1. Reflex Lighting Solutions Presentation of Recommendations November 30, 2009

2. - 2 - Agenda x

3. - 3 - Introduction and Statement of Purpose Leadership team find themselves in a strategic “crossroad”, considering a change initiative to focus on a specific market or keep servicing all these different clients  In Management’s view, the shifting market dynamics has impacted Reflex Light’s profitability Reflex Architect / Designer End User (MA State Police) Cooper ~80 Lighting Manufacturers

4. - 4 - Recommendation To position for growth, Reflex needs to optimize its use of resources and improve upon communication within the company  Stay in both markets and harmonize people and processes around competing in both  Doing so will  Make Org focus more clear (key rec by lens w/ graphic?)

5. - 5 - Our Approach  Who we interviewed  Sales (9)  Support (6)  Management (4)

6. - 6 - What Reflex is Doing Well  Recent move – improved morale and working conditions  Leadership competence – 3 partners are strong in sales areas  Employee Dedication – coworkers respect each other’s work and dedication  Emphasis on Relationships – “It’s all about the relationship”

7. - 7 - x xx

8. - 8 - Key Finding: Communication Breakdown in the Spec Sales Process  Spec Support  Lack of clarity around accountability, responsibilities leads to quality issues  Quotation Redundancies (need for CRM)  Margin Erosion (price bidding wars) Make contact with architect Include in Blueprint Choose Contractor Provide to designer / architect Provide Quotes (Price Adjust) Develop Quote for Show Issue RFP to contractors Negotiate Price with Reflex (quotes) Contractors Designers / Architects Spec Ext Sales Spec Support Quote Team Non-Spec Ext Sales Proj Mgrs Hand off project to PMs Coordinate w/ Mfr and Site (Mat’l Purch & Deliv) Spec Sales JourneyInside Sales Journey Label with stakeholders (PM)

9. - 9 - Summary of Findings (These need to be fixed and updated with supporting interview data. When completed, of course, they should align with recommendations on next slide.) Communication Breakdown in the Spec Sales Process  See process flow diagram The Need for a Defined Business Strategy  Business strategy not well defined – contention among 3 partners creates confusion throughout company  Focus on sales & price cutting vs. specialization and expertise  Relatively little attention is paid to pursuing perfection with the organizational processes required to support those sales The Need for Employee Alignment / Organizational Structure  Unclear chain of command (“who is my boss?” “ where do I go with questions?”)  Insufficient Training (1 day, trial by fire)  Unclear rewards (“where does my salary / commission come from?”)

10. - 10 - Summary of Key Recommendations  Create Alignment  Articulate the strategy: Reduce operating expense on low volume sales to drive profitability in market for new technologies, increase high volume work to leverage efficient processes for profitability and diversification  Publish and review metrics that align with the strategy: Revenues vs. operating expense on low and high volume business, “first pass yield” and rework on quotes…  Foster Communication  Create integrated project teams that stay with the sale from beginning to end. Clarify each team member’s role and responsibility with respect to the project execution and outcome. Use collaboration to help develop and train employees. Track and reward team performance.  Establish periodic lessons-learned reviews to uncover breakdowns in processes and develop solutions. Capture outcomes and track participation.  Implement performance reviews and develop clear compensation policy tied to impact on strategy metrics and participation in lessons learned reviews.  Standardize Operations  Document the sales process in detail including all information flows, hand-offs and procedures.  Define the future state: establish standard processes to eliminate redundancy and templates to reduce dropped information.  Appoint a champion of process improvement to drive these activities, educate employees and maintain momentum. Link performance to rework targets. Potential for follow-on support from LGO tiger teams

11. - 11 - Conclusions and Wrap up  Summary of Recommendations and Lenses Strategic PoliticalCultural

12. - 12 - Appendix – Key Interview Findings List of who we interviewed and key quotes we heard

13. - 13 - Appendix – Bottom Line Growth Drivers Bottom Line Growth Internal Engagement Sales Focus Internal support – sense of team Opportunity for growth or advancement Training procedures Communication channels Performance Feedback Problem resolution and improvement implementation Commitment Social cohesiveness Organizational Structure Competitive environment

14. - 14 - Appendix – Spec Sales Process Make contact with architect Include in Blueprint Choose Contractor Provide to designer / architect Provide Quotes (Price Cuts) Develop (Inflated) Quote for Show Issue RFP to contractors Negotiate Price with Reflex (quotes) Contractors Designers / Architects Spec Ext Sales (BG) Spec Support Quote Team Ext Sales (JG) Proj Mgrs Hand off project to PMs Coordinate w/ Mfr and Site (Mat’l Purch & Deliv) Lack of Communication between Spec and Quotes o Leaves money on the table o Frustrates spec sales rep (upsets vision) Matrix organization? o Functional groups crossed with customers (would need to train everyone first) Communication: Should be on Neil’s team? Quote Quality o Lack of Training o Lack of Incentive (performance metrics) o Lack of commitment (turnaround time) o Lack of time & task management (post it?) o No clear work allocation (favoritism of certain quote people) Redirect negotiation process through a PM? o PM has better view of origin of sale (spec vs. not)