Case Study: How Web Technology Facilitated Implementation of a Business Plan NAPEO 2004 Presented by: Dan Danzig, VP Marketing SpectrumHR, LLC

9/22/04SpectrumHR, LLC2 Overview of SpectrumHR as of 9/2001  In business since 1999  Limited growth due to limited offering  Commoditized service offering  Minimal human resource based services  No web-based services / tools

9/22/04SpectrumHR, LLC3 The Challenge Strategic Goals  Significantly grow revenue  create improved economies of scale  Increase margins  increase profits by delivering value added services  decrease operating expenses by improving internal efficiencies Tactical Goals  Total revision of product offering  Focus on human resource services, benefit offering, self-service customization/tools  Re-engineer production & delivery of services (payroll, customer service, etc.) ** Technology, including web portals, were viewed as a method of facilitation, not a goal in itself.

9/22/04SpectrumHR, LLC4 Critical Factors in Platform Selection 1.Cost  max. 6 figure investment  minimize total cost of ownership 2.Implementation Time  3 months or less 3.Integration w/ Back End Platform & Providers  Seamless integration & reporting 4.Flexibility  customization  integration w/ external tools 5.The “Sizzle” Factor

9/22/04SpectrumHR, LLC5 Key Client Web Portal Features All features must be convenient, intuitive & fast  Payroll/Timesheet functionality  Automated report updates  Self reporting functionality  Status changes & manager approval process  Benefits open enrollment  Seamless links to providers  Form retrieval  HR tools to complement delivery of services

9/22/04SpectrumHR, LLC6 Implementation Lessons 1.Project planning, functional area participation, executive support 2.Extensive internal marketing & training 3.Multiple client communications via various channels 4.Incremental training & adoption (be realistic) 5.Develop training process based on priorities 6.Be prepared to customize the delivery of training 7.Promote early adopters 8.New Clients  Web is how service is delivered

9/22/04SpectrumHR, LLC7 Web Attributable Results 1.Pay-tech productivity doubled over the initial 12 months 2.Reduced customer service calls by 40% 3.Re-investment in HR staff & service 4. Significant increase in customer satisfaction  Strong correlation based on clients utilization of web tools 5.Attracted more desirable client base  Larger  Less cost sensitive/value driven  Improved risk portfolio

9/22/04SpectrumHR, LLC8 Q & A