Operational Model Transformation

Today, managing a company’s or bank’s operational production can be viewed much broader than the task of building optimal business processes and automating them. The task of building an operational model is to create a virtual environment in which the management model and separation of powers, regulatory framework, business processes, risks and controls, KPIs, as well as IT systems and technical infrastructure are mutually integrated.

Goals:

• Ensure an optimal balance between transaction cost and customer service quality;
• Ensure operational risk management;

Implement mechanisms for monitoring the performance of the organization’s operational model and change management, keeping it up to date when introducing new products, systems, changing processes, etc.

Tasks:

• Modernize the organization’s operational model taking into account the capabilities and advantages of competent process organization and automation systems;
• At the same time, establish the right priorities during implementation, taking into account expected business benefits and limited resources.

Main components of operational production management:

• Line production management (task reception, task addressing, task execution control);
• Performance management (resource management, eliminating downtime and overloads);
• Quality management (identifying deviations, addressing them, controlling and eliminating deviations and loops);
• Operational risk management (risk and control analysis, working with operational losses);
• Finance and economics management (calculation of transaction and process costs).

Main implementation steps:

• Development of target business architecture, management model, and operational production business processes;
• Development of target IT architecture;
• Optimization of the organizational structure, redistribution of employee and departmental roles within the Company;
• Updating the internal regulatory base: policies, procedures, regulations, methodologies, departmental provisions, and job descriptions;
• Selection and implementation of IT systems, training;
• Implementation of key management and business efficiency control components, development and introduction of KPIs;
• Modernization of risk management, analysis of operational risks, and implementation of controls;
• Adaptation of accounting, financial, and management reporting.