February 20th, 2008

2008 OE Business Plan

2

Background

• OE intended to be self-funding marketing program:- Lightning rod for new clients- Entry-point to Lean Six Sigma, SSA- Opportunity for SSA to understand client’s business needs, describe application of

LSS to support business goals (upsell)

• Clients continue to use OE Program as:- Toe in the water – testing LSS to better understand fit & function- Training program –either to supplement in-house training (larger clients), or as their

LSS training program (e.g. Covance)- Provides flexibility to out clients … but a little skewed form our intention to use OE

as “lead generator”

• Program Performance:- Stabilized at about 100 students/year

• High-mark in 2003 – 211 students – significant Executive/Champion attendance- Approximately 75% of students in 2007 were from existing SSA clients

• Indication of strong brand – reflection on instructors/program• But not a significant portion of new clients – contrasted with purpose of program

- Upsell conversions in 2007: Kroger, Qualcomm

3

Conferences

MD Sales Calls

Company Initiative (17%)

Webinars

Web/E-Mail (3%)

Gold Belt

MBB

DFSS

Upsell(Deployments)

≈75% SSA Clients (OE or Deployment)

77 students $945K

25 students$398K

4 students$42K

Kroger$120K

Qualcomm$50k

Modec, OI,UST, Voith,

IPSCO, Covance?

Other (6%)

Existing Clients/Referral (74%)

106 Students, $1.4M Revenue106 Students, $1.4M Revenue106 Students, $1.4M Revenue106 Students, $1.4M Revenue

OE 2007

4

2008 OE Program goals

1. Focus attention o different ways to generate leads:- Target & attract new clients from new sources- Double performance from 25 to 50 (including Int’l)

2. Double number of upsell conversions from two to four– Experiment with more "entry-level" products– Work to deliver greater business impact (more client visits)

3. Establish foundation fro growth:- Leads coming into program (front-end)- Establish upsell process- Develop foothold in Europe of a repeatable program

4. Develop a better understanding of OE market and competitors

5. Use OE to develop & test modules for Business Belt

5

2008 Business Plan

1. Establish universe of new leads:- E-Mail advertising campaign:

• Microcosm of SSA&Co. marketing approach• Identify target vertical industry sources for e-Mail and/or advertising – new leads• Expand our LSS marketing sources (e.g. ISSSP) – to sustain & refresh LSS leads• Anticipate cost somewhere in the $25,000 range

- Establish different or additional “entry point” for new clients• Gold Belt is only practical offering at this time for new clients• Consider developing:

- Short on-site overview/introductory session (1/2 day to 1 day)- Green Belt/Yellow Belt offering – small regional classes?- SPM?

- Webinars – Establish procedures to capture and act on leads generated through external Webinars delivered by SSA.

- Conferences – target and attend conferences to increase and qualify leads – including initial contact in UK. Anticipated cost: $25,000.

- Phone campaign – Extend Leslie’s trip to UK to assist Ian in contacting European leads to generate interest in SSA’s OE UK program.

6

2008 Business Plan Continued …

2. Plan to increase upsell conversions:• Volume: increase leads coming into program (item 1 above)• Personal contact with Belt/Champion at client site

– Listen & learn clients’ needs, position our services accordingly

3. Establish foundation for growth:• Momentum – investments in Webinars, Conferences, e-Mail campaigns increases

population of prospects for 2008 and beyond• Invest in some on-the-ground support to launch Europe GB program• Learn from upsell experiments/experiences in 2008, revise to improve 2009+

4. Develop a better understanding of the OE market/Competitors:• Tylar as central clearinghouse for all market and competitor information• Engage team to follow-up on (research) leads on competitors/market info.

5. Use OE to develop & test Business Belt modules:• Crawl – Identify and develop 2-4 key business belt modules – offer as optional

add-on days at no cost to Gold Belt students.• Walk – Include in Gold Belt program offering going forward at a fee (TBD)• Run – likely 2009 – develop Business Belt as a stand-alone offering

7

The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean®, Breakthrough Strategy®, Breakthrough Value Services®, Breakthrough Change StrategySM, Breakthrough DesignSM, Breakthrough DiagnosisSM, Breakthrough ExecutionSM, Breakthrough Sigma LeanSM, Breakthrough Six SigmaSM, Breakthrough Software DesignSM, FASTARTSM, Six Sigma Gold BeltTM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIMESM. Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises.

Six Sigma Academy International, LLC

630 Fifth Ave., Suite 1900

New York, NY 10111

Tel. (212) 332-3797

www.6-sigma.com