Holistic Client Lifecycle Management (CLM)

In our previous blog we discussed the idea that Client Lifecycle Management (CLM) business execution and data management challenges need to be observed, quantified and understood in a non-linear way.

That is, that firms should seek to build up a visual representation of their organisation to show the relevant operating units and their relationships (e.g. process flows, decision drivers, interactions) in a radial way; creating a shared and unambiguous view of their real-life operation.

Managing Traffic Flow

To illustrate this theory, let’s divert to the intricate world of air-traffic control. Air Traffic Control (ATC) is service provided by controllers who direct aircraft both on the ground and through controlled airspace, and it can provide advisory services to aircraft in non-controlled airspace.

The primary purpose of ATC worldwide is to prevent collisions, organise and expedite the flow of traffic, and provide information and support for pilots. To prevent collisions, ATC enforces traffic separation rules. In other words, ATC is used to manage the safe and orderly flow of aircraft into, out of, and across global airspace.

They use systems and processes to minimise the risk of collisions, while allowing the maximum number of aircraft to fly safely in the skies. Air traffic controllers manage aircraft through all phases of flight, from terminal gate to terminal gate.

CLM Processes and Data Flows

Many of the actions outlined above (in italics) fly wing-tip to wing-tip with the constituent elements of CLM:

  • that true end-to-end CLM is a service provided by one or more parts of the organisation
  • that the processes are executed and data is exchanged both within the client onboarding function specifically, but also with elements that reside outside the responsibility of the function such as Legal and Regulations
  • that the workflow, process and data management deployed exist to organise and assist the onboarding of clients locally, regionally and globally etc.

The synergy between the two disciplines resonates so much that we’d venture to suggest that in organisations struggling to understand the concept of (or even the need for) strategic CLM, it would be an instructive exercise to create an initial view of the CLM process and data flows in your firm, at the very least for a single jurisdiction.

Client Lifecycle Management – A Radial Assessment

Akin to Air Traffic Control, it is clear that the CLM capability should exist to know and monitor key fundamentals of end-to-end CLM, for example:

  • What clients need to be onboarded? / What clients do you already have?
  • Where do they come from?
  • Where are they in the onboarding process (at any given moment)?
  • Who’s controlling the stage/phase they are in?
  • Who’s waiting for information about them?
  • What risks are associated with the client?
  • Who’s going to get upset if the onboarding is slow or doesn’t occur in time?
  • What volume and frequency of dealing will be associated with this client?
  • What (multi-contextual) management information can be provided from the relationship with the client?
  • What must happen when the client decides to depart etc?

This initial non-linear assessment of both the required onboarding process and the future relationship with a client should help in; fleshing out business and process connections, discovering blockers (even collisions!), identifying control risks and finding ways to eliminate work repetition (between teams).

The improved clarity delivered by a radial assessment of your CLM processes will result in the ability to design and deliver smarter solutions; achieving maximised outcomes in shorter windows of time.

In our next blog we will look at how not having a holistic view, that enables the development of a strategic target operating model and process design, will make the strategic transformation of your CLM domain difficult, protracted and costly at best and/or basically impossible at worst.