1. IT and KM Consulting - a personal sharing
Michael Leung, MH
ex-President & Fellow, HK Computer Society
Board Director & FinTech Committee Chair, HK Institute of Bankers
Chairman, HK Down Syndrome Association
Adjunct Professor & DAC Chair, Information Systems Dept., City University
Chief Information & Operations Officer, China CITIC Bank International

2. 20 characteristics of a consultant
Genuine interest & empathy to work with people
Communication & presentation skills
Active listening (before speaking) & patience
Keep an open mind / never stop learning (from mistakes)
Ability to build, empower & entrust teams
Easy to fit in & get the job done
Next-best-things-to-do / “What-If”
Making good judgments & decisions
Ability to negotiate & persuade
Know your client (KYC) & manage expectation 2

3. 20 characteristics of a consultant
Ability to see big picture & small details
A good manner & sense of humor
Ethics, honesty, integrity / TRUST
Critical / logical / structural thinking
Proactive problem solving
Awareness of body language
Organization & leadership skills
Ability to motivate and support others
Fairness & impartiality
Project mgmt disciplines – work hard & smart 3

4. 6 Key Consulting Competencies
Measure
Inspect what’s expected
Matrices to measure success
Operate
Ensure safe operations
Prepared for
worst-case scenario
Anticipate
Identify risks & issues
Expect the unexpected
Predict what’s ahead
Deliver
Ensure quality & timely
implementation
Make it work
Strategize
Shape & size challenges
Set goal & plan
Plan resource & schedule
Organize
Mobilize & organize
Empower & coach
Align to execute 4

5. 8 “Secret Tricks” of a Consultant
1. DOT-TO-DOT LITERACY
Ability to connect the dots, anticipate threats & opportunities.
2. BS IDENTIFICATION
Identify & discard the “bullshit” to capture the truth within a message.
3. BLAH BLAH TRANSLATION
Ability to translate the inane verbiage of business into clear language.
4. INTERCULTURAL ELASTICITY
Ability to be flexible without losing one’s own form - diversity is both a barrier & a bridge
5. SYNERGETIC EFFICIENCY
Get buy-in from all stakeholders; find ways to bring the efforts together.
6. DIVA DEFLECTION
Ability to also pay attention to backstage players contributing to client’s performance.
7. AGILE CONFORMANCE
Ability to constantly cope with changing expectations & situations.
8. HIGH-FIVE DIFFUSION
Ability to give credit to others and celebrate their success. 5

6. Leadership: Coach & Player
Get the basics right – stable & sustainable
Direct & early engagement w/ BUs & SUs
Plan the forest & plant each tree
Manage by objectives/ examples/ walking-around
“No-but-Yes”; “Hands-on” & “Can-do” attitude
Delegate & escalate, but not abdicate
Devil’s in the detail; Murphy’s law
Always ask the “7Ws”
The “KISS” principle: Keep It Simple (& Sweet)
Think-out-of-the-box/ -on-your-feet/ -in-his-shoes/ -Big
A good leader makes people believe in him/her,
A great leader makes people believe in themselves! 6

7. Value Contribution – change & innovation
value = Quality
/ Cost
+ Agility
+ Risk
Innovation: unlock new desires; create new values
Agility: evolve to survive; innovate to thrive
Sustainable growth in changing environment
Whole > Σ (parts): value & impact
Total value > TCO
MBDL iterations; CORE characters
(L*U*C*K) i / dt
Strategy, tactic, process, tool, skill
Ownership & Passion
Quality
Risk
Agility
Cost 7

8. The MBDL innovation / iteration process
More – best practice, key competency,
role model, profit generation
Better – continuous improvement, raise the bar; lift the game
Different – think-out-of-the-box, break comfort zone, change
Less – stay focused, do-it-right-1st time,
reduce chores, lower fatigue
Do More with Less; Better be Different (than “me-too”)
Max. value & brand royalty; min. risk & cost
Innovation makes the difference
Service Innovation is the business

9. CORE C uriosity / Creativity / Collaboration
年青人－把握機遇及做好準備
CORE
C uriosity / Creativity / Collaboration
O pen-mindedness / Optimism
R isk preparedness / Resources
E nthusiasm / Energy

10. Success = ( L*U*C*K ) i / T
年青人－把握機遇及做好準備
Success = ( L*U*C*K ) i / T
L ocale
U derstanding
C ommunication / Connection
K nowledge
i ntegrity
T ime

11. Maximize Value Minimize Risk e.g.1 IT Consulting Reduce Cost
e.g. deliver business value
of IT services
Reduce Cost
e.g. do the right things
fast & well
Improve Performance
e.g. define metrics of
IT services
Facilitate
Growth
e.g. build IT infrastructure,
resources & solutions
Minimize Risk
e.g. strengthen security, privacy
& IT governance
Business is not about IT; it’s about using IT to create value!

12. e.g.2 IT Governance Consulting
4 Levels of IT Operations
Governance: Do the right things
Management: Do the things right  
Execution: Get the things done
Audit: Are things done right?
“Fit-for-purpose” vs “1-size-fits-all” – e.g. Full ITIL too heavy for most
Conscious of the nature, size, maturity, limitations etc.
Focus on “needs” not “wants”; incremental gain & progress
IT Gov by design, not by chance – Process & Procedure, People etc.
Technology to enable and facilitate; the means to serve the ends
“Segregation of Duties” & “Division of Labour” within IT function
Self-contained/ supported/ sustained very important

13. Balance (trade-off) among “Value”, “Cost” & “Risk”
Mind mapping, Causal analysis, Knowledge Graph,
SWOT analysis … Google Search!
Identify internal & EXTERNAL constraints/ dependencies
Bullet-proof, foolproof, watertight in design, build & test
Avoid (eliminate if possible) any Single Point of Dependence / Failure
Areas of IT Governance:  
Technology (e.g. Apps, Infra), Consistency, Data Security, Transparency,
Redundancy/Resilience, DR/BCP, Documentation, and PEOPLE!
Attention to detail; checks & balances
Follow things up & see it thru - Make changes/ things happen
As an advisor/ consultant, EARN confidence, respect & trust over time

14. The Balancing Act Value Risk Cost Growth Safety Quality Convenience
Portfolio Management
“do the things right”
Governance Framework
“do the right things”
Risk
Non-compliance
Biz interruption
Damage & Loss
Cost
Technology
Resources
Remediation
Growth 20

15. The “4th Industrial Revolution”
Factory Worker  Knowledge Worker
The Digital Evolution Continuum – Digital Assets
Fact  Data  Information  Knowledge  Intelligence  Insight  Wisdom

16. Knowledge Management What is KM trying to accomplish?
“... the process of capturing, distributing, & effectively using knowledge”
“… an integrated approach to identifying, capturing, evaluating, retrieving & sharing enterprise's information assets – databases, documents, policies, procedures, as well as previously un-captured expertise & experience …, including lessons learnt ”
What is KM trying to accomplish?
Rich, Deep & Open Communication
Situational Awareness
Understanding of Business (KYB), Customer (KYC) and
Decision (KYD)
Decision Making & Actions Planning
Change & Innovation

17. Explicit – database, reports etc.
Implicit – experience, learning etc.

18. Knowledge Management Consulting for Banking & Finance Industry

19. Data Lake, Data Marts & Knowledge Mgmt
How is KM used today?
Data Mining, Analytics &
Knowledge Discovery
CRM & Campaign Mgmt
Business Analysis & Plan
Financial Analysis & Plan
Risk Management
Regulatory Compliance
Operational Management
Performance Reporting
Data Lake, Data Marts & Knowledge Mgmt
Cubes
Dashboards
Reports
Queries

20. Data Mining & Knowledge Discovery
Decision Sciences
Patterns, trends, triggers, statistics etc.
Structured & Unstructured Data
Client & counterparty contact logs, incident & event audit trails, document archive, lessons learned etc.
Knowledge Discovery – KYB, KYC
Data -> Info -> Knowledge -> Intelligence

21. Customer Experience Mgmt
360-view of customer profile, contact history, behavior pattern, next-best-action
Customer experience improvement: value, convenience, cost, feedback > BIG DATA
Identify needs & wishes -> cross-selling opportunities
Customer intimacy
Banking beyond Banks
Banks beyond Banking

22. Business Analysis & Planning
Campaign Mgmt & Sales Mgmt
Campaign data-mart: define & setup
Customer segmentation: call list & scripts
Campaign response tracking, fine-tuning & reporting
Identify profitable (& repeatable) campaigns
Sales performance monitoring by channels (branch, telesales etc.)
Incentive calculation
Sales call hit rate

23. Business Analysis & Planning
Customer Portfolio Analysis
Customer demographic, product & service preference, propensity & loyalty
Customer financial & lifestyle preferences (e.g. RMB card, o/seas car rental)
Customer profitability scoring
Customer relationship strength & stickiness

24. Financial Analysis & Planning
Targets & Actuals
Ratios & Limits
Funds Transfer Pricing (FTP)
Asset Liability Mgmt (ALM)
Liquidity Mgmt (LM)
Profitability Analysis (PA)
Revenue distribution & cost allocation
Customer, product, channel & Line of Biz analysis

25. Profitability Analysis - benefits
Benefits of making PA figures available to frontline sales & service staff:
Understand the total value of customer
Sell right products to right customers
Deepen relationship with profitable / high potential customers
Effectively manage resources (& cost) for serving “good” customers
Performance dashboard for frontline managers
Setting stretched sales targets
OCRM displays PA high-level figures (revenue, ROA/ROF%, Profit Margin %, Margin Contribution and Marginal Contribution %) for each customer.  The detailed figures like NII, free income, direct cost, indirect cost, impairment, average balance, profits after tax are shown by product/account level for each customer.
Therefore,
Branch RM  would understand total value of each customer to the bank.
It is easier for branch RM to formulate resources plan to deepen relationship with profitable / high potential customers
Branch RM better understand profit dynamics & effectively manage resources invested into each product & customer. As they know what products are profitable for which customers.
In OCRM, active campaign lists are available. If branch RM finds that  some product in campaigns was profitable for their customers in the past, they would actively sell the product to them.
Branch Managers and District Managers know how much value their sub-ordinates bring to the bank.
         As a result,  it is easier to improve business performance & ultimately the overall profitability of the bank via the branch channel.

26. Risk Management Basel II & III, IFRS/9, IRRBB reporting Market Risk
Value at Risk (VAR), Mark to Market (MTM), Yield Curve Mgmt
Real-time “follow-the-sun” market intelligence
Credit Risk
Retail Credit Risk
Loan to Value (LTV), Loss Given Default (LGD), Probability of Default (PD) etc.
Wholesale Credit Risk
Counterparty default
Liquidity Risk
Liquidity Coverage Ratio (LCR)

27. Risk Management Operational Risk Analysis Strategic Risk
Discover exposures, losses and recovery amounts
Identify control weaknesses
AML/ CFT
Cybersecurity
Strategic Risk
Ready for changes e.g. M&A opportunity
Reputation Risk
Brand image, market position etc.
Provisions (expected loss)
Capital (unexpected loss)
Write-off / Write-back

28. Regulatory Compliance
Common bank trade & reporting repositories with information from data warehouse for different regulators
Rule engine & pre-defined report templates for regulator’s requirements
Automated regulatory reports generation
  In a traditional way, the banks study reports, do data mapping and define report logic one by one.  Actually most data elements appear in report 1, also appear in other reports. Certain calculation report logic are duplicated.
    The idea is that the data structure of reporting repository is generic and it can used for local regulators and regulators in other countries. Report templates are specific for each regulator. The bank do data mapping once and the data elements calculations apply to the different sets of reports.
    For example in global companies, each subsidiary needs to fullfil local regulatory requirement in its own country. But the HO also needs to consolidate all related information from subsidiaries and provide the reports to its regulator (a different country).   A generic reporting repository is common in data perspective.  The data there are mapped to different sets of report templates for report automation, 1 set for each country   It is a more efficient way for global banks with more than 10 or 20 countries.
     
HKMA
Data &
Rules
Repository
ETL
Business System & Data
Reports generation w/ rules & templates
CBRC

29. Operational Management
Cost Allocation for PA Purposes:
Time & Cost Analysis
Workflow optimization
Process turnaround time
Staffing level for peak efficiency
Identify bottlenecks, pain-points &
streamlining / cost-saving opportunities
KYC, AML/CFT, FATCA, Cybersecurity etc

30. Performance Management
Entirely quantitative numbers in KPIs, Balance Scorecards, SLAs etc.
Fact-based, data-driven management culture