Business Management During Periods of Transformation: A Global Best Practise Perspective
Background
Avida International recently conducted nine interviews with some of the largest global pension organisations to uncover the best business management practices during periods of transformation. We anonymised the responses and are now sharing the common themes, discrepancies, and notable points that came to light from our research.
In the interviews, which averaged 48 minutes, we asked each of these large pension organisations a set of homogeneous, qualitative questions which were developed by our senior consultants. Each question was designed to explore exactly how large pension organisations manage all facets of their business during periods of transformation. In this blog, however, we will be focusing on the following areas:
• Value for Money
• Digitisation
• Branding and Marketing
• Maturity Journey
Value for Money
A central theme across all organisations was the importance of providing value for money, which was particularly stressed in compulsory contribution systems. Many noted that this could be achieved by balancing cost-efficiency with strong investment returns and quality service, though implementing this balance is often challenging.
Some organisations believe that internalising asset management and member services is the best route to achieve value for money, as it reduces long-term costs and offers greater control. However, those who pursued this strategy acknowledged the need for substantial investment in talent and capabilities.
Conversely, some organisations argued that outsourcing partnerships were essential for achieving value for money, as they provide flexibility and access to specialist knowledge.
Regardless of the chosen approach, all agreed that measuring value for money is becoming increasingly challenging. Traditional measures, such as investment returns or fee levels, often fail to reflect the member’s experience. As a result, member-centric outcome measures may be better suited in response to shifts in the pension environment.
Digitisation
Shifting demographics, changes in financial advice regulations, and technological advances are changing the pension fund landscape. Members increasingly expect digital services akin to those provided by retail banks, such as online tools for retirement planning. All organisations agreed on the necessity of adapting member services to meet evolving needs.
While organisations are investing in digital tools and data analytics to provide more proactive and targeted member engagement, the interviews revealed that digitisation is frequently delayed and deprioritised due to limited internal capability. Consequently, a lack of data analytics hampers learning opportunities from past decisions.
All organisations recognised that digitisation is key to effective and efficient customer delivery. However, this comes with the challenge of balancing personalised services with cost efficiency.
Branding and Marketing
As service offerings become increasingly commoditised, brand differentiation is growing in importance for attracting and retaining both customers and talent. Several organisations remarked that people often join firms for reasons beyond financial compensation, highlighting the critical role of brand identity in attracting talent.
For example, organisations with brands associated with high performance and professionalism are better positioned to attract and retain mid-career top talent. Many organisations maintain a strong brand presence through advertising and stakeholder engagement. However, some admitted to underinvesting in branding compared to their peers and are now allocating more resources to brand and marketing efforts. These efforts aim to restore competitiveness, build trust, and improve member communications.
Maturity Journey
When interviewees were asked to reflect on their organisation’s maturity journey, respondents offered consistent insights, with the primary challenge being employee readiness. As organisations grow and mature, many struggle to manage change, particularly in relation to skills development, integration of new staff, and shifting internal mindsets.
Some organisations identified effective ways to overcome these challenges and found the most successful approach to be the establishment of a dedicated HR department. This helped firms align their stated values with their internal culture, implement holistic planning for skills development, and improve staff integration.
Another common challenge during the maturity journey was a lack of member connection with their fund. Many organisations admitted that despite achieving cash flow success, they had underinvested in technology, which could have strengthened member relationships, enhanced engagement, and improved communication strategies.
How Can Avida Help?
It is clear that large global pension organisations face several challenges during their transformation journeys. It is therefore paramount that the right decisions are made and implemented efficiently.
Avida conducted these interviews to support a client undergoing a cultural transformation. Leveraging its extensive network, Avida gained insights into best practices from the largest pension organisations, learning from both their victories and mistakes. After compiling the findings, Avida tailored the insights to the client’s specific challenges and needs. This enabled Avida to develop a roadmap and steering strategy, thus helping the client avoid silos during their transformation.
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