May 13, 2010

Business Management Consulting Proposal

Rand/WebsterMarcelo

Alterman416 894

5930

CLIENT

Scope 3Overview 5Engagement & Process 6Billing 7Admin Performance Management 8Monitoring Associate Time 9Associate Performance Management 10, 11Associate Time Management 12, 13Quality Control 14Account Receivables 15HR, Privacy 16Managing the Business 17Resources & Professional Fees 18Next Steps 19

Contents

3

The partners enumerated the following in-scope areas:

Scope

Improving Associate Time Management

Billable Time reports & work management

WIP/write-offs and A/R Collections/ AP-AR Rules

Monitoring Admin staff Admin staff time management and reporting

Compensation AnalysisPerformance based

Quality Control Work product QA processes, checks and

balances

HR DocumentationPrivacy Policy

Sick leaveLegally defensible HR documentation

Cost ControlsOffice supplies, lease/own options

Technology OptimizationAssociate Education

4

The associates and admin staff enumerated the following engagement areas:

Scope Slide 2

Avoiding duplicate work with document library*Older files are a nightmare, unorganized w/ no direction*Outsourcing engagement, photocopies & follow-up letters to adminLunch and learn

EWorkflow is up and down, hard to manageBalancing workload between ees, some drowning and others notToo much work/struggle with work volumeInterruptions during the day *

Juggling files and deadlinesFile prioritiesRules on how to close a filePlanning of the file/Planning memo/file review

Expectations of partnersVague rules on what times should be booked and what notMore clarity on recoverable – this file should be $X and Y time spent

* Multiple employee response

Efficiency

Files

Workload

Expectations

5

Client is a growing business concern that has seen its business increase in complexity due mainly to increased employee count and work load.

The partners at Client are individual contributors, business developers, ee mentors and business managers.

Many of the current business processes need re-working to accommodate the current and future business direction. These areas include:

Billings, accounts receivable and collections HR - Basic Organizational development, Performance Management, Compensation,

training & development Business management – business data and analysis, quality control, cost controls

Overview

The objective of this set of projects is to standardize and formalize business practices in order to increase employee productivity and engagement, improve services,

provide business intelligence, lower risk and increase profit.

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Critical Success Factors:

Process (Eating the Elephant):

Engagement & Process

The in-scope areas for analysis and evaluation touch on every aspect of the business. Our suggested approach is to divide the project into discrete sub-projects. Each sub-project area has been chosen with the view to discrete analysis, process creation, implementation and delivery.

This approach is engineered to provide CLIENT the opportunity to prioritise the sub-projects and monitor complete sub-project results. apValuation will be gauging nine discrete project results over time, giving CLIENT maximum control over the management consulting program.

Commitment from the business owners to work to clearly define and communicate one CLIENT business vision & strategy and a common set of prioritised pain-points.

Clearly defining and communicating the expectations down to the Admin level.

Commitment to the processes that are put in place, including the management and audit of the processes by the partners.

Meeting Expectations of partners

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Definition of Service: Bills should go out in the first 5 days of the month. Currently many bills go out on the 2nd and 3rd week of the month.

Business Requirements: Admin Time Management

• Documenting Admin work process, setting work priorities, time management analysis and creating a monthly work schedule. By making Admin more efficient, bills will be sent sooner, leaving time for the Admin to complete other duties.

Billing process re-engineering• Billing Form Review - Current bill requires 5+ steps to produce. Time consumption is focused on the cutting

& pasting and reworking of the work completed description. Modified form will save 5-7 minutes per form; bills can go out 1+ week sooner.

• Studying what stages in the billing cycle can be completed before the 1st of the month.• Reviewing and agreeing on a standard letter template.

Reporting and control • Creating Billing reports to study Admin and partner engagement with the new process, gaps and

assumption, reworking process, etc., towards the goal of a 100% compliant 4 day billing cycle. Technology

• Once process improvements have been tested and approved, we can study technology integration in the billing process. This is initially out of scope because anything but rudimentary use of existing technology requires a project scoping analysis, research, costing, demos, implementation, development, training, reporting & analysis, thereby increasing complexity.

Complexity: Moderate – 3-4 days

Billing

8

Definition of Service: Creating and documenting enumerated and prioritized work expectations with timelines. Getting Admin acceptance of the terms of service. Putting processes in place to assist Admin in time management, prioritization and the execution of duties. Creating a review process to monitor Admin performance.

Business Requirements:

Admin Time Management, billing process re-engineering and reporting & control• See Billing Slide

Creating work description document with expectations• Including sick days and lateness policy and reporting process

Creating a system of monthly scheduled “to-dos” which would include Billing, ordering supplies, other duties

Creating monthly performance management sessions to review deliverables and past performance

• Doing a run-through of the session

Complexity: Moderate – 1-2 days + Billing project time

Admin Performance Management

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Definition of Service: Creating processes to report, monitor and analyse ee time to use as:

A business analysis tool for tracking and analysing monthly, quarterly and yearly consolidated results as compared to set targets and past averages.

As a performance management tool, for trend analysis on billing hours and write-off percentages over time, to analyse billing hours and write-off percentages as they relate to set targets and, as they compare to the results of other associates and the average associate at the firm. Data analysis for productivity and salary/seniority comparison

Business Requirements:

Using the existing WIP analysis and data to create comparative analysis and reports:• Looking to re-work the WIP report

• To add a break out for vacation/sick days/ exams• To add profitability analysis• Re-work WIP analysis ratios and targets, add Ave. Associate comparison

• Comprehensive total WIP report for all Associates• Create trend analysis information on monthly reports• Create year-to-date reporting

Creating policies on Billing information access and distribution, See Employee Engagement

Complexity: Moderate – 3-4 days

Monitoring Associate Time

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Definition of Service:

Study, analyse, create and roll-out a performance-based compensation plan.

Study, analyse, create and roll-out an associate performance management plan for CLIENT, in keeping with their desired corporate culture and business strategy.

Comp. Plan Business Requirements:

To create a compensation plan that better aligns compensation to billable hours, write-offs, customer service, team work, technical knowledge, other KPIs.

• Studying a plan similar to associate X, working with bonuses based on performance

Creating a communication strategy and delivering the plan.

Creating and presenting the monthly billing reports associated with the performance plan to the associates (see Billing Slide)

• Process to deliver report to all associates on a per month basis.

Matching the compensation plan to the overall performance management plan.

Associate Performance Management

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Performance Management Plan Business Requirements:

Creating and communicating clear performance expectations, with role clarity.• Create work descriptions that include the professional behaviour and technical knowledge to be

expected at a minimum, Jr., Int. and Sr. Level. Include paths for reaching these goals, such as: • CVB, Other courses, Specializations

Analysis and creation of a performance management process that is fair and consistent. • Use the time/billing monitoring reports as a performance management tool (see Monitoring Associate

Time Slide) • Analysis and creation of a performance management process that is fair and consistent. • Create performance rating system to capture areas in need of performance improvement and create a

template for the partners to use to help the ee close the gap between desired results and actual results.

Form an action plan to foster a positive environment, work enjoyment, ethics and good peer/staff relations leading to employee engagement and better business results.

Complexity: Moderate - 4 - 5 days

Associate Performance Management Slide 2

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Definition of Service: Associate time management initiatives to catch and reduce mistakes and make ees more efficient and productive (I’m stuck..., On-track systems)

Business Requirements:

Re-drafting the Planning Memo• Timelines • Simplification• Top-level

Investigate check list creation

Setting deliverables with dates on all work product

Creating status report system• Allowing partners to see all task, work-in-progress, time-lines and deliverable dates .• Working from a common scheduling and tasking form.

Creating engagement rules regarding project/task urgency. • To provide associates with uninterrupted block times during the day

Associate Time Management

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Business Requirements Continued:

Analysing associate time by work value • Looking at low-value work that can be handed to Admin or Jr. Personnel

• Photocopying and saving emails• Basic technical analysis

• Creating rules on what work is sourced, when and to whom

Facilitating knowledge share to reduce duplicate effort• Creating a file index system on complex research topics for closed files

• Excel or searchable Sharepoint tags • Quick and simple searchable library

Templates• Creating set templates with paragraph options

• Avoids everyone having their own• Easier to cut and paste• Common language and style

Library• Organizing library and adding sign-off pad

Complexity: Moderate – 4-5 days

Associate Time Management Slide 2

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Definition of Service: Creating a work review system for all associates and partners to avoid errors

Business Requirements Continued:

Analysing standard practices in QC in similar businesses

Creating a system of review that complies with acceptable QC practices but is not cost prohibitive

• Explore file check-lists

Implement review system and review

Complexity: Moderate – 1-2 days

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Quality Control

15

Definition of Service: Create an A/R structure that is composed of a general A/R approach together with enumerated and finite exceptions. The structure will allow for more simplified administration and root-cause reporting.

Business Requirements:

Work with partners to agree on a common approach/rules on A/R• Policy on retainers, percent ask, and communication to client of new retainer requirements • Policy on work completed to billed monthly , if more than x• Create rules on exceptions and agree on A/R process for each exception• Policy on client messaging/collections/escalation process

Create billing and structured A/R policy framework/process and, train & implement.• Analyse current customer communication of A/R message at each stage of the process• Work on implementing an effective, repeatable process

Create reports to monitor aging, retainers, balance of accounts and summaries for general approach and exceptions • Conduct trend analysis • Plug A/R data into profit analysis

Complexity: Moderate - 4 - 5 days

Account Receivables

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Definition of Service:

Create a basic legally defensible HR filing system with templates and basic on-boarding to facilitate performance management .

To create a privacy policy in line with governing laws and best practices.

Business Requirements:

Creation of policies on vacation, tardiness, absenteeism, dress, non-disclosure, confidentiality, etc., and communicating those policies.

Creating a privacy policy that fits the apValuation business • Research and conduct privacy policy base lining • Work on creating the policy, communicating the policy and review business processes to ensure compliance

Complexity: Moderate - 3- 4

HR, Privacy

17

Definition of Service: general reports and information that will provide a snap shot of the business, trend analysis, WIP, profitability, employee productivity.

Business Requirements:

Work on creating KPIs for the business and then reporting the information in a form that allows for quick analysis.

• Investigate creating a dashboard with key KPIs and work with partners on defining the KPIs they need to understand their business

• Can include profitability analysis per engagement• Total Billable hours per month to monthly target, year total to date• Associate availability and work-in progress• A/R • Trend graphing

Complexity: Moderate - 4 - 5 days

Managing The Business

18

Resources:In addition to the consulting resource, the project requires that CLIENT make available their admin employees as they are necessary resources in the completion of the projects.

Professional Fees:

Resources & Professional Fees

Marcelo Alterman Number of days

Per Diem Rate

CostBilling 4 $700 $2,800Admin Performance Management 2 $700 $1,400Monitoring Associate Time 4 $700 $2,800Associate Performance Management 5 $700 $3,500Associate Time Management 5 $700 $3,500Quality Control 2 $700 $1,400Account Receivables 5 $700 $3,500HR, Privacy 4 $700 $2,800Managing the Business 5 $700 $3,500

TOTAL 36 $700 $25,200

Pricing Schedule

19

Meeting with partners to review the proposal with a view to creating sub-project priorities and reviewing scope and, the definitions of service

Creating and setting a timeline for delivery of the sub-project

Begin analysis, create processes, present to partners, implement and train on sub-project

Meeting with partners to review the next sub-project for scope and the definitions of service

Next Steps

Timelines

Priorities

Analysis & Implementation

Priorities

20

Q & A

Thank You!

Rand/WebsterMarcelo Alterman

416 894 5930