Most people have used consulting services within the course of their personal and professional lives, many without even realizing it. Whether you're planning a vacation, remodeling a kitchen, or deploying a new mortgage lending system, using the best professional resources available decreases risk, and increases quality. The concept of applying specialized knowledge and skills to perform critical tasks dates back to early civilizations. In today's complex and competitive world, the value of consulting services is more important and valuable than ever.

The mortgage lending business is very competitive. Margins are slim and the cost of originating a loan is being driven down by new technology. This new technology is also very competitive, with literally dozens of companies aggressively marketing a vast array of products. Mortgage technology solution choices range from simple inexpensive point-of-sale systems targeted at small wholesale brokers, to expensive fully integrated e-commerce and back office solutions targeted at the largest national lenders. There are enough choices within each category to make the critical evaluation and selection processes a real challenge. An independent consultant can provide an unbiased approach to selecting and deploying the right solution.

A good consultant can perform one or all of the following services:

· Provide professional advice on what to do, why do it, and how to get it done right.

· Assist in impartial selection and experienced project planning and preparation.

· Participate as a skilled variable resource in the implementation.

Have you ever considered using the services of a consultant? If the answer is no, is it because of the perceived expense? Have you considered the real expense of failure?

The Analogy

Hiring an independent consultant is kind of like fishing with a professional guide. Even if you are a pretty good fisherman, there is no substitute for experience and knowledge of the local waters and techniques. When planning the fishing trip of a lifetime, consider the investment you are making in valuable vacation time, travel expenses, and equipment. It makes sense to acquire the best professional help to assure a successful trip. Failure is not an option.

When you go to a lake for the first time, how do you know where to fish, or what bait and techniques to use? Well, you can rely on your own past experience with similar conditions, pick a spot on the lake, and try different baits and tactics. Maybe you'll get lucky and catch fish. Maybe you'll spend all day on the water without getting a bite. That's the risk we all take.

Hiring the services of a professional fishing guide will assure the best chance at a successful outing. The guide will tell you in advance how to prepare, the prime time to go, the best locations, and the baits, equipment, and techniques to use. The guide will not only put you on the fish and help you catch them, but will also teach you how to be successful on your own. The next time you go fishing, your probability for success is much higher.

The Facts

Using the services of a professional consultant makes sense for several reasons including impartiality, specialization, and variable costs. When faced with a significant project such as selecting and installing a mortgage loan processing system, each of these factors plays a key role throughout the project life cycle. Impartiality is key during evaluation and selection, specialization is key during implementation, and variable costs are key overall in budgeting the one-time project ramp-up.

First and foremost is the impartiality factor. By definition, an independent consultant is just that, independent from vendors pushing their specific product or service. This unbiased view is a critical advantage and results in effective comparison of alternatives. When comparing mortgage loan processing software for price/performance and proper business fit, software vendors will by nature try to sell their products, even if a competing product is a better choice. An independent consultant can identify all the best alternatives and prepare and facilitate an effective RFP process.

Second, the consultant's specialization and experience provides the knowledge base required to make sound decisions, and plan and execute a successful low-risk implementation. The mortgage client knows his business best, but may not have resources on staff with the skill sets, background and methodologies necessary to identify, evaluate, and implement a new system. An independent consultant provides the necessary skill sets and methodologies required to perform the project management, analysis, installation, and training. The client's resources also benefit from the knowledge transfer experience.

Third, the consultant's variable cost is a significant benefit for strategically staffing a large implementation project. The scope of a system installation project depends on the size and nature of the mortgage business. Small companies with a simple business structure are not likely to have resources available to perform a system installation, and they are not likely to hire permanent staff for a short-term project. Large complex organizations are more likely to have a permanent staff of technology professionals. However, supplementing the permanent staff with project-based resources is typically necessary to avoid impact to ongoing initiatives. Even large organizations are not likely to hire permanent staff to support a one-time event.

The Conclusion

As you embark on that large mortgage lending system project, consider the value of an independent consultant. The best way to start a project is by making sure you have access to impartial information and understand all the alternatives before making a decision. The best way to execute a project is with proper management, planning, sound methodology, talent, and experience. The best way to finish a project is on time and within budget, with minimal impact to ongoing business. Utilizing the services of independent consultants can provide all of this. Do it right. Use the best tools and materials, and hire the best talent you can afford. A successful end result is proof that using professional consultants is indeed a good catch.

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