Over the last decade, technology has transformed how investment businesses operate. Yet while tools have evolved, many operating models have not. The result? Businesses struggling to adapt. Siloed data. Manual processes that can not scale. And client experiences that do not match expectations.
A well-designed Target Operating Model (TOM) aligns everything—people, processes, tech, and data—around your strategic intent. It is not just about buying new systems. It is about building an infrastructure that supports your growth, enhances your agility, and unlocks the full value of your data.
The problem: operating models built backwards
Many investment managers start with a tech-buying decision focused around a specific siloed need, and then try to build a strategy around them.
“I need some client PDF reporting, so I will buy a reporting system; but I have no plan how that fits with the other parts of my business.”
But that is like buying bricks before you have drawn up your house plans.
Instead, the first step should be clarity. What are you trying to be? What is your competitive advantage? A digital-first platform for mass affluent clients? A bespoke discretionary service for multi-generational wealth? Your TOM needs to reflect that. Start with your strategic intent.
Three core risks of a poorly-designed TOM
1. Data fragmentation:
When data lives in disconnected systems, teams spend time reconciling instead of analysing. It slows decisions, introduces risk, and blocks AI-readiness.
2. Rigid architecture:
Legacy systems are often expensive to maintain and hard to evolve. They make it difficult to respond to new products, regulations, or client needs.
3. Manual workarounds:
Many firms rely on Excel and email to fill the gaps in their system landscape. This creates key-person risk and exposes the business to operational fragility.
The solution: a data-first, modular TOM
A great TOM is more than a compliance requirement—it is a strategic advantage. The most successful firms build theirs around three core principles:
- Data-first: create a golden source of truth your Investment Book of Record coupled with an analytical engine that powers your decisions and reporting.
- Agile: design modular capabilities that can evolve with regulation, client demand, and markets.
- Flexible: integrate best-in-class solutions through open architecture and APIs—do not get boxed in.
Lessons from the field
At Point, we have worked with firms across the spectrum—from two-person start-ups to multi-billion institutions. The difference between the firms that scale and those that stagnate? Operating model maturity. Those that treat their TOM as a living, evolving asset are able to:
- Launch new series faster
- Personalise client engagement at scale
- Achieve operational leverage through automation
- Embrace AI safely and confidently
Conclusion: your TOM Is a strategic asset—treat it like one
In the end, the firms that win are not just investing smarter—they are operating smarter. The right TOM does not just support your strategy. It enables it.
If your current model is a patchwork of legacy tech and manual process, it is time to rethink. Start with your strategic intent, treat your data as a first-class citizen, and build for adaptability—not just today’s needs, but tomorrow’s ambitions.
Want to know more?
Download the complete Point TOM playbook here or get in touch with us to help you design and build the investment management operating model of tomorrow.
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