To introduce F1 Strategy, a business advisory boutique focused on helping companies successfully execute on their strategies. The practice leverages cause-effect metrics and in-depth analytics to chart the DNA of a business. Additiona inforamtion at www.F1Strategy.com

1. Presenting F1 Strategy:
Charting Your Business DNA
Tuesday, November 17, 2009

2. Content Of This Document
Content
Executive Summary
Objective
Understanding Strategy’s Weak Points
To introduce F1 Strategy, a
Our Approach
business advisory boutique
Top-Down Approach focused on helping companies
successfully execute on their
Rendering Strategies Actionable
strategies.
Bottom-Up Approach
The practice leverages cause-
Implementum effect metrics and in-depth
analytics to chart the DNA of a
In-Depth Analytics
business.
80% Solutions
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3. Executive Summary
Business Advisory Boutique With Unique Hands-On
Approach Enabling Fast Quantifiable Results
F1 Strategy Overview
Generates feasible
Strategic solutions creating
thinking strategic advantage
combined and marketable
with added value
pragmatism
Accelerates design
of solutions through
iterations and pilots
Partnership with Leverage of
Partnership with Leverage of
clients to execute on FAST proprietary
clients to execute on FAST proprietary
a hypothesis-driven QUANTIFIABLE framework involving
a hypothesis-driven QUANTIFIABLE framework involving
and iterative RESULTS different levels of the
and iterative RESULTS different levels of the
approach organization
approach organization
Ensures successful
transition from
Sustainable strategy formulation
Sustainable
implementation to strategy execution
Generates implementation
through
sustainable through
proprietary
momentum and proprietary
software
ensures client software
implements
implements
ownership
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 3

4. Understanding Strategy’s Weak Points
Business Ideas Fail Not Because Of A Lack Of Good
Strategies But Due To Poor Execution
Why Do Strategies Fail?
Typical Questions:
― How do we intend to create value for the
shareholder?
Major reasons behind strategy failure*: ― How do we execute our strategy?
― How are we going to make money?
― Incorrect implementation of a correctly ― How are we going to help our clients (Value
designed strategy Proposition)?
― Latent resistance by the organization’s ― Should we continue with all our offerings?
employees and partners ― How do we hold people accountable (for
― Incorrect diagnosis of strategic success and failures)?
requirements ― Do we have he right vendor partnerships?
― Incorrect strategy designed for a correct ― What is our exposure to market risks?
set of strategic requirements
Facts:
— Culture eats strategy for lunch
— You cannot manage what you do not measure
— A Business DNA Map will provide the link between
strategy formulation and strategy execution
— You have more information about your business
than ever before. But are you using it to outthink
your rivals? If not, you’re failing to exploit a potent
competitive tool**
* Leo Hopf, Carlson School Of Management
** Competing on Analytics, Davenport-Harris, Harvard Business School Press 2007
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 4

5. Our Approach
F1 Strategy’s Approach Breaks The Status Quo And
Moves Beyond Mere Advice
Proprietary Process And Implements
Top-Down Approach F1 Strategy Implements
F1 Strategy partners with Proprietary software suite
senior management to with historical as well as
Strategic Objectives
identify key pain-points F1 Strategy simulation views to help
and opportunities cause-effect monitor and project
framework links business performance
DNA Map strategy using the following
formulation to perspectives: Financial,
strategy External, Internal and
execution Resources
Data Center Key Metrics
Bottom-Up Approach In-Depth Analytics
F1 Strategy coordinates Decision-making repertoire
with subject matter leveraged by F1 Strategy’s
experts (SME’s) to define problem solving process.
and consolidate
information
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 5

6. Top-Down Approach
Partner With Clients To Identify Competencies And
Capabilities
Competency Pyramid
Customer Shareholder
Those critical core competencies that, in combination, deliver
Platform(s) and sustain undisputed market leadership
Core Capabilities and functions that have a direct and
Competencies significant impact on competitiveness
Capabilities and functions that are important to
Enabling Capabilities competitive advantage in an indirect or enabling way
Capabilities and functions that are basic and currently
Supporting Capabilities necessary to the operation of a company
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 6

7. Top-Down Approach
Help Clients Translate Their Mission Into Desired
Outcomes Using A Proven Methodology
Converting Intangible Assets Into Tangible Outcomes
Partner with client, conduct Mission
Partner with client, conduct Why we exist
observations, perform initial
observations, perform initial
assessment (e.g., SWOT) Values
assessment (e.g., SWOT)
and develop hypotheses What’s Important to Us
and develop hypotheses
Vision
What We Want to Be
Strategy
Our Game Plan
Business DNA Map
Translate the Strategy
Business DNA Metrics
Measure and Focus
Targets and Initiatives
What We Need To Do
Personal Objectives
What I Need To Do
OUTCOMES
Source: Robert Kaplan and David Norton
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 7

8. Top-Down Approach
Implementing Strategies Depend On Understanding
The Cause-Effect Between Strategic Objectives
Sample Business DNA Map
Financial
-- 40%
Optimize Market Increase Business
Increase Profitability
Presence Volume
Client
-- 25%
Manage Price Provide exceptional Improve Client
Competitiveness Customer Service Performance
Internal
-- 20%
Reduce Cost to Manage Sales Implement critical Achieve superior Risk
Produce Performance technology projects and Quality Rating
Resources
-- 15%
Manage Vendor
Reduce Turnover
performance
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 8

9. Rendering Strategies Actionable
A Business DNA Map Is Translated Into Objectives,
Key Performance Indicators And Action Items
From Business DNA Map To Actionable Metrics
Financial
-- 40% Optimize Market Increase Business
Increase Profitability
Presence Volume
Well defined metrics are used to
Client
validate or readdress strategic
-- 25% Manage Price
Competitiveness
Provide exceptional
Customer Service
Improve Client
Performance
objectives. They will help
managers understand cause-
Internal
effect correlations.
-- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk
Produce Performance technology projects and Quality Rating
Resources
-- 15% Manage Vendor
Reduce Turnover
performance
BizCase
Objective Measure Weight Target Metric Actuals
Financial F1 Increase Profitability Net Income 20%
-- 40%
F2 Optimize Market Presence BizCase Share of Market 10%
F3 Increase Business Volume Total Sale Volume 10%
Client C1 Manage Price Competitiveness Competitive Score 10%
-- 25%
C2 Provide exceptional Customer Service Client Satisfaction Score 5%
C3 Improve Client Performance Client Average Score 10%
Objectives and themes in a
Business DNA Map are used to Internal
-- 20%
I1
I2
I3
Reduce Cost to Produce
Manage Sales Performance
Implement critical technology projects
Cost Per Unit (CPU)
$/units per Account Executive
IT Score
5%
5%
5%
build an actionable codecard I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month
cumulative "Good" rating
5%
used to clearly communicate
Resources R1 Reduce Turnover % Turnover 5%
strategic expectations down to -- 15%
R2 Manage Vendor performance Vendor Performance Score 10%
the individual levels.
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 9

10. Bottom-Up Approach
Business DNA Metrics Are Quickly Built Using Available
Client Systems To Standardize The Use Of Data
Building Blocks Of Business DNA Codes
Client Data
Client Data Centralized Data
Centralized Data Analytical Reporting
Analytical Reporting Business DNA Codes
Business DNA Codes
BizCase
Objective Measure Weight Target Metric Actuals
Capacity Model
Financial F1 Increase Profitability Net Income 20%
-- 40%
F2 Optimize Market Presence BizCase Share of Market 10%
Information F3 Increase Business Volume Total Sale Volume 10%
Client Performance Client
-- 25%
C1 Manage Price Competitiveness Competitive Score 10%
Activity Based Costing
C2 Provide exceptional Customer Service Client Satisfaction Score 5%
C3 Improve Client Performance Client Average Score 10%
Forecasting Internal
-- 20%
I1 Reduce Cost to Produce
I2 Manage Sales Performance
I3 Implement critical technology projects
Cost Per Unit (CPU)
$/units per Account Executive
IT Score
5%
5%
5%
Compensation
I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5%
cumulative "Good" rating
Resources R1 Reduce Turnover % Turnover 5%
-- 15% BizCase
R2 Manage Vendor performance Vendor Performance Score 10%
Single
Objective Measure Weight Target Metric Actuals
Financial F1 Increase Profitability Net Income 20%
-- 40%
F2 Optimize Market Presence BizCase Share of Market 10%
Source F3 Increase Business Volume Total Sale Volume 10%
Customer Client C1 Manage Price Competitiveness Competitive Score 10%
Of -- 25%
C2 Provide exceptional Customer Service Client Satisfaction Score 5%
Cost Complaints C3 Improve Client Performance Client Average Score 10%
Truth Internal
-- 20%
I1 Reduce Cost to Produce
I2 Manage Sales Performance
I3 Implement critical technology projects
Cost Per Unit (CPU)
$/units per Account Executive
IT Score
5%
5%
5%
I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5%
cumulative "Good" rating
Resources R1 Reduce Turnover % Turnover 5%
Databases -- 15%
R2 Manage Vendor performance
BizCase
Vendor Performance Score 10%
Objective Measure Weight Target Metric Actuals
Financial F1 Increase Profitability Net Income 20%
-- 40%
Daily download F2 Optimize Market Presence
F3 Increase Business Volume
BizCase Share of Market
Total Sale Volume
10%
10%
uses agreed upon Client
-- 25%
C1 Manage Price Competitiveness
C2 Provide exceptional Customer Service
Competitive Score
Client Satisfaction Score
10%
5%
definitions to C3 Improve Client Performance Client Average Score 10%
compile data into a target Internal
-- 20%
I1 Reduce Cost to Produce
I2 Manage Sales Performance
I3 Implement critical technology projects
Cost Per Unit (CPU)
$/units per Account Executive
IT Score
5%
5%
5%
I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5%
cumulative "Good" rating
central data mart Resources
-- 15%
R1 Reduce Turnover
R2 Manage Vendor performance
% Turnover
Vendor Performance Score
5%
10%
current
Turn Quality
Time (# of
issues)
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 10

11. Bottom-Up Approach
Data Is Mined Without Introducing Complex And
Expensive Systems Or Disrupting Business Flow
Bottom-Up Approach To Single Source of Data
Client Data
Client Data Centralized Data
Centralized Data Analytical Reporting
Analytical Reporting Business DNA Codes
Business DNA Codes
Single Resources Needed
Source
Of Truth Depending on final solution (e.g., SQL,
Oracle), an assessment of technical
resources will be needed
Yes
Can we get the data No
consistently with Prototype 1 to 2 FTEs will be needed to prototype the
minimum effort? single source of truth, using MS Access for
example
Yes
No Test and recommend
Is the data correct?
data fixes
1 to 2 FTEs will be needed to test the data
Yes
No Work with IT to
Start Does the data
identify data needs
needed exist?
and build database Mini-projects to be launched depending on
recommendations and data needs
© Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 11