Performance Vendor Selection: RFP and Proof of Concept

BACKGROUND

A large Canadian pension fund manager needed to replace their outdated performance measurement and attribution platform. After years of asset growth and complexity, the investment manager was constrained by homegrown systems. Additionally, reporting on portfolio and benchmark relative performance information grew into a highly customized system of data staging and visualization dashboards. Operations teams struggled to fulfill new requests using manual processes, Excel and outdated technology.

The head of Finance and Performance Operations engaged Meradia to lead the vendor selection process, provide strategic guidance and planning, and prioritize the firm’s requirements to ensure the vendor solution recommendation would alleviate operational pain points and be able to implement new business features.

ANALYSIS

Meradia managed the critical task of client-vendor communications, ensuring all stakeholders understood the RFP methodology, delivering consistent research across vendor solutions, clarifying incomplete RFP responses and client questions, and providing a cost-based analysis. Meradia facilitated workshops with the client operational team leads to identify key requirements and pain points that would refine our analysis of the vendor responses for individual business or technical requirements. Meradia’s RFP response scoring tools consolidated and codified reactions from client representatives. We then leveraged data visualization tools to evaluate vendor scores relative to key requirement categories in order to validate differentiators.

Once we identified the leading vendor, Meradia planned a proof of concept based on a focused set of use cases. Our consultants organized historical datasets for use cases, readied comparative test results, and monitored workshops that allowed client users to directly test complex configurations and complete operational use cases. Tracking the status of vendor proofs and solution recommendations proved critical to prepare the client for a confident decision-making process and a rapid transition to implementation.

RESULTS

Meradia’s methodology empowered our client to confidently select a vendor based on a detailed RFP scoring analysis, in conjunction with a proof of concept based on real data and focused use cases. Guiding the program over these hurdles and proving tangible outcomes gave our client the data needed to make a vendor decision and move forward with a large transformation project. Meradia provided a strategic view of long-term objectives that alleviated operational pain points. We also leveraged our knowledge of industry solutions to identify key differentiators between vendor capabilities.

Finally, our expertise helped the client overcome a challenge many investment managers face as they endeavor to retire legacy technology and balance the need for major investments to transform operations and prepare for growth.

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