BANKING, INSURANCE, AND CAPITAL MARKETS

ACHIEVING THE BUSINESS CASENavigant’s Independent Implementation Quality Management

DERIVING VALUE FROM YOUR TECHNOLOGY INVESTMENTS?

What can ruin a firm’s management reputation, disrupt business operations, and drop

employee morale? An unsuccessful technology implementation. Whether it is a multi-

million-dollar enterprise resource planning (ERP) implementation or a data conversion,

any failure can be disastrous to the financial and reputational health of an organization.

In the case of a financial institution, such an implementation failure could lead to non-

compliance with regulations and potentially hefty fines from regulators. In today’s

constantly changing environment, implementing key technology solutions to successfully

enable business is necessary and leaves limited capacity for error.

There are many reasons that could lead to technology implementation failure. Issues such

as lack of communication between teams, an inability to control the scope, an incorrectly

defined business or regulatory requirement, and an insufficient go-live assessment are

just a few. There is no shortage of failure stories in the media related to unsuccessful

implementations. What can you do to make sure your organization doesn’t have to

endure a failed implementation?

Effective implementation management is the key to driving a successful project.

Improper management can potentially lead to lawsuits and millions, if not billions, of

wasted dollars. An implementation requires an experienced team and leader who will

guide the entire process, including solution and vendor selection, testing, delivery,

and resource training. Companies that do not have an experienced, in-house resource

with knowledge of the correct solutions and experience, can benefit from bringing

in an outside firm that has done this before. Navigant Consulting, Inc.’s expertise and

strategically selected team, provide a strong partner to companies looking to implement

new technology solutions.

INCREASE THE EFFECTIVENESS OF YOUR TECHNOLOGY PROVIDER

Based on Navigant’s experience, more than 50% of all implementation programs either fail

or do not deliver the desired benefits in the forecasted timeline. As a third party, Navigant

has observed that most programs have had some form of PMO team, including a project

sponsor or a project manager. However, the implementation was unsuccessful because

the project management role was treated as more of an administrative role and lacked the

strategic value required to implement a successful program. In many cases, these project

management resources have conflicting responsibilities and lack a depth of experience

and knowledge in critical areas. A successful implementation requires a balance of

industry knowledge, functional training, technical understanding, compliance expertise,

and management acumen. It is imperative to have a resource or team, experienced in

these areas, to deliver the desired outcome.

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Navigant is uniquely positioned to advise clients on their most

critical system implementation efforts. In many cases, Navigant

has been brought in after the fact to act as an expert in litigation.

This experience, combined with success in both large and small

systems implementations within the financial services industry,

make Navigant an unmatched partner for a thorough and

successful implementation. Navigant’s expert team is experienced

in different methodologies, including Agile. This allows Navigant

to select the right methodology for each project, including

training client resources. Since Navigant does not sell commercial

off-the-shelf software, potential bias for certain products or

processes is eliminated, giving the client an independent,

unburdened viewpoint.

IMPLEMENTATION QUALITY ASSESSMENTS

Navigant’s Experience Spans the Full Spectrum of Financial Services

Origination Systems

Underwriting

Core Mortgage and Servicing

Core Banking

Financial/General Ledger/ERP

Credit Reporting

Governance Risk & Compliance

Analytics and Modeling

What Sets Navigant Apart?

Truly independent; No partnerships with software firms

Loyal to the customer and committed to successful completion of the program

Deeply skilled in the full spectrum of the financial services industry as well as regulations/compliance

Implementation experts with broad knowledge in the implementation life cycle

Ability to rapidly staff up and down with no negative impact

Small, cost-effective teams that have a large impact

Navigant performs a three-to-four-week quality assessment

that highlight areas in need of improvement within a project/

program. These reviews often identify opportunities for cost and

time reductions. A review of the methodology, artifacts, work

plan, resource/skill allocation, testing approach, compliance

effectiveness, deployment plan, training plan, and functional

fitness to achieve expected benefits, can greatly increase the

chances of a successful implementation. These reviews achieve

this outcome by identifying risk areas and/or issues early in the

process. Many firms invest in post-implementation assessments,

which can also prove valuable. A more holistic approach would

be an independent, pre-implementation assessment that could

lower cost by reducing or eliminating the need for re-work. It

also reduces business risk because system users or clients are

not impacted by issues identified prior to the system moving to

production. Navigant has a proven framework to perform these

types of assessments, including pre-defined tools and artifacts

customized to each project, this ensures assessment coverage and

reduces the time to completion.

TECHNOLOGY ASSESSMENT

REGULATORY COMPLIANCE ASSESSMENT

AML COMPLIANCE ASSESSMENT

To reduce risk with an initiative, many organizations ask

Navigant to assess their implementation systems before

going live. Navigant’s unique perspective when it comes

to IT risk, banking compliance, and its deep familiarity with

financial services processes allows for quick determination

on whether a given implementation will a) meet the

business case, both from a functional and technical

perspective; b) be resilient, secure, and effective as a

solution and c) meet the complex regulatory hurdles that

are impacted by the implementation.

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Navigant’s Implementation Experience

ENGAGEMENT DESCRIPTION

SAP General Ledger Platform Implementation for a Large Investment Bank

Navigant was engaged by a large U.S. investment bank to assist with the global implementation of its general ledger platform to improve transparency, reporting, and meet regulatory requirements. The program’s goal was to implement the general ledger across all of the client’s entities to improve financial reporting, integrate the liquidity reporting across the entities, and provide an overarching financial view of the combined organization following several key acquisitions. Navigant assisted with the transitional stage of rolling out and ultimately executing the implementation of the general ledger. Navigant’s approach included:

• Strategy: Assessed current governance framework

• Leadership commitment: Re-aligned team around revised framework

• Approach: Budget required creative ways to achieve results

• Integrated team: Cross-trained and shared deliverables, which accelerated delivery

• Methodologies: Brought in Agile to recalibrate software delivery and team collaboration

• Ongoing tracking: Raised challenges, defects, and obstacles quickly while meeting sprint deadlines

Navigant provided the client with new perspectives on how to re-engage the team, set forth realistic goals and objectives, and manage the next phase into a successful completion.

Implementation of Web Portal to Perform Servicing Oversight

Navigant recently performed servicing oversight for a large eal estate investment trust. As part of this process it was tasked with deploying a web-based portal to monitor daily compliance with more than five subservicers it utilized. As part of this deployment, Navigant developed the business requirements, contracted and managed a team of web developers, and spotfired business intelligent development and sequel server. The engagement involved the automation of over 20 daily files with loading to SFTP site, deployment of dashboard, which highlights to user historical and current compliance exception rates and produces detailed exception reports for follow up by the subservicers.

Navigant worked to identify and solve issues as a liaison between the core business users (and the technical development team). Navigant reviewed, restructured, and managed the technical implementation project plan and organized teams to assist in system testing, definition of requirements and business processes, and development of change control procedures. Navigant developed a communications plan to advise executive management on strategic issues and coordinated team status reporting for the chief information officer.

Technology and Regulatory Risk Assessment for Mobile Payments Processor

Navigant was engaged to assess the technology readiness for a national mobile payments service provider. The review encompassed security elements of the existing platform, as well as privacy safeguards, and overall compliance with information technology rules and regulations. As a part of this engagement, Navigant performed the following:

• Researched and documented the data lineage for select transaction types to understand where

the end-to-end process non-public personal information was created, read, updated, or destroyed.

• Mapped the results to key regulations (e.g., Gramm-Leach-Bliley Act, FTC) and contractual

requirements from merchants on how to steward such data.

• Assessed the quality of its vendor management framework in areas of onboarding, periodic due

diligence, and quality of review concerning PCIroc, SSAE16, etc.

• Assessed the overall technology environment for security, resiliency, and scalability.

Additionally, Navigant analyzed the system functionality against business requirements to

determine if they would be met.

During the course of the assessment, Navigant uncovered, and subsequently presented, findings concerning additional operational elements that impacted launch, and immediate post-launch, in management, as well as longer-term operations. In addition, Navigant proposed a series of strategic remediation initiatives to align client’s business process, IT tools / technologies, and operating model to industry best practices.

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About Navigant

Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global professional services firm

that helps clients take control of their future. Navigant’s professionals apply deep industry

knowledge, substantive technical expertise, and an enterprising approach to help clients

build, manage, and/or protect their business interests. With a focus on markets and clients

facing transformational change and significant regulatory or legal pressures, the firm

primarily serves clients in the healthcare, energy, and financial services industries. Across

a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s

practitioners bring sharp insight that pinpoints opportunities and delivers powerful results.

More information about Navigant can be found at navigant.com.

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