Utilizing Global Sourcing Strategies to Excel in a Flat World
                               Survivability, Adaptability, ...
Legal disclaimers




  Disclaimer: The intent and purpose of this information and presentation is purely for informationa...
Discussion topics




•   What are the characteristics of
    change and how can
    operations be positioned for
    acce...
So why a “Flat World?”
•   A greater understanding and realization of the complete mortgage “value chain” from
    origina...
The current industry state




                                                                                           ...
So where are the costs and savings?




                                                                                  ...
40 years of lessons learned




                                                                                          ...
Changes are creating new operating
challenges




                                                                        ...
Discussion topics



• What are the characteristics of
  change and how can operations
  be positioned for acceptance?

• ...
Compartmentalization and sourcing

                                                                                       ...
Beyond initial cost savings –
competitive and business reactions




                                                     ...
Beyond initial cost savings –
expansion and alliances




                                                                ...
Compliance and risk integration…




                                                                                     ...
IT integration…




                                                                                                 14
  ...
Mortgage transactions…




                                                                                               ...
Discussion topics



• What are the characteristics of
  change and how can operations
  be positioned for acceptance?

• ...
Recognize the life-cycle and on-
going challenges




                                                                    ...
Ask the right questions

• The U.S. mortgage lending
  industry is ripe for
  restructurings and
  transformations.

• Arc...
It’s more than just the deal…
Internal teams and their advisors often are so focused on the deal and contract terms that t...
New transition demands are often
multi-faceted and iterative…
A transition and governance process must be both repeatable ...
…leading to proactive and adaptable
governance




                                                                       ...
Potential implementation models




                                                                                      ...
In summary
• Framing their integration utilizing a
  global sourcing framework will
  facilitate the clear understanding o...
Mark Dangelo and Innovative
 Relevance®

                               Mark P. Dangelo is the managing principal and crea...
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Mba Tech Slides Dangelo Submission 022008 [Compatibility Mode]

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MBA Presentation March 19, 2008 by Mark P. Dangelo on Global Sourcing in a Flat World

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Mba Tech Slides Dangelo Submission 022008 [Compatibility Mode]

  1. 1. Utilizing Global Sourcing Strategies to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  2. 2. Legal disclaimers Disclaimer: The intent and purpose of this information and presentation is purely for informational dissemination purposes only. Dangelo & Associates, Inc. and its market brand Innovative Relevance® (together with its shareholders, directors, officers and employees) have made no attempt to verify the reliability of sourced information and cannot be held responsible for any areas of concern with the information’s usage. This information and presentation should not be construed or taken as professional advice or statements of direction. Any result taken by the reader, listener, its organization, or related parties either directly or indirectly are at the sole discretion and responsibility of the user / reader. The information contained in this document is not a substitute for proper analysis, research, legal advice, accounting, tax or professional services and use of the data, its conclusions, and projections are at your own risk. The authors, presenters, and their organizations cannot be held liable for negligence, errors, omissions, improper conclusions, regulation violation, assessments, projected directions and / or any recommendations within or beyond their control or knowledge without limitation limitation. Without limitation, the authors, presenters and their corresponding organizations will not be liable for any direct, indirect, consequential, punitive or other damages. This includes but is not limited to real or perceived obligation or breach of services surrounding intent, action, regulation, statute, or tort. The content of this report should be taken “as-is” and no expressed or implied representation or warranty will apply. Use of this document is at the readers,’ and if applicable, their organizations’ own risk. 2 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  3. 3. Discussion topics • What are the characteristics of change and how can operations be positioned for acceptance? • What should be examined for potential global sourcing / outsourcing? Why? • What are the key imperatives and operating models for success? 3 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  4. 4. So why a “Flat World?” • A greater understanding and realization of the complete mortgage “value chain” from origination to securitization is now readily apparent • g g g g pending along with a continual unwinding and New forms of controls and oversight are p implication acceptance of aftermarket actions (e.g., monolines, SWF’s, and complex swaps) • Globalization is no longer singularly about labor arbitrage – it’s about a global wealth rebalancing, best execution, and continuous quality improvement • The compartmentalization of processes is now underway leading to adoption and adaptation of lessons learned, new delivery models, and less about the “carrots and sticks” of the past four (4) decades • It is likely a “Double Bottoming” will still occur in 2008 – forcing change • Collaboration is b t l b l i C ll b ti i now about global sourcing and much l d h less about shorelines and cheap b t h li d h labor (e.g., ITO and early BPO arrangements) • “Caravan capitalism” will be a secondary strategy starting in 2010 4 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  5. 5. The current industry state 5 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  6. 6. So where are the costs and savings? 6 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  7. 7. 40 years of lessons learned 7 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  8. 8. Changes are creating new operating challenges 8 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  9. 9. Discussion topics • What are the characteristics of change and how can operations be positioned for acceptance? • What should be examined for potential global sourcing / outsourcing? Why? • What are the key imperatives and operating models for success? 9 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  10. 10. Compartmentalization and sourcing • The process wheel shows the Human  interrelationships between many common activities within and Resources among mortgage operations > 200. • When examined holistically, the Marketing  Compliance sequencing of organizational & PR & Risks actions and improvements can be properly determined avoiding poorly conceived one-off initiatives one off initiatives. • Sustainability for sourcing events is FSI /  best understood and delivered as Mortgage  part of a comprehensive series of iterations taking advantage of Banking B ki Information rapidly accelerating BPS and KPS Legal offerings. Technology • Organizations must avoid advisory pressure to focus singularly on costs as the main rationale for outsourcing. Finance &  Research &  • Mortgage outsourcing operations Admin. and arrangements will be Analytics materially different starting in Source: Innovative Relevance 2008. 10 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  11. 11. Beyond initial cost savings – competitive and business reactions 11 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  12. 12. Beyond initial cost savings – expansion and alliances 12 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  13. 13. Compliance and risk integration… 13 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  14. 14. IT integration… 14 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  15. 15. Mortgage transactions… 15 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  16. 16. Discussion topics • What are the characteristics of change and how can operations be positioned for acceptance? • What should be examined for potential global sourcing / outsourcing? Why? • What are the key imperatives and operating models for success? 16 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  17. 17. Recognize the life-cycle and on- going challenges 17 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  18. 18. Ask the right questions • The U.S. mortgage lending industry is ripe for restructurings and transformations. • Arcane processes and fixed cost over-capacity will accelerate the drain on resources hastening g operational losses and forcing events which can only be addressed with process transformations and collaborative global sourcing. • With funding sources severely reduced, the ability to singularly finance organizational profitability cannot be achieved using the operating models of the past. past 18 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  19. 19. It’s more than just the deal… Internal teams and their advisors often are so focused on the deal and contract terms that they terms, establish expectations that are out-of-alignment with the organization and provider ability to sustain, adapt, and grow the relationship. 19 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  20. 20. New transition demands are often multi-faceted and iterative… A transition and governance process must be both repeatable and iterative Using a closed systemic iterative. feedback approach, organizations can be assured of adaptation, adoption, and sustainability. 20 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  21. 21. …leading to proactive and adaptable governance 21 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  22. 22. Potential implementation models 22 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  23. 23. In summary • Framing their integration utilizing a global sourcing framework will facilitate the clear understanding of immediate actions, technology investments, staffing needs, and third-party relationships. • By utilizing a wide-range of criteria to assess and focus the organization’s outsourcing efforts, mortgage efforts executives gain a superior advantage over their competitors (and advisors) who are only seeking cost containment or avoidance • Even though the market volumes may stabilize and increase as the cycle turns positive in late 2008, the workforce mix will change not only due to aging baby-boomer populations, but skilled global worker availability, “forced” integration demands, and increasingly focused process compartmentalization's and specializations. • Organizational preparation coupled with risk mitigation will underpin all global sourcing efforts. • The mortgage industry survival demands effective integration, multi-faceted sourcing approaches and collaboration where jobs are created not just along nationalistic boundaries but also taking into account the domestic markets that pay for their offerings. 23 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth www.Innovative-Relevance.com
  24. 24. Mark Dangelo and Innovative Relevance® Mark P. Dangelo is the managing principal and creator of Innovative Relevance organization, books, and intellectual capital. For over 25 years, Dangelo has worked as a practitioner domestically and internationally assisting hundreds of clients recognize and profit from globalized operations, technologies, and workforces. He has advised numerous Fortune 500 firms and their executives on M&A efforts, transformations, operational efficiencies, and organizational restructurings. Within the mortgage and FSI markets, Dangelo’s experience and qualifications have been created from a hands- on, pragmatic foundation of business and technology assignments and clients. His thought leadership, expertise, and corporate brand (i.e., Innovative Relevance®) are recognizable within several industries due to association publications, articles, speaking, podcasting, and books. Dangelo works independently with a host of international individuals and organizations helping teams understand the relevant application of innovative ideas. Dangelo is also educated in equity markets including his studies for Series 7 and 63. He holds a Bachelors of Science in Computer Science and a Masters in Business. Innovative Relevance® is the business and technology advisory, research, and business transformation brand of Dangelo & Associates, Inc., which was founded in 1995 as a woman-owned minority corporation outside of Cleveland, Ohio. Innovative Relevance® business solutions have been built upon reputation and experience within the mortgage, FSI and healthcare industries. The principals in Innovative Relevance® have worked extensively internationally and advised nearly 200 of Fortune 1000, Russell 2000 firms, and the major domestic stock www.Innovative-Relevance.com exchanges. Further details about Innovative Relevance®, its published accomplishment and offerings, and comprehensive printed content can be found at www.Innovative-Relevance.com. 24 Utilizing Global Sourcing Collaboration to Excel in a Flat World Survivability, Adaptability, and Growth

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