As part of its growth ambitions, the client needed to cost-effectively develop a robust agreement with a Digital partner that catered for growth - while also addressing the high levels of uncertainty for a Challenger bank's digital journey.
THE CHALLENGE
The bank, with a traditional heritage, wished to modernise its core banking platform and IT services model ready for rapid growth in the Challenger Bank market.
The scope of the programme included first generation outsourcing, with the need for extensive contractual protection in line with FCA regulations. The Transformation Director recognised the need for external expertise in contract drafting and help to develop an effective negotiation strategy.
Due to the sensitive nature of the project there was limited involvement from the business resulting in knowledge gaps with respect to existing services and processes.
The decision by senior stakeholders to form a strategic relationship with a preferred Digital partner meant there was reduced competitive tension and leverage available, even at this early stage of the programme.
THE APPROACH
Coeus developed a plan to prioritise the development of contractual documents ensuring the document review process and project timelines were adhered to.
In addition to customising our reference contract templates, a number of schedules were developed from the ground up to define nascent banking line-of-business services within the scope.
The Coeus team tackled the challenge of uncertain requirements by drawing upon our experience and expertise in other Financial Services contexts to bridge gaps in client specific insight.
Coeus developed an effective negotiation strategy including clause by clause negotiation guidance and issue tracking. We went on to support the face to face negotiations.
We also developed and ran a supplier evaluation process to support the executive requirement to move to preferred supplier whilst creating a rigorous audit trail for the recommendations reached.
BENEFITS
The key benefit for the client was a cost effective, but comprehensive and robust, contractual agreement. This formed a firm foundation to enable the client’s growth ambitions whilst driving performance accountability and commercial flexibility from the supplier.
The client also benefited from an effective negotiation strategy and approach that empowered the team and maintained a threat of competition in order to retain leverage within a single source dialogue.
Furthermore, the client had access to the wider Coeus team and knowledge, such as how to contract for milestone deliveries in a project delivered on Agile principles, and how to achieve service accountability across both IT and banking processes within scope.
Key deliverables included:
- Validation and enhancement of client’s draft agreement structure
- The rapid and cost effective development of high quality contractual documents that will protect the bank and satisfy regulatory requirements
- Preferred Supplier down-select - tool development based on Coeus standards, evaluator training and execution support
- Worked with the client’s external law firm to quality assure all contract documentation
- Benchmark of proposed preferred supplier rate card pricing across UK, nearshore, offshore and niche Digital resources
- Final proposal evaluation weighting development and scoring workshops
- Negotiation strategy development and support in negotiation sessions
To find out more about this, or other, Financial Services programmes, please get in touch with our Financial Services lead, Richard Graham, here.
Read more about Coeus Consulting's award-winning Sourcing capabilities here.
Read more about our Financial Services offering here.
