1. Consultant Society: Business Case and Research SLT Presentation - March 25, 2003

2. Rainmaker sub-team §Kevin Mahler §Dave Mitchell §Susan Renda §Corinne Smereka §Jon Steffey

3. MICA - The Opportunity §SAE has 4,000 - 7,000 members and circulation recipients in consultant-related positions §SAE’s overall membership base and corporate associations are very attractive to consultants §SAE discontinued its print Consultant Directory, and thus has no formal mechanism for connecting consultants with companies who need them.

4. MICA - The Solution §Create a new society to provide members with a professional affiliation, networking benefits and to facilitate the connection between industry consultants and corporations… The Mobility Industry Consultant’s Association

5. Why a separate, affiliated association? §Provide a specialized professional membership §Provide a new, clearer value statement to current non-SAE members §Make a clearer distinction from SAE, to counter claims that new benefits should be included in SAE membership §Use affiliated status to draw on SAE’s brand strengths §No existing society meets these needs

6. Building a business case §One-on-one consultant interviews l Found preliminary indications of interest, honed value possibilities §Consultant Survey l 1800 consultants in SAE’s database, with email addresses l Divided into 4 groups, to test various price points l 293 respondents (16% response rate)

7. Overall Interest in MICA concept 65% of respondents indicated at least preliminary interest.

8. Join rates at different dues levels Much less price sensitivity from $150 & $250 than higher

9. Four Dues packages: Dues: $150 Initiation Fee: $100 Preferred Membership: $200 Dues: $250 Initiation Fee: $150 Preferred Membership: $400 Dues: $300 Initiation Fee: $200 Preferred Membership: $600 Dues: $350 Initiation Fee: $250 Preferred Membership: $800 1)2) 3)4)

10. Package Acceptance Rates

11. Revenues Scenarios: (assume similar acceptance rates for a market of 4000) *Membership levels assume lower of acceptance rates between relevant Dues & Initiation Fee responses.

12. Interest in proposed benefits Directory, job listing & matching and best practice surveys are tops. Professional Development, Web services & magazine have some interest

13. Benefits interest for most likely members: Similar patterns, tend to regard everything as more important

14. Interest in corporate membership §41% belong to organizations with more than one consultant §35% of those believed their organizations might be interested in a corporate membership

15. Response to MICA name/tagline §43% indicated a positive response §11% indicated a negative response §58% Full-time / 42% Part-time §26% consulting 1-4 years, 28% 2-5 years, 46% for more than 10 years Consulting Status

16. Consulting Field §Engineering Management30% §Engineering Design46% §Engineering Manufacturing22% §Information Technologies14% §Human Resources 5% §Marketing14% §Accounting 0% §Other54% (more than one could be chosen for each respondent)

17. Other Memberships §77% of respondents are SAE members §64% of those expressed a positive interest in MICA (vs. 65% overall) §25% of respondents are members of other consulting-related societies §84% of those expressed a positive interest in MICA

18. Conclusions §The MICA concept is viable and potentially profitable for SAE §Primary member-only value propositions include: l Online consultant directory l Consulting opportunity listings l Best practices surveys and reports §Secondary possibilities: l Web and email services, journal/magazine, business services discounts, presentations to SAE members

19. Estimated Revenue Structure

20. Current Plan §Create a team to write and implement a complete business plan §Rhonda Buzard* §Kevin Mahler §Dave Mitchell §Susan Renda §Corinne Smereka §Jon Steffey §Becky Wiley* * These potential team members have not yet been approached about potential involvement