The Core Evaluation and Selection Challenge
As your existing core processing contract expiration date grows closer, usually in the 18-24 month time-frame, the daunting task of re-evaluating your current solution and comparing it with other alternatives sky rockets to the top of your organization’s priority list. Whether it’s resource constraints, lack of project management personnel, or unfamiliarity with the numerous system choices available, the risk of not selecting the best core system is significant and can affect your franchise value for years to come.
At JOHO, we use our proven, efficient, and effective process to assist and guide financial institutions in selecting and negotiating with the right vendor for your business. By listening carefully to your strategic plans and current processing needs and challenges, we create and help navigate a successful path to finding and engaging the best partner to help achieve your short-term and long-term goals. JOHO Core Consulting allows you to leverage our years of industry knowledge and financial systems experience to find the most cost-effective and sound operational solution for you.
The JOHO Core Consulting Process
1. JOHO Consulting Assessment
Leveraging our proven JOHO AYR™ assessment, we take the time to interview key individuals and gather information on your current processing and perceived future needs. The interview results become the basis for the RFP (Request for Proposal) we prepare on your behalf, as well as the foundation for the tailored product demonstration agendas.
2. RFP Preparation and review
JOHO will create and send, with your approval, an enterprise RFP to mutually agreed upon vendors. Each vendor will receive a detailed timeline for response deadlines, solution demonstration schedules, and an opportunity to request further clarification. Once all results are received, we analyze the vendor responses, scoring and evaluating product information based on your unique requirements, and prepare summarized reports containing both functional product specifications and cost data, thus providing your team a side-by-side “apples to apples” comparison of each vendor and product.
3. Product and Solution Demonstration Management
After conducting a joint review and discussion of all information received, a short list of vendors is determined. JOHO will then coordinate with your team and schedule individual solution demos with each “finalist”. The demonstrations are scored by your employees using JOHO evaluation templates, applying your company’s predetermined criteria relevance and weightings, and the combined results are summarized and reviewed with the bank’s leadership.
4. Contract Review and Negotiation
On your behalf, JOHO engages the chosen vendor to negotiate the most favorable terms and costs, to ensure that future expenditures are controlled, and to mitigate surprises for the duration of the contract. Toward that end, JOHO will also review Service Level Agreements, recommend additional terms and conditions, and identify financial penalties appropriate to further protect your institution.
JOHO Core Consulting is an extremely valuable service delivered and guided by knowledgeable, experienced professionals. Our process reduces stress on your staff, ensures long-term cost control, identifies advantageous contract terms, and improves operational efficiencies. Your team will also have access to JOHO’s project management software in order to monitor the milestones, tasks, and progress throughout the duration of the project. These combined benefits allow you and your institution to perform more profitably and better focus on the needs of your customers and members.