Chicago Pricing of ServicesProcess Rollout

C O N F I D E N T I A L

POS Rollout

POS process:Corporate priority for 2003

-Improve on an already good processin the MW Region-Drive consistency throughout the Region-Cross-functional team

POS: Use data to develop a strategy to obtain proper compensation!!POS: Use data to develop a strategy to obtain proper compensation!!1

Scheduling and Pre-work

Marsh Chicago POS Process

Pricing of Services

POS Committee Meeting L2

Follow-up and Tracking

L1

L3

MeetingExecution

Documentingof Action Items

Create meeting expectations

Pull ITS data and combine

with CA

Provide to POS coordinator 5 days prior to mtg

Send formto CAs onaccount L4

CE preparesPOS document

Schedule POS mtg

Account selection

Trackingmechanism

Follow-upProcess

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POS Process

Importance of POS:

- Aligns our services with what clients want, value and are willing to pay for

- Supports revenue and growth goals

- Assures adequate profitability (shareholder earnings)

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Price without Service is meaningless, determining the Price is priceless!Price without Service is meaningless, determining the Price is priceless!

POS Process

1) Account selection- Primarily revenue driven: Chicago Model:

- RM: accounts with revenue > $150K

- MM: accounts with revenue > $100K

- Selection targets 95 RM and 75 MM accounts for ‘03- New Business: Formal RFPs > $75K - complete EZ form - submit for review- Each office needs to determine their capacity and factor in revenue and margin to plan and schedule their activity

Additionally - - POS committee or management, may choose to request a POS review on any account- Any CE or product line manager can request a meeting

Account selection targeting review of 75% of Office revenueAccount selection targeting review of 75% of Office revenue4

POS Process

2) Scheduling - Recommending a set day, time and room!- RM: 1st and 3rd Mondays of each month: 8:30am to noon

- MM: 2nd Monday of each month: 8:30am to noon

- Fourth and Fifth Mondays: - Margin driven / catch-up / reschedules

When in cycle:- 90 days out (major billing date or CSA anniversary). For example: 10-1

renewal – POS mtg date of 7-1 – reminder sent to CE 6-1

Other: - All CEs should have their POS schedules (distributed at rollout

meetings)- Reminders and all scheduling requests - POS coordinator

NO one-off meetings - MONDAYS are the standardNO one-off meetings - MONDAYS are the standard5

POS Process

2) Scheduling cont. “POS coordinator”: Each office should designate

- work closely with POS chair and POS leadership in RM and MM- schedule the entire year - coordinate changes to schedule

- send CEs email reminders 30 days and 7 days in advance of POS mtg - answer questions and assist CEs with forms / technology as needed- serve as data coordinator and distributor - scribe during the POS mtg, responsible for follow-up and data tracking

What if CE cannot attend or must reschedule:- CE needs to reschedule within the same month they were originally scheduled (realizing the 4th Monday open)- Failure to reschedule within the month: CE added to the monthly delinquent list which will be sent to the Office and Region head

POS coordinator: Key resource for CEsPOS coordinator: Key resource for CEs6

POS Process

3) Meeting preparationData:

- Edward Client Profitability report - ITS time report - Distribute one page Client advisory input form (optional - tab on EZ form)

Form:- Complete EZ form : Tim - form has 7 tabs - we will want to go through each tab

Additional form - - Detailed Cost form if account is red (<0%) or yellow (1-24%)

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New form geared towards streamlining preparationNew form geared towards streamlining preparation

POS Process

4) POS MeetingData distribution:

- CE to send completed form to coordinator - no later than Wednesday prior to the meeting- Coordinator to distribute to appropriate committee members

Focus:- Data / numbers, allocations, and staffing – all are key elements, but should not be the primary focus (10 minutes or less)

- POS form should articulate what we do for the client and what level of colleagues are doing the work-CE’s rationale for their recommendation, negotiation plan to obtain the ‘03 targeted price and who at Marsh should meet with the client - key focus (20 minutes)

Preparation is key to a productive POS meetingPreparation is key to a productive POS meeting9

POS Process

5) Meeting execution and follow-up:POS Committee:

- RM: POS chair, CE PL, CE Team leader(s), Sales leader, MSO, Product line managers (their choice)- MM: POS chair, MM leadership, Sales Leader, MSO, EBS

Leadership:- POS chair to run the meeting and keep the group focused- Coordinator takes meeting notes and captures action items- POS chair closes with Minimum, Base and Target Price

Follow-up:- POS coordinator to distribute meeting notes as appropriate- Completed action items and client meeting / agreed price - noted on EZ form and sent to POS coordinator by CE- POS coordinator to complete tracking form and distribute final EZ form as needed - final EZ forms stored in a limited access folder on the S drive

Timely follow-up to drive data integrityTimely follow-up to drive data integrity10

Importance of POS

•Better understand our clients and their needs

•Promotes communication and collaboration between the Client Executive and Client Advisory

•Office administrator is an integral part to leveraging POS information for financial reporting

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POS Process