C ompass A ligned P erformance S ystem

1. Compass Aligned Performance System A simple one page strategic performance process that develops and focuses organisations and individuals Clive Howe +27 824545680 clive@caps5.com www.caps5.com

2. c@ps Every organisation is perfectly aligned to get the results that it does! Let c@ps align your organisation to get the results that you want! • CompassAlignedPerformanceSystem • Looking for a simple, effective and affordable strategic planning, implementation and performance process that aligns all the staff to achieving the vision? • Then c@psis the tool for you. • c@ps is delivered in a two day practical interactive session that produces a one page strategic plan, together with supportive individual performance plans for the next six months and an execution process to ensure the system is monitored and results are achieved. • Any existing Strategic Plan or Balanced Scorecard can be incorporated into the c@ps model with ease. • Further to the two day session there are follow up interventions designed around the organisational requirements to keep the focus and performance measures alive. Leaders will be coached on how to keep the plan active and to make adjustments when things change. • The people who have to perform create thec@psplans and, as a result, the buy-in and ownership is enhanced. • Thec@ps process is easily cascaded through the organisation from top strategy; to annual team plans; to individual plans and performance criteria. This holistic approach involves all the people in the organisation. This enables them to realise the contribution they are making to the achievement of the vision. • In large organisations, key people will be coached on how to facilitate the c@ps process through a methodology that is participative and motivating. This allows staff to quickly and effectively contribute to the success of the organisation. • c@ps Outcomes • A common vision • Improves executive time management • Creates a clear Strategic Focus at all levels in the organisation • Focus on the important issues requiring greatest improvement • Develops an organisational culture based on a collectively created set of values • Gives an understanding of those issues that are critical to the achievement of the vision • Each individual has a simple one page performance agreement for the next six months • Establishes tactics and actions to support the business goals • Establishes measurable performance indicators • Easy to change and adjust as required • Creates a striking easy to follow plan • Allows for ownership of the process • People are involved in the process • Motivates and aligns the team • Improved communication • Gets results • The 4 pillars that c@ps is built on • Simplicity • Ownership • Flexibility • Accountability

3. Compass Aligned Performance System A simple one page strategic performance process that develops and focuses organisations and individuals Background The c@ps process was developed by Clive Howe in 1999 having found that there was a need to simplify strategy and develop a process for easy implementation. He found that many organisations had very comprehensive and complex strategies but there was often a gap between the strategy and the operational implementation of this strategy. The c@ps process addressed this gap and people found that they could easily relate to the one page process.Over the years the process has developed and matured and many differing applications for the model have emerged. More than 130 organisations in Southern Africa, UK, Europe and Australia, have adopted or used the model in one form or another and this number is growing daily. The reason for this growth is the partner network of accredited facilitators who have access to the material and have been trained to facilitate the system. In July 2002 the book “Simple Solutions to Strategic Success” was published which gives a clear understanding of the elements of the process and its application. 15 months after the book was published it went into second print and continues to sell well. In 2004 a second book was published ”Simple Solutions to Balancing Your Life” and this shows how the c@ps process can be used to establish a life plan. A third book “Simple Solutions to Effective Marketing” was published in 2005. The modelThe model covers the main aspects of most strategic plans namely Vision, Values, Critical Success Factors, Key Performance Indicators and Strategic Objectives. It represents a 3 year plan for the organization. It is set out in a simple way so that one can see how all these align and are measured. The Key Performance Indicators are in the pink arrows on the left of the model and are the dash board measures for the organization.

4. The compass consists of the Vision, Values and Critical Success Factors. As the word c@ps suggests, everything should align and be filtered through the compass. It is important that time is spent creating these and wording them correctly to ensure that they cover all aspect of the organisation. The Strategic Objectives in the yellow section need to be allocated to people within the organisation to ensure that there is somebody responsible for each one. The implementation model sits below this with each member of the leadership team committing to and agreeing on their contribution in the next 6 months. Every individual in the organization can also have a single 6 month plan based on the overall strategic direction. The 6 month individual plans cover the following: Objectives for the next 6 months and the supporting actions and tactics to achieve these. Each objective is also measured and there is space to write up how well they were executed.The 6 month plan also has space to show the big goal that the organization or department is aiming for within that period. There is a section to write up what personal development is needed during that time to make the individual more effective. The final section of the 6 month plan is there to outline the best practices needed to be a more effective person. All of these can be measured and there is space down the left side of the model to make comments etc. Thus the system is able to be used as a performance process. PERFORMANCE AGREEMENT CRITICAL SUCCESS FACTORS VALUES VISION ObjectiveActions & Tactics MeasureBusiness PerformancePersonal DevelopmentPlanBest Practices Feedback The next two pages are examples of the three year plan and a six month performance plan

5. KEY PERFORMANCE INDICATORS CRITICAL SUCCESS FACTORS STRATEGIC OBJECTIVES VALUES VISION • CUSTOMERS • Comprehensive up to date data base of all customers globally maintained PJ • Website to be interactive and designed for global use DV • C.S.I. to be measured quarterly through outsourced partner PJ • Complaints logged through web site and dealt with daily – monthly check DV • Three year advertising campaign to be established and agreed upon PM • Open up European market PJ • PARTNERSHIPS • Establish a supplier list that links with the global requirements RM • SLA’s to be set up with all suppliers based on the win/win concept RM • Involve suppliers in the business so that they fully understand our requirementsRM • Develop a true partner relationship with all suppliers RM • Work towards an effective JIT system globally KC • PEOPLE • Develop a performance management process globally and implement CH • Create a performance culture within the organisation CH • Establish a recruiting policy that is internationally accepted & attracts the right talent CH • Create an induction process for all levels of staff that is process based CH • Ensure that appropriate Personal Development Plans are established for all CH • INNOVATION • Ensure that all technical staff have a development plan for full qualification KC • Executives and management to attend MDP programme through University CH • Annual international conference to be attended by cross section of management PJ • Develop a culture of innovation through formalized programme KC • Personal Development Plans to be carefully scripted and followed through CH • QUALITY • ISO certification to be maintained and established at new businesses KC • Mission Directed Work Teams process to be fully operational in all regions KC • To reduce the warranty claims throughout KC • To measure and monitor product and service consistency PJ • INTERNATIONAL GROWTH • To develop the Australian market and establish suitable partner PJ • To add critical mass to the European market – Germany in particular PJ • To establish exchange process for technical know-how KC • To link customer in to the international loyalty programme DV • FINANCIAL PERFORMANCE • Implement common back office system throughout the regions DV • Audit process to be quicker with per prepared audit packs JF • Develop monthly dashboards and implement JF • Develop stocks & debtors monitoring process to improve working capital JF • Management accounts to be completed for all regions – 3 working days JF C.S.I. +92% Reduce complaints by 12% 1. To identify, attract, satisfy and retain a sound customer base. INTEGRITY I will be open, honest and consistent in allclient dealings. I will conduct businessin an ethical way COMMITMENT TO SERVICE I will keep clients informed and to give a service and follow up that is world class. INNOVATION & LEARNING I will keep up to date with developments in training and current business thinking PROFESSIONALISM will take pride in all I do and not allow work of a sub standard to go out TEAMWORK I will Do what it takes for my team to succeed whilst supporting the success of the greater team RESPECT I will treat others as I would like to betreated 2. To create mutually beneficial relationships with selected suppliers All regions to have SLAs in place 3. To recruit, attract, develop and retain world class talent. Staff T/O less than 12% 4. To ensure ongoing innovation and learning takes place We will be a global player offering superior service to selected customers. We will be leaders in our field and be known for our innovation. 10:2:8 1 MDP per reg. annually Technical Qualifications tracked 5. To have a sustainable quality process to reduce waste and ensure consistency of product MDWT level 3 ISO installed 6. To continually network with local & International organisations to ensure global footprint. Germany 10mAustralia 8m 7. To ensure all administrative and financial controls are rigorously adhered to. 18% PBT Debtors 37 days Stock turns 12 XYZ COMPANY- 3 YEAR

6. CRITICAL SUCCESS FACTORS H2 PERFORMANCE AGREEMENT – December 2006 VALUES VISION Objectives for the next 6 months Feedback Measurement Actions and Tactics Objective 1. To identify, attract, satisfy and retain a sound customer base. INTEGRITY I will be open, honest and consistent in allclient dealings. I will conduct businessin an ethical way COMMITMENT TO SERVICE I will keep clients informed and to give a service and follow up that is world class. INNOVATION & LEARNING I will keep up to date with developments in training and current business thinking PROFESSIONALISM will take pride in all I do and not allow work of a sub standard to go out TEAMWORK I will Do what it takes for my team to succeed whilst supporting the success of the greater team RESPECT I will treat others as I would like to be treated 2. To create mutually beneficial relationships with selected suppliers 3. To recruit, attract, develop and retain world class talent. 4. To ensure ongoing innovation and learning takes place We will be a global player offering superior service to selected customers. We will be leaders in our field and be known for our innovation. 10:2:8 5. To have a sustainable quality process to reduce waste and ensure consistency of product 6. To continually network with local & International organisations to ensure global footprint. 7. To ensure all administrative and financial controls are rigorously adhered to. XYZ COMPANY- July 2006

7. c@ps Execution Sheet Name: Period: Personal Development Plan Still need to start with the German Business book reading is going well. Just finished Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne Walking and diet going well at present

8. How to keep the c@ps process alive (The Execution Sheet) Once the3 year c@ps and the individual 6 month plans have been established, it is important that the process is kept alive. One of the biggest problems in business today is how to execute on the strategy. The Execution Sheet is an important document, that if used correctly, will ensure that the process is monitored and that individuals are held accountable for the aspects that were agreed in the planning stages. 2 days before the monthly meeting (or weekly if this is the case) each person attending the meeting should complete the Execution Sheet stating how they are doing against each objective outlined in the 6 month plan. They should also fill in the progress that has been made to date. If they need assistance or a decision. (this should be filled in in the shaded section at the bottom of the page) These should be e-mailed to the person chairing the meeting who will do a triage prior to the meeting and decide what is really important. At the meeting each person will have 3 minutes to outline the progress of their c@ps objectives. Should any discussion be required or a decision be needed this will be taken care of in the meeting. It must be noted that the meeting is not a platform for general discussion or operational issues, but rather to discuss things that need to be communicated, require a decision or need someone to clear the path for the person who is discussing their Execution Sheet. The idea of this meeting is to establish how the objectives are progressing and where help is needed. It is critical that these meetings are very focussed and are of a short duration. Should anyone not complete their Execution Sheets then their objectives will not be discussed or mentioned. It requires discipline to have the meetings and to complete the forms. The same form can be used for one on one meetings with managers that are held before the six month c@ps is completed.

9. Some organisations that have used the c@ps process

10. Clients comments:“I thoroughly enjoyed and tremendously benefited from your presentation and the hard work you took us through. The c@ps process is the most concise, coherent and effective goal-setting procedure I have come across. I will be applying it in many more scenarios than just my business.”Scott Marques- Managing Director, Imtec Sales (Pvt) Ltd. “It’s unusual to find a process that broadly covers all the elements of a business. I would never have believed so much could be achieved in such a short space of time. I can highly recommend the process.” Simon Thomas - Managing Director, GEA Process Technology “...this is the most comprehensive strategy integration plan I have been exposed to”Russel Swarts – CFO, Worldwide African Investment Holding ”Of all the strategic processes I have been exposed to, c@ps is the most practical I have seen.” Simon Cleasby - Managing Director, Tongaat Hulett Triangle “I thought I would share some of our achievements with you for October. We broke all records and I firmly believe that this success has been due to the c@ps process. So to you many thanks.” Doug Stubbs – Director, Omnia “I wanted to give yousome follow-up on DRG Outsourcing’s progression. This year our sales are up 82% over sales for the first six months last year. We have seen growth in the right areas, and much of our success can be traced to our c@ps discussions and plans. PRO67 is well on track. Thank you and Regards, Dave David White “The c@ps plans have given our area managers a great deal of focus and is aligned with our strategic intent.” Rob Clark - Managing Director, Omnia Speciatities. “I couldn’t believe that we could achieve so much in such a short time frame. I really has helped us focus on the critical issues.” Patience Makjadi – Manager, Transnet Housing “We have been using c@ps now for 2 years and it has transformed the way we do business” Mark Fitzgerald – Director, Publicis Blueprint -UK

11. The 2 day c@ps programme • This programme deals with the creation of a strategic plan and how to implement the strategies and inculcate the values that have been established. Two days will be spent in a workshop environment creating an overall strategic plan and focusing on the individual plans needed to sustain and achieve the overall vision. • Who should attend : All management staff who are involved in planning. • The Programme Outline : • The objectives and outcomes of the programme. • Short presentation around c@ps • Exercises to develop creative thinking in preparation for opening the mind. • Internal analysis of all aspects of the organization done using the three C’s model – Concept, Competencies, Commitment – group feedback. • External view of the organisation and the environment (Stop, Start and Continue exercise) • Developing a 3 year vision for the organisation • A practical exercise that relates to the setting and achieving of a vision. • The development of Critical Success Factors from which the strategies and tactics emanate. • Creating Key Performance Indicators – measurables and benchmarks. • The building of strategic objectives that support the Vision, Values and C.S.Fs. • All this work will be documented and captured in the c@ps format. • The development of a set of values and acceptable behaviours, which will create the culture of the organization. • Much of this should be completed during the first day so that delegates will see the c@ps model at the start of the second day. • Time will be spent adjusting the content and making changes. • Allocation of responsibilities for each Strategic Objective. • Creation of individual 6 month plans to support the overall strategic plan • Sharing of these individual plans to gain agreement • The execution process and how this should work • An exercise on planning and strategizing will be done. • Each delegate will have a hard copy with the overall plan on and the blank for creating their plans. • How to communicate and involve other staff with buying in of the Vision. • The way forward • Duration: 2 days initially to set up the process and then follow up sessions to ensure that the process is working and results are being measured. For more information please contact: Clive Howe +27 824545680 clive@caps5.com Or look on the website: www.caps5.com

12. The strategy canvas of (What differentiates c@ps from other strategic processes) A survey conducted by 13 independent consultants High Other processes Low Price Complexity Accountability Executionprocess Flexibility Drill down Time (duration) Time to producefinal documentation Ownership Performance Sustainability