DAY3: FINANCIAL SERVICES

ADVANCED REFERENCE MODEL

WORKSHOP
D e c e m b e r 7 , 2 0 17

Ivan Blinov
business@bmasterinc.com
 WORKSHOP OBJECTIVES

 Gain a deeper understand of Initiatives mapping process (BIZBOK® Guide Section 2.6)
 Define objectives and KPIs using financial services organization strategic goals
 Assess business impacts through organization, stakeholders, and other domains,
aligned around existing capabilities, value streams and information perspectives.
 Leverage business objectives and initiatives prioritization technique to build a roadmap
 Define initiatives delivery plan and measure implementation success criteria using KPIs
 Illustration for Business Architecture Value stream how to deliver a business value
 Increase the applicability and success of your business architecture practice
 Expand the existing Financial Services Industry Reference model
 Feedback from Financial Services Industry SMEs and Business Architect practitioners

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 WORKSHOP AGENDA (MORNING)

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 WORKSHOP AGENDA (AFTERNOON)

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 WORKSHOP LOGISTICS
Financial Services reference model overview (45 min)
Capability map Value streams map Organization map

Review strategic goals and objectives (40 min)

Review organization map Goals and objectives

Define initiatives and KPIs for objectives (60 min)

Define initiatives Mapping KPIs to initiatives and objectives

Impact Analysis using Capability and Value Streams maps

Initiatives to capabilities (60 min) Initiatives to values (40 min)

Roadmap for initiatives implementation (60 min)

Prioritize initiatives (30 min) Build a roadmap (30 min)

Mapping Results Walkthrough and Discussion (20-25 min/ per breakout team)

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 FINANCIAL SERVICES INDUSTRY
Reference Model Over view

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 BACKGROUND
• Financial Services Industry Reference Model:
 Initial version was created during the Guild workshop in December 2015
 Financial Services Industry Reference Model team formed in February 2016
 First version was published in BIZBOK® Guide v 5.0 Section 8.1 in June 2016
 Latest version was published in BIZBOK® Guide v 6.0 Section 8.1 in June 2017
• Progress to Date:
 Customer-facing Capabilities Level 1-3 to support Commercial banking (Retail, Wholesale)
 Strategic and Supporting Capabilities Level 1-3 (synchronized with Common Reference Model)
 Core Value Streams to support Commercial banking business value delivery
 Financial Services Organization map for Retail, Corporate, Investment Banking and Wealth Management
 External and Internal Stakeholder map (mapped to value streams triggering and participating stakeholders)
• Next Set of Work
 Cross-mapping for stakeholders to organization, business units to capabilities, value stages to capabilities

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FINANCIAL SERVICES INDUSTRY REFERENCE MODEL MAPPING
 Capability map
Capability map Level 1-3 for Customer-facing, Strategic and Supporting tiers
 Value Streams
Core Value Streams to deliver a business value for Commercial Banking
 Organization map
Organization map Level 1-3 for Commercial Banking (Retail, Wholesale)
 Stakeholder map
Internal/External Stakeholders for Commercial Banking and Common Reference model
 Information map
Initial Information Concept (work in progress, not published in BIZBOK® Guide)
 Initiatives and Strategy map
Initial mapping is To Be Defined during this workshop and continue working in 2018

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FINACIAL SERVICES MODEL – CORE CAPABILITIES LEVEL 1

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COMMON REFERENCE MODEL– STRATEGIC CAPABILITIES LEVEL 1

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COMMON REFERENCE MODEL– SUPPORTING CAPABILITIES LEVEL 1

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FINACIAL SERVICES MODEL – CORE VALUE STREAMS

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COMMON REFERENCE MODEL – VALUE STREAMS

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FINACIAL SERVICES MODEL – ORGANIZATION MAP

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FINACIAL SERVICES MODEL – STAKEHOLDER MAP

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 FINACIAL SERVICES MODEL – INFORMATION CONCEPT

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 INITIATIVE RELATIONSHIPS

Initiative Mappings to:

 Business Objective
 Business Unit
 Capability
 Value Stream
 Value Stage
 Initiative

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 FINANCIAL SERVICES SECTORS
Define the workshop scope

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 SCOPE

Financial Services Industry Reference Model is mainly focused on

the needs of the commercial banking sector.

Out of Scope
• Foreign exchange services (currency exchange, wire transfer)
• Investment services (hedge funds, custody services, angel investors)
• Insurance (brokerage, underwriting, etc.)
• Private equity
• Financial export services

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Wikipedia
 COMMERCIAL BANK DEFINITION

A Commercial bank is a type of financial institution that provides

services such as accepting deposits, making business loans, and
offering basic investment products.1

The traditional commercial bank is a bricks and mortar institution with

tellers, safe deposit boxes, vaults and ATMs.

However, some commercial banks do not have any physical branches

and require consumers to complete all transactions by phone or
Internet. In exchange, they generally pay higher interest rates on
investments and deposits, and charge lower fees.2

1 https://en.wikipedia.org/wiki/Commercial_bank
2 Investopedia (https://Investopedia.com)

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Wikipedia
 COMMERCIAL BANKING PRODUCTS & SERVICES
• Accepting money on various types of Deposit accounts
• Lending money in the form of Cash: by overdraft, instalment loan etc.
• Lending money in Documentary form: Letters of Credit, Guarantees, Performance bonds,
securities, underwriting commitments and other forms of off-balance sheet exposure.
• Inter- Financial Institutions relationship
• Cash management
• Treasury management
• Private Equity financing
• Issuing Bank drafts and Bank checks
• Processing payments via telegraphic transfer, EFTPOS, internet banking, or other payment
methods.

https://en.wikipedia.org/wiki/Commercial_bank

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Wikipedia
 COMMERCIAL BANK BUSINESS MODEL

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Wikipedia
ORGANIZATION MAP - RETAIL/PERSONAL BANKING
Level Organization Unit
(Business Unit)
1 Bank Segments
2 Retail/Personal Banking
3 Sales and Operations
3 Credit Office
3 Product Office
3 Portfolio Management
3 Support Services
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Definition
Encompasses the various areas in which customers can interact with a Financial
Services Organization.
Handles the administering of products and services to individual consumers.
Handles client relationship management and the processing of a product lifecycle
from initiation of an application through funding.
Handles the decisioning of credit product offerings to an organization's client.
Handles the development and enhancement of the channels product offerings.
Supports the objectives regarding investment mix and policy, including balancing risk
against performance.
Handles the back-office support of a channel including call centers, mail centers,
systems support, and process support.
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ORGANIZATION MAP - COMMERCIAL/WHOLESALE BANKING
Level Organization Unit
(Business Unit)
1 Bank Segments
2 Commercial/Wholesale Banking
3 Sales and Operations
3 Credit Office
3 Product Office
3 Portfolio Management
3 Support Services
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Definition
Encompasses the various areas in which customers can interact with a Financial
Services Organization.
Handles the administering of products and services to commercial clients, businesses,
and business owners.
Handles client relationship management and the processing of a product lifecycle
from initiation of an application through funding.
Handles the decisioning of credit product offerings to an organization's client.
Handles the development and enhancement of the channels product offerings.
Supports the objectives regarding investment mix and policy, including balancing risk
against performance.
Handles the back-office support of a channel including call centers, mail centers,
systems support, and process support.
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ORGANIZATION MAP - CAPITAL MARKETS
Level Organization Unit
(Business Unit)
1 Bank Segments
2 Capital Markets
3 Derivative Markets Services
3 Foreign Exchange Services
3 Fixed Income Services
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Definition
Encompasses the various areas in which customers can interact with a Financial
Services Organization.
Supports the raising of capital regarding shares, bonds and other long-term
investments.
Supports the financial market for financial instruments which are derived from other
forms of assets.
Supports the exchange of one currency for another where currencies are traded
around the clock.
Supports the investment under which the issuer is obliged to make payments of a
fixed amount on a fixed schedule (includes bonds).
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ORGANIZATION MAP - WEALTH MANAGEMENT
Level Organization Unit
(Business Unit)
1 Asset Management
2 Asset and Liability Management
2 Wealth Management
3 Sales and Operations
3 Credit Office
3 Product Office
3 Portfolio Management
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Definition
Handles the forecasting and evaluation of financial risks and the identification of
needed remediation efforts to reduce impact to the organization.
Handles managing the use of assets and cash flows to meet company obligations,
which reduces the organization's risk of loss due to not paying a liability on time.
Handles the administering of products and services to individual consumers pertaining
to financial and investment advice, retirement planning, and legal and estate planning.
Handles client relationship management and the processing of a product lifecycle
from initiation of an application through funding.
Handles the decisioning of credit product offerings to an organization's client.
Handles the development and enhancement of the channels product offerings.
Supports the objectives regarding investment mix and policy, including balancing risk
against performance.
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ORGANIZATION MAP – CORPORATE FUNCTIONS
Level Organization Unit (Business Unit)
1 Corporate Functions
2 Legal
2 Audit
2 Finance
2 Supply Chain Management
2 Human Resources
2 Shared Services
2 Corporate Communications
2 Marketing
2 Mergers and Acquisitions
2 Non-Strategic Asset Management
2 Realty Services
2 Treasury Management
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Definition
Handles the various areas necessary in a corporate structure.
Provides legal services for the organization by addressing legal risk and providing advice and counsel.
Conducts reviews to ensure that compliance criteria are met by the organization.
Handles the management of financial affairs for an organization.
Handles the management of materials, information, and finances as they move from supplier to consumer.
Manages the personnel of the organization, including the hiring, administration, and training of personnel.
Handles the provision of services to more than one part of the organization, effectively becoming an internal service
provider.
Supports the management and orchestration of all internal and external communications for an organization.
Handles the promotion and selling of products or services, including market research and advertising.
Supports corporate finance and management dealing with the buying, selling, dividing and combining of different
companies and similar entities that can help an organization grow rapidly in its sector or location of origin, or a new field
or new location, without creating a subsidiary, other child entity or using a joint venture.
Handles the management of assets that do not directly produce revenue for the organization. Ex: Real Estate,
Equipment, Etc.
Handles the management of the owned and leased real estate portfolio of the organization.
Handles the management of an organization's holdings with the goal of managing liquidity and mitigating risk.
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 STRATEGIC OBJECTIVES & INITIATIVES
Establish/Refine Business Strategy

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 REVIEW STRATEGICS GOALS AND OBJECTIVE

• Review strategic goals and objectives

 Overview of examples financial services organization strategic goals and objectives.
Additional objectives will be identified for a given financial services industry sector.

BIZBOK® Guide Section 2.1: “Business strategy mapping”

to review goals and objectives
• Define initiatives and KPIs for objectives
 Identification candidates for initiatives to support organization goals and objectives.
Each objective and initiative might include a mapping to KPI that helps to measure its
achievement.

BIZBOK® Guide Section 2.6: “Initiative mapping”

to apply the principles and initiatives mapping guidelines.

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 INITIATIVES IMPACT ANALYSIS
Assess Business Impacts

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 MAP INITIATIVES TO CAPABILITIES AND VALUE STREAM

• Mapping Initiatives to Capabilities

 Analysis completeness of a given financial services industry capability map to support a given
and identified organization objectives and initiatives. Participants will identify the missing
capabilities and evaluate a feasibility for achievement the organization objectives.

BIZBOK® Guide Section 2.2: “Capability mapping” and

Section 2.6: “Initiative mapping” to apply the principles and initiatives mapping guidelines.
• Mapping Initiatives to Value stream
 Identify the impacted value streams that are required to support the initiatives and objectives.
Leverage a given financial services industry value streams to map initiative to impacted values.
Additional details will be captured through the value to capability cross-map for each value stage.

BIZBOK® Guide Section 2.4: “Value Mapping” and

Section 2.6: “Initiative mapping” to apply the principles and initiatives mapping guidelines.

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CORE CAPABILITIES – FINANCE MANAGEMENT

Tier Level Capability Definition

2 1 Finance Management Ability to plan, direct, monitor, organize, control, and report on the monetary aspects and resources
of the business.
2 2 Financial Forecasting Ability to predict and assess the financial aspects of the business using, but not limited to, history
and market trends.
2 2 Finance Allocation Ability to distribute the financial resources of the business to such things as operating expenses,
assets, investments, and payments. A budget is one type of financial allocation.
2 2 Financial Account Management Ability to establish, maintain, balance, audit, secure, and provide access to a named container of
monetary value, organized into debits, credits, liabilities, equity, and related categories, that
includes, but is not limited to, customer, savings, checking, payable, general ledger, budgetary, and
receivable categories.
2 2 Financial Risk Determination Ability to determine, define, monitor financial threats and vulnerabilities related to the financial
condition of the business.
2 2 Currency Management Ability to determine, represent and value a monetary representation or system of money.

2 2 Tax Management Ability to determine, calculate, remit, report on the compulsory contribution of monetary value to
governing bodies.
2 2 Payment Management Ability to determine, approve, commit, execute, record, report on a movement of monetary value
into or out of a business.
2 2 Financial Transaction Management Ability to authorize, handle, record and apply an an instance of a monetary event or related
exchange across businesses, agreements, financial accounts, or other.

2 2 Finance Matching Ability to associate financial aspects of the business to other aspects of the business.

2 2 Finance Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other
perspectives about the financials of the business.

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CORE CAPABILITIES – CUSTOMER MANAGEMENT

Tier Level Capability Definition

2 1 Customer Management Ability to control, predict, process, organize, present, and analyze all information, documents,
preferences, experiences, and history related to an individual or other legal entity who has,
plans to have, or had a formal contract in place with the organization.
2 2 Customer Access Management Ability to maintain and control the products and channel access that a customer has in place.
2 2 Customer Authentication Ability to verify that customers are who they say they are.
2 2 Customer Identification Ability to identify an existing customer.
2 2 Customer Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other
perspectives about a customer.
2 2 Customer Needs Assessment Ability to assess a customer’s needs usually for the purpose of associating, recommending
and/or identifying a product and/or financial instrument to meet those needs.
2 2 Customer Matching Ability to associate customers with other business objects and capabilities.
2 2 Customer Interaction Management Ability to capture and store all points of engagement that a customer has with the business,
regardless of channel, and the ability to suspend and restart the interaction across the same or
alternate channel.
2 2 Customer Risk Determination Ability to assess the risk associated with entering into an agreement with a customer.
2 2 Customer Tax Reporting Ability to consolidate and report on tax-related activity for a customer.

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CORE CAPABILITIES – AGREEMENT AND CHANNEL MANAGEMENT

Tier Level Capability Definition

2 1 Agreement Management Ability to establish, organize, analyze, administer, and report on all aspects of a legally binding
contract between the organization and a customer or other third party.
2 2 Agreement Application Management Ability to define, design, create, and otherwise manage the agreement application which includes
determining necessary information to be collected.
2 2 Agreement Information Management Ability to organize, track, report on, or otherwise disseminate attributes and data related to an
agreement.
2 2 Agreement Risk Determination Ability to assess the risk associated with entering into an agreement with a customer.
2 2 Agreement Matching Ability to associate agreements with other business objects and capabilities.
2 1 Channel Management Ability to establish, analyze, utilize, optimize, and coordinate various mechanisms through which
customers and other third parties interact with the organization. These various mechanisms
include physical as well as virtual; for example, branches, kiosks, ATMs, Credit Cards, Cheques,
handheld device apps, and online websites.
2 2 Channel Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other
perspectives about a channel.
2 2 Channel Definition Ability to establish a new channel.
2 2 Channel Performance Management Ability to assess the performance, profitability, and effectiveness of a customer channel.
2 2 Channel Matching Ability to associate a channel with other business objects.

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CORE CAPABILITIES – PRODUCT MANAGEMENT

Tier Level Capability Definition

2 1 Product Management Ability to conceptualize, design, develop, bundle, and maintain goods and services offered by the
financial institution.
2 2 Product Definition Ability to create a product after it has been designed.
2 2 Product Deployment Ability to plan and administer the deployment activities for offered products, including deploying
product changes.
2 2 Product Information Management Ability to maintain all product attributes and other information.
2 2 Product Performance Measurement Ability to assess the coverage and relative performance/profitability of products and product
combinations/bundles.
2 2 Product Pricing Ability to set and maintain a current price list (with ranges and optional terms) by
product/customer type, including standard and special (promotional) pricing.
2 2 Product Design Ability to conceptualize, define, and specify products manufactured by the enterprise.
2 2 Product Retirement Ability to manage the final stages of a product’s existence.
2 2 Product Matching Ability to associate products with other business objects and capabilities.

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CORE CAPABILITIES – FINACIAL INSTRUMENT & COLLATERAL

Tier Level Capability Definition

2 1 Financial Instrument Management Ability to administer, valuate, and report on a tradeable asset, such as stocks, bonds, bill of
exchange, futures, options, evidence of ownership, and cash, that has monetary value.
2 2 Financial Instrument Information Ability to organize, track, report on, or otherwise disseminate attributes and data related to a
Management financial instrument.
2 2 Financial Instrument Valuation Ability to determine and assign the monetary worth of a financial instrument, including mark-to-
market and other valuation mechanisms at a point in time.
2 2 Financial Instrument Matching Ability to match financial instruments with other business objects.
2 2 Financial Instrument Custodial Management Ability to hold financial instruments in safekeeping on behalf of a third party.
2 2 Financial Instrument Corporate Action Ability to administer the correct allocation of entitlements to a customer arising from corporate
Management actions of financial instruments.
2 1 Collateral Management Ability to establish, organize, analyze, administer, and report on all aspects of property or other
asset that a customer offers as security to a borrowing or lending agreement
2 2 Collateral Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other
perspectives about a piece of collateral.
2 2 Collateral Risk Determination Ability to assess the risk associated with property or asset pledged as security.
2 2 Collateral Matching Ability to associate collateral with other business objects and capabilities.

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CORE CAPABILITIES – PORTFOLIO MANAGEMENT

Tier Level Capability Definition

2 1 Portfolio Management Ability to control, organize, and allocate a defined set of investments to achieve an acceptable
balance of risk, return, and volatility.
2 2 Portfolio Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data, and other
perspectives about a portfolio.
2 2 Portfolio Valuation Ability to assess and determine the monetary worth of a portfolio in whole or in part.
2 2 Portfolio Allocation Determination Ability to define the model/target allocation mix of investments to achieve the objectives as
defined for the portfolio.
2 2 Portfolio Variance Assessment Ability to measure the current portfolio allocation against the model allocation.
2 2 Portfolio Performance Measurement Ability to measure the performance of a portfolio, which includes calculating rate of return and
other types of measurements.
2 2 Portfolio Matching Ability to associate portfolios with other business objects and capabilities.

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CORE CAPABILITIES – ORDER MANAGEMENT

Tier Level Capability Definition

2 1 Order Management Ability to place, settle, match, and otherwise manage a request by one party to another to buy,
sell, or exchange financial instruments or other goods or services.
2 2 Order Information Management Ability to organize, track, report on, or otherwise disseminate attributes and data related to an
order.
2 2 Order Definition Ability to create an order.
2 2 Order Placement Ability to place or enter an order for the exchange or trade of a financial instrument in the
appropriate market(s).
2 2 Order Settlement Ability to control, execute, and record the exchange of financial instruments in accordance with the
order terms and conditions.
2 2 Order Quote Management Ability to obtain and provide offers for exchange of a financial instrument in response to a trade
order.
2 2 Order Matching Ability to associate an order with other business objects and capabilities.
2 2 Portfolio Matching Ability to associate portfolios with other business objects and capabilities.

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CORE CAPABILITIES – PARTNER MANAGEMENT

Tier Level Capability Definition

2 1 Partner Management Ability to control, predict, process, organize an individual or organization that has,
plans to have, or has had a legally binding agreement with the business with the
intent of sharing risk and profit.
2 2 Partner Information Management Ability to organize, track, report on, or otherwise disseminate basic attributes, data,
and other perspectives about a partner.
2 2 Partner Definition Ability to establish a new partner.
2 2 Partner Risk Management Ability to assess the likelihood of harm to the business associated with a partner
and/or partnership.
2 2 Partner Matching Ability to associate a partner with other business objects and capabilities.

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STRATEGIC CAPABILITIES – LEVEL 1

Tier Level Capability Definition

2 1 Brand Management Ability to establish, organize, analyze, administer, and report on all aspects of a category of product or
offerings under a particular name, unique symbol, mark, or logo that distinguishes it from other products in
the market.
2 1 Business Management Ability to set strategic direction, generally govern, manage operational execution, and measure performance
against plan for the legal entity and its ecosystem.
2 1 Intellectual Property Management Ability to define, establish, validate, value, obtain, or dispose of inventions, patents, trademarks, trade
secrets, copyrights, and know how as a basis for furthering the overall mission of the enterprise.
2 1 Investment Management Ability to identify, develop, analyze, valuate, exchange, acquire, dispose of, and report on any type of
monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a
higher price for a profit.
2 1 Market Management Ability to identify, name, analyze, frame, and cater to an actual, virtual, or otherwise nominal place where
forces of demand and supply operate, and where buyers and sellers interact — directly or through
intermediaries — to exchange products and services for monetary or non-monetary value.
2 1 Message Management Ability to define, craft, frame, vet, disseminate, and track a structured conveyance of information, including
missives, notifications, alerts, and other internally or externally targeted communication about the
company's mission, products, plans, activities, and other focal points.
2 1 Plan Management Ability to develop, communicate, and coordinate an articulated direction, related work items, and priorities
to further business development, organizational priorities, and enterprise goals and objectives across
business units and entities within or outside the organization.
2 1 Policy Management Ability to establish, maintain, comply with, and administer a set of statues, legislation, rules, procedures,
regulations, treaties, and principles driven by internal business directives and external organizations,
governments, or related third-party actors.
2 1 Research Management Ability to conduct systematic investigation into materials and sources in order to establish facts and reach
conclusions that comprise a result.
2 1 Strategy Management Ability to define and disseminate mission, vision, goals, objectives, action items, and key performance
indicators for the business, products, or other interest as required.

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SUPPORTING CAPABILITIES – LEVEL 1

Tier Level Capability Definition

2 1 Asset Management Ability to acquire, create, track, report on, and dispose of, tangible or intangible property, with
intrinsic value.
2 1 Event Management Ability to establish, use, sustain, disseminate, and analyze an occurrence or happening at a
determinable time and place, including physical and virtual meetings, conferences, or related
gatherings of two or more persons.
2 1 Human Resource Management Ability to assess, mentor, compensate, terminate, and otherwise coordinate individuals that are or
have been incorporated under a legal agreement that includes compensation and other benefits, on
a temporary or permanent basis.
2 1 Information Management Ability to define, organize, structure, secure, protect, and disseminate facts, statistics, attributes,
and other types of data about a business’ set of business objects.
2 1 Job Management Ability to identify, define, assign, and manage accountabilities whether remunerative or non-
remunerative, assigned, specific, and accountable business duty, role, or function that can be
executed by a human or non-human resource.
2 1 Legal Proceeding Management Ability to direct, administer, oversee, respond to, and generally administer all aspects of work
related to a litigation filing, including trials, appeals, or related actions.
2 1 Location Management Ability to define, calculate, articulate, determine, disseminate, or otherwise track a position or site
of any given entity (person, organization, equipment, product etc.)
2 1 Program Management Ability to organize, plan, direct, and communicate progress against milestones to deliver outcomes
within defined resources, time, quality, and scope constraints.
2 1 Training Management Ability to define, conceptualize, create, and convey structured content and knowledge in
consumable format, associated with a curriculum a course, workshop, seminar, or related content.
2 1 Work Management Ability to capture, organize, prioritize, route, interpret, disseminate, and administer
communications, tasks, and related decisions.

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CORE VALUE STREAM – ESTABLISH AGREEMENT
Value Stream Description Entrance Criteria Exit Criteria Value Item Stakeholders
Stage
Receive The act of receiving a request or expressed interest in Expressed request to establish or Identified requester with validated Requested initiated, Customer Service
Request creating or updating an account and verifying update an agreement request acknowledged and Advisor, Customer,
requester’s identify. accepted Partner

Identify Needs The act of assessing the needs of the customer in Identified requester with Identified requester with identified Needs communicated and Customer Service
order to recommend the agreement. unidentified needs needs and identified agreement understood Advisor, Customer,
type Financial Planner,
Product Specialist,
Partner
Collect The act of receiving the requestor’s approval to Identified agreement type and Information needed to establish Information needed to Customer Service
Approval and proceed and gathering and validating all remaining needs or update agreement available establish or update Advisor, Customer
information needed to establish or modify an agreement accepted
Submission
agreement.

Evaluate Risk The act of both parties (the requestor and the All information necessary to Parties agree on and accept the Risks to proceed are Customer Service
business) assessing the risk of establishing or updating establish the agreement available risks of establishing or updating acceptable Advisor, Risk Officer,
the agreement and agreeing to proceed. an agreement Customer, Partner

Activate The act of activating the requester’s agreement. Parties agree on and accept the Agreement activated or updated Agreement is activated and Customer Service
Agreement risks of establishing or updating current Advisor, Partner
an agreement

Perform Post- The act of performing any post-activation activities Activated and current agreement Essential agreement finalization Agreement activation Customer, Customer
activation such as notifications, compliance verification, quality slated for finalization activities completed activities and notifications Service Advisor, Channel
assurance checks. finalized Manager, Partner
Activities

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CORE VALUE STREAM – DEVELOP AND LAUNCH PRODUCT
Value Stream Description Entrance Criteria Exit Criteria Value Item Stakeholders
Stage
Conceptualize The act of envisioning and articulating a new or modified Business strategy or plan and Product concept defined in Product concept ready Product Manager,
Product product based on market research, competitive analysis, expressed need or idea for a accordance with business for test marketing Product Owner,
customer input, and other insights. product strategy Customer

Market Test The act of test marketing a product concept and Product concept defined Decision to proceed with Product concept is Product Manager, Delivery Channel
Product establishing appropriate pricing and profitability models. product launch viable and profitable Owner(s), Project/Program Manager,
Marketing Manager,
Concept
Financial Controller

Design and The act of designing and creating the product and Decision to proceed with Product ready for launch Product created and Product Manager, Delivery Channel
Create Product everything required to support it. product launch ready for deployment Owner(s), Project/Program Manager,
Marketing Manager

Pilot Product The act of performing an initial small deployment of the A product ready for launch “Piloted” product, Product and product Product Manager, Delivery Channel
product in order to mitigate risk, test, and verify. decision to proceed with full distribution tested and Owner, Project/Program Manager,
deployment verified Marketing Manager, Financial
Controller

Deploy The act of correcting any product deficiencies that were “Piloted” product, A successfully, fully launched Product fully deployed Product Manager, Delivery Channel
Product identified in the pilot deployment and fully deploying the decision to proceed with full product Owner, Project/Program Manager,
product to all applicable delivery channels. deployment Marketing Manager

Assess Product The act of verifying and assessing the performance of the Successfully, fully launched Qualitative and quantitative Quality of product Product Manager, Delivery Channel
Launch product launch. product metrics regarding the launch rating Owner, Project/Program Manager,
product are available Marketing Manager, Financial
Success
Controller

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CORE VALUE STREAM – EXECUTE TRANSACTION
Value Stream Description Entrance Criteria Exit Criteria Value Item Stakeholders
Stage
Initiate The act of requesting financial activity on an agreement. Request received to make a Request accepted Requested transaction Customer, Partner Authorized
Transaction transaction is being processed Representative, Customer Service
Advisor, Internal Stakeholder

Validate The act of ensuring that the requestor has authority to Request received Request validated for Requested transaction Customer Service Advisor, Account
Transaction request the transaction and the agreement is in a valid processing is validated and able to Manager
state to allow the transaction to occur. proceed
Request

Identify The act of identifying all related effects of the Request validated for Transaction impacts Related transaction Product Manager, Account Manager
Related transaction, including, for example, fees and charges. processing identified impacts are identified

Impacts
Perform The act of applying request changes to the agreement Transaction impacts Transaction performed Requested transaction Customer Service Advisor, Financial
Transaction balance and calculating the new agreement balance. identified is performed Controller

Notify The act of notifying all stakeholders of the transaction Transaction performed Agreement holder and all Stakeholders are Customer, Partner, Authorized
Stakeholders and related events. stakeholders notified notified of transaction Representative, Customer Service
Advisor, Internal Stakeholder

Verify The act of ensuring that processed transactions are Transaction performed and All necessary transaction A fully compliant Customer, Partner Authorized
Compliance recorded and retained in accordance with organization all stakeholders notified activities and compliance transaction is Representative, Customer Service
and regulatory policy. validation is complete complete Advisor, Channel Manager

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CORE VALUE STREAM – TRADE FINANCIAL INSTRUMENT
Value Stream Description Entrance Criteria Exit Criteria Value Item Stakeholders
Stage
Initiate or The act of making a request for trading a financial Need for trade determined / Trade request submitted and Requested trade is in Investor, Broker Dealer
Request Trade instrument. recognized received progress

Select The act of determining and selecting which broker-dealer Trade request initiated Broker-dealer selected Accredited and Investor, Broker Dealer
accredited will execute the financial instrument trade authorized broker-
dealer has
Broker-Dealer
responsibility for the
trade
Validate Trade The act of verifying if the requested financial instrument Trade request initiated Trade request validated Trade order ready for Registered Representative,
Request is suitable for the investor according to established placement in the Broker Dealer
investment goals market

Obtain Trade The act of obtaining all available quotes for the Trade request Validated Trade order quotes received Trade order quotes Internal Firm,
Quotes requested instrument exchange. obtained Broker Dealer,
Investment Manager

Execute Trade The act of fulfilling (i.e., entering into an agreement with Trade order submitted Trade order confirmed Trade order agreed/ Broker Dealer, Security Trading
Order the counterparty to exchange the instrument) the trade confirmed Organization, Stock Exchange Broker,
order externally and matching to the investment trade Market Maker
agreements.
Settle Trade The act of exchanging the agreed upon financial Trade order confirmed Trade settled between Requested trade is Broker Dealer, Investor, Trust Bank
instruments and verifying that the trade was done in stakeholders (cleared) completed (Custodian)
accordance with all policies, regulations and procedures.

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CORE VALUE STREAM – RESOLVE ISSUE OR INQUIRY

Value Stream Description Entrance Criteria Exit Criteria Value Item Stakeholders
Stage
Identify or The act of gathering all the known details of the An issue has been Issue identified and Issue accepted for Customer Service
report issue or exception/issue for the purpose of tracking and reported or an inquiry recorded review Representative
inquiry reporting through to resolution. has been received
Classify, The act of classifying and investigating the issue An identified and Root cause of the issue Root cause of the Customer Service
Investigate & in order to determine the root cause. recorded case identified issue is identified Representative, Channel
Determine Manager, Product Manager
Cause
Resolve The act of formulating and applying a course of An issue with an Issue corrected Issue is resolved Customer Service
action to correct or offset the effects of the identified cause Representative, Channel
issue. Manager, Product Manager
Notify The act of notifying all stakeholders of the Corrected issue Stakeholders notified All stakeholders Initiating Stakeholder,
Stakeholder(s) status and resolution of the issue. and satisfied notified of Customer Service
resolution Representative

Prevent The act of making any changes to products Corrected issue and Corrective actions to Actions taken to Customer Service
Recurrence and/or operational processes in order to stakeholders notified prevent future ensure likelihood Representative, Channel
prevent (or at least reduce the likelihood) of a and satisfied occurrence of issue recurring Manager, Product Manager
recurrence of the issue or similar issues. is reduced

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 INITIATIVES DELIVERY ROADMAP
Establish Initiative Plan

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 PRIORITIZE OBJECTIVES TO CREATE A MULTI-YEAR ROADMAP

• Prioritize objectives and initiatives

 Review objectives and initiatives using a cross- mapping to the financial services core values
and capabilities to identify its business values and feasibility of achievement.
Evaluation of each objective importance such as Essential, Valuable, Nice-to-have and
capabilities availability should help to prioritize the earlier identified initiatives that serve
to achieve organization’s strategic goals, objectives.
• Create a roadmap for initiatives implementation
 Drafting a multi-year roadmap to schedule the prioritized objectives, initiatives to support
organization’s strategic goals. Breakout teams can include additional details such as KPIs
to measure an achievement for each objective to monitor and track the results before and
after initiative’s execution.

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 WORKSHOP RESULTS WALKTHROUGH
Deploy Business Solution

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 RESULTS, DECISIONS AND CLOSING REMARKS

• Mapping Results Walkthrough and Decisions

 Participants of each workshop breakout teams will leverage their team’s work to demo a draft
roadmap for the execution schedule for organization’s initiatives to support strategic goals
and objectives. It is a great opportunity to illustrate the role of business architecture in
the organization strategic planning to deliver the business value driven solutions.
• Workshop Closing Remarks
 Overview of the next steps to incorporate the workshop results in the reference model
for financial services industry and support the end to end organization strategic planning.

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 FINANCIAL SERVICES INDUSTRY
Reference Model Next Steps

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 NEXT STEPS FOR FINANCIAL SERVICES REFERENCE MODEL

• Focus on creating cross-mapping to identify gaps in the model

 Refine cross-map for value stream to capabilities – identify missing capabilities
 Create cross-map for organization to capabilities – identify missing capabilities
 Review cross-map for stakeholders to value streams – identify missing stakeholders
 Create cross-map for stakeholders to organization – identify missing business units
• Leverage the workshop results to add initiatives map in the model
 Refine cross-map for initiatives to capabilities – identify missing capabilities
 Refine cross-map for initiatives to value streams – identify missing value streams
 Refine cross-map for initiatives to business units – identify missing business units
Enrollment for the financial services reference model group is open for all workshop’s attendees!

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