THE CHALLENGE
A leading U.S. retirement services firm initiated a shift to a more modern, flexible recordkeeping platform to expand financial products, personalized advice and education for its institutional and individual clients.
Two years into the conversion, transaction processing delays, posting errors and daily processing breaks compounded financial breakage, reconciliation and adjustments associated with the original conversion issues which dated back to start of conversion. Financial breakage was approaching $1 billion, prompting members of executive management, including the CFO and other members of the EMT to engage Enterprise Iron, directly.
Client Objectives:
- Restore Financial Integrity at transaction level (Tax Lot Accounting) from start of conversion for all plans.
- Operational Review and Update of Processes, Controls and Staff Access to Financial Transactions.
- Meet regulatory compliance requirements.
- Transition clients quickly and seamlessly while restoring processing accuracy.
OUR APPROACH & SOLUTION
Assessment & Operational Stabilization
At the request of the EMT, Enterprise Iron deployed an initial on-site team of 60 retirement subject matter experts to assess the root causes, extent, and financial impact of conversion-related breakage and begin remediation of the operational issues driving the backlog.
The assessment revealed that many original conversion errors had been compounded by up to two years of daily processing errors. Enterprise Iron identified issues requiring plan reconstruction, transaction reposting, operational adjustments, or IT programming fixes, while recommending changes to team structure, transaction access, and training to support a controlled remediation effort.
Operational Interventions
Four Specialized Remediation Workstreams
Enterprise Iron organized remediation into four teams based on the complexity and extent of plan-level breakage. The assessment team reviewed converted plans and routed each issue to the appropriate remediation team or to IT where programming defects were identified.
Execution Principal
Match each plan to the appropriate level of reconstruction, reprocessing and reconciliation and operational remediation.
RESULTS & BUSINESS IMPACTS
A repeatable framework. A sustainable solution.
Enterprise Iron equipped the client’s internal teams with the procedures, training, and operational framework to continue remediating outstanding plans.