1. Strategic Enterprise Transformation (SET) Business Development Training Bill Chan [email_address] January 2011

2. Definitions & Buzz Words

5. Context

8. Framing the Problem

9. Common “People Problems” We have co-employment issues with our contractors We can’t afford to lose our contractors – they have too much strategic knowledge We don’t know how to move our employees up the value chain I have to increase my staff but I’m not sure which skills to hire I’m not sure we’re getting the value we should from outsourcing How do my current staff fit my growth plans? We have employees that have retired in place I’m don’t know if my staff is fully utilized My costly resources spend time on lower skilled tasks I’m considering outsourcing but don't know where to start I spend too much time justifying headcount “ HR will take care of it for me” I have to deliver more in 2011 with 2010's workforce “ HR will take care of it for me” My CFO says to "cut all contractors” “ HR will take care of it for me”

13. Ready, SET, Go

14. People Value Curve – Efficiency & Growth Business Value IT People Cost Current Leading Practice Potential

15. Optimized Staffing Workload Utilization Staffing

19. Methodology

22. Staffing Optimization Model Example Strategic Importance Degree of Business Collaboration Non-Strategic, Commodity Flexible Workforce Strategic Workforce DC Operators NOC Operators Help Desk Infrastructure Installers DB Designers Lead Engineers Infrastructure Designers System Administrators Production Control DB Administrators Project Managers Security Specialists Infrastructure Solution Consultant High Collaboration Medium Collaboration Low Collaboration Constant collaboration, especially face-to-face required with business; collocation desired Frequent virtual collaboration, some face-to-face Frequent virtual collaboration with minimal face-to-face Defines Business Strategic Strategic Project Dependent Defines business and supporting IT strategy / architecture Influences Business Strategic Project Dependent Market Sourced Services Contributes to realizing IT strategy and may possess substantial institutional or proprietary knowledge Implements Business Solns Project Dependent Market Sourced Services Market Sourced Services Execute the defined solution Strategic – Should Not Outsource Project Dependent - Some Outsourcing Possible Market Sourced Services - Candidate for Outsourcing

25. Value Quadrants Easy Complex $ $$$ Savings Implementation Difficulty Leverage Existing Shared Svcs FTE career ladder - commodity to strategic Fill Open Reqs w/ FTE Replace Contractors w/ FTE Outsource Commodity Functions Hire Specific Skills needed (lower skilled) Transition Contractor SME to FTE Hire Specific Skills needed (highly skilled)

26. FAQ, Why SET?, and Cross Selling

29. Why SET? Engagement They Say We Say Optimization Anything from slide 5 We have a data driven methodology that allows you to optimize your staff utilization, reduce your contractor risk, and identify clear career paths for your staff. We anticipate a 5% to 20% efficiency savings, which translates into 2 to 8 FTE in a 40 person department. M&A We’re going through a (merger / acquisition) We can perform independent due diligence on the staff profile and give you what roles are currently required, where they’re required, and where they may be opportunities to leverage economies of scale within the merged organization. This is a great opportunity to gather the data you need to make data-driven decisions. New Leadership I’m in my first 100 days trying to understand my new org We can quickly give you an independent detailed readout with full transparency into what roles are working on which efforts. This is a great opportunity to gather the data you need to make data-driven decisions. Re-Org We’re going to have a re-org (staff reduction, growth, etc). We can do an assessment that identifies shared services opportunities, outsourcing candidates, and your key strategic personnel (both staff and contractors). This is a great opportunity to gather the data you need to make data-driven decisions.

30. Cross Selling Opportunities Engagement We Say (after SET) Process Improvement We noticed that there are some opportunities to (improve, strengthen, normalize, consolidate) some of your core processes. We have expertise in LEAN/Six Sigma and can help drive more efficiency and help raise your level of your process maturity. IT Governance We noticed that you could really benefit from having a more formal IT governance. We have experience in building out an IT governance framework that helps you deliver your IT strategy. IT Strategy We noticed that there’s very little information on your future planning. We can help align your IT strategy to your business strategy and build out your future roadmaps. SOW Review If you have doubts that your suppliers are performing up to your agreement, we can review your SOWs and show you how to leverage provisions in the contract to better manage your suppliers. SOW Creation During our assessment, we found some potential areas for outsourcing. We’re skilled in creating SOWs that benefit both you and the supplier, and we know how to create the supporting artifacts, such as process maps, SLAs, KPIs, workload, etc. Outsource Governance Most departments aren’t set up to govern to SOWs and SLAs. We can help you build the governance needed to maximize the value that you signed up for in your SOW, and how to use (penalties/credits) to make sure the supplier performs to their contractual obligations.