Asset management operations : Prioritising and instituting a client-centric focus to deliver superior client servicing capabilities through organisational excellence

Abstract

The purpose of this paper is to define the key features of client service excellence for asset (investment) management companies, identify and discuss the organisational challenges impairing its delivery and explore how organisational excellence theory and practices may be harnessed to improve client experience (CX) outcomes. For the avoidance of doubt, the framework of reference is one pertaining to asset management companies offering primarily active asset management services, and specifically those operating in Europe, and to a certain extent Asia and the Americas. Business-to-consumer (B2C), also known as direct-to-consumer (D2C) businesses, which have significant dealings with individual retail customers, have experimented with standardising CX over time in a substantive manner. They have made significant strides in shaping and arguably increasing the quality of client service by framing it within standardised parameters and leveraging online tools, apps and technology. While this may also be possible for asset management in the long run, particularly if over time the industry pivots to more of a B2C/D2C approach, its CX challenges are different. The framing of this study is therefore specific to client relationships in this industry being primarily business-to-business (B2B), namely with companies and/or institutions of varying sizes and levels of sophistication. By exploring the difficulties entailed in achieving and maintaining a high level of client servicing excellence, the paper seeks to illustrate the potential for organisational excellence (as defined and discussed in academic and industry literature) as a conduit for enhancing client-centric focus in asset management across the whole organisation and especially operations. Any specific suggestions or recommendations are made with the objective of remaining consistent with the assumption that the general current business model and practices remain as is; in other words, this paper is not proposing changes to business models. Notwithstanding the specificity of focus and the reference framework, the paper and its main takeaways may also be of relevance to other businesses where relationships exist and operate with similar features and considerations, such as those between asset management companies and the vendors typically appointed to facilitate the delivery of operational and administrative services. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.