CASE STUDY: Transforming A $700B+ Asset Management Firm’s Fragmented Systems into Streamlined Operations
An asset management firm managing in excess of $700 billion in assets across 34 diverse affiliates found themselves relying on outdated systems, manual processes, and severely fragmented data.
Background
An asset management firm managing in excess of $700 billion in assets across 34 diverse affiliates found themselves relying on outdated systems, manual processes, and severely fragmented data.
Management was challenged with a slow and tedious process of getting a clear view of the financial status of the company, and was finding timely communication to the board and investors increasingly difficult. Additionally, risks of financial and regulatory compliance was becoming an ongoing concern.
Over a two year period, Amplify collaborated closely with the asset management firm to transform its reporting and financial management operating model. This collaboration enabled more accurate forecasting, increased transparency of its financial performance and operations, while reducing audit and regulatory compliance risk.
Challenges
The firm’s reliance on an outdated ERP system and manual data entry processes resulted in inefficiencies, inaccuracies, and risks:
- Manual Processes: Quarterly intercompany eliminations and financial rollovers were done manually,
consuming significant time and resources and being prone to human error.
- Lack of Transparency:
Fragmented and non-standardized data distributed across affiliates limited management’s ability to effectively analyze performance and make well-informed decisions.
- Multi-Currency Complexity: Investments and operational transactions across multiple currencies amplified the risks of errors, compromising the accuracy of financial reporting.
- Compliance and Reporting Risks: The lack of data entry controls and consistency in account structures created
vulnerabilities in audits and compliance.
- Employee Dissatisfaction: Repetitive manual tasks led to frustration and reduced job satisfaction.
Solution
To address the challenges, Amplify spearheaded a comprehensive transformation with the following key actions:
Normalized and Cleaned Data:
- Standardized and cleaned up 12 years of financial data.
- Aligned affiliate accounting practices with a unified chart of accounts.
Implemented a modern ERP System:
- Migrated from legacy systems to a more modern and robust SAP platform.
- Designed and implemented a dimensional data model with 13-15 dimensions for
granular reporting and analysis.
Enhanced Reporting and Transparency:
- Developed self-service dashboards for executives, providing real-time analytics and predictive insights.
- Reduced reporting time from 7 weeks to 2.5 weeks, enabling faster and more informed decision-making.
Automated and Streamlined Processes:
- Automated inter-company eliminations and rollovers, reducing manual workload by 40%.
- Introduced robotic process automation (RPA) for repetitive tasks, enabling efficiency and accuracy.
Upskilled Finance, Operations and Reporting Teams:
- Freed up resources for strategic activities by automating routine tasks.
- Increased employee satisfaction and engagement through enhanced roles and creating opportunities for career development.
Result
The company was transformed into a high-performance finance organization, where benefits of changes were felt across multiple areas of importance:
Management Insights: Transparent and reliable data empowered management with timely, actionable insights as well as customizable, easily accessible reports tailored to the specific leadership needs highlighting areas of direct impact.
Cost Reduction: Auditors’ reliance on manual systems decreased, reducing general and administrative (G&A) expenses significantly.
Reduced compliance risk: Transitioned to exception-based reviews, which streamlined operations, minimized errors, and lowered compliance risks.
Time Savings: Manual processes within the finance team were significantly minimized, enabling a greater focus on strategic, value-added activities.
Employee Satisfaction: By eliminating repetitive manual tasks, the team experienced higher job satisfaction and engagement.
Conclusion
Amplify’s transformation highlights the significant impact of addressing inefficiencies in financial operations to eliminate pain points that hinder organizational success.
Organizations that fail to act often find themselves trapped in a cycle of manual processes, which lead to wasted time, "fat-finger" errors, and employee burnout.
By normalizing data, automating manual processes, and implementing robust systems like SAP, firms can avoid errors, reduce compliance risks, and eliminate time-consuming tasks like intercompany eliminations and multi-currency adjustments.
A unified chart of accounts combined with transparent, real-time reporting empower leadership with reliable insights, enabling timely, strategic decisions and stronger presentations to investors and boards.
Most importantly, streamlined operations free up resources for higher-value work, improving employee satisfaction and positioning the organization for long-term success in a competitive market.
Does this sound like conversations you are having with your investors, boards, and peers?
How can Amplify help you? Let’s talk!
Reach out to us at
experts@amprg.com
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