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1.1
Process
which usually takes a great amount of time that can slow the analysis process
on the analyst side .
During the first process when the research analyst informs the analysts of the
listed stocks that the research will be conducted, a list is also given to the BIC.
This enables the BIC team to plan in advance to make the sourcing process to be
convenient and flexible.
By the time that the analyst sends a request to the BIC, the information assistant
is able to give a quick response on the company stock reporting.
There is cost saving by the business (IIM) because we source physical documents
from the supplier instead of printing them at the BIC. As a department we are
able to cut down on unnecessary expenses and in turn increase the income of
the business .The BIC as a business also benefits by being part of a successful
value chain in investment.
As business the BIC is also to serve their at a minimum cost, using minimum
resources. Investcore Investment Management benefits by having productive
staff that work well together creating value for the business and for the strategy
of the business.
Involving the BIC also assist the analysts to focus on the additional research
needed for the equities presentation to the portfolio managers, this in turn
benefits the business as whole.
Diagram 1
The Process flow diagramof the BICreportingoperations
Head of Research
selects company
Stocks
ReportingOperation Process
starts
YES
Information assistant 3 Updates
the catalog, physical reportsare
stored on the Library shelves
ReportsReceived?
Information Assistant 2
Confirmscomplete report and
attach pdf Document to
Approve
Update Company
stockinformation is
available online via
the catalogsystem
for the analyst to
acess.
NO
Diagram 2
The processflow diagramof the EquitiesTeam
Company stock
Analysis begins
Analyst provides
Investment Thesis
Approval
Implementation takes
place
Economics Team
Determine M acro Drivers
Yes/No
Compliance
check &
Verification
1.2 Inventory
Investcore Investment management is a service business that operate in the
financial sector, therefore no inventory is held with an intention to make a sale or
for profit generation. The Business Intelligence centre does hold books,
newspapers, magazines, journals, Annual reports and AFS reports within the
library book shelves, and store room for the purpose of research demands.
The request to order book purchasing system ensures that there are no funds
used to purchase books that are costly, unnecessary and sees to it that funds are
used efficiently.
b) Subscriptions To control the newspaper subscriptions and magazines, we
have a subscription control sheet that is maintained on a monthly basis by our
senior information officer. All clients (employees) who are within a 3 month
subscription renewal period are followed up with to ensure that the BIC does not
provide subscription to someone who might be unavailable , relocated or do not
need the renewal in the following year. All newspaper subscriptions are
registered for the daily mail deliveries that the BIC receives on a daily basis,
these papers are stored in our library shelves for 3 months for research purposes
in case a client might require a direct newspaper reference from a dated paper
article.
The magazines subscriptions mails are also controlled in the similar process.
Magazines, especially the international published such as the economist have
online subscription, this option is mainly by our top research team who are
always travelling and going offsite for meetings. The essential aspect of this
process is to reduce waste in desk delivery, storage space on the clients who
receives the daily physical papers every day. The BIC does not oversupply mails
(physical and digital) needed by the clients within the business, thus keep their
supply within a controlled system.
1.3 Capacity
In order to determine the current capacity level of the BIC, An analysis has
been done to indicate the type of capacity that this department operates
under. To determine the category level, a further discussion regarding the
implication will be alluded below.
Staff
Average Scale
10
5
0
Daily
Monthly
On demand
Category
Weekly
Book Purchases
Online Database Maintenance
Reporting Operations ( Annual reports & AFS)
Daily Newspaper client deliveries
Subscription Admin
cataloging
0 1 2 3 4 5 6 7 8 9
Hours
Clients
The main client of the BIC is the Investcore cluster team namely Sanlam
investment management teams, with the majority of clients coming from
the credit team, equities team, dealing desk, Economist team. These
clients send us requests depending on the research stocks that they need
to conduct, present or model. It is imperative in this phase to consider the
fact that, not all stocks or companies that are on the research list will be
traded on and analysed during that period. As an example out of 150
company stocks reporting at the same period only 10 stocks might be
analysed. Thus means that there is capacity to include other clients within
the business for efficiency.
Resources Available
Excess Capacity
The daily operational activities of the BIC are quite limited as compared to
other similar departments particularly relative to other public or an
academic library. This is because they are focused on serving a group of
investment professionals and they focus on that segment.
With the recent technology and innovation improvement this department
has a greater opportunity to move from paper dominance business into a
digitalised business. This will also enable even greater time available to
bring about new improvements in the business.
The BIC has excess capacity, there is a massive room for growth and
improvement if this department receives sufficient supply of resources for
support. The client base that is served by this department is too narrow,
yet there are lots of employees who might need the service within the
business. A client base gap should be bridged to allow this space to
operate at its optimal efficient level.
Quality
had the incorrect name for our research there wont be any information available
in the catalog or in our shelves to assist the credit analyst with his research. This
will also cause delay in the whole process involved to provide funding for our
client external client and we will lose out on the potential future interest that
could have been earned from the party.
There is a simplified process amongst the three staff members ti ensure that
quality is maintained. This ensures that mistakes are captured.
The quality and not quantity matters in this business, 10 small equities caps
might require research material from the BIC for an inflow of 2 billion to the
business (IIM) and 1 equities company might require research material for a 10
billion rands investment into our business.
Quality at the source and Total Quality management elements are very
fundamental to the Business Intelligence centre Operations.
1.4 Measurement
Productivity Measurement of the BIC
In order to be operationally efficient the library has the following inputs involved
in their service delivery. There are three staff members available, IT Support for
the computers, Bloomberg terminus and software, meeting desk, book shelves,
magazine shelves, one study desk and small lounge meeting area. The number
of hours (labour hours) of each employee and the resources involved are quite
difficult to measure compared to the service delivered because this department
operates as middle man to provide information to our Investment teams.
The magazine and newspaper articles features by our portfolio managers on the
moneyweb, finweek, and financial mail can be counted as output that has been
produced by the business intelligent centre due to the research support that was
given. The Investcore Investment teams release about 10-15 written articles to
the finance and investment media in a year.
1.5 Environment
To support the overall strategy of the firm (Investcore Investment management),
the processes within the library are environmentally considerate. The annual
reports that are sourced from different companies enable IIM and the Business
intelligent centre to reduce waste in paper printing. The business uses original
copies that are issued to the supplier to save on the cost of printing and the
wastage of paper and trees.
As an organisation operating in the financial service environment, we have
regulations that protect the rights of those who supply information such as
authors and we also ensure that requests by our clients align to the regulation
standards that govern the industry.
Investcore Investments is under new leadership, on Thursday the 16 th our head
of legal announced via e-mail the departmental restructure of the legal
departments to be separated in order to better serve the clients and the
business. This ensures that the Environment management system of Investcore
Investment management and the passion to see growth in the environment and
as a business.
The BIC also utilises the PDCA model to maintain their environmental management system
(EMS) parallel to the businesss direction. This enable the department to stay relevant and to
grow with the industry.
1.6 Workforce
Workforce planning is done to ensure that we have the right people at the right
time, the most fundamental goal is to ensure that the business understands the
direction that the work space is heading. Without a good workforce plan it will be
difficult for the business to achieve its business objectives.
The business Intelligence centre is going through a recent change in workforce
due to the change of the work context. The business would plans to move from
the old traditional way of manual utilisation and paper environment into a digital
space in order to improve their service level to clients.
Current workforce
The Business intelligent Centres plan is to move into the digital space in order to
operate in the level similar to other library of its size. The project involved with
this transition requires new talent that will refresh the culture, streamline the
operation management and introduce a new service that will enhance the
competitive advantage. Amongst the 3 staff members mentioned, there is one
contractor whose role will cease in May 2016 in order to acquire an employee
that will stir the business into the new way operation. The BIC aims to employ a
staff member who has IT knowledge and library experience so that the migration
into the new digital space can become a smooth transition.
Due to a lack of workforce planning there has not been a clear strategic channel
that aligns the BIC and the employees towards a long term plan. These is no
documented process of how things operate due to the leadership that has been
heading the place for over 13 years. The lack of succession plan is a concern that
should be prioritised. Training and development will be needed to support the
new project plan, this will involve the staff and the users of the new system.
As discussed under capacity topic, the BIC is underutilised, thus involving some
level of wastage due to opportunities untapped. The new recruit is expected
notice these similar type of gaps and assist in making the business a success.
Succession planning is important in every organisation, currently the Business
Intelligent centre has no next in line manager that can assist with detailed
operations of the library. This is also a workforce planning that needs attention to
management and to the current existing employees.
An Area for improvement in this process
The process flow diagram that was drafted above easily indicated that the BIC as
department is underutilised, since it has excess capacity. The recommendation to
fill such a gap is to add more tasks and duties to this team by sharing and
transferring some of the research tasks to the BIC so that there could be support
and synergy within the cluster (team). As an information department, the BIC
must be more involved in thorough research support than just the reporting
operations, this also add as a core value to the research investment team as a
whole.
To eradicate the process flow diagram and structure of the business so that it can
move towards adding more value to the business than just handling one aspect
the two process flow diagrams of the BIC as a service provider should be merged
with the end user.
An interview with one of the equities analysts who assisted in the drafting of the
process indicated that more hours are spent on the internet doing research than
offsite attending meetings.
The Business Intelligent centre teams should be involved in the investment
meetings so that they can also be able to share knowledge, add inputs and
source documents that can assist analysts and create more value. The BIC staff
are not very clued up with the end process, the implications and impacts of their
contribution in this process. However the new process will create inclusivity,
bringing about ways for continuous improvement in this process and enhance
innovation. The goal of this new process is to lessen the burden of the client
(Analyst) through giving more support by rendering more services, and inturn
adding value to the business. This will uplift the current value of the BIC making
it the department that offers investment in knowledge and support to all staff.
Change implementation
My colleague and I had our first meeting with the team members
from the fixed interest and Equities team. From the meeting it
was mentioned by one of the team mates Mrs Makhaga that the
BIC offers of the research needs that thy require and that they
can benefit from the BIC staff conducting more research and
support. This meeting also brought into attention that they will be
able to produce a more details investment thesis and build
relationships with the clients through the extra time that they can
have if this plan takes place.
The BICs involvement in the investment team (research) will also
add a competitive advantage to the asset management space for
being one of the few libraries in this industry to collaborate with
their investment team.
Both two processes merged will add value to the new migration
plan into the digital space. The systems to be designed will be
easier to plan and implement with a refined research team
structure thus eliminating wastage through delays in the process.
The impact on lean thinking regarding this change
-
Intervention
List of small wins