Trainee Learning & Development Analyst

The purpose of the role is to support our consultants on client projects, this could be designing a course for future train drivers to the development of training for a new piece of equipment operated by the military, and everything in between. All taskings will be carried out under guidance from experienced colleagues.

We will provide the training, you will be expected to provide enthusiasm and eager to learn new skills. Full training will be provided, in a supportive environment.

You will be responsible for conducting the following tasks, under supervision. You will not be expected to understand them prior to appointment but please take the time to research them if you are invited for an interview:

    Carrying out job analysis and data mapping
    Populating competency frameworks and competence management systems
    Task analysis and breakdown
    Visiting or working on client sites to capture information
    Drafting client reports
    Development of courseware using a variety of learning solutions

Candidate Attributes

    Strong academic background with a minimum of a 2:1 Degree
    A background in creative technologies would be beneficial
    Have a highly analytical mind, with excellent attention to detail
    Able to present ideas and solutions in a clear and professional manner
    Strong planning and organisation skills in order to ensure activities are completed on time
    Excellent skills with Microsoft Office products (Word, Excel, PowerPoint)
    Able to travel when necessary in the interests of the business
    Have the persona to instil confidence in your abilities
    The ability to interpret large amounts of data and produce the necessary reports

source: https://targetjobs.co.uk/employer-hubs/cuerden-consulting-ltd/438198-trainee-learning-development-analyst

Simpler Consulting Senior Advisor Dr. Patricia Gabow Receives Shingo Research and Professional Publication Award

ANN ARBOR, Mich., Dec. 17, 2015 /PRNewswire/ -- Simpler Consulting, a Truven Health Analytics company and leading global management consulting firm, today announced that Dr. Patricia A. Gabow and Philip L. Goodman were awarded the Shingo Research and Professional Publication Award for their book, The Lean Prescription: Powerful Medicine for Our Ailing Healthcare System. Patricia Gabow, M.D., is a senior advisor at Simpler Consulting and former CEO of Denver Health, a large integrated public healthcare system.

The Shingo Research and Professional Publication Award recognizes and promotes research and writing regarding new knowledge and understanding of lean and operational excellence.

"We would like to congratulate Dr. Gabow and Phil Goodman for being recognized with the prestigious Shingo Award, a worthy acclaim for having thoroughly captured seven years of experience in an engaging and straight forward re-telling of their Lean transformation of Denver Health," said Marc Hafer, president of Simpler Consulting. "All of us that know and worked closely with Patty appreciate her unparalleled attention to detail and hands on leadership of her operations as CEO of this magnificent public hospital system. In The Lean Prescription, that same Gabow mastery of nuances and the critical elements of transforming a large health system are factually presented, covering not just select clinical areas but the whole enterprise...as it should be done."

The Lean Prescription offers a comprehensive account of how Denver Health applied Lean management to realize nearly $200 million of well-documented, hard financial benefit in just seven years. Through Denver Health's journey, readers learn how Lean management can be utilized to achieve dramatic results such as eliminating waste, cutting costs, engaging employees and improving patient care. The Lean Prescription provides a step-by-step analysis of the implementation of Lean principles, from the integral role of leadership in leveraging Lean principles and techniques for detecting and eliminating waste, to the process of Lean deployment and effectively using the right metrics.

"I am honored to be the recipient of the Shingo Research and Professional Publication Award," said Dr. Gabow. "Leading the charge on Denver Health's Lean transformation was an eye-opening experience that I hope inspires other healthcare organizations to transform through Lean. The Shingo Institute and its awards recognize organizational commitment to leveraging principles for operational excellence. It is a privilege to receive this award as I truly believe that implementing Lean into healthcare organizations can lead to dramatic improvements."

Patricia Gabow and Philip Goodman will be presented the Shingo Research and Professional Publication Award at the 28th Annual International Shingo Conference April 25-29, 2016 in Washington, D.C.


see more at: http://www.prnewswire.com/news-releases/simpler-consulting-senior-advisor-dr-patricia-gabow-receives-shingo-research-and-professional-publication-award-300194119.html

Bronx Assemblyman Decides Not to Take Political Consulting Job

THE BRONX — Bronx Assemblyman Michael Blake is not taking a job with a top political consulting firm, following outcry over the announcement he made the same day former Senate Majority Leader Dean Skelos was convicted in a corruption trial.

Rebecca Katz, a partner at Hilltop Public Solutions, confirmed that Blake would not be joining the firm as a partner. Blake said the decision was his.

"While everything was ethical and appropriate, the climate right now creates a perception," Blake said in an interview.

He added that he didn't want the "distraction" the job created.

Good government groups criticized the announcement Friday that Blake, who has spoken in favor of ethics reform, would take such a position, especially given the climate in Albany around corruption.

Two of the most powerful politicians in the state — Skelos and former Assembly Speaker Sheldon Silver— were both convicted of selling their offices by federal prosecutors within the last month.

Both convictions involved outside employment.

Silver was convicted of receiving millions in kickbacks from companies with business before the state by masking the income as money earned from legitimate employment.

Skelos and his son Adam were convicted on eight counts of bribery and extortion after Skelos's son secured no-show jobs based on the promise of favorable legislation.

"How many prosecutions will it take before Albany gives the people of New York the honest government they deserve?" U.S. Attorney Preet Bharara tweeted after Skelos was convicted.

Blake's announcement came on the same day Skelos was convicted. The press release did not mention that Blake was an assemblyman.

Blake said he had cleared the position with a state ethics commission and saw no conflict of interest because he would be working with national and international clients. Being a state legislator is officially considered a part-time job. Many assemblymen and senators have outside work.

Although he is single and without children, Blake said he uses his income to support his mother and a nephew, among other family members.

"I understand the sensitivity," said Blake who added that he already consulted for national and international clients over the last year.

"In the exact same way that individuals have multiple jobs to support their families and provide for their needs, this is no different," he added.

Greatly reducing or eliminating the ability of state lawmakers to earn outside income while boosting their salaries is one of the proposed solutions to reduce corruption in Albany.

see more at: https://www.dnainfo.com/new-york/20151214/high-bridge/bronx-assemblyman-decides-not-take-political-consulting-job

A Consulting Firm Hired By Uber Found That Its Drivers Are Very Happy

Uber released a survey on Monday whose findings tend to support its position in misclassification lawsuits and regulatory battles. The survey found the ride-hailing company's drivers are happier than ever and most work part-time, but it has also been criticized for excluding key data points like driver earnings and how many drivers work full-time—omissions that are less surprising when you consider that the study was conducted by a brand strategy firm.

The survey polled 833 of Uber's more than 400,000 drivers. Eighty-one percent of them said they were satisfied with the experience of driving for Uber, a slight increase over the 78% who gave the same response in a similar survey released back in January 2015.

Uber, which is facing lawsuits in several states alleging that its drivers—though classified as contractors—are treated as employees, has argued that it serves as a flexible option for people to earn supplemental income on their own terms. The survey found that 69% of its drivers have other full-time or part-time work outside of Uber, and that 50% drive fewer than 10 hours per week on average. Almost all the drivers, 97% of participants, said they were satisfied with the flexibility that Uber allowed them.

Uber has also cast itself as an option for students, parents working around children's schedules, and people between jobs. The survey reported that 11% of its drivers are students, 48% have children 18 years old or younger living at home, and 67% had no prior professional driving experience.

Just as important, however, is what doesn't appear in the survey results. Though the survey reported that most drivers are part-time drivers, it did not report how many drivers worked more than 40 hours per week (20% rely on Uber as their sole source of income). Last year, the survey reported that drivers who had previously driven taxis earned $23 per hour but that did not account for driver expenses, like gas, that significantly reduce take-home pay. This year, during which some drivers have complained about fare cuts that impact their pay, there's no information about driver pay. Though the survey examines whether drivers like the flexibility on the platform, it doesn't ask them, for instance, whether they're happy with their pay or the way that the company communicates with them.

Uber's survey seems to paint a selective picture of its drivers. Which is exactly what it's designed to do. Like many companies, Uber hired a brand strategy firm called Benenson Strategy Group to incorporate data into its message.

see more at: http://www.fastcompany.com/3054331/a-consulting-firm-hired-by-uber-found-that-its-drivers-are-very-happy

Why PR Consulting Took on Grindr

SWITCHING GEARS: The fashion industry must have let out a collective giggle Tuesday when PR Consulting revealed via e-mail that it would be representing a new, unexpected brand: Grindr.

Grindr, which was founded in 2009 by Joel Simkhai, is a popular location-based dating app for gay and bisexual men — Marc Jacobs was a fan.

The relationship could appear off-brand, but according to PR Consulting’s cofounders, Pierre Rougier and Sylvie Picquet-Damesme, Grindr offers an opportunity for fashion brands to reach a vast number of people.

“It might seem surprising to some in the fashion community that we would take Grindr on as a client, but this is a very large platform with more than seven million users worldwide and one million users engaged every second on Grindr. It would be foolish to think that the fashion, lifestyle, beauty and luxury industries would not view this as an incredible platform to reach an influential, potential consumer,” the cofounders told WWD.

The size of the audience aside, the responses on Twitter to the news ranged from disbelief to jokes about the entertaining prospects of the partnership:

see more at: http://wwd.com/fashion-news/fashion-scoops/pr-consulting-grindr-10288462/

Ethiopia: Disagreement Between Consulting Firms Delays Study On GERD

The disagreement between the two consulting firms on GERD to work in accordance with the directive of the Tripartite National Technical Committee has delayed the study, according to Ministry of Water, Irrigation and Electricity.

The companies are given the last chance to inform the 10th_Tripartite National Technical Committee whether they are willing to carry out the study in line with the directive and their responsibilities.

The letter written by Ethiopia to Egypt and Sudan about the date of the next meeting of Tripartite National Technical Committee has not, however, received any response.

Border and Cross-Border Rivers Affairs Advisor to the Minister, Tefera Beyene told ENA that the two consulting firms selected to conduct studies on the possible socio-economic impacts of the Grand Ethiopian Renaissance Dam (GERD) on the lower riparian countries has not yet began.

The consulting firms were selected to conduct study on the possible impacts and associated impacts that may occur due to the change in the course of Nile._

Tefera said the Tripartite National Technical Committee selected the French BRL as the main firm to carry out 70 per cent of the study and hired the Dutch Deltares as a sub-contractor for the rest of the task as per the request of Egypt in order to create mutual trust among the committee member countries.

Though the consulting firms were supposed to submit their findings within 15 months to the committee, they have not yet submitted the study due to disagreements between themselves, the advisor elaborated.

Even if Ethiopia proposed the entire task to be given to a contractor selected by all the three countries so as to quickly complete the study, it was not accepted due to Egypt's unwillingness to agree on the idea and hence the current delay, Tefera pointed out.

He said GERD, in addition to being designed in a way that ensures the benefits of the lower riparian countries, has opened opportunity for the countries to work closely.

see more: http://allafrica.com/stories/201511251689.html

Combining the ‘know-how and know-who’ in consulting

Having spent three decades in Germany working for other people, Brendan McKearney recently established his own consultancy service to advise Irish companies supplying high tech solutions to the German automotive and technology sectors.

McKearney left Frankfurt-based Fujitsu Semiconductor this year after 25 years, during which McKearney rose to the top of the organisation becoming its managing director in 2009 and its first European-born president and management board member in 2011.

Europeans often struggle with the Japanese way of doing things. McKearney thrived and says growing up in a farming community in Ballybay, Co Monaghan, prepared him well for the consensus culture.

“I came from a background with a history of farmers sharing equipment and helping each other out. In ways it was very similar to the co-operative Japanese approach,” he says.

“There is still a huge difference in business culture between Asia and Europe but I think being Irish helps,” he adds. “We’re generally good with people, willing to work hard and adaptable. I definitely wouldn’t say the Germans work harder but their focus is different and their most notable trait is that they’re very gracious losers at football . . . They emphasise being effective and efficient whereas Irish people like to improvise and just get things done with the tools in hand.”

Japanese companies often get criticised for not empowering overseas employees and subsidiaries. McKearney says Fujitsu was the opposite.

“We had over 400 people in Europe and fewer than 5 per cent were Japanese. The Fujitsu culture in Europe was very dynamic. We had a lot of autonomy, world-class design teams and revenues of several hundred million euro. During my time as president, we won first place twice in our category in the Great Place to Work awards.”

McKearney left Ireland in 1984 when the economy was on its knees and jobs for young graduates were rare as hen’s teeth. He had studied electrical engineering at DIT Kevin Street and ended up in Germany by chance. It could easily have been Britain or the United States as he had applied for jobs in both.

Language classes
His first job was as a development engineer at EPI Messtechnik in Wiesbaden. He quickly recognised that fluency in German would be a major asset and took language classes at night followed by a degree in German.

He joined Fujitsu Semiconductor in 1989 as a technical author before moving into product marketing. He then spent the next 25 years developing the business in major European vertical markets.

read more: http://www.irishtimes.com/business/work/combining-the-know-how-and-know-who-in-consulting-1.2435184

The perfect resume for consulting

If you want to break into a Big Four consulting division, or move into the likes of Bain or McKinsey, you need to make your CV all about tangible achievements.

It’s all very well gaining the right sort of experience, but how you applied yourself, got your ideas across and implemented the right strategy are equally as important to convey on your resume as putting big brand names up in lights.

So, what does it take to impress? We’ve spoken to specialist consulting recruiters who told us what they expect from the perfect consulting CV.
1. You will include a brief personal statement

Personal statements in resumes are frowned upon in the financial sector, but a brief summary of the sectors you specialise in, combined with some indication of what results you achieved during your latest assignments are encouraged, says Rakesh Pabbi, a former KPMG consultant who now heads executive search firm Consulting Point.

“The key here is to be concise and not too wordy,” he says. “This is a test – if you can’t sell yourself concisely, how can you get a complex point across to a client effectively?”

If you’re applying for an entry-level role, start with your academics, however.
2. You will summarise your achievements in a table

Pabbi says that you have around 20 seconds to impress with your resume. The best way to pull in a recruiter is to outline your sector expertise and client list in an easily digestible table, says Pabbi. Here’s an example:
Industry Sector Selected Major Clients
Oil and Gas BP, Saudi Aramco, Q8
Petrochemicals Stahl, EQUATE
Automotive Jaguar Land Rover, Fiat, GM
Industrials GKN, Michelin, Meggitt, QinetiQ
Consumer & Retail SABMiller, Birds Eye, Wight Salads, ATS
Utilities EON, Veolia, RWE


3. You will be very exact about academic qualifications

Consulting has traditionally been a magnet for MBAs from top business schools, but in spite of this it’s rarely a requirement, says Richard Stewart, managing director of consulting recruiters Mindbench. Instead, consultants want to see a) a first class degree and b) a top university listed on academic achievements.

read more: http://news.efinancialcareers.com/uk-en/225615/the-perfect-resume-for-consulting/

Iowa City superintendent's consulting questioned

Murley told the Iowa City school board in an email this week he had no knowledge of SUPES activities beyond the teaching he did with administrators.

“I believe that the hundreds of superintendents from around the country who worked with the program feel disappointed and betrayed by the leaders of the Chicago Public Schools and the SUPES Academy who engaged in the illegal acts,” Murley wrote.

Murley, hired to lead the Iowa City school district in 2010, is allowed 10 days of discretionary leave each year for consulting or other professional activities “mutually agreed upon by the superintendent and board president,” according to his employment contract signed July 30.

The school board president must approve any outside activities for which Murley is paid, the contract states.

“He provides me an update annually about what he’s doing on his discretionary days,” board President Chris Lynch said Thursday. “I know the days, the company and generally what he’s doing.”

Murley does not report how much he’s paid for outside activities, Lynch said. So far, the district has not made those records available to the public.

School board Member Chris Liebig said he expects the board to have a discussion soon about whether school administrators should disclose outside activities.

“I do think we probably need to talk about a policy on outside work, disclosure and prior conflicts,” Liebig said. Whether this disclosure would be exempted from Iowa’s Open Records law as a personnel record needs more review, he added.

Board member Phil Hemingway said he will request the discussion be put on the Nov. 24 agenda.

“We’ve got a full-time job here in Iowa City, but we’ve got a full-time employee trying to solve problems elsewhere,” Hemingway said.

Murley’s three-year contract provides a $205,500 salary, $26,715 in deferred compensation and a $7,150 vehicle allowance for the first year, with the amounts renegotiated each year. The contract also promises $6,000 more per year if Murley earns his doctoral degree.

“If he wants to get a $6,000 raise, all he has to do is get himself his Ph.D,” Hemingway said. “The community is paying for his education.”

Board member LaTasha DeLoach said she wants to learn more about Murley’s consulting work before deciding whether it’s worthwhile to the district. “I do think it’s important we as a board know what’s going on,” she said.

read more: http://www.thegazette.com/subject/news/education/k-12-education/iowa-city-superintendents-consulting-questioned-20151105

The 25 best consulting firms to work for in Europe

Since 2009, Vault, a global career intelligence platform, conducts research into good employership in the consulting industry. The European edition of the study, titled ‘Vault Consulting Europe’, presents the 25 best consulting firms to work for in Europe, and is based on the views of almost 3,000 strategy and management consultants working at reputable firms across the continent. In order to judge a firm’s status as an employer, consultancies were evaluated across seven dimensions*. When rating quality of life issues, advisors were only allowed to rate their own firm, while for the prestige dimension consultants were only permitted to rate their competitors.

Similar to last year’s edition, McKinsey & Company tops the list, building mainly on its top of the bill compensation packages, high employee satisfaction and an unmatched prestige score, a feat where it consistently outranks its peers. The New York based firm, founded in 1926, has been named Europe’s most prestigious consultancy every year since the launch of the research in 2010, a performance also realised in the global version of the rankings. Bain & Company holds second spot, across the board with a similar profile as McKinsey, scoring high on prestige, with the Boston headquartered firm in particular admired for the strategic and high-level impact of engagements and for its fast progression and friendly culture.

The third of the Big 3 American strategy consultancies, The Boston Consulting Group, finds itself in on #23 this year, its lowest position since 2010, when it ranked #2 – between 2011 and last year the strategy advisory hovered between positions 15 and 21. From an employership perspective, BCG’s European operations lag behind the firm’s global score – BCG has ranked in the top 3 best firms to work for consistently since 2010 while in another ranking BCG was even named the globe’s best consulting firm to work for – the researchers however not elaborating on the key reasons. What is clear is that it has nothing to do with reputation: in line with the 2014 edition, BCG is ranked the #2 most reputable firm in Europe after McKinsey.

see more at: http://www.consultancy.uk/news/2851/the-25-best-consulting-firms-to-work-for-in-europe

Virginia Beach consulting firm Marathon backing up its name with running

Get sweaty. That’s what some Marathon Consulting employees will do Monday to celebrate the company’s recent move to Town Center in Virginia Beach.

“We decided it would be good if we could play off the name Marathon; it’s got a lot of good connotations to it,” said Harris Pezzella, president of the information technology consulting and digital marketing firm. So starting at 5 p.m. Monday, 13 employees will run a collective marathon.

Don’t worry. They won’t get too sweaty. None of them will do the standard 26.2-mile distance. Together, they will run a 2-mile route to and from the office. The event also will raise more than $1,000 for The King’s Daughters, Pezzella said.

Last month, Marathon left its longtime home on South Independence Boulevard, near Mount Trashmore. It occupies 9,000 square feet at Town Center, double the space it had.

“Great location, terrific office, room for expansion – it was really everything we were looking for,” Pezzella said.

The room for growth is key. Marathon, which started 9½ years ago, announced over the summer that it will add 34 full-timers to its staff of 59. The workforce is up to 70, Pezzella said, and should reach the target of 93 by 2018.

Mayor Will Sessoms is expected to greet runners at the finish line. Afterward, Marathon will hold a reception and open house for employees, clients and dignitaries. No exercise required there.

source: http://hamptonroads.com/2015/10/virginia-beach-consulting-firm-marathon-backing-its-name-running

Women Leaders in Management Consulting 2015

Consulting Magazine has revealed its 2015 list of the 12 most influential women in management consulting. The female leaders work at twelve different firms across the industry, ranging from the strategy consultancies to the Big Four and boutiques.

Every year Consulting Magazine, a US-based magazine for the consulting profession, conducts research into the role and accomplishments of women in the industry. Over the years consulting firms have taken great strides in improving diversity and introducing women-friendly policies, all in all leading to a growing role of women in the profession. As it stand women make up about a quarter of the consulting profession, yet percentages differ across segments and firms. At KPMG for instance women make up 46% of the total workforce, while at rival PwC half of the graduates recruited globally in the past 12 months were women. In the more male-dominated domains such as strategy consulting, or IT / technology, the ratio of men to women is however significantly higher, both in terms of current shares as well as in terms of new entrants.

To shine a spotlight on women in the consulting industry that have realised major accomplishments for their clients and their firms, Consulting Magazine nine years ago launched the annual ‘Women Leaders in Consulting’ competition. This year the cases of dozens of female leaders were reviewed, with the jury highlighting that the quality of the nominations was higher than ever. Following a detailed evaluation process, the jury yesterday unveiled the twelve winners across the four categories.

Future Leader Award:
- Theresa (Kain) Merlino, McGladrey
- Leslie Parker, A.T. Kearney
- Lauren Stark, Slalom Consulting
- Maria Whitman, ZS Associates

The coming year the twelve female leaders will serve as true role models within their firm and the industry*, helping to further advance the case for more women in consulting – not just an ambition based on morality or ethics, but one that can build on solid financials. In a survey held among clients of management consultancies, nine out of ten clients said they would prefer to see more women in traditionally male dominated teams. And two thirds said that, if they had to choose between two consulting teams and all other factors were equal, they’d often or always hire the team that had more women.

Lifetime Achievement Award
In addition to the twelve awards, the jury also distributed a Lifetime Achievement Award, which went to Deloitte’s Diane Davies, who passed away in March 2015. Davies was recognised for her nearly three decades at Deloitte, serving as a strategy and operations consultant, as well as a mentor and role model to all of her colleagues, but particularly women at Deloitte. She also served as Deloitte Consulting’s Chief Talent Officer and on the Deloitte US and Global Board of Directors.

The ‘Women Leaders in Consulting’ will be recognised on November 12 at the St. Regis Hotel, New York.

source: http://www.consultancy.uk/news/2794/women-leaders-in-management-consulting-2015

Polaris Consulting all set to be acquired by Virtusa Corp for Rs 2,310 cr

Polaris Consulting & Services, a provider of financial technology products, is in the final stages of being acquired by US-based Virtusa Corporation for Rs 2,310 crore, according to a media report, with a formal announcement expected to come by the month-end.

The founder of Polaris Arun Jain, who established the company two-decades back in 1993, will be exiting the company as Virtusa looks to buy a controlling stake in the Indian IT firm, a report in The Economic Times said. Virtusa, a global information technology services company with headquarters in Massachusetts, USA, was founded after Polaris in the year 1996 by Sri Lankan entrepreneurs Kris and Tushara Canekeratne.

Polaris is said to be in the final stages of the deal with Virtusa's founders valuing it close to $350 million (Rs 2,310 crore), at 18 per cent more than its current market valuation of $295 million (Rs 1,904 crore).

The sale process of Polaris Consulting is believed to have started six months back by Zurich-based global bank Credit Suisse, according to the report, following which the shares of the firm have risen as much as 30 per cent on the Bombay Stock Exchange over the period. Tech Mahindra, HCL Tech and Genpact are said to have been in the race too for the acquisition but Virtusa appeared as the frontrunner offering almost 20 per cent more than its current valuation, the report said.

Jain is likely to sell his 28.9 per cent stake in the company with existing PE investor The Rohatyn Group controlling about 19 per cent stake in the company. Investor Rakesh Jhunjhunwala holds 5 per cent stake in the company.

Emails sent to Polaris and The Rohatyn Group remained unanswered while going to press, the ET  report says.  Polaris' spokesperson could not be reached on his mobile. A Virtusa spokesperson was quoted as saying the firm does not comment on market rumours and makes announcement using appropriate channels.

What the deal means for Virtusa?

The US-based company currently has little access to the Indian market. The deal with give it a wider access in the fast emerging market of India, especially in the banking and financial services space in which Polaris has a stronghold. Virtusa post the acquisition will compete with the Indian offshore software companies.

The link between Virtusa and Polaris

Financial services conglomerate Citigroup brings in over 30 per cent of the revenues to Polaris Consulting being its single largest client. Interestingly, it also happens to be one of the main clients for Virtusa and is said to have played a key role in finalizing the deal, the report said.

see more at: http://www.businesstoday.in/current/deals/polaris-consulting-all-set-to-be-acquired-by-virtusa-corp-for-rs-2310-crore/story/224854.html

Better Investment Consulting Is Long Overdue

Every year numerous studies by S&P, Vanguard, Morningstar, and others report that the vast majority of active managers fail to outperform their passive counterparts. What explains active investing’s underperformance vs. passive investing over the last several years? And why do investors continue to hire active managers?

In his popular book What Investors Really Want, Meir Statman explains that investors want to play the investment game and they want to win. They believe their investment advisers can identify skillful active managers. Yet, unfortunately, history does repeat itself: Active managers consistently fail to earn their fees year after year.

What can change this pattern of repeated failure? Investors need to demand better due diligence to separate out the losers. Intermediaries must improve their manager research. The search for skill continues to be conducted with the same lazy tools that have never worked in the past and never will in the future. It’s like the allegory of the drunk and the streetlamp: The drunk loses his keys at night in a park across the street, but he looks for them under a nearby streetlamp because it’s easier to see.

Antiquated Evaluation Tools

The old performance evaluation tools are indexes and peer groups. These are awful barometers of success or failure. Indexes don’t work because many skillful managers don’t live in style boxes, nor do they hug indexes. Peer groups don’t work because they are loaded with biases and are comprised of losers since most fail to outperform their benchmarks. Beating the losers does not make a winner. Peer groups of hedge funds are exceptionally silly because hedge funds are unique, so by definition they can’t be grouped together: “Unique” means without peer. Hedge fund peer groups epitomize classification bias because the members don’t belong together. (For further details, see “The Compelling Case for Changing Hedge Fund Due Diligence.”)

Investment management consulting is a fungible credence good: a service that is difficult if not impossible to properly assess before or even after consumption. Credence good markets emerge when sellers are much more knowledgeable than buyers. This fact has propelled so-called “robo-advisers” into the limelight, because if you can’t tell the difference, you might as well buy the cheapest.

Clients (buyers) need to wise up. There’s a good reason why active managers selected by consultants fail to deliver value add: Consultants aren’t trying hard enough because they don’t have to. This laxity applies to advice-only consultants as well as outsourced chief investment officers (OCIOs). It would be better to not pretend at all. That’s why intellectually honest robo-advisers have given up on the search for skillful active investment managers.


see more at: https://blogs.cfainstitute.org/investor/2015/10/07/better-investment-consulting-is-long-overdue/

L.A. Law Enforcement Consulting Firm Will Be Consent Decree Monitor

Mayor Frank Jackson and U.S. Attorney Steven Dettelbach announced this morning that the L.A.-based Police Assessment Resource Center (PARC) has been selected to monitor Cleveland's implementation of police reform, outlined in the Consent Decree.

PARC's Vice President and Deputy Director Matthew Barge will lead the Cleveland team, which will include several national law enforcement veterans and Tim Tramble, the director of Kinsman's Burten, Bell, Carr Development Corporation.

PARC has been nationally recognized for their "cutting-edge" work (according to its application), and its President serves as the Independent Monitor in Seattle, a city, like Cleveland, in the midst long-term of police reform.

The City of Cleveland will pay PARC $4.9 million over the course of five years, significantly less than the most expensive proposal, which was reported last week at $13 million. The PARC-led team could stay on longer than five years, though, if the city fails to comply with elements in the Consent Decree.

read more: http://www.clevescene.com/scene-and-heard/archives/2015/10/01/la-law-enforcement-consulting-firm-will-be-consent-decree-monitor

Synechron Acquires Crossbridge - Strengthens Consulting Expertise and Consolidates Presence in London

LONDON & NEW YORK & PUNE, India & DUBAI, United Arab Emirates--(BUSINESS WIRE)--Synechron, the largest independent pure-play technology consulting and outsourcing provider for the financial services industry, today announced the acquisition of Crossbridge, a specialist financial services consulting firm based in London.

    “Crossbridge’s strong financial services capabilities matched with our unparalleled client service promise and acumen across the financial, business and technology sectors make this collaboration an incredibly fruitful opportunity for us to continue servicing our clients with a gold standard.”

The acquisition deepens Synechron’s strong financial services expertise and expands its offerings to include Business and IT Transformation, Regulatory Services, Data, and Financial Crime. The deal extensively augments Synechron’s consulting expertise and consolidates its footprint in the London financial services community and the European market.

“This acquisition is an important milestone for us and it has been our major strategic objective to strengthen our presence in London, since starting out in the U.S. financial services industry in the early 2000s,” said Faisal Husain, co-founder and CEO of Synechron. “Crossbridge’s strong financial services capabilities matched with our unparalleled client service promise and acumen across the financial, business and technology sectors make this collaboration an incredibly fruitful opportunity for us to continue servicing our clients with a gold standard.”

Synechron’s aggressive growth strategy combines a foundation of strong organic growth with an acquisition approach to accelerate entry in strategic areas and geographies. The Crossbridge transaction marks the third acquisition in 2015 and a continuation of an effort to enhance the delivery of Synechron’s core values: Customer Satisfaction, Integrity, Excellence, Execution and Agility. Synechron’s previous 2015 acquisitions include:

    usable: a NYC-based boutique UI/UX design firm, acquired to strengthen and further expand Synechron’s digital design and user interface/user experience capabilities.
    TeamTrade: a Paris-based firm specializing in software integration and business consulting, acquired to enhance Synechron’s consulting and systems integration expertise.

Speaking about the acquisition, Tony Clark and Richard Squire, Managing Partners of Crossbridge said, “Our clients have been looking to us to rapidly grow the Crossbridge consulting services, capacity and global footprint, so joining forces with Synechron is a great strategic move. We are delighted to be part of a team with technical depth and scale, which is absolutely well aligned with our Transformation, Regulation, Financial Crime, Data and Digital practice areas. In a rapidly evolving market, we believe that the amalgamation of Synechron's technical consulting focus and Crossbridge's business consulting capabilities creates a leading, full lifecycle financial services consulting proposition.”

About Synechron

Synechron, the largest independent pure-play technology consulting and outsourcing provider for the financial services industry is a $300 million firm based in New York. Since inception in 2001, Synechron has been on a steep growth trajectory. With 5,000+ professionals operating in 16 countries across the world, it has presence across U.S., Australia, Canada, UK, Japan, The Netherlands, Hong Kong, Singapore, UAE, Ireland, Germany, Switzerland, Luxembourg, Italy, France, and Development Centers in India.

source: http://www.businesswire.com/news/home/20150929005532/en/Synechron-Acquires-Crossbridge---Strengthens-Consulting-Expertise#.VgqHZ6JQib8

Number of New Mortgages in 2014 Plunges 31% From Year Before

Nonbank lenders in 2014 took their biggest share of the mortgage market since at least 1995, new data show, as several large banks pulled back on lending to all but the most pristine borrowers.

According to federal government data released Tuesday, nondepository independent mortgage companies in 2014 accounted for 47% of loans to buy homes for owner-occupants and 42% of refinancing loans. Those market shares increased from 43% and 31%, respectively, in 2013.

The home-purchase share last year was 12 percentage points higher than in 2010.

The increasing prominence of nonbank lenders came as the total number of mortgages made in 2014 plummeted 31% from the year before to six million, according to the Federal Financial Institutions Examination Council. The drop was driven by a 55% plunge in refinances, which were stifled by higher interest rates. Loans to buy homes in 2014 rose 4% to 3.24 million.

In the past few years, large banks, such as Wells Fargo & Co., J.P. Morgan Chase & Co., and Bank of America Corp. , have ceded chunks of the mortgage market to fast-rising nonbank lenders and community banks, partly because of the severe penalties big banks were slapped with for mistakes that had been made during last decade’s housing boom.

Although nonbanks played a larger part in the subprime housing boom and bust, many of those lenders have since closed or been acquired. Fast-rising nonbank lenders, such as Quicken Loans Inc. and loanDepot LLC, nowadays tend to issue mortgages that qualify for government backing from Fannie Mae, Freddie Mac, the Federal Housing Administration or the Veterans Administration.

Still, some worry that the rise of nonbanks could introduce more risks into the mortgage market.

Ted Tozer, president of Ginnie Mae, in a speech on Monday said the increasing role of independent mortgage banks has introduced new risks into the system. Ginnie is a government-owned corporation that guarantees bonds backed by mortgages insured by agencies such as the FHA and VA.

see more at: http://www.wsj.com/articles/number-of-new-mortgages-in-2014-plunges-31-from-year-before-1442931356

EC Harris and Hyder names phased out

Consulting giant Arcadis has launched a single global branding which spells the end for the EC Harris and Hyder names.

The new brand will be adopted across the 70 countries in which Arcadis operates and will see “legacy brands” like EC Harris and Hyder phased out.

Alan Brookes, Chief Executive Officer of Arcadis in the UK, said: “In the UK we will see our expert teams from EC Harris and Hyder Consulting come together and go to market as one powerful, integrated Arcadis brand.

“This will help provide a clarity and consistency of approach to our clients who are already benefiting from our global collaboration.

“In the past year alone we have seen our infrastructure teams at EC Harris and Arcadis in Europe collaborating with their counterparts at Hyder to win the £27 billion Crossrail 2 project, as well as our Highways teams in the UK coming together to work for the Welsh Government on the £1 billion M4 Corridor project.

“This shows how, by building on the strength of each of our individual brands, we are jointly in a far stronger position to respond to multiple challenges.

“The move to Arcadis reflects our broader ability to adapt to market issues, learn from best practice examples around the world and constantly innovate to deliver the best solutions.

“The combination of EC Harris’s consulting expertise with Hyder’s design and engineering capability has cemented our capability as Arcadis to offer integrated solutions that encompass the whole project lifecycle.”

read more: http://www.constructionenquirer.com/2015/09/21/ec-harris-and-hyder-names-phased-out/

Management consulting needs more women at the top

In recent years, the management consulting industry has seen a slow, but steady improvement in its female diversity, with the number of women in partner ranks and senior positions on the rise. Yet according to Fiona Czerniawska, founder of Source Information Services and Sandra Guzman, Director of nbi, an international human capital consultancy, the industry still has a long way to go when it comes to female leadership. In this article they reflect on why a few women isn’t enough. I had a road-to-Damascus like moment recently, talking to some senior women partners in a Big Four firm. We collectively realised that while the proportion of women partners remained low, individual women partners tended to have a higher than average percentage of women working for them. Women, it seems, attract other women.

And it’s a point that comes through again in recent research from Source Information Services in collaboration with nbi, a human capital consulting firm. Together we interviewed almost 40 senior people in leading consulting firms around the world. One partner in Australia described how her early career had involved several occasions in which she’d had to choose between a relationship and her job (she chose the latter). Eventually married and with young children, she found herself working for a senior female partner alongside other women who were also juggling their home and business lives. “The partner didn’t have the best reputation internally, so it was her who reached out to us, rather than us choosing to work with her. But she created in my experience a uniquely supportive environment in which we all helped each other.” No one was made to feel bad when they had a childcare issue or domestic crisis; everyone worked together. Another interview made a similar point: “If a senior woman is working part time, actually that is something that is desperately relevant for making women feel supported. Flexi-working is desperately relevant for women, and I can do that, I can help with advice and I’m a role model.” More women at the top mean more women lower down, because women who feel part of a supportive team are less likely to leave when they start juggling work and families. Crucially, they’re also working alongside people who recognise that work doesn’t come first: “I don’t have to sell my soul,” was the way one woman put it.

see more: http://www.consultancy.uk/news/2597/management-consulting-needs-more-women-at-the-top

And the best consulting firm to work for in APAC is

Bain & Company has regained its position as the top consulting firm to work for in Asia-Pacific, ending rival McKinsey's two-year reign, according to a new survey by career information site Vault.com, which attributes Bain's climb back up the rankings to its focus on the quality of life of its employees.

"This year Bain edged back into the top spot due to the firm's commitment to firm culture, training, compensation and work-life balance. It will be interesting to see how McKinsey responds next year," said Phil Stott, consulting editor at Vault.

The survey, published on Tuesday, polled more than 500 consulting professionals across the APAC region. Respondents were asked to assess their firm as well as their peer firms on a variety of factors including prestige, practice area strength, firm culture, compensation, overall satisfaction and hours, among other factors.

McKinsey, which edged down to second place, was trailed by A.T. Kearney, Oliver Wyman and Roland Berger Strategy Consulting, in the third, fourth and fifth spots.

PricewaterhouseCoopers, Sia Partners, Arthur D. Little, L.E.K. Consulting and OC&C Strategy Consultants rounded out the top ten.

The consulting industry, known for its gruelling hours and incessant traveling but also healthy compensation, has been losing some of its shine among job seekers in recent times, says Stott, because of the comparative attractiveness of other industries—especially technology.

"The top consulting firms know that, and so have been increasingly focusing on quality of life as a means to attract and retain top talent," he said.

Bain took the top spot in 15 quality of life categories - including internal mobility, international opportunities, promotion policies, vacation policies and work-life balance – and also swept the diversity rankings. "There was no other firm that even came close," Vault said.

see more at: http://www.cnbc.com/2015/09/14/bain-beats-mckinsey-at-kearney-oliver-wyman-pwc-to-top-apac-consultancy-poll.html

Introducing the Kosher HECM Reverse Mortgage

The kosher stamp on a food means that it has been certified as fit for human consumption. We have long needed a comparable certification process applicable to financial instruments sold to consumers, with the need most pronounced for the more complex instruments. HECM reverse mortgages are at the top of that list. They are extremely complex, and markedly different from the standard mortgages that many seniors learned about when they took one earlier in their lives to purchase homes.

This article summarizes the dysfunctional features of the existing non-kosher market, and describes the major features of the kosher version.

Existing Market Failure

The mainstream HECM market is the most dysfunctional of all the major financial service markets. Lenders don't display their prices anywhere, and borrowers don't price shop. Most originators always charge the maximum origination fee allowed by law, regardless of how much they are making on the transaction. Markups are 2.5 to 3 times larger than in the standard mortgage market, though the work load is much the same. The details are set out in my Wharton working paper HECM Reverse Mortgages: Is Market Failure Fixable?

The Kosher HECM is designed to maximize the benefits a senior receives from a reverse mortgage, and avoid the hazards inherent in a very complicated transaction. The following are its major features as compared to the non-kosher alternatives.

Features of the Kosher HECM

Optimizing the Selection of HECM Options With the Kosher Calculator: A major positive feature of HECMs is the wide range of options available to seniors for withdrawing funds. They can draw cash up front, get a monthly payment for a specified period, take a credit line, or combinations of two or three of these. In addition, they can alter these combinations in the future. But this introduces enormous complexity, and a danger that the borrower may make poor choices.

To reduce this risk, we created a free Kosher HECM calculator that allows a senior to see exactly what the options are in the sense of, e.g., "If I take less of this, how much more can I draw of that?" The calculator determines option amounts using the lowest of the competitive prices posted by participating lenders. It also shows the combination of interest rate and origination fee that generates the lowest cost over the borrower's time horizon. In addition, the calculator shows the changes in the senior's future finances that would result from any combination of draw options taken now.

The Non-Kosher Alternative: No existing calculator shows users the tradeoffs between different draw options, or the consequences for their future finances. Part of my game plan is an offer to license and maintain the Kosher HECM calculator at no charge for HUD, the Consumer Financial Protection Bureau, and perhaps others.

Optimizing the Selection of HECM Options With Disinterested Option Experts: Because not all seniors can navigate the Kosher HECM calculator on their own, we have created a group of "option experts" to offer seniors free and disinterested help in assessing Kosher HECM options when they are in an exploration stage. In addition to my staff, the option experts are a select group of reverse mortgage brokers and loan officers who are proficient in the use of the calculator, who will advise on how best to integrate an HECM into a longer-range retirement plan, and who provide their services pro bono.

Seniors are assigned to an expert who is not licensed to originate loans in the senior's state. This eliminates any financial inducement to steer a senior in one or another direction. The experts have no financial interest in whether or not the senior ends up with a HECM.

The Non-Kosher Alternative: Draw option decisions are often made haphazardly, usually to meet pressing financial needs. There are no financial tools that balance one type of draw against others or project results over future years.

see more: http://www.huffingtonpost.com/jack-m-guttentag/introducing-the-kosher-he_b_8096962.html

ABOUT TIME: Cost to originate mortgages finally gets cheaper

After barely surviving the subprime crisis and housing collapse, and then enduring the agony of burdensome regulatory changes and the advent of a new mortgage watchdog, mortgage originators finally, FINALLY, have some good news to spread.

Well, it only took about 8 years but...  the Mortgage Bankers Association just said that total loan production expenses – commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations – decreased to $6,984 per loan in the second quarter of 2015, from $7,195 in the first quarter of 2015.

This is after years of mortgage production cost slowing inching their way up into the stratosphere. Here's a laundry list of that sad, cruel progression.

What's more, independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $1,522 on each loan they originated in the second quarter of 2015, up from a reported gain of $1,447 per loan in the first quarter of 2015,reported today in its Quarterly Mortgage Bankers Performance Report.

“Average company production volume was up in the second quarter, as purchase volume grew and mortgage pipelines from the first quarter’s refinance boomlet closed,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “The production volume increase resulted in a nominal decrease in per-loan production expenses, which offset a decrease in secondary marketing income.

“However, by historical standards, production expenses remained elevated given that the average company production volume was at the highest level since inception of the study in 2008,” she said.

Other key findings of MBA’s Quarterly Mortgage Bankers Performance Report include:

see more at: http://www.housingwire.com/articles/34862-about-time-cost-to-originate-mortgages-finally-gets-cheaper

Average rate on 30-year mortgages holding steady, Freddie Mac says

Washington — Average long-term U.S. mortgage rates edged lower this week, with the key 30-year loan rate remaining under 4%.

Mortgage investment firm Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage ticked down to 3.93% from 3.94% a week earlier. A year ago, the average rate was 4.10%.

The rate on 15-year fixed-rate mortgages eased this week to 3.15% from 3.17%.

Investors and financial experts are watching for an anticipated interest-rate increase by the Federal Reserve next month, which could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis year 2008.

With mortgage rates at historically low levels and job growth steady, Americans stepped up their home-buying for a third straight month in July. Data issued Thursday by the National Association of Realtors showed home sales accelerating last month to the strongest pace in eight years.

The spike in home sales has come as more current homeowners have returned to the real estate market for an upgrade or to downsize as they approach retirement.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan also held steady at 0.6 point.

see more: http://www.jsonline.com/business/average-rate-on-30-year-mortgages-holding-steady-freddie-mac-says-b99560934z1-322408171.html

On the House: Presidential hopefuls and the mortgages they keep

You can't tell the 2016 presidential hopefuls without a scorecard, but thanks to the Loan Depot, we know something about their houses and how much their mortgages are.

I can't do them all in this space, so if anyone thinks I've slighted their favorite hopeful, email me and I'll send you the list.

Jeb and Columba Bush live in Coral Gables, in a 3,485-square-foot, four-bedroom, four-bath townhouse purchased in August 2011 for $1.3 million. Its assessed value in 2014 was $1.1 million. In July 2013, public records show, they refinanced their mortgage to a 30-year conventional loan for $754,000.

Hillary and Bill Clinton own a five-bedroom, four-bathroom 5,232 square-foot Colonial in Chappaqua, N.Y., purchased for $1.7 million in 1999, with an adjustable-rate mortgage of $1.41 million.


Read more at http://www.philly.com/philly/business/real_estate/residential/20150816_On_the_House__Presidential_hopefuls_and_the_mortgages_they_keep.html

After earning billions in profits, Fannie, Freddie reform further than ever

WASHINGTON (MarketWatch) — Despite years of hand wringing on Capitol Hill over the need to protect taxpayers by reforming the U.S. housing-finance market, it may take a financial hit to mortgage giants Fannie Mae and Freddie Mac to spur decisive congressional action.

It’s been almost seven years since the government sponsored enterprises were put into conservatorship, but U.S. lawmakers have yet to approve a plan that replaces the companies and rebuilds the country’s housing-market infrastructure. It’s a huge, complex undertaking, and no elected official wants to be the one who gets reform wrong.

“They are concerned with the unintended consequences,” said Isaac Boltansky, an analyst at Compass Point Research & Trading, a Washington-based investment firm. “None of these guys want their name attached to a bill that helped tank the mortgage markets.”

The stakes are high: Together Fannie FNMA, -1.65%  and Freddie FMCC, -1.72%   back a bit more than half of new mortgages. In the second quarter the companies backed a total of more than $230 billion in new mortgages, according to Inside Mortgage Finance, which closely monitors industry trends.

Any law that winds down the firms and reconstructs the mortgage marketplace will strike close to the heart of family finances across the country.

Fannie and Freddie’s role is crucial, enabling borrowers to get mortgages by providing financial liquidity. The government sponsored enterprises don’t make loans. Rather, they guarantee that investors in securities backed by mortgages will receive expected payments. Lenders who sell their loans into the Fannie and Freddie security packages then have money to lend again.

Fear of failure isn’t the only obstacle to reform. Some U.S. lawmakers may be loath to revamp a system that has helped the government to narrow its deficit. A bailout arrangement forces Fannie and Freddie to send their profits to the U.S. Treasury Department each quarter. The GSEs have sent more than $50 billion to the Treasury than the bailout funds they received.

Last week, Fannie Mae reported a $4.6 billion second-quarter profit, and Freddie Mac reported a $4.2 billion second-quarter profit.

With windfalls like these, some officials are more interested in maintaining than slaughtering their cash cows. Case in point: A recent bipartisan Senate proposal to fund infrastructure and transportation investment would be paid for, in part, by guarantee fees charged by Fannie and Freddie.

“It makes the government even more reliant on the GSEs as a source of funding for government programs,” analysts with Keefe, Bruyette & Woods, a New York-based investment bank, wrote in a research note.

read more: http://www.marketwatch.com/story/after-earning-billions-in-profits-fannie-freddie-reform-further-than-ever-2015-08-10

Inside View: Accenture Consulting

Energized by client need for digital and technology services, Accenture is scouting for talent. Business school has proven to be fertile hunting ground for the world’s fifth largest consulting firm by revenue. It was last year a top recruiter at INSEAD, Chicago Booth, Kellogg School, Duke Fuqua and LBS. With a surging global advisory sector poised to surpass $245 billion, Accenture has seen marked growth in digital areas such as big data analytics. Increasingly, business has called upon the firm to deliver long-term strategy projects at the intersection of business and technology. For a business whose livelihood is dependent upon offering best practice client-facing services, the need to hire the very best people is salient. There is great demand for talent at Accenture, and its links to the top MBA programs go a way to satisfying its staffing needs. Expansion of its standalone digital unit has been rapid. Founded in 2013, Accenture Digital had grown to have 28,000 employees at last year’s count. Accenture has 336,000 employees operating across 56 countries. The firm looks for individuals that have deep experience in change environments, and who are comfortable operating in and designing solutions for complex business problems. Increasingly, an understanding of data and analytics is required. In this interview with BusinessBecause Gregor McHardy, managing director and technology consulting lead for communications, media and technology at Accenture UK and Ireland, shines a light on the growing need for tech-savvy strategists. What demand are you seeing for strategy consulting, which is slated as experiencing resurgence? We see significant demand for strategy consulting, particularly as Accenture has positioned itself at the intersection of business and technology. For example: within the communications, media and technology industry there is a lot of market consolidation and convergence, which is creating demand for M&A and strategy consulting work. Also with digital disruption, our clients are reviewing their business models and assessing what they need to do to reinvent themselves, which also requires strategy consulting input and support. Our recent acquisition of Javelin Group is a key indicator of our growth aspirations in this space, and compliments an aggressive year of hiring for strategy skill sets. What expertise is needed for consultants to address complex long-term problems? We look for individuals that have deep experience in change environments and are comfortable operating in and designing solutions for complex business problems. Increasingly, an understanding of data and analytics is required. We see clients increasingly make more data-driven decisions and putting analytics at the heart of their businesses. So, our teams are increasingly bringing data and analytics skills into project analysis and execution. read more: http://www.businessbecause.com/news/inside-view-top-jobs/3408/inside-view-accenture-consulting-2015

Demand for mortgages picks up in second quarter: Fed survey

The trend for stronger demand for mortgage loans continued in the second quarter, a Federal Reserve senior loan officer survey released Monday showed, suggesting financial strains on households are easing. About 44% of banks reported moderately stronger demand for mortgages, compared with only 5% reporting weaker demand, according to the survey of 71 domestic and 23 branches of foreign banks operating in the U.S. The increase in mortgage demand was across the spectrum, including both jumbo and non-jumbo mortgages. Banks trimmed standards for mortgage lending, which makes it easier for borrowers to obtain a loan, but at a slower pace than in the first quarter, according to the survey. This report affirms Fed Chairwoman Janet Yellen’s recent testimony that U.S. households have to “wherewithal and confidence” to boost spending, said Millan Mulraine, economist at TD Securities. Banks also reported stronger demand for auto and credit card loans. A few large banks eased standards for credit cards, increased credit card limits and reduced minimum credit scores. “In general, this report reaffirms the supportive backdrop for the U.S. economy as the continued progress in credit dynamics will be seen as complementing the boost in income from the robust labor market and the support to wealth from rising asset prices,” Mulraine said. source: http://www.marketwatch.com/story/demand-for-mortgages-picks-up-in-second-quarter-fed-survey-2015-08-03

Flint searching for a consulting firm to revitalize plagued Atherton East

FLINT -- To Kanesha Miller Atherton East is more than a symbol of urban blight. She said her neighborhood has decayed into a virtual war zone. "It's been too many shootings around my door and my children," said Miller. The last shooting was the last straw for the mother of two. "I felt bad just terrible just like oh my gosh not again," she said. When Miller heard word of a $500,000 planning grant was headed to her neighborhood could help relocate families. City officials interviewed and grilled three consultants Wednesday, July 29, to lead the master plan in redeveloping and restoring faith in the city. Megan Hunter Director of Planning said the city isn't equipped to handle a search. "The plan is really detailed and it's more than just a plan it's actually a conceptual drawings it's looking at how to finance the housing so we need a consultant who has those expertise we don't have them in house," said Hunter The vehicle city said they are hoping to correct their failure. "They were put there because the city didn't want to incorporate them into the fabric of the community, now it's time for the city to erase that wrong." see more: http://www.minbcnews.com/news/story.aspx?id=1236964#.Vbof161JejM

Uh-oh: Interest-only mortgages are back

Even if you don’t know much about home loans, you’ve probably heard of interest-only mortgages, if only because they played a large role in the financial crisis of 2008 and 2009. These loans practically disappeared during the recession but have since started to make a comeback, but that’s not necessarily something to be concerned about. Interest-only mortgages are a risky product with a bad reputation, and the loans available now aren’t like the ones that made a mess of the economy several years ago.

What Is an interest-only mortgage?

With a traditional 30-year fixed-rate mortgage, your monthly payments go toward both the principal balance and the interest accrued on the loan. An interest-only mortgage has a period — commonly 3, 5, 7 or 10 years — during which you’re only paying the interest accrued on that principal. If you take out a $100,000 loan and make payments on the interest accrued for 10 years, you’ll still have $100,000 to repay (plus interest) over the next 20 years of the loan. Instead of spreading that $100,000 over 30 years, you now have to pay it over 20, resulting in higher loan payments (the interest rate also resets at the end of that first period, meaning your interest rate could go up).

Loose underwriting standards allowed consumers with little to contribute to a down payment and less-than-great credit scores obtain interest-only mortgages before the financial crisis, said Scott Sheldon, a senior loan officer in Santa Rosa, Calif. “People tried to squeeze into a house they couldn’t afford, because they could only afford the interest-only payment,” he explained.

Historically, homeowners relied on the ability to refinance their homes at the end of the interest-only period said Tony Sachs, chief lending officer of online mortgage marketplace Sindeo. Home values tanked during the crisis, wiping out home equity and the option to refinance, so when borrowers’ payments increased, they couldn’t afford them and started defaulting on their loans.

Who can get an interest-only mortgage?

Interest-only loans aren’t meant to be an affordability tool, Sheldon said. As the economy has improved, lenders started offering them again (within the past year or so), but they’re much different than those pre-2007 loans that everyone associates with the term “interest-only.”

“They’re usually geared toward higher-net-worth individuals who are interested primarily in cash flow and otherwise have a lot of assets,” Sheldon said. The interest-only loans he can originate now have stringent requirements: “We usually want 12 months of mortgage payments in the bank, in addition to the 740 credit score, in addition to the 25% down payment.”

He said they’re only available for jumbo loans right now (loans that exceed the limits set by Freddie Mac and Fannie Mae), so it’s not the sort of thing the average consumer would be looking at.

“They are meant for people who have … the appetite for risk and have the ability to absorb the consequences, should they be negative,” Sachs said. “For the right person, they can be used as a successful mortgage product and financial or tax-management tool.”

For example, someone who is well-paid but receives large bonuses may want an interest-only loan, to preserve their take-home pay throughout the year and make large, voluntary contributions toward the principal when they receive their bonuses. It’s an alternative to paying more throughout the year with a loan amortized over 30 years. Another type of person who may want an interest-only loan is someone who could afford to pay cash for a property but uses the interest-only mortgage to claim the mortgage interest tax deduction

see more: http://www.usatoday.com/story/money/personalfinance/2015/07/24/credit-dotcom-interest-only-mortgages/30168323/

The Wisdom of the Rule of Three

For years I trained consultants in the ambiguous and complex art of innovation at a prestigious consulting firm. I was amused at their indoctrination which included an unbending adherence to the rule of three. No, not that bad things happen in threes but rather that a client should always be given three paths to action: most ambitious, most cautious and a middle way. These correlate to best case, worst case and most probable case. The objective of this rule is to provide some perspective as to the range of options available, cover as much of the upside and downside of the issue in question as reasonable and to gauge the client's level of aspiration. Given that most of us can only really remember three things at a time, this rule is simply a strategy to break habit bound thinking by showing obvious alternatives.

Lately I'm beginning to see the wisdom in the rule of three. Where it used to be that the center of the bell curve marked the gathering place of consensus or at least cooperative collaboration, it is now the right and left edges of the curve that define the places that keep us apart. These segments are defined by their oppositional relationships. Social media has exasperated the situation as it has become a micro-segmenting forum for marketers and provocateurs alike. Spin becomes the opinion of the segment, and in turn, the segment takes opinion as fact. Consider how many postings you have seen in the last week that not only express a contempt for an alternative point of view but support it with a barrage of partisan data, dubious facts and conspicuous omissions. These segments are motivated to act in a unilateral way sometimes with tragic consequences. The old adage "Everyone is entitled to their own opinion, but not their own facts" appears to have little gravitas in a world where the two are now indistinguishable.

The most dangerous thing an innovator can do is to believe that they know something that is actually untrue and be unwilling to make adjustments to this belief as their experiences provide information to the contrary. So how do we gain real perspective in an environment designed to coopt our own thinking?

1. Look in Your Blind Spots: When we drive, we know that our mirrors don't reveal the entire situation so we glance over our shoulder just in case to see what we may have missed. The same is true when it comes to our thinking. Instead of "unfriending" that person in your social media network who is always rambling about politics or religion take a moment to actually read their posts. Ask yourself why they believe what they believe. Consider what it must be like to be in their shoes. Look for a deeper rational. This will enhance your understanding.
2. Feed Your Head: Read, watch and listen to sources that you seldom encounter or fully engage. If you are straight read The Advocate, if you are progressive, read The National Review. Keep an open mind. Most importantly, look for information or a point of view where you can see a glimmer of truth even though you don't necessarily adhere to it personally. Psychologists call this counter-attitudinal advocacy: making a strong argument for the opposition. This will increase your range.

see more: https://www.linkedin.com/pulse/wisdom-rule-three-jeff-degraff

Big Four Firms Dominate Global Risk Consulting

The Big Four firms collectively account for nearly two-thirds of the global risk consulting market and could expand that footprint if they acquire more cybersecurity firms, suggests a new report.

The report, from Source Information Services, found the global market for risk consulting has risen by over $1 billion (9 percent) to just under $14 billion in 2014. Risk consulting in financial services dominates the market, accounting for $5 billion, or about 35 percent of the total.
Regulation and compliance work have driven much of the growth to date, according to the report, but cybersecurity is likely to have a significant impact in the near future. Big Four firms perform the majority of global risk consulting, accounting for 61 percent of the market. However, the report warns the Big Four could miss out on the next stage of growth if they don’t react to the growing demand for cybersecurity expertise. 
Big Four firms aren’t seen by clients to have the specialist expertise required to capitalise on this wave of increased investment in cybersecurity,” said Source founder Dr. Fiona Czerniawska, who authored the report. “These firms now have a limited window of opportunity to either recruit or acquire organizations with these skills. Despite recent growth, the global risk consulting market is at a crossroads. Our research shows increasing polarization between ‘low cost’ and ‘high value’ parts of the market will create new challenges for consulting firms across the board.”
Regulatory-related risk consulting work falls into the low-value part of the market, according to the report, as clients turn to consultants for cost-effective support when they can’t handle the workload themselves.
In contrast, cyber risk falls into the high-value end of the market as it is relatively new territory for most organizations. The consulting market for cyber risk is smaller than for regulatory-related work, but the report suggests it will grow more quickly as organizations rely more on consultants to help them.
The increasing number of risk-related initiatives has led to a dramatic rise in the use of consultants. In 2013, only 27 percent of organizations said their investment in risk-related areas would drive up their use of consultants. Today, that figure has nearly doubled to 50 percent. This trend holds across most parts of the private sector. However, public sector managers still focus on saving money and thus are more likely to rely on in-house resources to do this type of work.
read more: http://www.accountingtoday.com/news/firm-profession/big-four-firms-dominate-global-risk-consulting-75186-1.html

Rates fall on 30-year home mortgages

WASHINGTON – Average long-term U.S. mortgage rates fell this week, retreating from high levels for the year amid economic turbulence overseas. The lower rates brought an incentive for prospective purchasers toward the end of the spring home buying season.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage declined to 4.04 percent this week from 4.08 percent a week earlier. The rate on 15-year fixed-rate mortgages eased to 3.20 percent from 3.24 percent.

Markets around the world have been nervously watching tumult and a nearly monthlong slide in China’s stock markets, and Greece’s economic crisis as it tries to negotiate a rescue from its European partners. That has pushed investors to seek safety in U.S. Treasury bonds, pushing interest rates lower.

Bond yields for Treasurys have been pushed lower by the rise in bond prices. The yield on the key 10-year Treasury note dropped to 2.20 percent Wednesday from 2.42 percent a week earlier. Mortgage rates often follow the yield on the 10-year note. It traded at 2.27 percent Thursday morning.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. 

read more: http://www.spokesman.com/stories/2015/jul/10/rates-fall-on-30-year-home-mortgages/

Consulting deals with medical companies can earn doctors six-figure paydays

For the past five years, Coon Rapids cardiologist Dr. Jeffrey Chambers has led a nationwide study that found doctors could safely use a Minnesota-made medical device to drill out hardened calcium in clogged arteries around the heart.

A report of the study’s results published last year disclosed that Chambers was a paid consultant.

Federal data published last week reveal the extent of those payments — $296,000 in 2014 from New Brighton-based Cardiovascular Systems, Inc. It was among the highest such totals in the state.

Cardiovascular Systems says Chambers’ expertise is a vital asset for a study investigating the safety of its product, and that the amount of its payments are typical for the industry.

Critics ranging from bioethicists to consumer groups say such payments create a risk of bias in clinical studies. It’s a long-running debate in Minnesota’s health care community, and one of the key questions emerging from the federal data published last week disclosing $6.5 billion in drug and device-company payments to 600,000 doctors in 2014.

Manufacturers have a huge financial stake in the outcomes of clinical studies because positive results are crucial to getting regulatory approval to sell their products. Organizations like the Mayo Clinic and the University of Minnesota no longer allow their doctors to serve as investigators on studies if they have consulting deals with makers of the devices or drugs being tested.

“When a Mayo employee is doing consulting for a company, it is Mayo Clinic policy that is inappropriate for them to do research on the company’s products,” said Mayo radiologist and industry-relations expert Dr. Richard Ehman, describing the health system’s policy on financial relationships with industry.

Proponents argue doctors shouldn’t have to work for free to advance state-of-the-art science. And close collaboration with industry is essential to inventing new technology like the Diamondback 360 Coronary Orbital Atherectomy System that has been on the market since October 2013 and that Chambers and his trial team have studied since March 2010.

“We believe the involvement of physicians in clinical trials for new medical devices and applications is critical,” Cardiovascular Systems spokesman Jack Nielsen said in an e-mail to the Star Tribune. “As a leading interventional cardiologist, Dr. Chambers’ expertise is vital when investigating the safety and efficacy of new medical technology products.”

Nielsen noted the company has rigid rules for conducting the study involving 443 patients at 49 health care centers. The company paid Chambers for serving as principal investigator of the study, and for presenting data at scientific and federal policy meetings, as well as training other doctors to use the Diamondback 360 device.

Chambers, who works at Metropolitan Heart and Vascular Institute, didn’t return calls for comment about the payments.

 

see more: http://www.startribune.com/consulting-deals-with-medical-companies-can-earn-doctors-six-figure-paydays/311696601/

Stay away from interest-only mortgages (Dave Ramsey column)

Dear Dave,

Can you explain interest-only mortgages? Are they a good idea?

-- Dale

Dear Dale,

An interest-only mortgage is just what it sounds like. You’re paying only the interest on the loan and none of what you actually owe. It’s a good way to stay in debt for the rest of your life, so they’re not a good idea.

Lots of people look at this product and say, “Wow, I’ll get a lower monthly payment, and then I can throw tons of cash at the principal.”

Guess what, in most cases it doesn’t work out that way. Why not take out a good 15-year fixed rate mortgage and put a bunch of money toward the principal?

Everyone thinks they have a great idea for tricking the system. But the only system that really works is to pay off debt as quickly as you can.

Interest-only mortgages are like adjustable rate mortgages and high fixed rate mortgages — they’re good things to stay away from.

— Dave

Dear Dave,

I’m a senior in college. I’m completely debt-free right now, and I am wondering what I should do to stay this way after graduation.

-- Cary

Dear Cary,

You’re already primed for a great start. Doesn’t it feel great to know you won’t have a bunch of payments hanging over your head when you walk out into the world? I’m really proud of you!

There are three major traps I tell all new graduates to avoid. One, save up and pay cash for your cars for the rest of your life. If you saved the amount of an average car payment — about $485 a month — and put it into a good mutual fund from age 25 to 65, you could easily retire a millionaire. Now that’s something to look forward to.

The second trap to avoid is rushing in to buy a house. The first few years after college will be some of the most volatile in your life in terms of career and relationships. Save up a big pile of cash and be patient. Too many young people today go crazy and buy houses they can’t afford just because their friends bought one or everyone is telling them it’s what they should do.

see more: http://globegazette.com/business/stay-away-from-interest-only-mortgages-dave-ramsey-column/article_c74df946-2253-5762-a639-81b14ac3ea72.html

FTI Consulting Releases 2015 Risk Research Survey & Report: What Companies Do Right (and Wrong) in Emerging Markets

WASHINGTON, June 24, 2015 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced the release of its comprehensive 2015 Risk Research Survey & Report: What Companies Do Right (and Wrong) in Emerging Markets.
FTI Consulting surveyed 150 business leaders of North American- and European-based multinationals with operations in emerging economies, specifically executives involved in risk and compliance, and found that 83 percent of the companies surveyed have suffered major incidents in emerging markets since 2010. The average loss per company was $1.38 billion over that period of time. The average cost per incident was estimated to be $325 million.
In 99 percent of incidents that involve a loss, the cause is either bribery or fraud, regulatory violations or reputational issues. Regulatory issues are the most frequent cause of loss, and bribery and fraud are the most expensive. The very worst incidents, including those that approached or exceeded $1 billion, involved two or three of these issues occurring either together or in quick succession, with reputational issues invariably making a bad situation worse.
Leading companies, which include those that suffer the lowest losses and fewest incidents, protect themselves in three major ways that others do not, including maintaining a consistently good reputation; taking great care to comply with and influence the local regulatory environment; and working with the communities in which they do business in accordance with local cultural norms while maintaining the highest ethical standards.
In these ways, companies guard against all three kinds of risk while preventing any one from magnifying and generating others. In other words, leading companies not only act differently, they think differently about their businesses and their role in emerging economies.
"When companies attempt to do business overseas, they essentially become political as well as economic actors," said Jackson Dunn, Senior Managing Director in the Strategic Communications segment at FTI Consulting. "The company's investment inevitably affects the local economy, and that has spillover effects in the political community. This places companies at reputational risk, which they frequently fail to understand or acknowledge."
The risk, according to Brazil-based Eduardo Sampaio, Senior Managing Director in the Forensic & Litigation Consulting segment at FTI Consulting, is that some companies "are too hungry to make deals in hyped environments; therefore, they're closing deals without an adequate understanding of what they're getting into."
FTI Consulting experts and corporate leaders agree that companies that are most successful in avoiding losses are those that are deeply engaged with the communities in which they operate at both the political and community levels.
- See more at: http://globenewswire.com/news-release/2015/06/24/747085/10139508/en/FTI-Consulting-Releases-2015-Risk-Research-Survey-Report-What-Companies-Do-Right-and-Wrong-in-Emerging-Markets.html#sthash.wYcKfQHS.dpuf

WASHINGTON, June 24, 2015 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced the release of its comprehensive 2015 Risk Research Survey & Report: What Companies Do Right (and Wrong) in Emerging Markets.

 

FTI Consulting surveyed 150 business leaders of North American- and European-based multinationals with operations in emerging economies, specifically executives involved in risk and compliance, and found that 83 percent of the companies surveyed have suffered major incidents in emerging markets since 2010. The average loss per company was $1.38 billion over that period of time. The average cost per incident was estimated to be $325 million.

 

In 99 percent of incidents that involve a loss, the cause is either bribery or fraud, regulatory violations or reputational issues. Regulatory issues are the most frequent cause of loss, and bribery and fraud are the most expensive. The very worst incidents, including those that approached or exceeded $1 billion, involved two or three of these issues occurring either together or in quick succession, with reputational issues invariably making a bad situation worse.

 

Leading companies, which include those that suffer the lowest losses and fewest incidents, protect themselves in three major ways that others do not, including maintaining a consistently good reputation; taking great care to comply with and influence the local regulatory environment; and working with the communities in which they do business in accordance with local cultural norms while maintaining the highest ethical standards.

 

In these ways, companies guard against all three kinds of risk while preventing any one from magnifying and generating others. In other words, leading companies not only act differently, they think differently about their businesses and their role in emerging economies.

 

"When companies attempt to do business overseas, they essentially become political as well as economic actors," said Jackson Dunn, Senior Managing Director in the Strategic Communications segment at FTI Consulting. "The company's investment inevitably affects the local economy, and that has spillover effects in the political community. This places companies at reputational risk, which they frequently fail to understand or acknowledge."

 

The risk, according to Brazil-based Eduardo Sampaio, Senior Managing Director in the Forensic & Litigation Consulting segment at FTI Consulting, is that some companies "are too hungry to make deals in hyped environments; therefore, they're closing deals without an adequate understanding of what they're getting into."

 

FTI Consulting experts and corporate leaders agree that companies that are most successful in avoiding losses are those that are deeply engaged with the communities in which they operate at both the political and community levels.

 

source: http://globenewswire.com/news-release/2015/06/24/747085/10139508/en/FTI-Consulting-Releases-2015-Risk-Research-Survey-Report-What-Companies-Do-Right-and-Wrong-in-Emerging-Markets.html