A roadmap for integrating with core business functions, leading with a clear vision and pragmatically leveraging technology
By Corinium Global Intelligence
Buy-side operations leaders are navigating portfolios of increasing complexity, ones that draw on a mixture of traditional equities, ETFs, alternatives and blended public-private assets.
This evolution demands rethinking how the operations function is perceived and resourced, says 40-year industry veteran Rene Madden, CEO and founder of Elevare Dynamics LLC.
"It’s about not looking at the operations area as just a call center,” Madden says. “It's really a strategic driver of performance.”
Here are four insights Madden shared with Corinium on essential shifts to transform your AssetOps team into a strategic powerhouse.
A primary challenge stymying the strategic potential of AssetOps is its persistent physical and organizational siloing, Madden says.
While outsourcing or housing operations teams in distant locations may seem financially efficient, this model creates critical bottlenecks that hamper performance and increase risk, according to Madden.
“When you remove them from the central teams that are actually doing the work, you create a barrier,” Madden says.
This barrier becomes apparent during market stress or complex client inquiries: A client service representative fielding an urgent call about a discrepancy in a blended public-private equity report cannot afford to navigate time-zone differences and outsourced ticketing systems. They need immediate access to the operational expert who understands the technical nuances of that specific holding.
This proximity isn’t just about convenience; it is about fostering a symbiotic relationship, Madden says.
When operations staff are embedded with portfolio management teams, they gain a firsthand understanding of investment strategy and intent. Additionally, portfolio managers develop a greater appreciation for operational constraints and the data requirements for accurate reporting.
This integrated model transforms operations from a reactive cost center into a real-time partner, enhancing organizational agility, mitigating hidden risks and ultimately building greater confidence with clients who expect a seamless, unified view of their complex portfolios.
Ambitious transformation initiatives often falter against legacy systems and entrenched processes. Madden’s framework for success is methodical and holistic.
“It really boils down to looking at the operations team holistically,” she says.
The first step is to break down the function into its key processes – such as settlements or cash movements – and conduct a gap analysis in each area.
Next, leaders must create a complete inventory of all legacy systems, identifying what works and what does not. The final step is to prioritize.
“You need to prioritize those areas where you have gaps,” Madden advises.
This involves asking critical questions: Does a process still need to be done? Could it be automated? Is it a resource issue? This disciplined approach creates an executable roadmap focused on the most impactful improvements first.
Successful transformation requires more than a new system; it requires universal buy-in. Madden asserts this must start at the top with a compelling vision.
“You have to create a vision. What is that vision you're looking for?” Madden says.
Employees at all levels need to understand the “why” behind the change, especially since major initiatives can take years to fully implement.
When employees find out about a change at the last minute, they are less likely to embrace it. Madden recommends transparent communication about how the change will impact workflows, the skills that will be valued in the future and the ultimate benefit to the organization and its clients.
“The people who don't embrace the changes… typically will not survive in those environments,” she notes, underscoring the importance of leading the cultural shift proactively.
Madden advises a focused, pragmatic approach to AI aimed at solving specific problems.
The best strategy is to map out processes and target those that offer the biggest return by reducing risk and manual effort, she says.
Madden cites the example of manually keying data from investment management agreements as a perfect use case. Automating this with AI not only saves time but cuts regulatory and operational risk. By prioritizing automation based on impact and risk, teams can build a credible AI roadmap that delivers tangible value.
The foundation: cultivate a collaborative culture
Underpinning all these shifts, Madden says, is a company’s culture.
“I always start with culture first,” she says.
Success depends on breaking down silos and ensuring every team – from sales and client service to portfolio management and operations – understands and values what the others do. By aligning teams, valuing expertise, and fostering collaboration, organizations can empower their Ops function to become a true strategic powerhouse, she says.
Rene Madden will moderate a fireside chat on change management at AssetOps Digital New York on November 11. Register now for more insights from her and other leading buy-side executives.