Deal Approval Process Project # &

2 Project Definition n Problem Statement ( ): We currently do not have a common tool to calculate deal profitability for both IMS and IBS. The organization has not defined a consistent methodology, to populate these tools, that allocates revenue in a multi-element deal and correctly states margins. Expectations for appropriate margins, at various revenue levels, have not been established by corporate. Depending on the deal, there are forms and signatures that must be completed before we can process a deal. In some regions, unnecessary headcount has been added to help monitor and control the above process.

3 Project Definition n Problem Statement ( ): We currently do not have established expectations for appropriate margins at various revenue levels. Depending on the transaction, there are forms and signatures that must be completed before we can process a deal. This approval process delays prevent the Marketplace from providing the customer with a timely decision.

4 Project Definition n Project Definition: Develop a consistent methodology to accurately calculate deal profitability, on the front end, to ensure expected margin levels. Establish appropriate pre-approval levels at the Marketplace and Regional level, eliminating the delay with the funding of the deal and the unnecessary headcount. n Project Benefits: Reduction in headcount of 12 within 4 months.

5 Project Definition n Financial Benefits: n Reduction of 12 people: Twelve month savings of $432,000. n Project Metric “Y”: n Y1 = Timeliness and Efficiency of Deal Approval Process n Y2 = Standardize Process with Appropriate Tools and Metrics n Defect Definition: n Completed Transactions that did not meet the INA Performance Metrics or had excessive process delays. (DETERMINE SPECIFICATIONS ON TIMLINESS) n Leveragability: n Project can be leveraged across each Region within IKON North America.

6 Project Team n Margaret Murnen/Tom Callinan - Project Champion n John King - Financial Analyst n Lance Huwald - Black Belt n Process Owner n Team Members: n IT Support – Jim McQueeny n IOS Capital – Virginia Cartmel-Martin n Legal – Mark Hershey n Current Process Review – Jen Peterson (National Accounts) n Current Process Review – Karin Noon – (Regional DFO – Houston) n Current Process Review – Greg Olsen (DFO - Atlanta) n Dan Douglas - Master Black Belt

7 Accountability Matrix

8 Critical To Tree

9 Detailed Process Map

10 Detailed Process Map (Cont.)

11 SIPOC

12 Financial Impact

13 Measurement System for “Y” n Objective: Establish appropriate Pre-approval levels at the Marketplace and Regional Level, eliminating the delay in the customer decision process and the deal funding process. n Measurement System: Develop a tracking system for Deal Approval Time. An operational definition must be developed to determine when it starts to when it ends. There is no current tracking systems to determine turn-around times. n Initial Capability: There is no Current Tracking System so once one is developed the initial capability will be determined.

14 Measurement System n Definition of Measurement System: Collection of Continuous Data reflecting the time to approval. n Final Capability: Once the Tracking System is implemented, the before data and after data will be analyzed to determine the improvement.

15 DMAIC Checklist

16 Questions?