Introduction to The Diel Group

Copyright © 2009 by The Diel Group, Inc.

Introduction to The Diel GroupMarch 2009

Real World Management Consult ing

Prepared for:

• Background: The Diel Group– Our Business Model– Our Offerings– Our Expertise

• Selected Biographies

• Next Steps

Agenda

Background: The Diel Group

Members of our core team work with you to define and complete the engagementOur core team is made up of highly-experienced industry and consulting veterans We fill a role similar to that of an independent film producer – to qualify and define the opportunity, assemble a team with the particular skills required, and oversee deliveryThe Diel Group maintains a broad network of resources from which to build our teams and provides the methodologies and tools required for the projectLike independent film producers, we believe that this model better enables us to cost effectively deliver the high-quality, tailored work demanded by our clients

Once the project is defined, we draw upon our network to form the full project teamPartner/principal-level independent consultants Managers and staff members drawn from your firmA network of smaller professional services firmsTeams and individuals from selected large consulting and professional services firmsFinancial services software development firms with on- and off-shore capabilitiesFinancial and compliance system and service vendorsWhere appropriate, we also will support the recruiting and use of contract staff

The Diel Group remains responsible for the quality and timeliness of the team s work

Our Organization

The Diel Group forms the hub of a network of internal and external resources from which we assemble teams to execute approaches we tailor specifically to meet your needs

Films were mass produced in large film factories and exhibited in studio-owned theater chains… In contrast to the major studios, the independent producers made hand-crafted quality films. Independents understood that masterpieces were best made by individual artists, not studio committees. Without the studio restrictions the independents were free to break new ground with such films as Snow White and the Seven Dwarves, Gone With the Wind, Fantasia, City Light, and Citizen Kane.

From the Hollywood Renegades Archive, www.cobbles.com/simpp_archive

The integrated teams we form are composed of experienced, highly skilled expertsWe forgo the pyramid structure of larger firms to staff projects with industry and consulting veterans who can meaningfully contribute to the project s successYou can avoid the expense, delays and frustrations imposed when your staff has to “educate” the consulting team – on our teams the experts do the workExperience enables our teams to create innovative, forward-looking recommendations tailored to your specific needs and capabilities

Our core team members have extensive backgrounds in industry and consulting roles We re experienced at implementing projects in real-world corporate settings; we won t propose solutions that can t be approved or implementedOur teams quickly establish credibility and team with your staff and clientsDeliverables are structured to add value, not to fit the limited skills of junior staffWe recognize and plan for the organizational steps required to advance a project

Our multidisciplinary teams leverage strategic, technical and operational expertiseBecause the tough problems span functional boundaries, our teams include the cross-functional expertise needed to integrate strategic, technical and business recommendations – we re not constrained by our firm s internal organizational considerationsAs projects move through conceptual, design, planning and implementation phases, the same team has the skills required to continue delivering value

By controlling overhead, we are able to deliver exceptional value

Our Value Proposition

Our structure recalls an earlier paradigm: professional services firms with capabilities and business models more closely aligned with their clients needs and interests

We draw upon our extensive project experience to create a customized approach for each project, one that is tailored to meet your specific objectives and constraints

In creating a tailored approach, our leads leverage their real-world experience in creating and executing complex workplans for a wide variety of engagement topics and structuresThe selection of resources from internal and external sources to form the project team is done in consultation with you, not presented as a fait accompliBefore the kickoff, we work with you to create and syndicate the structured workplan that will be used to define, manage and report on your projectOur project management skills ensure disciplined execution of the project workplan

Our action bias is reflected throughout our project plans, tools and teamsWe work with you to structure deliverables that are useful within your business context – we aren t constrained by pre-defined templates or the need to deliver PowerPoint decks to keep junior staff employedWe take into account the reality of your business setting – including the requirement to gain approvals and budgeting, and your organization s execution capabilitiesOur recommendations are delivered in interactive senior-level working sessionsSenior consultants remain available on an as-needed basis to update recommendations, plans, business models, etc. as you act upon our recommendations

Diel Group engagements are performed by joint DGI / network / client teams By providing a team with seasoned leadership, we provide an effective way to leverage your internal expertise and staff to reduce costs while increasing project impact We have the skills and experience to lead all project phases from initial investigations through post-implementation reviews

Our Approach

Our approach is designed to efficiently move from analysis through planning into implementation of a solution expressly tailored to your needs

Our Service Offerings

We focus on high impact engagements, leveraging our expertise across diverse disciplines to design and execute customized engagement approaches that meet your specific needs

The Diel Group specializes in traditional management consulting engagementsSignificant projects that have the potential for strategic impactSituations where your requirements and challenges are unique, not suited to cookie-cutter project plans or off-the-shelf solutionsProjects that call for participation from, and interaction with, multiple disciplines within your firm; these often include several of the following:– Front-office Executives – Marketing and Sales– Operations – Technology– Legal – Compliance– Risk Management – Transaction Execution

Extended efforts that require significant program management expertise during both planning and execution phases

Illustrative qualifications include:Re-engineering the organization, processes and systems of a securities clearing firmDefinition of the role, organization and processes for a regional CIO of a global bankAnalysis of operational and compliance risks for a large investment firmAssisting in the remediation of compliance issues in response to regulatory dictatesBusiness strategy development, including business case preparation and implementation planning for systems, procedures and organizationStructuring and operating program management offices for multiple complex initiativesSupporting the design and creation of new business units and product offeringsMerger planning and post-merger integration at the business-unit level

Our Expertise

Business StrategyCorporate strategy development and execution

Alliance planning and developmentBusiness unit strategic planning

Electronic commerce strategyElectronic markets

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Op

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IT architectureROI improvementOrganizational designTechnology alignmentProcess improvementSystems selectionTechnology riske-Procurement

Cost reductionProcess reengineering

Performance improvementOrganizational Advisory

Operational riskCompliance

STP

Channels strategyCompetitive analysis

New product developmentMarket entry and extension

Customer relationship management

Product and Market Strategy

Each of our core team members has significant hands-on experience working in multiple financial industry segments, dealing with diverse topics, and using varied toolsets

Risk managementCompliance management

Program managementChange management

Merger integrationCommunications

E-Discovery

Our consultants have worked with many of the leading firms in financial services, and the professional services firms that support them, both as consultants and as employees…

Our Real World Experience

Selected Biographies

Ronald Diel, President

Summary of experience:• Mr. Diel, the founder and President of the Diel Group, has extensive experience in compliance, business strategy, financial systems,

operations and organizational management in the banking, securities, asset management, and investment banking industries. He has been responsible for developing and implementing compliance, organizational, technology and business strategies and policies at major financial firms based on his line, consulting and legal experience.

Selected project / engagement experience:• Structured and initiated a firm-wide review of operational risks and processes for a large privately-held asset management firm. Designed

procedures, tools and project plans, and led the analysis of the trading floor and account maintenance department; advising an internal team that will complete the analysis and procedural redesign of the entire firm.

• Led a team of over fifty consultants in the analysis and remediation of more than 12,000 customer files to achieve AML compliance at the private bank subsidiary of a major global bank, thereby meeting a FRB deadline imposed by a Memorandum of Understanding.

• Directed an engagement to assist a money-center bank in realigning a large team of bank-supervised temporaries, streamlining procedures, and reviewing the technology platforms being used to meet a FRB-mandated deadline for remediation of KYCs at their private banking unit.

• Oversaw the capture, analysis and redesign of new client KYC processes for the corporate banking division of a money-center bank to expedite the account opening process and reduce demands on front-office staff while achieving increased compliance levels.

• Assisted a client in reviewing and preparing over 10,000 KYC files for scanning into an on-line database.

• Responsible for identifying and developing a high-profile Software Asset Management service offering that is being marketed to leading enterprises in financial services, pharmacology, health care, communications, government and other sectors. Oversaw the definition of the service, development of a go-to-market strategy and materials, and the creation of our delivery capability.

• Oversaw the development of detailed operational, technology and policy recommendations to strengthen the compliance posture of a leading mutual fund and investment management firm. Reviewed current practices in light of recent changes in the structure and business activities of the firm, applicable regulatory requirements, and current examiner practices to identify and prioritize gaps, developed actionable recommendations and led a firm-wide prioritization process.

• Performed AML compliance reviews for delivery to the regulatory authorities overseeing the high-volume transaction processing banks affiliated with a leading financial services company.

• Oversaw the development of an enterprise AML surveillance architecture and implementation methodology for a major consulting firm; secured vendor alliances and developed marketing strategies and materials.

• Directed engagements to redesign and implement recommendations for AML organizations, procedures, training and technology at multiple financial services firms, including both KYC and surveillance functions.

• Led an engagement to review remediated KYC files and recommend changes in the client s review and remediation checklists and processes.

• Assisted a leading prime broker in revising their KYC risk rating policies, procedures and requirements for selected classes of high-risk clients.

• In conjunction with legal, compliance and operations staff, assisted in the formulation of policies, procedures and control activities for a new hedge fund being created by one of the leading global investment banks.

Selected project / engagement experience (continued):• Led an effort that defined the roles, responsibilities and operating procedures for the Americas Regional CIO of a global bank, including

regulatory, risk and operations oversight functions. Based on these definitions developed the organizational structure, job definitions and management agenda for the group along with regional KPIs and management reports.

• Directed the analysis, redesign and planning stages of a total transformation of a securities processing firm including the analysis and redesign of operations, technology, and staffing; effectively built the client team required to implement the redesigned environment.

• Senior team member in the development of a technology strategy and systems architecture for a major investment banking firm; responsible for detailed technical and strategic reviews of all significant technology projects in preparation for their presentation to the firm s executive committee.

• Development of a multi-channel deployment strategy to enable a large mutual funds firm to exploit a state-of-the-art investment analysis tool as a means for increasing assets under management; included preparing specific recommendations for the operational, marketing and financial changes required to implement the strategy.

• Selection of a technology platform for delivery of advisory services to affluent clients of a major mutual funds complex, including documentation of the business unit strategy, development of operations improvement plans and an economic analyses in support of the selection process.

• For a major investment management firm oversaw the design and outsourced development of an asset allocation product based on the Black-Litterman Model to be provided to high net worth clients through third-party banks; oversaw the rearchitecting of the quantitative investment model used in managing money for their institutional clients and mutual funds.

• Organizational transformation of the procurement function for a bulge bracket securities firm, including the redesign of their global organization and procedures to significantly increase effectiveness and to expedite deployment of an e-procurement infrastructure.

• Operationalizing an international electronic payments startup, including the development of organization structures, business procedures, technical infrastructure and relationships with key vendors and customers.

• Responsible for the overall technology environment of the asset management division of a bulge bracket securities firm, including the trading floor, portfolio and fund accounting, analytics and market data, compliance, marketing and telecommunications.

• Managed the design and implementation of multiple investment analysis systems including portfolio allocation and balancing, asset securitization models, and multi-factor equities models.

• Led requirements analysis and design of regulatory reporting and compliance monitoring systems and procedures at major investment management and securities firms.

• Managed the SEC-directed compliance review of the investment management group at a major investment banking firm as well as other internally-sponsored compliance reviews of financial firms.

• Responsible for infrastructure components (including market data, floor support, database administration and systems administration) for the rollout of distributed trading systems to over five hundred equity and derivatives traders at the largest broker/dealer in New York. Oversaw market data vendor analysis and relationships.

• Created and operated the program office for the development of a state of the art treasury workstation to be deployed to major corporate clients and financial institutions by a leading global bank.

Ronald Diel, President (continued)

Selected project / engagement experience (continued):• Formulation of business unit and alliance strategies to enable a global bank to expand U.S. check processing and related cash

management services from a regional to a national basis, and program management of full implementation of the resulting plans.

• Senior manager in the team responsible for planning, overseeing and executing the expedited movement of more than fifty traders and their associated systems and feeds onto an existing trading floor in connection with the consolidation of trading floors following the acquisition of a foreign investment banking firm by a bulge bracket firm.

• Advised a global bank in the creation and operation of a program management office to oversee the technical, operational and governance changes required to comply with the Interagency White Paper issued by the Federal Reserve, the SEC and the OCC. Oversaw collection of regulatory, compliance and internal control requirements for the program.

• Directed the development, implementation and support of a thorough project process program adopted for all technology areas at a major securities firm, including the formation and operation of an internal project management / process consulting group.

• Researched regulatory issues, drafted required applications and coordinated the filing of documentation used to obtain regulatory approval for the acquisition of a large regional bank by a major North American Bank.

• Year 2000 program management initiatives at a leading European bank and a major U.S. insurance company, including the analysis and prioritization of their Y2K project portfolios; subsequently advised on implementation of structured project management processes for a major unit for one client, and the design of the global year-end transition management program / network for the other.

• Performed due diligence reviews of technology, staffing, and operations at several financial service vendors for potential acquirers.

• Managed the design, implementation, and support of PC-based and distributed portfolio accounting systems.

• Directed the design, development, and initial deployment in Russia of an ATM/POS network based on stored-value smart cards.

Prior work experience:• Previously, Mr. Diel was the Managing Director responsible for leading the Global Compliance practice within BearingPoint s Finance, Risk

and Compliance Group. Prior to joining BearingPoint, he was a vice president in A.T. Kearney s Financial Institutions Group, where he led the firm's North American securities practice and was a founding member of their e-FIG group. Previously, he was a vice president in the Technology Strategy and Equity Trading Systems Groups at Merrill Lynch. He was also the Chief Technology Officer as a vice president at Goldman Sachs Asset Management. Mr. Diel also practiced banking and securities law as an associate at Sullivan & Cromwell.

Education:• Mr. Diel received a B.S. in Mathematics from the University of Wisconsin. He earned his MBA at the University of Colorado and was

awarded his J.D. from the University of Wisconsin.

Ronald Diel, President (continued)

Next Steps…

Next Steps

• Discussion

The Diel Group is an innovative management consulting firm focusing on the financial services industry. Our business model is derived from the one used by independent producers in the film industry. Members of our core team act as the producers, working with our clients to identify and qualify appropriate opportunities. As these opportunities develop, we tap into our large network of independent experienced resources to involve project managers (directors), methodologists (writers), and subject matter experts to create a tailored approach (script) that meets your needs. Once the approach is approved, we use our network of resources to identify and secure the experienced team members (the cast) who will be best able to complete your project. Each project team is a hand-picked, one-time group assembled specifically for the project they will be doing.

Since we don t have a dedicated staff of employees, we are under no pressure to try to force fit (miscast) resources onto a project, but are instead free to select the best fit. This enables us to create teams that are highly experienced in the subject matter of the project and the practices in your business area. Because the project staff members, including our producer-leads, do not have the same firm-building responsibilities as senior members of larger firms, they won t disappear once the project has been sold or spend their days on internal conference calls. The Diel Group, through our assigned producer, remains responsible for the quality and timeliness of the team s work, actively working with you to ensure we are meeting your needs. In short, you will have the undivided attention of the full project team.

You will also benefit from our business model which does not incent us to build a project team pyramid with numerous junior resources who conduct inefficient interviews that annoy your team (“what is a preferred stock?”) and create PowerPoint slides because that fits their skill set rather than because the presentations are required.

We find that our model meets the needs of increasingly sophisticated financial service clients who have learned from experience that the success of a project team depends upon the capabilities of the team presented, not on the imprimatur of the firm presenting them.

Additional information about The Diel Group is available upon request, at the address below.

The Diel Group, Inc160 Riverside Blvd, Suite 8S

New York, NY 10069(212) 419-4300

Introduction to The Diel Group

Business

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