Using Franchise Inventory Tracking System (FITS) Better Pipeline Management & Development Forecasting

Why Pipeline Management Is Important Number of Projects: Each BMU has between 10 and 300 live development projects –As the number of projects increases, the complexity of managing and communicating becomes greater –There is a fall-out rate of terminated or delayed projects Project Length: Can be from several months to several years Communication: Multiple stakeholders need to plan related activities which depend on the development project plan and progress Accurate Forecasting: Efficient resource and cost management –Senior management needs consistent, reliable information about project progress and pipeline status to validate and forecast growth plans and development team resourcing

Milestones and Pipelines Are the Solution Project Management Techniques: Help plan and manage the complexities of development projects Milestones: Key stepping stones that are tracked through a project’s life (i.e “permit received and construction commenced”), marking the beginning or end of the key stages in a project’s life –Planning, tracking and communicating milestones is the best way to encourage effective project management –When multiple projects are viewed using the same milestones, an entire “pipeline” of projects can be assessed for strength, risk, forecasting, etc.

How Do We Track Milestones/Pipeline? Milestone tracking or pipeline management only represent a small subset of true project management techniques FITS is not a project management tool to be used to manage detailed activities -- it is a summary- level tracking tool which is aimed to help you forecast better and keep your projects on track FITS can help us make better forecasts in the future by facilitating a historical analysis of milestone duration, fall-out rates, resourcing, etc.

How Do We Track Milestones/Pipeline? Collecting information and tracking against planned milestones –Using a simple checklist, a spreadsheet, Project Management software, or an automated program like FITS (YRI’s Franchise Inventory Tracking System) –Planned and Forecast Dates are given for each milestone, as milestones are achieved, Actual Dates are entered –Planned, forecast and actual dates are used to track the progress of a particular project –Milestone completion dates can be used to indicate the current status of a project

How Does FITS Help With Pipeline Management? Tracks multiple projects Tracks executive milestones for each development project, including New restaurants, Relocations, Remodels, Conversions and Closures Stores key data about each development project Communicates current project and pipeline status through on-line views and printed reports Enables team collaboration through access for multiple users across YRI functions and BMU’s, including Dallas RSC

How Does FITS Help With Pipeline Management? Relies on web-based technology, allowing access to users through their PC and any telephone line Organizes and stores project- level documentation such as CAD drawings, CAPEX approval documents, etc. Organizes and stores project photo galleries Milestone tracking set up to work for both equity and franchise needs

How Does FITS Help With Pipeline Management? Standardized terminology and centralized data allows for cross- market learning and analysis Templates can be created by each user to speed project set-up Information viewed on-line or printed using formulated reports Reporting available to communicate project details, pipeline snapshots, and historical analyses on an individual or aggregate project level Downloading capabilities built in for more dynamic analysis or reporting using Excel

How Does FITS Help With Pipeline Management? Regularly scheduled reports can be sent to user’s inbox Role-based security allows differentiated levels of access to data Certified franchisees will have access over the internet Will be tied in with key performance measures (hit rate, break-even, etc.), capital planning, and financial reporting systems FITS can be used alongside more sophisticated project management tools which are likely to be used to manage the construction phase. Currently estimating ability to download data to Microsoft Project

Let’s Look at FITS Entering the system and loading the data is as easy as loading a web site Users may use the system on-line or off-line Each user has access to a pre-defined subset of the worldwide data available. REM’s, AM’s, and DM’s will manage the data for their own projects Users may enter the FITS application or go directly to the reporting section, which avoids having to wait while system data is loaded There is a useful “Release Notes” section which gives updates on recent upgrades to the system

How Should We Leverage FITS? FITS should be used as often as there are changes to projects You are responsible for your projects -- keep them up-to- date in the system Use the reports to communicate your progress with supervisors and other functions Keep the “Current Milestone” note up-to-date for each project. This is the note that appears in any report and the key views Use FITS as the platform for team meetings, so that you can review projects with the others on your team Use FITS to study and learn from your past experience to shorten cycle time and improve forecasting capability

Tiffany Murray in Dallas is the YRI FITS administrator. Forward any questions to her Remember, users have different levels of access to FITS data. Most development team members and other YRI users have access to their BMU data only. Franchisees have access only to their project information, and summary-level reports FITS is your tool -- your ideas for improvements, better reports, etc. will be used for future improvements. Forward all suggestions to Tiffany Murray. How Should We Leverage FITS?