Operating Model Transformation
Reorganisation of a Multi-Asset Manager & Carve-Out of Loss-Making Business Units
A multi-asset manager with a cost-income ratio above 85% needed to restructure — carving out underperforming units while protecting its most profitable franchise.
>85%
Cost-income ratio resolved
4+
Business units restructured
-15%
CIR reduction identified
Challenge
A cost-income ratio above 85% was destroying the value generated by the group's most profitable unit. Oversized operating models in non-profitable business units had not been resized following AUM losses — creating a structural deficit with no roadmap to resolve it.
Approach
- Mapped existing operating models across all business units front-to-back
- Defined fit-for-size new operating models for non-profitable units
- Executed de-merger tasks, creating new legal entities with right-sized corporate services
- Mapped system, people, process and data dependencies to protect the profitable core
- Defined scalable target operating model for the surviving business unit
Outcomes and recommendations
- Profitable business unit fully protected with dependency mapping and mitigation plans
- Non-profitable units successfully carved out into standalone entities
- Strategic partnerships introduced to ensure scale and future profitability
- Lean execution model with senior-only team and ad-hoc specialist support
Anonymous · Reference on request. Ambitions, cost targets and identified opportunities are not delivered savings. Case-specific timings and results are not guarantees for another engagement.
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