Introduction:

This case study describes our role in helping a leading UK financial services company recover their overrunning core platform transformation.

Working with their business, digital transformation and technology teams, we helped to negotiate two improved deals (with the incumbent and eventual replacement tier 1 consulting providers) to fulfil management of the programme on a risk/reward basis.

As well as summarising our support for the client, the case study also highlights the importance of appropriate contractual assurances needed to build trust when the experience to date has been otherwise.

The Client's Challenge:

Our client was progressing with a major initiative to transform its core business platform. However, the programme was significantly overrunning, with the client becoming increasingly frustrated with the transformation partner responsible for managing programme delivery.

As a result, the client initiated a thorough review of the programme, its key supporting third-party arrangements and the merits of all available options to recover and accelerate its transformation.

Our Approach:

In support of that review, we were engaged to leverage our business transformation expertise to help structure, document and secure commitments that more appropriately incentivised the lead transformation partner for the programme.

Our key actions included:

• Collaborating closely with the client's business, digital transformation, and technology teams to validate and integrate program recovery requirements

• Conducting comprehensive assessments of current contracts and performance

• Provided advice and coaching on transformation, risk and risk-reward mechanisms

• Assessing and leveraging applicable change, third-party, and risk policies

• Rapidly adapting and preparing full-contract artefacts

• Managing contracting and decision processes

• Supporting the client’s contract negotiations

• Supporting the client’s lawyers in updating and finalising all contractual documentation

• Supporting stakeholder and board reporting and decision-making

The Result:

The outcomes were:

• Two risk/reward agreements. One with the incumbent lead transformation partner. One with their eventual replacement given the conclusion of the client’s programme review

• A higher level of commitment from the lead transformation partner, addressing the client’s accountability concerns and paving the way for a more streamlined and efficient transformation program

• De-risked implementation with clear responsibilities and incentives for the parties

• Increased assurance for the board of more appropriate third-party arrangements

Tags:

#FinancialServices, #RiskReward, #CostReduction, #Transformation, #Contracting, #Negotiation