CPP Investments’ COO Jonathan Webster On Modular Architecture And Security

Jonathan Webster, Senior Managing Director & Chief Operating Officer at CPP Investments, has been steering the Canadian Pension Plan’s $646.8 billion fund through a period of significant transformation. He oversees technology, data, investment operations, security, and corporate services for the organization, which serves more than 22 million Canadian contributors and beneficiaries. A former CIO at Lloyds Banking Group, Webster approaches his position with great insights about the role technology will continue to play at CPP Investments, especially as it relates to the evolution of data and analytics, security and global team management in the context of innovative operations.

Evolving Data and Analytics

The rapid advancements in artificial intelligence and data analytics have significantly impacted the operations at CPP Investments. According to Webster, to adapt to these advancements, a major shift was required by moving from a project-oriented approach to a productized technology delivery model. “One of the real pushes we’ve been making over the last year was a move towards a productized technology delivery model,” he explained. This transition emphasizes stable, product-led teams focused on building and maturing capabilities over time rather than on one-off projects.

Webster highlighted the importance of connecting technology to valuable outcomes. “Connecting technology to the people that can do something valuable with it is a foundational part of operating a technology function well,” he noted. This approach ensures that technology and data are used effectively to drive value.

A key component of this strategy required the adoption of a modularized architecture. Unlike the traditional integrated systems prevalent in institutional investing, modular architectures offer flexibility and responsiveness, which are critical for leveraging data effectively. “Once you’ve got a modular, responsive, nimble architecture, then you can start to pull data from different systems,” Webster said. This modular approach facilitates the liberation of data and fosters innovative value creation.

Security Management

Security is a critical aspect of Webster’s role, especially given the volume of data handled by CPP Investments. “The world gets more complicated. Threat actors get more ambitious, so we don’t take anything for granted,” he said. By maintaining robust security practices and continually evolving in response to new threats, CPP Investments aims to stay ahead of potential risks.

He outlines a comprehensive and holistic approach where security is integrated into every stage of technology development. “Getting our product teams and managers to take a whole solution perspective – to think about the resilience of the platforms that they’re building,” Webster explained. This approach ensures that security considerations are embedded from the outset of software development.

“One of the things we do a lot is talk to people. Generative AI large language models unlock capabilities that allow us to change the nature of our interactions,” Webster noted, emphasizing the role of security in this evolving landscape.

CPP Investments’ move to the cloud in 2019 has been instrumental in enhancing security. With most of their software now cloud-based, the organization can integrate security measures into the development pipeline more effectively. “Being software-defined allows us to be effective in our secure by design principles,” Webster stated. This shift to cloud computing facilitates security practices such as vulnerability scanning and secure software development.

Managing a Global Team

Webster’s approach to managing CPP Investments’ global team reflects a blend of enterprise-wide consistency and local relevance. Effective global technology management involves focusing on capabilities that benefit the entire organization, such as enterprise-wide CRM systems and integrated investment life cycle management. “You do want to leverage that scale and have enterprise-wide capabilities,” he stated.

However, Webster also emphasizes the need to address local user needs to enhance technology adoption. For instance, understanding the specific challenges faced by infrastructure investment analysts who work with complex Excel models is crucial. “If you aren’t connecting to that local nuance, understanding the needs of users on the desktop, you’re missing an opportunity,” he said. Balancing global capabilities with local user requirements is essential for maximizing technology’s impact.

Webster’s leadership at CPP Investments reflects a forward-thinking approach to technology and security. By adopting a product-led model, modular architecture, and comprehensive security practices, he is positioning the organization to effectively navigate the complexities of the modern financial landscape while maximizing value creation and maintaining robust security.

Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.