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In the third installment of our series, Building Enterprise Resilience Through Transformation, we examine the strategic imperative of planning with future costs in mind—and how its full value is realized upon transformation completion. While easier said than done, wealth and asset managers must learn to get comfortable with being uncomfortable in order to stay competitive. This agile mindset will position the enterprise to respond to future disruptions with flexibility and financial prudence.
COOs are facing mounting pressure to remain agile and responsive, particularly in supporting front-office functions during periods of uncertainty. Cost reduction remains a top priority, but sustaining those savings proves challenging—48% of COOs report a resurgence in costs following initial cuts, according to BCG. To build true resilience and unlock future investment capacity, it is imperative that cost efficiencies endure.
Cost optimization is not merely about reduction—it’s a strategic blend of disciplined cost control, maximizing current spend, and enabling future investment. It is foundational to a long-term vision that empowers organizations to unlock value across people, processes, data, and technology—without incurring additional costs to gain new capabilities. The opportunities outlined below, when applied at the right inflection points, embed enterprise-wide resilience through a cost optimization lens. These benefits will be fully realized in the post-transformation phase.
Establish a cross-functional working group that will determine the desired outcomes for each of the four transformation pillars: People, Process, Data, Technology. Enterprise resilience starts with enterprise collaboration, led by empathy. Often, these changes seem to be the most difficult because they require real collaboration with cross-functional partners—design, product development, data/technology, and commercial functions. However, this approach, built on solid relationships, makes an organization more cost-effective and builds new competitive advantages in a time of considerable uncertainty.
"While easier said than done, wealth and asset managers must learn to get comfortable with being uncomfortable in order to stay competitive."
A current trend in the industry is to engage providers as strategic partners, rather than a simple technology vendors. The following provider strategies represent high-impact levers that optimize spend, unlock dormant value, and preserve capital—without compromising agility or innovation. When applied with intention, these actions embed long-term resilience and position the enterprise to scale smarter:
The time to plan for your vision of business-as-usual for post-transformation starts with vendor negotiations. The MSA should support, in writing, key components of your future target operating model. During contract negotiations, make sure that roles, responsibilities, and service level agreements are well defined. This will serve as the foundation for your future state target operating model. The risk is that the client will most likely be the one to absorb costs if something is missed. Make sure that scalability is accounted for as it directly impacts cost optimization. The future state support model should account for ongoing spend on the maintenance of all platforms including upgrades, regulatory changes, and minor projects. These annual maintenance costs should be considered and planned, funded, and staffed. If considered carefully, you will be in a good planned financial position for year-over-year expenses.
Scalability and manual labor efficiency are critical. When it comes to staff, it is essential to do more with less. Quantifiable measured savings can be achieved by leveraging AI and GenAI to drive automation and smarter, faster decision-making in the alpha generation process. Streamline front-, middle-, and back-office operations by automating manual processes (e.g., trade reconciliation, client onboarding), consolidating functions, and adopting shared services. This frees up resources for client-facing innovation and scalability. More on this when we cover the Operational Efficiency resilience pillar.
Examples of outsourcing are: Outsourced trading, outsourced middle office, outsourced data. Benefits include having the firm focus on the core competencies of the front office. Transferring staff and responsibilities to external service providers will also be followed by eliminating internal IT systems and reducing the office space footprint. A primary benefit of allowing the firm to focus on core competencies builds resilience because you are focused on the management and recruiting of aligned front office alpha-creating skill sets. Read our previous post on Outsourced Trading for further insights.
Optimize data storage, access, and usage by implementing a centralized data strategy, reducing data silos, and using analytics to drive decision-making. This enables better client insights, risk management, and performance attribution. We will dive deeper into opportunities on data when we cover the Digital Core Foundation.
In conclusion, planning for cost optimization ahead of a transformation is key to establishing enterprise resilience. By focusing on maximizing the value for the spend and implementing the opportunities listed above, asset and wealth management firms can build long-term resilience and competitive advantages in a time of considerable uncertainty. The benefits of this planning will be realized upon the completion of the transformation, ensuring that the organization is well-positioned to navigate future challenges and disruptions.
At TorreBlanc, we specialize in helping clients develop and execute cost optimization strategies that drive enterprise resilience. Our approach is grounded in real-world, tangible examples that deliver measurable results. If you're interested in exploring how TorreBlanc can support your transformation journey, let's start a conversation. Reach out to us today to learn more.
TorreBlanc Advisory Team
