1. Contract Termination/ Save the Customer Accountability Black Belt-G.K. McCown Service Division BU – Dallas, TX.

2. 2 Background- Current Process n IKON is not collecting all amounts payable by customers under service and lease contracts in the event of: n Early termination (whether due to customer default or customer convenience) n Automatic renewal. n Lease Expirations n Early termination collection opportunities relate to: n IKON Maintenance Agreements n IKON FM Agreements n IKON BDS/LDS Agreements.

3. 3 Background- Current Process Cont’d n Automatic renewal collection opportunities relate to: n IKON Maintenance Agreements n IKON FM Agreements n IKON BDS/LDS Agreements n IOS Capital lease agreements n This project will focus on improving the accuracy of the 18 month lease end report.

4. 4 Project Definition n Problem Statement: IKON is not successfully "saving", or proactively attempting to save, leasing customer relationships at (1) the time of an early termination request from a customer, or (2) lease expiration. Currently, lease-end relationships are managed at the local marketplace and sales rep level (18 Month Report), if at all. This results in inconsistent and uncoordinated retention practices. This problem is compounded by our high sales rep turnover rates. Our current lease customer "loss" rate (at the time of lease expiration, which excludes early termination requests) in the South Region is estimated at 25% (which percentage may include lease customers which default or declare bankruptcy). This project will focus on improving/establishing standard lease customer retention processes in an effort to reduce "losses."

5. 5 Project Definition Cont’d n Project Definition: To reduce the lease customer "loss" rate from 25% to 20% in the South Region. Six Sigma Project (0307-13-001) to be completed by January 31, 2004. n Project Benefits: Monthly revenues in respect of the lease customer "losses" in the South Region (25%) are estimated at $6,400,000 (25% of a total revenue opportunity of $25.2M). n Financial Benefits: The project presents an incremental revenue opportunity of $1,400,000 assuming a reduction in loss rate from 25% to 20%.

6. 6 Project Definition, Cont’d n Project Metric “Y”: Strategic Goals = Increase in revenue from increased retention of lease customers. n Y 1 = Low lease retention/renewal rate Y 2 = 18 Month Lease expiration report accuracy Y 3 = No clear accountability or policies Y 4 = Oracle DATA Base Needs Validation n Defect Definition: A lease customer loss rate in excess of 15%. Note: We have defined the defect at 15% because it represents, according to feedback from IOS Capital, the targeted loss rate for INA. We targeted a reduction (above) to 20% in order to conservatively assess potential benefit.

7. 7 Project Definition, Cont’d n Leveragability: This project will focus on lease retention/18 Month Lease end Report at (1) the time of an early termination request from a customer, or (2) lease expiration. A similar project may exist with respect to service retention. However, lease retention/renewal improvements may drive service results. After evaluating this project further we determined the need for an amendment approval to scale the focus down to the actual DATA and 18 month report accuracy through Oracle and OSO.

8. 8 Project Team n Champion – Mark Hershey, Jim Morrissey n Financial Analyst – Sharon Hunt n Process Owner – Virginia Cartmell-Martin n Team Members: VP Financial Sales – Virginia Cartmell-Martin (Process Owner) South Region Director of Financial Sales- Jamie Oyler Director of Sales (NCT)- Bobby Wray Financial Sales Specialist (NCT)- Bobby Underwood Financial Sales Specialist (Central)- Krista Centala Sales Support Analyst Manager (Houston)- Charlie Leslie Director of Financial Operations (NCT)- Diane Foote Sales Manager (NCT)- Janice Almeida n Black Belt – G.K. McCown n Master Black Belt – Bob Conrad

9. 9 Financial Opportunity

10. 10 CTS Tree

11. 11 SIPOC

12. 12 DPMO

13. 13 DATA Collection Plan

14. 14 Detailed Process Map

15. 15 Cont’d Detailed Process Map

16. 16 Process Capability

17. 17 Pareto Chart

18. 18 Recommendations n Confirm that Sales is consistently managing the 18 month report. (SMART and RAP Sessions) n Understand issues with 18 Month report: Reportedly, Sales spends 10-15% of their time resolving various issues in OSO. (DATA Flow) n Understand coding that goes into “Lost, “Retained” and “Open”.

19. 19 Next Steps… n Evaluate Lease Retention Best Practices in market Places. (Best and Worst) n Validate opportunity in unmatched report. n Sample more data from OSO, Oracle and IKONIC n Validate Measurement System n Team to Complete C&E Cause/Effect and Matrix n Team to Complete FMEA Chart

20. 20 Project DMAIC Checklist/Status