© 2005 Carlson Marketing. All rights reserved. March 8 Launch Innovation to Prioritization Process Overview

© 2005 Carlson Marketing. All rights reserved. 2 What is Innovation to Prioritization?  CMW IT is launching a 4-month pilot of the new MWL module to capture innovative ideas  Detroit and Minneapolis IT employees will be the pilot group  New website will allow employees to develop innovative solutions that contribute to the department’s success  Employees will use the website to enter great ideas for improvements and potentially earn Gold Points ®

© 2005 Carlson Marketing. All rights reserved. 3 How Do We Start the Launch?  Framing a specific opportunity is critical to innovation generation  The Opportunity Statement is the foundation of all efforts for the Innovation to Prioritization process  We will have 2 opportunity statements during the pilot  March – April: “How will we grow CMW by Marketing with Technology?  May – June: Cost Savings  For Example: Winnebago Chairman, John Hanson, put out a notice in the company newsletter asking for ideas, however small, on how to reduce weight in Winnebago’s  For Example: Herb Kelleher at Southwest Airlines invited employees to submit ideas that would save $5/day  Results: Within six weeks employees sent $2MM in cost saving ideas

© 2005 Carlson Marketing. All rights reserved. 4 Innovation to Prioritization Process  To Submit an Idea, cross-functional teams working together will provide the most innovative change  A maximum of ten team members brainstorm the idea they want to submit  Teams and Leads have been assigned  When an idea is developed, the team leader submits the idea on the Carlson Rewards Innovation to Prioritization website  1 st Pass: The process for brainstorming and initially submitting the idea is up to 4 hours per participant (Levels 1 & 2)  2 nd Pass: Deep ROI analysis will require up to 20 hours per participant (Level 4)

© 2005 Carlson Marketing. All rights reserved. 5 Innovation to Prioritization Process  Responsibilities of the Team Leader  Arrange the first innovation meeting within 1 week of Launch  Guide roles and responsibilities; facilitator, meeting notes and action items from the meetings, etc.  Receive an innovation training kit to help the team think innovatively for their brainstorm sessions  Keep the process moving to maintain energy and creativity around the opportunity solution emerging in the teams  Managers are instructed to let participating team members make time for this effort  Communicate information about the program to their team  First Team Meeting  Team leaders are given an Innovation Toolkit that includes information and techniques on how to think innovatively and stimulate positive team idea generation  The Toolkit includes mindset activities, brainstorming activities and tools to evaluate your ideas

© 2005 Carlson Marketing. All rights reserved. 6 Innovation to Prioritization Process  Each person on a team that submits an idea is entered into a weekly drawing for a Casual Day!  Teams Secure Sponsor to review idea  Sponsors act as a mentor to the cross-functional team lead; advice and guidance is provided for ideas  Sponsors consist of Managers in the IT Department  Select a sponsor that is either a SME for the team’s idea, or can pave the way for the idea to be implemented  Sponsor and team work together and conduct an initial Idea Analysis to provide high-level ROI  This analysis is part of submitting the idea in the IP website

© 2005 Carlson Marketing. All rights reserved. 7 Innovation to Prioritization Process  When a team submits a new idea, designated sponsors will receive an notifying them that they have an idea to review  In addition sponsors and team members receive automatic s keeping them in the loop on each step of their idea’s movement in the IP process  Sponsor responsibilities  Determine if the idea is ready to advance for committee review  Respond to all new ideas within one week  Become personally involved in the teams’ employees and ideas  Attend team meetings when requested  Create a supportive environment

© 2005 Carlson Marketing. All rights reserved. 8 Innovation to Prioritization Process  Sponsor responsibilities  Look for larger implications of the idea; how does it fit with current company processes, projects, clients?  Champion ideas for the team by communicating up  If an idea will not advance to the next level, still remain positive

© 2005 Carlson Marketing. All rights reserved. 9 Innovation to Prioritization Process  Once the sponsor feels an idea’s business case is built, they advance it to the First Innovation to Prioritization (IP) Committee Review  The Committee meets regularly to vote if the idea can be moved forward or is a “go”, should not be moved forward or is a “no go”, or if they send the idea back for more analysis or “needs more information”  A subset of Scott’s direct reports are members of the IP Committee Review team  Committee Responsibilities  Meet weekly to ensure all ideas receive feedback quickly  Teach how to analyze ideas and justify decisions: send back for more information when needed  Look for larger implications of submitted ideas  Fully understand the criteria for successful ideas that are implemented  Provide enthusiastic support of great ideas

© 2005 Carlson Marketing. All rights reserved. 10 Innovation to Prioritization Process  Ideas will be classified to “The Power of 10”  Teams and sponsors are encouraged to work together with other teams to increase the overall value of each idea, so a “Power of 4” idea is moved to a “Power of 5” idea

© 2005 Carlson Marketing. All rights reserved. 11 Innovation to Prioritization Process  If an idea has been voted “go” by the committee, the idea is advanced on the website  It is now time for the team to conduct a Deep ROI Analysis  Innovation team may pull additional SME’s to develop detailed and appropriate ROI business models  Team must explain how funds will be secured to implement this idea  After the team completes its deep ROI analysis, the sponsor advances the idea to the Final IP Committee Review  The committee meets monthly and schedules 10 minute Innovation team presentations  After the presentations, the committee decides if the idea is ready for implementation, if they need additional information or if it should not be implemented

© 2005 Carlson Marketing. All rights reserved. 12 Innovation to Prioritization Process  Once an idea is approved it is Implemented  An implementation team will be created at this time  Quick wins and implementations will keep the innovative ideas flowing and motivate employees to stay engaged  After the Committee advances the idea to implementation, there will be a Reward Payout for all team members along with a “Congratulations!” message  We are rewarding Gold Points because it will be featured for external marketplace sales efforts  Tax issues are simplified because points currency is applied to all Carlson pay checks quarterly, and Carlson pays all Federal Tax on the awards. If cash is given, the employee needs to pay appropriate taxes

© 2005 Carlson Marketing. All rights reserved. 13 Innovation to Prioritization Process  The final step in the ideation process is to Monitor and Measure the idea  The control and monitor phase is critical to adoption of any new ideas and/or processes  This involves assigning an owner to the new idea, reviewing how it is doing after implementation and tweaking any areas that need attention  In addition, a system for ongoing measurement will be implemented

© 2005 Carlson Marketing. All rights reserved. 14 Ongoing Communications  Launch March 8  Weekly Monday afternoon s letting people know what ideas have been advanced  Also announce the weekly sweepstakes winner of a casual day  Brown bag lunches with select Review Committee members and Scott H. will be scheduled

© 2005 Carlson Marketing. All rights reserved. 15 Innovation to Prioritization Process  Questions?