2. Manage Your Human Sigma John H. Fleming, Ph.D., Principal Chief Scientist, Customer Engagement & HumanSigma

6. Employee Engagement Copyright © 2007 Gallup. Inc. All rights reserved.

7. U.S. Engagement Scores 2006 30% 55% Engaged Not Engaged Actively Disengaged 15% Copyright © 2007 Gallup. Inc. All rights reserved.

8. Employee Engagement Hierarchy Copyright © 2007 Gallup. Inc. All rights reserved. Financial Outcomes Growth Teamwork Management Support Basic Needs How can we grow? Do I belong? What do I give? What do I get? 0% 100%

9. Employee Engagement and Performance Note: Differences are between top and bottom quartile workgroups. Absenteeism statistic is the difference between engaged and actively disengaged employees. Copyright © 2007 Gallup. Inc. All rights reserved.

10. Employee Engagement and EPS Copyright © 2007 Gallup. Inc. All rights reserved. Change in EPS (%) 2.6x Higher Growth Rate for High Engagement Companies Note: Based on analysis of data from 89 publicly traded companies. Engagement data collected from 2002 to 2004. Comparables averaged 7.3 competitors per company.

11. Customer Engagement Copyright © 2007 Gallup. Inc. All rights reserved.

12. Customer Engagement Hierarchy Can’t imagine a world without Perfect company for people like me Treats me with respect Feel proud to be a customer Fair resolution of any problems Always treats me fairly Always delivers on promise Name I can always trust A 8 ™ Your company is irreplaceable to me. I feel passionate about you. Your company is prestigious. It is part of who I am. When we have a problem, you always treat me fairly. I can safely assume that you will always keep your promises. Copyright © 2000 Gallup. Inc. All rights reserved. Passion Pride Integrity Confidence

13. Customer Engagement at Retailer A (Retail) Note: Mean values used. Copyright © 2007 Gallup. Inc. All rights reserved. Bottom Half CE11 Top Half CE11 Annual Sales $14,214 $17,053 (+20%) YOY Sales Growth 0.7% 1.2% (+71%) Avg Weekly Sales $273 $329 (+21%)

14. Customer Engagement Groups | Four Customers Copyright © 1994-2000 Gallup, Inc. All rights reserved. Engaged Beginnings of emotional attachment but not strong Fully Engaged Strongly attached and loyal. Your most valuable customers Not Engaged Emotionally and attitudinally neutral Actively Disengaged Active emotional detachment and antagonism

15. Customer Engagement Drives Financial Performance Per-Customer Contribution Indexed Performance (Average = 100) Copyright © 2007 Gallup. Inc. All rights reserved. 100

16. Local Performance Variation Is the Scourge of High Performance Range of Performance Copyright © 2007 Gallup, Inc. All rights reserved. Average Performance

17. HumanSigma ® Copyright © 2007 Gallup. Inc. All rights reserved.

18. HumanSigma ® Quadrants Q III Q I “ Optimized” Q IV Q II Copyright © 2007 Gallup, Inc. All rights reserved.

19. HumanSigma ® Quadrants 1.7 3.4 1.7 “ Optimized” 1.0 Copyright © 2007 Gallup, Inc. All rights reserved. 70% boost 240% boost 70% boost

22. HumanSigma ® Performance Bands Copyright © 2007 Gallup, Inc. All rights reserved.

23. Case Study | HumanSigma ® at Retailer O Copyright © 2007 Gallup. Inc. All rights reserved.

24. HumanSigma ® at Retailer O 7 stores 14 stores 87 stores 93 stores 6 stores N=207 stores in Germany only Note: Line is regression line for CE 11 and Q 12 Copyright © 2007 Gallup, Inc. All rights reserved.

25. HumanSigma ® at Retailer O € 3,880,532 € 3,859,480 (-1%) € 3,537,897 (-10%) € 3,174,938 (-22%) N=207 stores in Germany only Note: Line is regression line for CE 11 and Q 12 € 2,953,309 (-31%) Annual Profit Controlling for market size, DIY spending, and store size. Copyright © 2007 Gallup, Inc. All rights reserved.

26. Case Study | HumanSigma ® at Retailer B Copyright © 2007 Gallup. Inc. All rights reserved.

27. HumanSigma ® at Retailer B | Year 1 N=1,421 stores Copyright © 2007 Gallup, Inc. All rights reserved.

28. Transactional Interventions Performance Measurement & Accountability Education & Dialogue Learning, Adjustment, & Alignment Copyright © 2007 Gallup. Inc. All rights reserved.

29. … these must be all managed. To reliably influence these... Transformational Interventions Transformational Interventions

30. HumanSigma ® Change -53% +175% Copyright © 2007 Gallup. Inc. All rights reserved.

32. Case Study | HumanSigma ® at Retailer Z Copyright © 2007 Gallup. Inc. All rights reserved.

33. HumanSigma ® at Retailer Z N=257 branch offices Copyright © 2007 Gallup, Inc. All rights reserved.

34. HumanSigma ® at Retailer Z N=257 branches Average Annual Sales Growth 2003-2005 Average Annual Income Growth 2003-2005 19.0% 17.6% 12.2% 74.5% 50.6% 30.0% Copyright © 2007 Gallup, Inc. All rights reserved.

35. HumanSigma ® Change at Retailer Z Copyright © 2007 Gallup. Inc. All rights reserved. -66% +37%

37. Extreme HumanSigma ® at Bank S Copyright © 2007 Gallup. Inc. All rights reserved.

38. HumanSigma ® at Bank S | 2004 0.0% of branches 2.8% of branches 4.6% of branches 16.8% of branches 52.2% of branches 23.6% of branches N=458 branches Note: Line is regression line for CE 11 and Q 12 Copyright © 2007 Gallup, Inc. All rights reserved.

39. HumanSigma ® at Bank S | 2005 2.7% of branches 22.8% of branches 14.2% of branches 29.6% of branches 27.4% of branches 3.3% of branches N=548 branches Note: Line is regression line for CE 11 and Q 12 Copyright © 2007 Gallup, Inc. All rights reserved.

40. HumanSigma ® at Bank S | 2006 33.6% of branches 43.1% of branches 10.9% of branches 9.2% of branches 2.6% of branches 0.6% of branches N=663 branches Note: Line is regression line for CE 11 and Q 12 Copyright © 2007 Gallup, Inc. All rights reserved.

41. HumanSigma ® at Bank S | 2007 57.9% of branches 32.8% of branches 2.9% of branches 4.0% of branches 2.1% of branches 0.3% of branches N=748 branches Note: Line is regression line for CE 11 and Q 12 Copyright © 2007 Gallup, Inc. All rights reserved.