Expert: Caroline Deutsch, Head of UK/EMEA Marketing, SEI Facilitator: Rupert Neville
Headlines:
- Productivity challenges faced by wealth managers, with an average self-rating of 6 out of 10 for overall productivity
- The front office spends only 43% of their time on revenue-generating activities
- The impact of remote working on productivity, with mixed opinions on whether it has increased or decreased productivity
- The importance of measuring and tracking productivity metrics, with only 10% of firms actively doing so. Examples of firms that have successfully implemented productivity tracking measures are provided
- The role of organizational culture, incentives, and team structures in driving productivity, with a focus on the debate between individual client ownership versus a team-based approach
- The potential of AI and technology, such as co-pilot and language models, to improve productivity, with some firms experimenting with these tools
- The challenges of legacy technology, data quality, and process inefficiencies in hindering productivity, with suggestions for training and process improvements
- The impact of outsourcing operations on productivity, with firms that have outsourced generally reporting higher productivity in the back office
- The importance of data and its effective utilization in driving productivity improvements, with examples of firms leveraging data for identifying outliers and potential areas of concern
Discussion:
The discussion highlighted the productivity challenges faced by wealth managers, with an average self-rating of 6 out of 10 for overall productivity. The front office, including relationship managers and portfolio managers, spends only 43% of their time on revenue-generating activities, which indicated a need for improvement in productivity, as well as highlighting the increasing need for firms to measure and understand their productivity levels to drive improvements.
Remote working and productivity
The impact of remote working on productivity was discussed, with mixed opinions among participants. Some believed it has decreased productivity, while others argued that it has not necessarily affected productivity levels. The discussion then touched on the need for proper processes and support for remote work, as well as the potential impact on organisational culture and training.
Measuring and tracking productivity
The importance of measuring and tracking productivity metrics was emphasised, with only 10% of firms actively doing so. Examples of firms that have successfully implemented productivity tracking measures were provided, including setting metrics and challenging executives on productivity goals.
Organisational culture and incentives
The role of organisational culture, incentives, and team structures in driving productivity were explored, and a debate between individual client ownership versus a team-based approach revealed that some firms favour a more collaborative team-based model to improve productivity and client service. The impact of incentives and compensation structures on productivity was also highlighted.
AI and technology for productivity
The potential of AI and technology, such as co-pilot and language models, to improve productivity was then discussed, and the extent to which firms are experimenting with these tools for various tasks, including client interactions, report generation, and suitability assessments. The discussion then touched on the challenges of legacy technology, data quality, and process inefficiencies in hindering productivity, which suggested the need for training and process improvements.
Outsourcing operations and productivity
The impact of outsourcing operations on productivity generally reported higher productivity in the back office. The rationale being that outsourced firms are focused on operations as a revenue generator, leading to investments in people, skills, and technology, which wealth managers may not prioritise as a cost centre.
Data and productivity improvements
The importance of data and its effective utilisation in driving productivity improvements was highlighted. Examples were provided of firms leveraging data for identifying outliers and potential areas of concern, such as fair value assessments and vulnerability assessments. The discussion then emphasized the need for accurate and accessible data to drive productivity improvements across various aspects of the business.
Key takeaways:
- Implement measures to track and monitor productivity metrics across the organization, including front and back-office operations
- Evaluate organisational culture, incentives, and team structures to foster a more collaborative and productive environment
- Explore the potential of AI and technology tools, such as co-pilot and language models, to improve productivity in areas like client interactions, report generation, and suitability assessments
- Assess the feasibility of outsourcing operations to improve back-office productivity and enable a greater focus on revenue-generating activities
- Enhance data quality and accessibility to drive productivity improvements through better insights and identification of outliers and areas of concern
- Provide training and support for remote work processes to ensure productivity levels are maintained or improved in a hybrid or remote work environment
