Six Points to Consider for a Back Office System Conversion
There are several potential strategic benefits to a back office system conversion. If you are considering a consolidation of your platforms, a change in your carrying broker, or seeking other benefits such as improved functionality or cost savings, below are six points that we have found to be important:
Client Experience – there is no doubt that any system conversion will have an impact on all parties involved, however a significant and purposeful effort is required to minimize client impact; this can be challenging. You need to ensure that anything that is client-facing such as the client portal, statements, service, and response times, is on par or preferably better than before. Advisors should also be educated about the positive impact the conversion will have, therefore partner as ambassadors to ensure an overall excellent client experience.
Capability Model – as part of the planning process, there should be a capability model in place This is meant to be the Rosetta Stone of the conversion; a decomposition of what the business does and can do in a logical and granular grouping using standardized terminology. The model is not that different from company to company, however a standardized language within a large organization is less common. Additionally, this model aids in; determining application coverage, conversion impact, roles and responsibilities, and gaps in the current and future state.
Project Management – must provide robust and effective project planning, tracking, and execution, and should include effective decision management and escalation paths. Project Management should provide a cohesive plan that coordinates and aligns tasks between the business, technology, operations, and other support functions. Special focus should be given to Change Management and Communications:
Change Management should address client and internal stakeholder impacts to minimize disruption and identify elements of change to be incorporated into communication, training, and roadmap discussions. Change Management must convey a sense of calm and control to assuage client and internal stakeholder concerns. Furthermore, Change Management, in conjunction with Management Leadership, must collectively and continually secure the recruitment pipeline to maintain a healthy business during and post conversion.
Communication cannot be overstated. Effective communication should ensure that all stakeholders, internal and external, are acting harmoniously before, during and after the conversion. These communications need to include process and system changes, timeline and project impacts, organizational changes, and milestone achievements while preventing rumours and misinformation. Equally as important, client communication is required on a timely basis to keep clients informed of expected changes, timelines and regulatory requirements or disclosures.
Employee Engagement – the key to any successful conversion is directly linked to putting together a team of knowledgeable employees who will embrace the vision and work diligently at implementing the change within your organization. To foster engaged, collaborative, and motivated teams, there needs to be a clear communication and decision making process to reduce any levels of anxiety that may arise because of the changes. Additionally, a plan needs to be set in motion to identify and retain key personnel that will be critical to the success of the project. Lastly, at times, there may also be a restructuring of employees, therefore it is imperative that a plan be created and implemented to manage this process.
Data Migration – data migration is an area that requires significant attention. A review of the following should be considered:
Current Data Structure will dictate the type of migration and data mapping that will be required. The data structures and architecture can be very different from platform to platform; therefore, a mapping exercise is required. These technical activities could also trigger additional operational activities that will require planning and effort to execute.
Migration Strategy will determine the data migration methodology, business rules, vendor requirements, and timing to move data between platforms. Additionally, coordination across data producers and data consumers is required to ensure a smooth transition.
Data Clean Up, Reconciliation, and Remediation activities are extremely important to the success of the conversion. Cleaning up existing data prior to conversion minimizes the effort and potential costs during and post transition. The identification and remediation of data discrepancies should be completed during testing and mock conversions.
Testing – is the key element in identifying the “unknowns” and validating the effort required for the transition. Within a testing schedule there should be a balanced cadence between deadlines and pace to secure the success of the conversion plan.
Conversions involve many people, departments, data complexities and a multitude of systems and applications that all need to align. Success of this alignment and the conversion itself is predicated on the collective effort by both internal and external experts.
If you are considering a conversion or would simply like to have a deeper discussion on this, please do not hesitate to contact us directly with discretion.