This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

Newport Consulting GroupOur Services and Value Proposition

January 2011

FOR DISCUSSION

Firm Calling Card 1

Our Firm

Our Service Areas

Credentials

Contact

Firm Calling Card 2

About Our Firm

Newport Consulting Group is an independent consulting firm founded in 1995 and managed by several leading directors from DMR Consulting Group and strategy firm Booz & Company

Our clients enjoy working with our experienced professionals who deliver large firm capabilitiesin the context of a boutique firm culture

We function as top-end, high-touch advisorsto our clients, unencumbered by large overhead cost models or downstream deployment agendas

Firm Calling Card 3

Our ClientsNewport Consulting has worked over the years with many leading and progressive commercial, public sector, and not for profit and charity organizations, in partnership and direct engagement formats.

Commercial Public Sector Not for Profit and Charity

Services and Software

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Our Firm

Our Service Areas

Credentials

Contact

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Our Practice AreasOur “SORT” practice model allows our clients to benefit from a broad, holistic perspective on key business challenges, while focusing deep experience in one or more critical areas.

Strategy

Operations

Risk &Program Management

Technology

What KPIs govern my initiatives, how do I know when they are “out of bounds”? What governance model do I need?

How do I create a culture of sustainability? How do I leverage disruptive innovations for marketplace

gains, creating an investment portfolio of new ideas?

How do I fit my organization to improve existing or introduce new operating models?

How do I structure the functions, people, and resources in my organization to drive strategic initiatives?

How do I enable change in the organization?

What approaches do I use to structure and prioritize initiatives inside my organization?

How do I manage and mitigate risk across my business operations?

How do I drive maximum value from my portfolio of initiatives?

Based on my operations and existing technology investments to date, how do I select and implement the best technology solutions to support my business?

How do I manage that process from planning to go live?

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Our ServicesWe maintain expertise in strategy formulation and execution with several key focused service areas where our experience can be leveraged to create high-value, low impact outcomes in the organization

Strategy Formulation and Execution

CorporateSustainability

EnterprisePerformanceManagement

PathwayInnovation

GovernanceRisk and

Compliance

ProgramDesign andOversight

Firm Calling Card 7

Corporate SustainabilitySustainability has Three Pillars — we find that while there may be an immediate focus on one key area of triple bottom line reporting, attention must be given to how reporting and decision-making occurs. This increases value drivers, reduces redundancy, improves operations, and manages costs.

Source: Various partner sources as modified by Newport Consulting Group.

We focus on creating sustainability programs based on strategic objectives that are feasible (possible), viable (achievable given resources), and material (important to the organization) while leveraging a partner ecosystem of tools, methods, approaches, and industry position.

Economic Environmental Social

Triple Bottom-line Scorecard

Sustainable Procurement Practices

BuyRecycled

Energy Efficiency “Do no harm”Reduce

Toxins Buy Local

1 2 3 4 5

Development of sustainability programs … with world-class sustainability partners.

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Enterprise Performance ManagementA closed-loop Enterprise Performance Management (EPM) model enables the development, alignment, and execution of strategy and operational excellence. We consider a life-cycle approach.

Six Stages of Enterprise Performance

Develop the Strategy – this involves applying tools, processes, and concepts, such as mission, vision, and value statements

Translate the Strategy – facilitate the strategy via maps, balanced scorecards, cascade targets

Align the Organization – both the business units and shared services units to the corporate strategy and the business processes

Plan Operations – translate the strategic objectives into rolling forecasts, activity-based costing, resource and capacity planning, dynamic budgeting

Monitor and Learn –managers continually review internal operational data and external data on competitors and the business environment

Test and Adapt – updating it when they learn that the assumptions underlying it are obsolete or faulty, initiate another loop around the system

Operations

Strategy

Reporting and monitoring

Productionand planning

Firm Calling Card 9

Pathway InnovationOur Pathway Innovation program is based on five years of research focused on investment driven portfolios, gate-driven processes, institutionalizing innovative behaviors, and benefit realization.

Pathway Innovation

Investment Driven Portfolio Gate Driven Processes

Institutionalizing Innovative Behaviors Benefit Realization

Innovation through financial enablement– Economic portfolio approach– “Interesting ideas” quickly

discarded– Returns quantified

Structure review process– Phases and gates known– Promotes solid idea candidates– Challenges “holistic” and

downstream thinking which may be lacking

Enabling innovation confidence– Identifying possible barriers– Addressing through

organizational change efforts– Support and encouragement of

risk-taking

Future outcomes depicted– Target states across pathways

may be articulated– KPIs and metrics known, tracked

and monitored

Framework for Pathway InnovationEnabling Factors to a Successful Program

Firm Calling Card 10

Governance Risk and Compliance

Source: SAP, Newport Consulting Group

Balancing Business Operating Models

When Strategy is lacking…– Uncoordinated and multiple company efforts– No direction, focus, or target audience mapping

When Risk Management is lacking…– Any path looks achievable at any cost– No personal accountability; everyone rolls the dice

When Opportunity is lacking…– Diminishing operating revenue and profit– Great ideas that never get to market or don’t sell

When Execution is lacking…– Any strategy seems correct with no realization– Everyone is an expert at poor performance

Governance ModellingBalancing Compliance Forces of the Operating Model

RiskManagement Opportunity

Execution

Strategy

Governance

Governance is the “glue” that holds together company business operating models — aiming to balance strategy, risk management, opportunity, and execution. Compliance frameworks - such as product quality, environmental, and trade restrictions - suggest the form of governance required.

Trade & Export Product & Service Quality

Environmental& Regulatory

Financial& Liquidity

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Program Design and OversightWe offer advisory and oversight services for program environments - regardless of sophistication, domain area, or need - including IT, business separation, post-merger integration, and IT operations.

We find that 95% of all issues related to technology programs have nothing to do with the technology used for enablement. As such we focus our review and planning activities on

stakeholder accountability, operating model alignment, and organization change management.

Typical needs during program design:

Define the new business structures needed

Create governance and align decision rights

Establish the case for change and future vision

Lead the effort and engage stakeholders

Align systems and structures to support the change

Introduce new work practices into the organization

Provide independent oversight, monitoring, reporting

ProgramArea A

ProgramArea B

ProgramArea C

ProgramArea D

Programmatic PMOs

Business Stakeholders

ProgramDesign

ProgramDomain

Business Structures

Application Services

Work Practices

Technical Infrastructures

Firm Calling Card 12

Our Firm

Our Service Areas

Credentials

Contact

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Credentials

Staff Credentials

Experience Profile– Minimum 20 years professional experience per staff– Management experience at one or more Fortune 1000

organizations– Practice and delivery management experience at top-tier

strategy firms– Client and delivery management experience at global

system integrators– International experience working with customers and

partners in Europe and Asia-Pacific

Education Profile– Minimum Bachelors degree– Preferred MBA, MS or other advance degree– Preferred professional credential (CMC, PMP, ASQ, SAI,

others)

Geographic Profile– Regionally based staff in the Midwest and Northeast

(particularly for public sector and automotive work)– Regionally based staff along the US Pacific Coast

(particularly for not for profit and high tech sectors)– All staff globally deployable to serve our clients– Global presence through our in-network partners

Out staff and leadership team brings to the table over 250 person-years of combined industry and consulting experience, without a large firm infrastructure and cost model. Our talent is your value.

Firm Calling Card 14

Our Firm

Our Service Areas

Credentials

Contact

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Contact