Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Growth Strategy February, 2007

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Growth Strategy: Innovate Core Program Training: Defines us against more traditional consultants and builds the self-sustaining value proposition Consulting: Focuses our efforts on the key leverage points of our client’s businesses and respect the bigger picture SSA Value: Results Capability A self-sustaining environment Key Initiatives to Improve SSA Core Value Proposition Add Additional Consulting Skills Associate Director position (in progress) More organized, ongoing training for consulting and execution skills (need to map out key needs, assign an owner) Reflect Value Proposition in Deployment Team Composition Ensure a mix of consulting (at beginning), execution and training resources for each client Align Deployment Management Processes Up-front work to identify the big opportunities/issues (briefing) and align with client – an Assessment product (let’s discuss) Ongoing review of progress in meeting big goals (using Shared Value template), monthly reporting back to client Execution: To initiate quick wins and support throughout the engagement

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Price/Utilization Worksheet Developed: to help during proposal & negotiations, to understand Margin drivers, to help you configure a high-utilization deployment and to provide you information to have an informed discussion with clients – and prospective clients - about prices & discounts.

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license Deployment Examples

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Some Examples Of 2006 Accounts Thomson (71%/$3,114) Thyssen (78%/$2,685) Woodbridge (78%/$2,166) Heinz (53%/$3,857) FNM (78%/$2,911) O-I (52%/$4,318) AM. Hlth. (55%/$4,065) MRK (92%/$2,572) 2006 (representative) Deployment Examples

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Consulting Firms Margins Gross MarginRevenue Accenture27%$18B AnswerThink39%$49M Navigant38%$171M BearingPoint (6/30/05)19%$895M SSA (Min - Target)60% - 70%

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Cost Structure Charged to P&Ls Not previously charged to P&Ls – added to cost rates in 2007

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Levers To Improve Growth -Distribute fixed O/H cost over larger base -Must increase business & match with resources Client/business mix -Full-time teams (MHP/FNM) and ‘Consulting-style’ billing (MRK/FNM) help with Utilization -Choosing the right clients & structure the engagement … -Right mix of training Utilization -Higher utilization = higher profit Effective Daily Rate (EDR) -Maintain or grow -Mix of Training/Support – careful with Digital training -Linked with Utilization to drive profit -What price will market bear? Maintain/reduce Overhead Cost

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Growth Scenarios

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Utilization Scenarios

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. EDR Scenarios

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Net Margin Levers We are between here (2006) Assumes Current Cost Structure … and here

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Reference Slides

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. 27% GP

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Utilization Definition: ( Billable Days in period/Potential Billable Days in Period) Complicating Factors: Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.) Denominator can not exceed 5 days/week. Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8 hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week. BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you work 4 10 hour days and fly home the 5 th day, that is (4/5) 80% utilized. Definition: ( Billable Days in period/Potential Billable Days in Period) Complicating Factors: Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.) Denominator can not exceed 5 days/week. Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8 hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week. BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you work 4 10 hour days and fly home the 5 th day, that is (4/5) 80% utilized. Example 1: Jim flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday (billable). Jim’s utilization for that week is (4/5) = 80% Example 2: Mary provides billable support/mentoring to client Black Belts Monday through and including Saturday. Mary’s utilization for that week is (6/5) = 120% Example 3: Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and works on an internal SSA project to update training material on Friday & Saturday. Pete’s utilization for that week is (2/3) = 66% Note the two sick workdays are removed form the denominator. Example 3: Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and works on an internal SSA project to update training material on Friday & Saturday. Pete’s utilization for that week is (2/3) = 66% Note the two sick workdays are removed form the denominator.

Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Effective Daily Rate Definition: ( Amount Billed/Number of Billable Days) Complicating Factors: Does not apply to Shared Value accounts Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day. Definition: ( Amount Billed/Number of Billable Days) Complicating Factors: Does not apply to Shared Value accounts Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day. Example 1: Agnes flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday $3,500/day. Total amount billed = $14,000 The Effective Daily Rate is ($14,000/4) = $3,500 Example 2: Vlad provides billable support/mentoring to client Black Belts $2,000, GB training $4,000 and flys home -non-billable) Friday Total amount billed = $14,000 The Effective Daily Rate is ($14,000/4) = $3,500 Example 3: Paulina works 12 hours M-T on the FannieMae $2,750/day and Friday delivers an executive summit for another $6,000/day Total amount billed = $17,000 The Effective Daily Rate is ($17,000/5) = $3,400

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