USM’S BUSINESS IMPROVEMENT PLAN TMD-8303-PL-0001 Revision: 0, Date: July 2010.

USM’S BUSINESS IMPROVEMENT PLAN

TMD-8303-PL-0001

Revision: 0, Date: July 2010

TMD-8303-PL-0001 Rev. 0, Date: July 2010

AGENDA

Overview of Transfield Services Group, North America

Vision of USM for The Gap Partnership

Progress

Improved Account Management Structure

Governance Committee

Business Improvement Plan & Immediate Next Steps

Summary


One Team

USM is a part of the Transfield Services Group, a leading global provider of operations, maintenance, and asset and project management services, with annual revenues of $3B

More than 29,000 employees worldwide

TRANSFIELD SERVICES GROUP, NORTH AMERICA

$500M $300M $100M $500M $1M

North America $1.4B

Facilities Maintenance & Management

Oil & Gas Industry Operation & Maintenance

Road & Civil Infrastructure Maintenance

Oil & Gas Industry Operation & Maintenance

CANADA

Client Advocate Project

Management


USM Company Overview

The USM team consists of :– 500 Account Managers– 170 Area Managers– 12,000 vendor partners

Who:– Service over 400 North American clients in more than 80,000 customer

locationsOf which 57,000 are floor care / janitorial sites

encompassing over 500,000,000 square feet of retail space

Culture of service reliability, quality and consistency– Average annual customer retention rate exceeding 96%

USM moving toward Integrated Facilities Management with bundled services and innovative commercial models (e.g. Michaels)


USM is the largest provider in the retail industry with budgeted revenues for 08/09 more than $500M. Our services include floor care, janitorial, snow removal, landscaping, plumbing, electrical, lighting, signage, parking lot sweeping, handyman services and more!

USM Company Overview

Top 10 USM Client PartnersTop 10 USM Client PartnersTJ Maxx $37MRite Aid $27MThe Home Depot $27MToys ‘R’ Us $22MBank of America $21M Target $21MMichaels $19MRoss $18MBed Bath & Beyond $18MGap, Inc. $13M



Our vision is to create a productive environment that is based on transparency, open communication, and common business practices that will promote a consistent quality of service.

We will continually challenge our service levels, costs, communication processes and transparency to ensure that you constantly receive the high quality of service that you are accustomed to.



This vision will be accomplished through– Transparency – Streamlined communication– An organizational structure that aligns with Gap. This will provide

clear accountability and drive improvements in operational execution

– Self managed analysis and proactive recommendations throughout all service lines

– Joint Governance structure

Benefits to Gap– Consistent service delivery – Efficiencies through streamlined communication for both the Gap

and USM


Initial Steps to Improve Performance

Operations– Metrics Driven– Cost Conscious Mentality

Proposal Reviews and Standardization– Detailed Descriptions of ALL work– Account Manager Review– Material Pricing Accuracy

Invoicing Accuracy…avoiding VOVI– IVR Compliance– Timely and Accurate Billing

Gap Specific & Electrical Training– Gap Specific Operation Protocols– Vendor Procurement and Quality Control– Electrical 101 and Gap Electrical– Material Sourcing, Truck Stock & Standardized Pricing


Progress Tracking

PM SLA % (% Confirmed and % Complete)

95.8%

82.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

February March April May June July August September

%

% Confirmed % Completion

16% increase since we hitbottom…still needs work.

Target - 98%


Progress Tracking

USM-Demand Services Weekly SLA Tracking

79%

88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7/12

/200

8

7/19

/200

8

7/26

/200

8

8/2/

2008

8/9/

2008

8/16

/200

8

8/23

/200

8

8/30

/200

8

9/6/

2008

9/13

/200

8

9/20

/200

8

9/27

/200

8

10/4

/200

8

10/1

1/20

08

10/1

8/20

08

10/2

5/20

08

11/1

/200

8

SL

A %

Target SLA % - 90%

11% Increase Since August


Account Management Structure

A new proposed organizational structure will closely align to the design of the Gap team. This will give the Gap team a single point of contact for all services provided by USM. An additional benefit for the Gap team members will be a close working relationship with their USM partners.

The Gap will be involved in the decision making process before announcing the leader of this proposed team.


One Point of Contact Organizational Chart

Additional Support Resources Utilized Throughout the BIP Transition

Director

Corporate Account Manager (CAM)

USM Proposed Organizational Chart

Jim Winkler (CAM) Bill McMahon (PM)

Jack Prosseda (PM)

Mike Pujals (Trades) Donna Regan (PM)

Manager Manager ManagerTom Erico

Kevin Casey

Director Field Operations

Field Team

Major Project & Construction Group

Triage Manager

Regionally allocated

Service Coordinators Service Coordinators Service Coordinators

Escalation Point

Gap: Jeremy ChoyService Channel: Steve Gottfried


Stakeholder and Communication Mapping


CAM * Directors of Services

Regional Facilities Managers

Regional Coordinators

Managers

Director of Field Operations

Director Directors of Services

Mapping of Communication

USM GAP

Coordinators

Triage Manager Call Center

Locations

* = "The Urgency Rule" the CAM has the authority to do what is necessary to get the

job done


Account Management Structure

The benefit of this organizational structure is:

– A single point of contact

– Clear accountability

– Strong, deliberate, one on one relationships between the stakeholders of both USM and the Gap

– Responsive turn around time of detailed reporting

– Consistency of service throughout the program



USM recommends creating a Governance Committee that will steward the improvement in service delivery and the relationship.

Such Governance meetings enable the exchange of open and frank ideas.

The Governance Committee should be comprised of executives from both companies that are empowered to take the partnership from “business as usual” to “performance as envisioned.”

The initial meeting of the Committee will agree on a charter, frequency and structure of communications.



USM proposes the following agenda: – The strategic direction of Gap and what support USM can

provide– Project Plan Review– Global review of service levels and communication efficiencies– Possible cost opportunities through efficiencies

Through these meetings both parties will benefit from high level communication, transparency, and commitment to partnership



USM proposes the following Governance Committee stakeholders:

CAM

Rob FiskeIvan Dubow

USM MembersGeorge Spink

Eric CollierRob Davis

Sandy WardPaul Walsh


Gap Members


Business Improvement Plan

High level issues that will be addressed as part of the Business Improvement Plan:

– Account Management Structure

– Communication

– Systems

– Service Delivery


Immediate Steps

Following a review of the work order management process, USM has come to the conclusion that the model that has been employed to date is not meeting Gap FS requirements but we know what is needed to get back on track:– Dedicated team managing the critical steps of the work order

lifecycle. Workflow attached.– An Asset Ownership point of view that keeps Gap informed on

the business managed by USM.– A pro-active approach that eliminates duplicity and redundant

processes.– A commitment to communication through people and process.

USM - Trade Services WorkflowC

lien

t

Start XML to WESTSOpen Work Order

YES

Tra

de

Gro

up

Trade Coordinator Contacts Vendor & Site to Confirm

schedule

Trade CoordinatorUpdates Ticket

in WESTS & S/C

Tec

hn

icia

n

Technician visits site forAssess/Repair w/ IVR

NO

ProposalCoordinator

Posts Proposal

Technician sendsCoordinatorAssessment

Update or Quotefor Repair

Tri

age

Gro

up

Call Avoided?End

Assign to Trade Coordinator based on geography

Call Complete? EndYES

NO

Triage Coordinator

contacts Site for FAQ

process

Quote needed?

Parts Needed?

NO

YES

YES

Quote Approved?

End

NO

YES

Exe

ctu

eS

ched

ule

Tro

ub

lesh

oo

tIn

itia

te

Immediate Steps

Action Items Outcomes

Effective September 29th, two additional staff placed into Trades group to handle increase in volume.

Improve SLA performance toward the 90% KPI target.

Effective October 1st, appointed Mike Pujals to Demand Services Triage Manager to facilitate a higher level of expertise for responses to inquiries.

Improved troubleshooting and qualifying of incoming requests. Increased accuracy of responses to inquiries regarding scope.

Effective October 1st and ongoing, Trades Managers are retraining staff to a heightened sense of urgency.

Fewer Action Required inquiries from Gap. Improve SLA performance toward the 90% KPI target.

Effective October 7th and ongoing, Director level involvement on escalated issues.

Increased urgency and sense of ownership for escalated issues.

Effective October 8th, appointed dedicated Proposal Coordinator. Enhanced detail, transparency and standardization of proposals. Build level of confidence for RFT to our recommendations.

Effective October 8th, Trades Managers are micro-managing Out of SLA tickets to bring to rapid closure.

To bring overall SLA compliance toward the 90% SLA KPI target and hold at or above that level.

Field Operations to provide on site supervision for Re-clean services effective October 10th and will continue to provide crew training as needed on an ongoing basis.

Resolution of service issues and retraining of crews at the same time to avoid potential future repeats of poor performance. Keep QA issues at or below 5% KPI target.

Merging company-wide vendor resources (with a focus on Electrical) into WESTS system by October 24th.

Improved vendor leverage will expedite crew onsite time, service completion percentages and cost savings to Gap, to be measured by periodically reporting average ticket costs by Trade.

Reviewing and establishing non-Bundle General Trades markup/fee structure by October 29th.

Give Gap, Inc. the most competitive rates with a high level of transparency.

Setting up focused training seminars by SME’s for Trades groups to be completed by November 12th.

Increase trade-specific knowledge base of Coordinators allowing for better overall management of calls to improve SLA performance toward the 90% KPI target.

Coordinating a series of meetings with Service Channel to further integrate our systems and reporting capabilities by December 17th.

Increased ability to identify performance issues and opportunities to improve performance toward to KPI targets.


Business Improvement Plan - Update

Completed Tasks– Proposals- review & standardization– Risk mitigation & missed service asset protection– Field supervision efforts– Construction service issues– Work order process flow

In Progress– Organizational changes (team building & training)– Communication & team building– Reporting improvements- operations & field– Training of Trades team– System upgrade opportunities (Service Channel & USM)– General trades mark-up – Vendor ranking & procurement initiatives


Business Improvement Plan

October 15th Phase 1

LegendAccount Management Structure Communication Systems Service Delivery

Performance Reporting established

Critical mass of key vendors establishedFirst Draft

Performance reporting established

New Organizational structure in place

Second Governance Meeting

Initiate additional vendor sourcing

November 19th Phase 2 December 17th Phase 3

Vendor Ranking System Complete

January 21st

Initial Governance Meeting held All initial regional field

team meetings complete

Second set of regional field team meetings complete

Third set of regional field team meetings

completeWESTS

Enhancements Complete

Meeting with Service Channel


Gaining Gap’s Confidence

Provide weekly updates to Gap on state of USM’s Business Improvement Plan.

Keep Gap informed on any changes that might affect USM’s ability to meet their commitments.

Inform Gap leadership of any personnel changes that might impact Gap but have a long term benefit.

Share internal communication related to process change with Gap to ensure alignment and avoid any unintended consequences.


Summary

Through the successful implementation and execution of the Business Improvement Plan, Gap will realize the following benefits:– Service Delivery Consistency– Clear defined communication– Single point of contact with accountability – Transparency– Timeline based action plans with proactive suggestions– Integration of Governance committee that will continually stride

to enhance our partnership– Complete transformation from Business as Usual to

Performance as Envisioned – Stabilize Work order Management and IVR

USM’S BUSINESS IMPROVEMENT PLAN TMD-8303-PL-0001 Revision: 0, Date: July 2010.

Documents

Transcript of USM’S BUSINESS IMPROVEMENT PLAN TMD-8303-PL-0001 Revision: 0, Date: July 2010.