FPC SME Pty Ltd Trading as First Princples Consulting Report date: 4/11/2021

Prepared By: Alex Franklin Prepared for: Cat McNab Company name: Strap Stretch Client number: 1002 Website: www.strapstretch.com.au Company Size: 1 (sole trader) Turnover: $0 - $99k

Discovery Report

Dear ,Cat

Thank you for taking the time to complete our survey and interview process.

This report is structured as follows:

Discovery report explained 1.

Business maturity score 2.

Results overview 3.

Detailed results 4.

Recommendations and next steps 5.

We recommend working through the report from start to finish and making any notes of questions you might have. Once you have read the report, please with your consultant, .schedule a time to debrief Alex Franklin

Wishing you great success with your business,

Alex Franklin

Founder and Managing DirectorFirst Principles Consulting Small Medium Enterprise (FPC SME)

© FPC SME PTY LTDAll Rights Reserved, 2021

Discovery Report ExplainedThis report assesses both your business’s operational effectiveness and efficiency to help understand your business’s maturity. It aims to capture as much critical detail to create insight and awareness so that your business can prioritise and focus its attention on what’s critical.

Efficiency and effectiveness are often used interchangeably but their meaning is quite different and it’s important to understand the difference as this is where companies, both big and small, get it wrong.

Effectiveness is the ability to realise an objective.Efficiency is the amount of effort it takes to realise an objective.

One way to think of it like a game of capture the flag. Your objective is to capture the other teams flag. You are effective if you can capture their flag without losing your own in the process. You are efficient based on the time it takes to capture the oppositions flag and/or how many people (resources) you need to do that.

Common mistakes1. Efficiency over effectivenessWhat most companies get wrong and why consultants have a bad name is they don’t fully understand the difference or are driven by the wrong metrics. Your business has to be effective before you can be efficient. Tactics to improve efficiency without first being effective may increase an organisations short term efficiency. All things come at a cost and often that means that the organisation is less effective. These short term gains may improve the bottom line in the short term but will be expensive in the long run.

An example of this is large scale lay off at a corporation, the bottom line improves because the cost of wages has gone down. Effectiveness remains roughly equal in the short term as the remaining employees shoulder the extra work load but over time morale decreases, discretionary effort goes to zero and now the company has to find new ways to engage and motivate their employees. It becomes a tit for tat, trading time for money mentality. Turnover starts to creep up which costs the organisation in time and lost productivity.

Whilst a dramatic example, you’ve probably seen something like this play out on some level during a previous career/job or through friends and family.

2. Tools and technology as the solutionThe next thing many businesses get wrong is not understanding that technology enables processes and processes support people.

Most people and by extension their business have shiny object syndrome which focusses on technology or tools to solve their problems. They then try to fit this to their business which doesn’t work with how they operate. Now they have created a mismatch between how they do things and the tools for getting the job done. Instead, organisations need to follow the people, process, technology hierarchy:

People - getting the right people in your business, one’s that share your vision and values. 1.

Process - establish the processes that work for your business. 2.

Technology - enable and turbocharge your processes using tools and technology. 3.

If you’re a plumber and were given $250,000 to buy as many tools as you wanted how much would this improve your business? How would you know what to buy? You could buy all new tools, a new vehicle and trailer but what would change? You can’t get to jobs quicker in your new truck.

So in this example, how would you make the most of your $250,000 windfall? Firstly, you’d examine how jobs are done (the process) by engaging the people. Only once you’ve done this can tools help you to complete the job faster.

3. Not managing changeOvercoming the existing momentum within an organisation is hard and to make matters worse, the uncertainty of change is unsettling and disruptive. Companies, big and small, consistently get change management wrong which is the sole causeof .why 70% of projects fail

The foundation of FPC’s project success over the past decade is in its integrated approach. Businesses looking to change tend to focus only on their organisation structures, systems and processes when attempting to introduce a higher degree of order and operational discipline. Over time, we have learnt that to make such improvements sustainable there is an equal need to consider prevailing attitudes, cultures, mindsets, leadership and behavioural preferences.

Organisational change requires individuals to change, which means they need to understand the organisation’s motivation - the ‘why’.

 •

Organisational outcomes are the collective result of individual change. •People performance and change management provide the platform for effecting organisational change. •

Therefore, a structured and integrated approach to people and change management at both the individual and organisational level is critical. This needs to happen simultaneously to business improvements.

Putting this all togetherUsing this report with a clear understanding of the common mistakes business make when trying to improve you are now empowered to identify the root causes within your business so that you can take the best course of action.

How can you tell a root cause from a symptom? A root cause can be defined as the absence of best practice or the failure to apply knowledge that would have prevented the problem. The symptom can generally be easily identified by the things that are most frustrating or painful within your business.

Business Maturity Score

BUSINESS EFFICIENCY

80%

BUSINESS EFFECTIVENESS

60%

BUSINESS MATURITY

How does this rank your business? See the matrix below where:

Green (15 - 25) = excellent (no immediate action required) •Yellow (8 - 14) = good (action required within next 60 days) •Orange (4 - 7) = fair (action required within next 30 days) •Pink (1 - 3) = poor (critical - act now) •Red = your score •

15

25

35

45

55

1 2 3 4 5

2 4 6 8 10

3 6 9 12 15

4 8 12 16 20

5 10 15 20 25

1 of 1

15 25 35 45 55

Efficiency Effectiveness

Total score Total score Total score Total score Total score

Results OverviewResults By Category

CATEGORY

YOU

R SC

ORE

(%)

LEADERSHIP AND MAN... OPERATING PROCESS SUPPORTING PROCESS0

20

40

60

80

100

Results By Sub-category

SUB-CATEGORY

Best possible score Your score

BELIEF

S

LEADER

SHIP

MANAGEMEN

T

VISION AND ST

RATEGY

MARKETIN

G AND SALE

S

DELIVER

Y

CUSTOMER

SERVICE

HUMAN CAPITAL IT

FINANCE

ASSET

SRISK

EXTE

RNAL REL

ATIONS..

.

BUSINES

S CAPA

BILITY

EFFIC

IENCY

EFFE

CTIVEN

ESS

0

10

20

30

40

Sub-category Ranking

SUB-CATEGORY

YOU

R SC

ORE

(%)

ASSET

S

EXTE

RNAL REL

ATIONS..

.

CUSTOMER

SERVICE

FINANCE

VISION AND ST

RATEGY IT

HUMAN CAPITAL

BUSINES

S CAPA

BILITY

EFFE

CTIVEN

ESS

BELIEF

S

MARKETIN

G AND SALE

S

LEADER

SHIP

EFFIC

IENCY

MANAGEMEN

T

DELIVER

YRISK

0

25

50

75

100

The ranking graph (above) shows your score as a percentage of the best possible score based on the nature of your business. Address the lowest scoring items first.

Detailed Results

Leadership and Mangement

SUB-CATEGORY

Beliefs

YOUR SCORE

66.67%

SECTION COMMENTARY

This section highlights our limiting beliefs on money and wealth. You can’t come that which you resent so if you resent the wealthy how can you ever become it? This manifests itself in your business as subconscious self-sabotage.

Our connections with money are often emotional and based on personal experience. Ask yourself, where did these beliefs come from and how have they been reinforced. Think about growing up, how did your parents talk about and frame money in your life?

INTERVIEW RESULTS

Strongly agree(1) - Strongly disagree(5)

Do you believe any of the following about having or making a lot of money or wealth?

Creates unhappiness, •Is evil, •Is shoddy/wrong/dishonest, •Is a result of the rich take advantage of the poor/disadvantaged,

 •leads to loneliness or isolation? •

You believe that there is a lack of money in the world? E.g. not enough for everyone/not enough to go around?

Strongly agree(1) - Strongly disagree(5)

You feel comfortable in luxury environments? E.g. if you go to a 5 star hotel or restaurant do you feel like you belong there or like a fish out of water?

Strongly agree(5) - Strongly disagree(1)

You believe that if you just do good work and nothing else the money will take care of itself?

Strongly agree(1) - Strongly disagree(5)

You think of your business as the product. Strongly agree(5) - Strongly disagree(1)

You believe it’s more important to work ON your business rather than IN your business?

Strongly agree(5) - Strongly disagree(1)

1 of 14

Question Score Yes/No Scale N/A?