1. P&L Reporting

2. P&L Reporting Format

3. P&L Policy Decisions & Definitions
Labor Charges:
Labor costs will be charged to each deployment P&L based on actual time as reported through Wind2.
Hours will not be smoothed
The following rates will be applied:
Back-Office Charges:
Effective January 1, 2004 “Back Office” charges will be based on actual time as reported by staff.
Prior to 1/1/04 we will apply 15% of total labor costs to P&Ls as back-office charges
Reporting:
Project P&L reports will be produced once each month using a standard SSA P&L format (see attached).
NOTE: P&L reports can not be produced until all time reporting is complete. It is the EC’s responsibility to ensure time reporting is completed on a timely basis. This includes Subcontract personnel.
Sales, General & Administrative expense allocation:
SG&A costs are applied to projects based on a percentage allocation.
The Controller will review SG&A percentage (burden rate) annually. If appropriate the SG&A rate will be modified. This review will typically occur in January each year, exceptions will apply based on circumstances.
A deployment will use the SG&A rate in effect at the time the deployment is initiated (contract signed). The SG&A rate will remain constant for the duration of the deployment.
The SG&A Rate is determined based on all labor categories (Employees, Subcontractors, etc.) When applied to the P&L, SG&A is applied against all labor categories (Employees, Subcontractors, etc.).
Financial reports are sensitive proprietary material and should be treated accordingly. Distribution should be no go beyond the EC & DM and never to someone who is not an SSA employee.
Category
Hourly Rate
Finance 90
Executive Consultant
130
Deployment Manager
Sr. Staff
155
Master Consultant 85
Subcontractor
220
Back Office 35

4. Automate (via Wind2) 2Q, Rollout to Other Deployments Post-Automation
P&L Roll-Out
Initial Design Meeting (1/6/04)
Develop report format, extract initial data (1/7 – 1/31)
Review with ECs (January)
Review with Leadership Team (2/11)
Finalize process, format, data (2/12)
First reports (Tyco, IKON, WEC) (2/18)
Review P&Ls with ECs using January actuals (2/20)
Automate (via Wind2) 2Q, Rollout to Other Deployments Post-Automation

5. Deployment Review Conference Calls

6. Westinghouse – Breakthrough Value: Management Review 2/2/04
Engagement Terms
Engagement Team
Engagement Start Date
September 2003
Engagement End Date
April 2005
Engagement Duration (Mos.)
18 / 24
Month of Engagement/%
6 / 33%
Start-Up Fee
$300K
BVS % 6%
Mos. Of Benefits Measurement 24
Payment Cap
N/A
Position
Current
Needs
Executive Consultant
John Krupar
Deployment Manager
Paul Sandell
Finance
Katha Raulston
MCs
Karen Riding
Ha Dao
Ray Hemmele
Tjerk Dijkstra
2 – GB
Lean
Jim Walker
1 Lean Expert
Material Calendar
Event
Date
Material Needed
Submitted For Review
Material Returned
CFL Wave 1 – Week 5
2/15/04
2/2/04
1/15/04
2/3/04
CFL Wave 3 - Fastart
2/18/04
1/31/04
CFL Wave 2 – Wk 2
2/17/04
N/A
MBB Training
2/19/04
2/5/04
Not Yet

7. Westinghouse – Breakthrough Value: Management Review 2/2/04
Deployment Performance
Metric
Budgeted
(To Date)
Completed
Currently
In Process
Forecasted
(Remainder of
Engagement)
# BB Projects Completed 4 1 75
900
Avg. BB Proj. Cycle Time (Mos.)
6/4 7
Avg. BB Proj. ($K Annualized)
250
1200
390
# BBs Completed Training
# BBs Certified
Certification Requirements:
# BBs / Projects Washed-Out
2 / 4
Talking Points:
Events Since Last Review:
Steering Committee Meeting
Functional Champion Training
Upcoming Events:
BB Wave 2
Requiring Attention:
Change in Client Leadership
Sale of Business Unit
Resource Needs
Material preparation
Worthy of Note:
Customer Satisfaction
Black Belt Performance
BB Performance

8. Financials Current Month P&L Year-To-Date (YTD) P&L
Program-To-Date (PTD) P&L

9. Deployment Review Conference Calls – Rollout Plan
Design content & logistics of process
Review with ECs
Review with Leadership Group
Refine as needed (by 2/15)
Distribute to ECs & DMs to begin data collection (by 2/18)
Coordinate with Mary & train as necessary (by 2/20)
Schedule first review (by 2/18)
First review – after P&Ls ready (March 18th)
Each month:
Finance group Update P&Ls
ECs/DMs complete Deployment Review report, to Mary 3 days before meeting
Mary accumulates & distributes 2 days before meeting
EC leads discussion

10. Finance Group – 2004 Priorities

11. 2004 Priorities: Complete BVS Model, Optimize For Margin
Finance Group 2004 Plan
Completing BVS Model
Optimizing
Complete BVS Model:
Develop & field-test BVS processes at IKON
First closed projects
P&L Reporting
Monthly Deployment Reviews
Viability of S/T Projects (Alpharma)
BVS Repeatability:
Translate to WEC
First WEC Invoice
First Check (IKON)
Close balance of IKON Wave 1 Projects
BVS Optimization:
Collect performance data ($ & time to close)
Revise deployment performance expectations
Analyze & advise ECs on deployment optimization
Establish “Ops. Reviews”
Contract Modifications:
IKON – Extend to accommodate deployment pace
WEC – Potential extension
Drive SSA margin improvement form BVS deployments, little impact on 2004
1Q04 2Q04 3Q04 4Q04
2004 Priorities: Complete BVS Model, Optimize For Margin

12. Other Issues Responsible for, but not currently active on:
PowerSteering (Fillip currently working – short-term)
Financial Training Project (Will start 2Q)
Employee Retention Project (Will start 2Q)
Case Studies (Worked-up example format/content for Novartis use … what is next step?)
Supporting KT Engagements (No timing yet …)
P&L and Deployment reviews beyond BVS engagements (no timing yet)