Japanese Firm Needs to Understand U.S. Marketplace

Situation
A Japanese research and services firm is developing a system for underwriting and managing credit risk for small business loans. The firm needed to incorporate best practices into its products and services.

Approach
We developed a structure to describe the US market, including market segments, products, delivery and sales systems, credit management, profitability and growth drivers, and securitization/infrastructure. Through secondary research and interviews with a range of executives and vendors, we identified key factors of success and how they are implemented in the US.

Results
The client is now using the results to develop and package its services to its client banks. The client has successfully attracted committed partners to proceed to the next level of implementation.

Neglected Operations Needed Upgrade and Vision

Situation
Several bank financial operations involving 300 staff were seriously under-performing due to a combination of poor management, inefficient processes, obsolete systems, and lack of customer service awareness.

Approach
Each component (securities processing, fund accounting, real estate trust operations) was analyzed for process flow, customer service/accountability, productivity, and hardware/software functionality and suitability.

Results
New processes and new systems were implemented through self-funding, and total costs were reduced by 20% while customer satisfaction improved. Further, the streamlined operations delivered major costs savings during a merger by absorbing a larger function.

School District Needs Clarity in Financial Reporting

Situation
Schools have complicated financial reporting, and most of the financial systems are oriented towards compliance and financial regulatory reporting. Reports were not adequate for managers and Board members to make appropriate decisions. It was also impossible to get meaningful detail on certain “hot button” topics like travel, conferences, supplies, etc.

Approach
Our first task was to download the financial information, scrub and label the data appropriately, and create an excel spreadsheet with filters, subtotals, and pivot tables. Each Board member and top staff was given a summary level report and user-friendly tool to research items of interest and create summaries at various levels. Secondly, we developed a public presentation to explain in understandable terms the nature of school financing to the board and the public.

Results
The Board was able to make more enlightened decisions and felt more confident that they grasped the full context. Further, the community gained a much better understanding of the situation and was more supportive during a financial crisis.