Diane Schueneman Plans for Merrill Lynch's Future

Completion of infrastructure build-out creates "gobal support model", 70 percent of technology investments channeled into new development, Straight-through processing platforms for high-volume a priority

Merrill Lynch

Diane Schueneman

SVP, Head of Global Infrastructure Solutions

PREVIOUS POSITIONS:
Thirty-six years at Merrill Lynch -- positions include international business manager for equities; head of futures clearing and execution services; COO, asset management, Merrill Lynch Investment Managers; head of technology and services, Global Private Client Group.

EDUCATION:
Florida Southern College.

Merrill Lynch
4 World Financial Center
250 Vesey Street
New York, NY 10080

SIZE OF FIRM:
More than $1.6 trillion in client assets.

WHO WAS YOUR MENTOR?
I worked for Norman Tonkin, the regional director of institutional sales, for 16 years. To this day I talk to him on the phone.

WHAT WORK EXPERIENCE HAD THE MOST LASTING IMPRESSION ON YOUR CAREER?
The opportunity to go to London. That led to quite a number of years working overseas. The international experience was the biggest influence, in terms of my career capabilities and building out skill sets. Also, being in the futures business taught me a lot about technology. It taught me how to use technology to disrupt markets, and how you respond to create a more profitable business.

What's Next?

Everybody has talked over the past 10 years about globalization. Over the next 10 years we are going into virtualization. I need to understand how I can operate anywhere in the world, with any number of partners seamlessly and with total integration. It's all about collaboration tools: wireless, virtual workstations and telepresence. It's about how you connect people in seamless ways so that they can operate any time and any place.

VITALS

IT Budget:

More than $1 billion for IT development.

Key Technology Management:

Ron DePoalo, Global Private Client Tech

Tony Kerrison, Global Technology Infrastructure, Corporate Technology, Merrill Lynch India Technology Services

Ajit Naidu, Global Equity Markets and Services Technology

Jim Noble, Transformation, Strategy and Architecture, Investment Bank and Research Technology

Adrian Pearce, Fixed Income, Currencies, and Commodities and Liquidity Risk Technology

Size of Technology Team:

Global Infrastructure Solutions has 13,000 employees.

Percent of IT Projects Outsourced:

Our sourcing strategy is very in-tune with where we exist -- everything from metro locations to near-shore and offshore locations. Of all the work that we do, we probably rely on strategic partners for about 15 percent of everything.

Key Technology Partners:

There are very few [technology] companies with which we're not doing business.

Success Metrics:

I use Six Sigma a lot. You want to achieve something that people have clarity and purpose around, and understanding as to whether they're getting there.

2008 INITIATIVES

The Transformational Goals will lead into 2008 and 2009. We will get a lot more into the execution stage of them, as opposed to the planning stage. I think the one that will have the most traction will be the 70/30 Investment Strategy.

As part of the Transformational Goals, we'll be in high-execution mode with the completion of our infrastructure build-out. We're creating what we call a "global support model," in which we are monitoring everything 24/7 out of two locations -- Jacksonville and Singapore.

TOP 3 CURRENT PROJECTS

Our "Transformational Goals," or the T6, are simple and quantifiable, which is why we like them. These six goals are broader than just technology. But certainly the biggest impact for us will be in the technology space.

Goal 1: 70/30 Investment Strategy

Accelerate innovation and efficiency by shifting the mix of technology investment to 70 percent new development and 30 percent "lights on" maintenance.

Goal 2: STP

Build straight-through-processing platforms for 99.5 percent of all high-volume, commoditized products across both cash and derivatives by the end of 2009.

Goal 3: Application Availability

Drive availability of business critical applications to 99.95 percent, with major emphasis on end-to-end business process support.

Goal 4: Global Sourcing

Create competitive advantage by sourcing the right people with the right skills in the right locations at the right price point.

Goal 5: Client Satisfaction

To be in the top tier of client satisfaction across institutional clients and private clients, as measured by targeted external and internal surveys.

Goal 6: E-Channels

Become the industry leader in providing products and services to clients through electronic distribution channels.