Asset managers know they must modernize, yet many underestimate the complexity of where they are starting from. During Asset Ops Digital London, Mike Tumilty, Global Chief Operating Officer at Aegon Asset Management, says one of the biggest challenges is simply understanding the current state of operations.
“The starting point of any transformation is getting a clear view of where you are today, and the lack of documentation sometimes is a little bit scary,” he says.
Tumilty stresses that without this foundational clarity, firms risk recreating legacy behaviors in new platforms. A disciplined review of processes, data flows, and dependencies is essential to avoid embedding historical inefficiencies into a modern architecture.
Stuart Gunderson, Chief Operating Officer, Compliance Officer & MLRO at Seilern Investment Management, adds that legacy issues are not always a function of outdated systems. Sometimes firms have no system at all and rely on manual workarounds. He notes that teams must distinguish between genuine business requirements and processes that exist simply because “we have always done it this way.”
This early rigor shapes every subsequent decision, from functionality scoping to selecting the right long-term partners.
Balancing Cost Pressures with Long-Term Capability
Modernizing operations requires sustained investment, and COOs must balance cost pressures with the need to build scalable infrastructure. Gunderson says platform decisions cannot be made with a short-term lens. “These aren’t two-year decisions, they’re five-plus-year decisions,” he says.
He argues that firms should evaluate vendors based not only on functionality but also on their development roadmap, financial stability, and cultural alignment. For boutique managers in particular, the wrong platform can introduce unnecessary complexity and cost.
Tumilty reinforces this point by highlighting the need to test complex requirements early in the process. He explains that some organizations do not discover gaps in system capabilities until well into implementation, which can be a costly setback. Understanding where bespoke features are truly justified versus where they represent outdated habits is critical to long-term success.
Phillip Chapple, Chief Operating Officer at Monterone Partners LLP, adds that safe modernization requires maintaining control throughout implementation. He says firms must invest the time to dual-run systems, validate outputs, and ensure no core functionality is lost in the transition. “Once people feel out of control,” Chapple says, “it is very hard to bring them back onside.”
COO–CTO Collaboration as a Strategic Enabler
As operations and technology converge, COO–CTO alignment is becoming essential across asset management. In smaller firms, these roles often sit with the same individual. Gunderson says wearing both hats requires a focus on risk, practicality, and strong external partnerships.
Tumilty emphasizes that Ops and Tech must be viewed as an enabling function. He says: “You will not be successful if you try to do things to people.”
This mindset encourages engagement rather than resistance. By positioning modernization as a business-driven initiative rather than a technology mandate, COOs can reduce friction and accelerate adoption.
Chapple notes that avoiding adversarial dynamics is critical. When teams see Ops and Tech as working toward a shared objective, collaboration improves and bottlenecks diminish.
Culture, Talent, and the Skills Modernization Now Requires
Technology alone cannot deliver modernization. Tumilty says leaders must help teams understand how their daily work contributes to investment performance and client outcomes. This sense of purpose increases accountability and adaptability during transformation.
Gunderson highlights the importance of eliminating manual tasks to free up staff capacity and reduce operational risk. He says time is the scarcest resource for both investment teams and operational staff, and systems must be designed to protect it
Chapple has placed a particular emphasis on curiosity and multidisciplinary development. He says: “There is no such thing as a stupid question. Keep asking until you get an answer that makes sense.”
He believes broad exposure to the full operating model helps new hires become stronger problem solvers and more adaptable contributors.
What Actually Creates Competitive Advantage in Asset Operations
While Ops leaders may not compete with each other directly, the services they deliver internally can create real differentiation. Gunderson believes the industry is strongest when operational leaders collaborate, especially around regulation and best practice. The competitive edge, he says, comes from the enhanced reporting, real-time insights, and high-quality client experience that modern Ops functions can deliver.
Tumilty adds that third-party providers can offer significant strategic value. Their global perspective can help asset managers understand emerging requirements, market trends, and operational risks.
Advice for COOs Beginning the Journey
Three core lessons emerged from the panelists’ experiences:
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Join senior operations, technology and investment leaders at Asset Ops Digital New York on February 25 to explore how firms are modernizing safely, aligning Ops and Tech, and building operating models fit for long-term growth.