1. Utilization Definition: ( Billable Days in period/Potential Billable Days in Period) Complicating Factors: Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.) Denominator can not exceed 5 days/week. Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8 hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week. BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you work 4 10 hour days and fly home the 5 th day, that is (4/5) 80% utilized. Definition: ( Billable Days in period/Potential Billable Days in Period) Complicating Factors: Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.) Denominator can not exceed 5 days/week. Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8 hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week. BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you work 4 10 hour days and fly home the 5 th day, that is (4/5) 80% utilized. Example 1: Jim flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday (billable). Jim’s utilization for that week is (4/5) = 80% Example 2: Mary provides billable support/mentoring to client Black Belts Monday through and including Saturday. Mary’s utilization for that week is (6/5) = 120% Example 3: Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and works on an internal SSA project to update training material on Friday & Saturday. Pete’s utilization for that week is (2/3) = 66% Note the two sick workdays are removed form the denominator. Example 3: Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and works on an internal SSA project to update training material on Friday & Saturday. Pete’s utilization for that week is (2/3) = 66% Note the two sick workdays are removed form the denominator.

2. Effective Daily Rate Definition: ( Amount Billed/Number of Billable Days) Complicating Factors: Does not apply to Shared Value accounts Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day. Definition: ( Amount Billed/Number of Billable Days) Complicating Factors: Does not apply to Shared Value accounts Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day. Example 1: Agnes flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday (billable) @ $3,500/day. Total amount billed = $14,000 The Effective Daily Rate is ($14,000/4) = $3,500 Example 2: Vlad provides billable support/mentoring to client Black Belts Monday @ $2,000, GB training Tues-Thurs @ $4,000 and flys home -non-billable) Friday Total amount billed = $14,000 The Effective Daily Rate is ($14,000/4) = $3,500 Example 3: Paulina works 12 hours M-T on the FannieMae account @ $2,750/day and Friday delivers an executive summit for another client @ $6,000/day Total amount billed = $17,000 The Effective Daily Rate is ($17,000/5) = $3,400