1 Performance Scorecard Training 8767 E. Via de Ventura Blvd. Scottsdale, AZ Wednesday November 5, October 2008

2 Information (in-fer-mey-shuh), n. : knowledge communicated or received concerning a particular fact or circumstance “Knowledge is power” - Sir Francis Bacon “Knowledge is power” - Sir Francis Bacon “Information is the oxygen of the modern age” - Ronald Reagan “Information is the oxygen of the modern age” - Ronald Reagan Warning: The Performance Scorecard contains a lot of information. But don’t worry…let’s walk through it “Information is a source of learning ” - William Pollard “Information is a source of learning ” - William Pollard “Knowledge is the treasure of a wise man” - William Penn “Knowledge is the treasure of a wise man” - William Penn

3 Principles behind the development of the Mini-Skool Performance Scorecard Information is knowledge. Knowledge is power Create a consistent set of information that can be used across the entire Mini-Skool leadership team Provide Centers with performance information over the last few weeks, months, and years, to make it easy to track progress over time Provide Center Directors with the information on aspects of the business that they are responsible for driving performance Create a tool that will help the Mini-Skool family identify top performers so we can quickly share our best ideas with others Information Responsibility Consistency Improvement Share Ideas

4 Introduction to the Performance Scorecard General Center Information Summary Profit and Loss Information Financial trends over time Operating trends over time  Occupancy  Labor  Enrollment  Food expenses  Janitorial expenses  Discounts Summary of top and bottom performers Financial Report Card Operational Report Card Mini-Skool Family Ranking Report The scorecard has three pages What’s in it

5 Page 1: Financial Report Card Top half: school profile and financial information Bottom half: Financial information trends 1

6 Page 1: Financial Report Card (top half page) 1

7 Basic Center information (location, size, etc.) 1

8 Page 1: Financial Report Card (top half page) Description of center’s action plan (submitted by directors) 1

9 Page 1: Financial Report Card (top half page) Names and tenure of center and regional directors 1

10 Page 1: Financial Report Card (top half page) Key center financials - Revenue - Rent - Salary - Overhead - Contribution 1

11 Financial Report Card (top half page) Comparison of center with top quartile, average, and bottom quartile of all centers 1

12 Financial report card (bottom half page) 1

13 Financial report card (bottom half page) 1 Monthly LTM sales and contribution margin for last 13 months

14 Financial report card (bottom half page) 1 Monthly 100% Earnings and occupancy % for last 13 months

15 Financial report card (bottom half page) 1 Monthly revenue and contribution margin for last 13 months

16 Page 2: Operational Report Card Occupancy Labor Enrollment Food Janitorial Discounts Let’s go through each one 2

17 Operational Report Card – General Layout General layout: Bar = Center data Line = Mini-Skool system average Center’s ranking relative to all 99 schools in the system 2

18 Operational Report Card - Occupancy Weekly occupancy for last 8 weeks 2

19 Operational Report Card – Labor Weekly labor cost as % of sales for last 8 weeks 2

20 Operational Report Card - Enrollment Weekly new enrollments as % of all inquiries over last 10 weeks 2

21 Operational Report Card – Food Month average food expense $ per student 2

22 Operational Report Card - Janitorial Month average janitorial expense $ per square feet 2

23 Operational Report Card - Discounts Discounts given as % of monthly sales Vacation discount Sibling/Family discount Employee discount Total discount (all of above) 2

24 Page 3: Mini-Skool Family Ranking Report 3 Occupancy Enrollment conversion Occupancy Discounts

25 Mini-Skool Family Ranking Report - Occupancy Weekly occupancy (sales as % of 100% Earnings) 3

26 Mini-Skool Family Ranking Report – Enrollment Conversion Weekly new enrollments as % of total inquiries over last 10 weeks Schools with no new enrollments in the week are in separate group from rankings 3

27 Mini-Skool Family Ranking Report – Discounts Total weekly discounts (vacation + family + employee) as % of weekly sales Schools with no discounts awarded in the week are in separate group from rankings 3

28 How will this work? The corporate office will create the scorecards every week automatically out of the Procare system No additional work is required by Centers to create the scorecards  However, please keep ProCare updated and backup DAILY All Mini-Skool leadership will use the Performance Scorecard  Center Directors, Regional Managers, Regional VPs, COO, CEO Center Directors should review their scorecard every week, to understand your Center’s performance over time and identify areas for improvement Regional Managers review all Centers weekly and can use scorecards as basis for discussion during Center calls/visits Corporate leadership will review regional scorecards weekly and review center-level report cards as needed Who creates the scorecards? Who uses the scorecards?

29 Next Steps Please keep your ProCare information updated! Remember, “information is knowledge” – but only when the information is accurate! Update financial and operational information daily as you have always done Make sure the data makes sense internally (eg don’t report two months’ worth of janitorial expenses one month then no expense the next month) The report cards are meant to help centers focus on same set of performance standards Your center’s report card will show your own center’s performance trends and provide a glimpse into how other schools are doing Top 20/Bottom 20 rankings will help all centers share best practices and learnings across the system  Best-performing schools will be asked to share best practices with lower- ranked schools ProCare Report cards as an improvement tool

30 Q&A For questions after this session please contact Brian Wright, COO