processes.  The teams had more loyalty and attachment to their own site than to the group.  Leadership of technology and operations in the sites was local rather than regional.  The technology strategy would not lead to centralisation of operations processing.  Some of the countries were semi-autonomous and had no plans to use common systems or processes.

Our unique approach

Using a multi-disciplined team which combined senior operations and technology global management experience, we worked with the EMEA operations management team to create an operating model with a “hub and spoke” strategy to meet both local and regional needs. This was our approach.

  • We completed a thorough data gathering and analysis exercise to ensure that our clients had – for the first time –  a realistic picture of their EMEA sites, their importance to the business, the products supported, their size and cost.
  • We established the Global Markets business goals for the region.
  • We also agreed operations goals for the region, which supported the business goals and which were consistent with our client’s global operations strategies.
  • We shared industry best practices for “hub and spoke” operations and agreed hub locations for the region as well as a transition plan.
  • We agreed a five+ year vision to create scale, efficiency and control in the region.
  • We developed a 12 month plan of specific initiatives leading towards the strategy and we agreed the cancellation of initiatives inconsistent with that strategy.
  • We agreed a high level regional reporting structure, clarifying roles and responsibilities.
  • We created a monthly EMEA GMO reporting pack and both designed and implemented the process to maintain its production after the assignment.
  • We communicated the value of this strategy and gained buy-in from the site operations managers.

Our enduring effect

Our approach achieved clarity of role for the EMEA Head of GMO, who was able to demonstrate to their senior stakeholders that the operations strategy was demonstrably aligned to their business goals. By creating an operating model with efficiency and scale, we ensured our client continued to meet their local business and their own clients’ needs.

The EMEA regional operations managers quickly began to think and act more regionally while our client had complete visibility of key metrics. By aligning current investments with a clear strategy for the EMEA sites, we ensured that the transition plan for the following 12 months led directly towards the vision, without requiring our client to make significant additional investment.