This document discusses how to leverage SugarCRM to turn around a business using the example of USA FACT. It begins with an introduction to USA FACT's history and current business operations. It then defines problems in the operational, technology, and sales/financial areas that were leading to declining performance. The steps taken to turn the business around included identifying issues, customer interviews, reorganizing operations, modifying the sales process, and updating SugarCRM to support these changes. Leveraging SugarCRM helped solve key problems by tracking work, implementing a case tool, creating a quote tool, and standardizing processes. Today, USA FACT has grown its recurring revenue, improved technology, increased sales performance, and become profitable again after implementing the turnaround plan.

1. Turning Around a
Business is Fun!!!!
How to Leverage SugarCRM to Turn
Around a Business
§ Matthew L. Taylor § Matthew R. Davidson
§ Owner – President, Chief § Owner – CEO, Sales/Product
Operating Officer § 303.718.7794
§ 720.375.4484 § Matt.Davidson@usafact.com
§ Matthew.Taylor@usafact.com

2. Agenda
Dummies Guide to Turning Around a Company
1 USA FACT Business & History
2 Definition of Problems
3 Steps to Turnaround
4 Leveraging Sugar to Solve Key Problems
5 USA FACT Today
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3. USA FACT History and Business
§ History § Key Services § Customer Base
§ Company founded by § Pre-Employment § Over 700 Core
Les Davidson in 1977 Screening Customers from SMB to
based on his Private § Criminal Screening Enterprise
Investigation and Law § Large Hospitals & EMS
Enforcement § Sex Offender Screening
Background § Largest Food Services
§ Resume Verification
Companies
§ Second company with a § Drug Screening
web-based screening § Ivy League Universities
§ MVRs / DOT and Fleet
solution: 1999 § Government Agencies
Driver Management
§ 34 years of history and § Leading Technology
§ ATS/HRIS Integration
25 years incorporated Companies
makes USA FACT one § Social Media Screening
of the very first and § Employee Assessments
most experienced
industry experts
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4. Agenda
Dummies Guide to Turning Around a Company
1 USA FACT Business & History
2 Definition of Problems
3 Steps to Turnaround
4 Leveraging Sugar to Solve Key Problems
5 USA FACT Today
Page § 4

5. Definition of Problems - Issues @ USA FACT
Operational/Product Technology Sales/Financial
§ Operational § $800,000 spent on • 2009: 7 new sales
§ Operations shrinking; technology upgrades in 1 people with
year unfocused product
A fight for survival
§ Bad contracts and development
§ Limited management
direction – No meetings overpaying for services § 2010: Colllective
§ Lack of clear § 5 projects, 6 months past average of $2K MRR
ownership per month sold
due with no end in sight
§ No account § Limited understanding of § Not leveraging Sugar
management
new technologies § Funnel not weighted
§ Product (infrastructure of app dev) or explained to
§ Limited product refresh § Fax system not consistent Board & Bank
– focus on “we have properly
always done it this way” § Phone system not
consistent § Financial
§ Limited technology
advancement § Lost $350K in first 7
§ Paper / eMail based
processes months
§ Limited product
marketing § Revenues down
§ Data Security Concerns
50% over 2 years
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6. Agenda
Dummies Guide to Turning Around a Company
1 USA FACT Business & History
2 Definition of Problems
3 Steps to Turnaround
4 Leveraging Sugar to Solve Key Problems
5 USA FACT Today
Page § 6

7. Steps to Turnaround Company
§ Review Financials
§ Audit Operations and Technology
Identify Issues § Audit Sales
§ 1 on 1 Interviews with management and key personnel
§ Face to Face meetings with top 10 customers
§ Very strong customer service culture
Customer § Tremendous industry knowledge
Interviews § Pricing is weak
§ Product set is not advancing, terrible technology
§ Must have process for ownership
ReOrganize § Many technology failures causing increased time to complete work
Operations § Management weakness causing lack of clear communication
§ Limited ability to scale
§ Difficulty selling product set
Modify Sales § Not hitting goals
Process § All 7 sales people terminated
§ Feeling that knowledge of industry was key
Update Sugar to § Leverage Cases to track operational work
§ Leverage Cases to track IT/IS deliverables (considered bug tracking)
Sugar to Support § Add all employees to Sugar
Above § Implement “Quote Module”
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8. Agenda
Dummies Guide to Turning Around a Company
1 USA FACT Business & History
2 Definition of Problems
3 Steps to Turnaround
4 Leveraging Sugar to Solve Key Problems
5 USA FACT Today
Page § 8

9. Key Items For CRM/SFA Implementation
Executive level support and End users management
mandate must be involved in
selection
Must be implemented in
Tremendous development, an interactive fashion.
implementation, and support Start with a department
partner such as Epicom! and gain champions
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10. SFA/CRM Adequacy Decision
Options Considered Reasons for Sugar
§ MS Dynamics CRM § Significant consulting experience in CRM
§ Not an MS based company leveraging Sugar
§ Costly to modify § Sales expert with tremendous Sugar
§ Difficult to connect to other systems
experience
§ Many years of experience seeing Sugar
§ SalesForce.COM work
§ 4X the cost to implement
§ Sugar always met past needs at less cost
§ Difficult to modify
than other solutions
§ No trusted partners
§ Sugar integrated with many other
§ Entellium applications without need to change
§ Technology concerns platform from $20M to $110M
§ Maintenance concerns § Tremendous partner in Epicom
§ Already in place and simply not
configured correctly
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11. Fixing a Bad Sugar Implementation
• Add all users
• Remove useless fields
• Create proper groups • Past experience told
and rights • Explain why?
us users must have
• Assign all open dashboards • Train the system
opportunities • Ability to push • Train the process
• Create proper dashboards would be • Train stages of
prospecting great but… change
Develop Train,
Clean up and Implement Create
Dash- Train,
Set up Case Tool Quote Tool
boards Train!!!
• Technology • Quote tool not
delivery dates industry specific
• Must have significant
• Ops mgt.
legal language set but
ownership manageable
tracking
• Decreased need for
• 1 place to go staff
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12. Stages of Change
§ Stage I (Shock) - In a similar style to a grief reaction, people may take some time to address the reality of
what has just occurred. People can't really do much at this stage but come to grips with what the new situation
entails.
§ Stage II (Denial) - A common reaction may be to deny the impact of the change. "It doesn't relate to me,
and it doesn't affect my department". A ritualized form of 'farewell" to the old ways akin to a funeral sometimes
helps. (Throwing out reasons it cannot work or “corner casing”).
§ Stage III (Anger) - It is important to openly deal with what angers people. "Why did we need to change at
all when the way we were doing things was fine?" Some may actively resist or attack the change. Anger de-
skills and can engender a mood of self-preservation. This may promote risk avoidance and hold back
innovation.
§ Stage IV (Passive Acceptance) - The commencement of accepting that the way things are done has
indeed changed and that the old ways are, in fact, gone. "I suppose if we have to deal with this, we might as
well get on with it”
§ Stage V (Exploration) - A willingness to look at actual methods for implementing and taking the change
process forward. "How do we actually go forward from here?”
§ Stage VI (Challenge) - Actually going forward. Ensuring that the change process is the catalyst for
continuous improvement (CANI) and not just there as an obstacle. What stage is the team in now, and how do
we move forward?
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13. Define: Teams and Roles~ No More Private Teams!!! There’s too much money to lose without transparency.
Page § 13

14. Activate: Automated Web to Leads Process
Page § 14

15. Customize: Seamless Web to Module Processes
Page § 15

16. Standardize: Define Product Catalog For Quote Automation
Page § 16

17. Partner: Redefine A Business Model That Works With Expert Designers at Epicom
Page § 17

18. Agenda
Dummies Guide to Turning Around a Company
1 USA FACT Business & History
2 Definition of Problems
3 Steps to Turnaround
4 Leveraging Sugar to Solve Key Problems
5 USA FACT Today
Page § 18

19. Where is USA FACT today?
Operational/Product Technology Sales/Financial
§ Operational § Contracts all recontracted § 1 salesperson selling more
in acceptable terms than 7 were selling
§ Business is growing
and team is shrinking § Focus on Derek GateHouse’s
§ All technology projects
“The Perfect Salesforce.
§ Meeting structure that were open are
leveraging “Death by completed plus 4 major § Average MRR is now 15%
Meeting” higher after a 60% cost
additional projects (same
reduction, and growing
§ Through case staff)
management owner- § Sugar is now central in all
ship is clear § New fax solution in place sales meetings
§ Account management § New phone system in § Bank president so impressed
leverages Sugar to place we are their company of the
upgrade accounts month
§ Paper has been reduced
§ Product § Profitable within the first 5
and 2 screens now sit on
months of turnaround
§ 5 major products in 8 each user’s desk
months § Average of 20+% increase
month to month comparison
§ One of most technically
advanced within § BACK IN BLACK!!!!!
industry
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20. Building Back Stability
Contracted Monthly Recurring Revenue Performance ("Pre" Matt Squared)
Contracted MRR Performance (“Post” Matt Squared) April 3, 2011
= Redacted Financial Numbers
Page § 20

21. MRR Quotas/Forecasts/Actuals (Pre & Post) April 3, 2011
Setting Quotas and Goals in 2011 After Years of No Managerial Expectation
QUOTA COMMITTED CLOSED WINS
= Redacted Financial Numbers
Page § 21

22. Questions?
Please consider USA FACT for your
Pre-Employment Screening, Drug
Testing, and End-to-End Hiring
needs. We now truly are “The Best”
Contact Matthew R. Davidson at
matt.davidson@usafact.com for
quotes and questions!
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