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GlobalControllershipTransformationRoadmapDraft2ContentExecutiveSummaryHistoricalPerspectiveNeedforTransformationNewVisionandStrategyTransformationApproach2003&BeyondImplications3CorporateControllerExecutiveSummaryExternalbenchmarkingindicateswearebestinclassforControllershipcostat.85%ofrevenue…evenfurtheraheadintransactionalprocessing(25%ofFinancecostsrelativeto39%onaverage)Reducedoperatingcostby9.6%during2001and2002…additional20%runrateimprovementplannedfor2003DramaticallyimprovedreportingstabilityandqualityinaveryunstableenvironmentandexpandingscopeofresponsibilityImprovedbalancesheetvisibilityandqualityduring2002…cutun-reconciledbalancesby70%ImprovedfinancialcontrolsandinternalcontrolenvironmenttosupportqualityofattestationsImprovedflexibilityduring2002andcommittedto45millionofflexibilityin2003Began2001withafixedcostbaseof90%….by2005,ourstrategywillgetusto80%variablecostbaseAlthoughwehavenotcompletedourprocessmapping,ourlearningfromprocesseswehavealreadymappedtellsusweprobablyhaveablended6sigmaqualitylevelofbetween1&2sigma…dependingonCBA,wewilldeterminewhatprocessesneedtobe6sigmaandgetthoseto6sigma.Thisshouldgetustoablendedsigmascoreofbetween5&6sigmaby2005Ourstrategywilltransformusfroma$231millionnetcashflownegativeorganizationto$57millionnetcashflowpositiveby2007PreliminaryNPVisestimatedatover$400millionover5yearsWewillgettherebyimprovingourspeed,quality,flexibilityandvalue4BaseCostReductionof16%Over4Years2002102202302402502602701999200020012002ControllershipExpenseBase($millions)BaseExpenseTransferInTransferIn9.6%reductionfromendof2000to20025CostReduction,NotTransformationPrimaryleversofpreviouscostreductionefforts•Consolidation/migrationofworktolowercostlocations•HeadcountreductionIndicatorsofOrganizationStress:•UnpredictableProcesses•HeroicEfforts•HiddenFactories/RedundantActivities•ConfusingInterfaces•SubjectiveMetrics•ControlBreakdowns6VisionandStrategiesVisionMissionStrategicTobeagloballyrecognizedleaderinfinancialcontrol&integrityEnabler:Createafast,flexible,efficient,qualityandcustomerdrivenorganizationthatisfocusedonshareholdervaluecreationToprovidesuperiorshareholdervaluethroughworldclassdeliveryoffinancialintegrity,riskassessmentandcontrolleradvisoryservicesGlobalizationProcessExcellenceCustomerFocusFlexibilityDevelopstandardglobalproducts,deployedbyaflexible,highcaliberteamofpeople,enabledwithworld-classtoolsandprocessesStrategicImperatives7ActionableMetricsLowestProcessLevelMeasuresCustomerSatisfactionOnlyNotManageableSimplyProcessOutcomeCustomersInternalExternal-GLT-Regulators-FLT-TaxAuthorities-BUCust-Banks-Utility-ExternalCustomers-RatingAgenciesProductsResultsMetricsSpeed:RightTimeQuality:ThingsGoneWrongFlexibility:SpeedofChangeValue:Cost&CashFlowABCDProcessesPeopleTools123456789Processes&ToolsProcessMetricsSpeed:RightTimeQuality:RightTheFirstTimeFlexibility:SpeedofChange(modificationwhilemaintainingspeed,quality,&value)Value:RightCost&CashFlowCreationControllershipOperatingModel8TransformationRoadmapCorporateAlignmentLaunchFABDevelopFABmodelBecomingASixSigmaOrganizationFall2001Q12002Q22002Q3-Q42002Q1-Q22003Q3-Q42003Q1-Q22004FinanceasaBusinessDevelopmentOfStrategyCorporateAlignmentFixStructureFixTools&ProcessesDeployMetrics2002Build“BuildControllershipOperatingStructureand...