Development & Integration of the Cross-Functional Plan

2. Business Plan Implementation Development & Integration of the Cross-Functional Plan

3. Strategy Development Positioning Statement ABC Agency provides superior Risk Management Services, Comprehensive Insurance Programs, and Award Winning Expertise to Client Relationships based upon an unparalleled standard of value, integrity and trust.

4. Strategy Development Goals • Total Agency Revenue: 2004 – 3.0 M, 2005 – 4.3 M, 2006 – 5.75 M. • Retention for new market segments: 98%. • Revenue per employee: $ 156. • Profit per account of $7,500 - $10,000. • Implement Banner/Polestar production and retention business model for new markets. • Create and implement long-term, staggered marketing plan with Banner/Polestar. • Partner with one additional national or large regional carrier partner in 2004, another in 2005. • Populate new agency organizational chart with selected specialists – build agency staff and valuation while maintaining the “no hired guns” strategy. • Cross-sell all appropriate accounts based on need and the desire to truly take care of each client on all fronts. • Create and populate Top 100 client portfolio and increase qualification requirements over time. Build the book by adding larger accounts and removing smaller, less profitable ones.

5. Sales Plan Development SWOT Strengths Opportunities • Unconventional approach to sales – no “hired guns” or commission only employees. • Ability to offer comprehensive, multi-line, complex programs. • Legitimate consultative approach to new business development. • A team-based, organizational approach to client development. • Unusually high-level of expertise and experience among the staff and principals. • Agency easily differentiates against competitors based on integrity and the strength of their value proposition. • Technology Industry • Manufacturers – specifically complex/difficult to write accounts that need to be rehabilitated. • Printers & Publishers • Accounts currently placed in the State Fund that can be rehabilitated and written conventionally. • Affinity programs from targeted industry associations. • Networking and referral harvesting opportunities from alliance partners such as legal firm. • Continued “hands-off” development of the contractor market. Weaknesses Threats • Execution depends upon the Principals ability to manage agency priorities and opportunities while remaining healthy – physically, emotionally, and spiritually. • Additional staff must be culturally compatible with team and added very strategically. • Implementation schedules must consider the size of the organization which can be easily overwhelmed by too much too soon. • Failure to maintain commitment to Hartford while supplying new markets with business flow may spark punitive action. • Opportunities must be developed and serviced to ensure an adequate ROI. Principals must be willing to “walk away”. • Limited appetite of existing markets and limited availability of new markets. • Existing marketing protocols are not appropriate for new target markets. Traditional telemarketing will not work. • Business mix is heavily weighed toward small accounts and large premium accounts may be scarce in the Tech industry. • Funding for all sales and marketing initiatives must be managed carefully to avoid impacting cash flow. • The organizational transition to the new model will be challenging and disruptive to staff due to the volume of business currently being managed.

6. Sales Strategy Development Agency Dynamics POSITIVE NEGATIVE • Cultivating Relationships • Reputation • Corporate Culture • Capabilities • Progressive Thinking • Technology • RM & LC Approach • Contacts & Affiliations • Commitment to Integrity • Geographic Limitations • “Legacy Based” Marketing • Limited Markets • Existing Business Mix • Perpetuation Plan • Corporate Identity • Corporate Positioning

7. Strategy Development Market Dynamics POSITIVE NEGATIVE • Carrier Partnerships & Commitment • Average Premium Values are ? • “Tainted” Buying Habits • Lack of Carrier service • Uneducated consumers • Perception of Product/Price • Target Market Selection • Ability to Differentiate • Agency Value Proposition • Client Communications • Excellent Referral Base • Can Compete Against Price/Product Sale • Holistic Approach to client Development

8. Department Plan Development Critical Success Factors • The creation and implementation of a step-by-step, carefully coordinated, and fully integrated marketing, sales, and service plan. • Branding, packaging, and merchandizing that differentiates all service, product, and agency offerings and harmonizes with the positioning statement. • Ability to staff strategically, affordably, and proactively for growth. • Must strategically partner with another prominent carrier with an appropriate appetite. • Should maintain strong base of contractor business and continue to support the “production machine” in this market segment. However, Principals must become “hands-off” all but the largest and most valuable accounts. • Agency Priorities must revolve around four critical objectives – Production, Retention, Efficiency, and Profitability. • All marketing and sales initiatives must be evaluated for ROI and measurably contribute to the bottom-line. • A segmentation strategy for all market segments – based on minimum account size, cost of doing business, and cultural compatibility – must be adhered to as the Top 100 group is created. • The Agency cannot be entirely dependent on Principals for production and client relationships. A working perpetuation plan will be created and followed.

9. At-A-Glance Performance Map OBJECTIVES STRATEGIES TACTICS ACTION STEPS • Research target companies and develop personalized target marketing plans for the CEO of each top-20 account • Research and enroll in a minimum of one trade association for each target market and subscribe to the emailing lists of at least three per market. • Conduct at least one seminar or round-table for each target market per year. • Attend one trade show and give workshop for each target market per year. • Ask for a minimum of two referrals per week from industry contacts, associates, etc. • Target one large affinity marketing program per year. • Implement “off-ex-date marketing strategy that focuses on needs assessment and unique sales model. • Conduct at least one prospect assessment per week. • Develop complete list of value-added service offerings for each market and segment based on size of account. • Initiate prospect marketing touch schedule for all top 20 accounts with the goals of differentiation and client education. Establish markets and build a unique value-proposition for each: Identify top 20 targets in each market based on size & need. Join Industry Associations and actively participate. Create educational programs to inform about unique risks. Create referral prospecting list for each market. Construct Sales Kit Construct Needs Assessment Construct Client Management Plans Create Agency Positioning Statement Develop Agency Corporate ID Create a list of client-centric marketing events that differentiate Agency. Uniquely brand & package, the value-proposition. Create and present two year sales & agency growth plan to staff & carrier partners. Total Agency Revenue (M) 2004 – 1.0 2005 – 1.3 2006 – 1.75 • Technology • Printers & Publishers • Manufactures • Wholesalers Create and implement long-term, staggered marketing plan with Banner/Polestar. Retention for new market segments: 98% Partner with national or large regional carrier in 2004, another in 2005. Revenue per employee: $ 156.00 Populate new agency organizational chart with selected specialists. Profit per account of $7,500 - $10,000 Create and populate Top100 client portfolio and increase qualification requirements over time.

10. At-A- Glance Performance Map OBJECTIVES STRATEGIES TACTICS ACTION STEPS • Review existing book for Top 100 accounts and initiate client retention plans immediately – including quarterly client performance report cards, annual OSHA audits, reserve audits, MOD reviews and forecasts, etc.. • Turn over management of remaining contractor book to account managers and sales center. • Scrub residual market list for Top-100 clients and initiate marketing touches focused on RM & LC expertise. Create S.W.A.T. team impression. • Turn over management of remaining contractor book to account managers and sales center. • Conduct at least two joint EPLI or substance abuse seminars with Law Firm associates by year end. Invite clients, prospects, and referrals. • Launch “Full Sail” like website with client resources that educate and train. • Develop quarterly RM&LC newsletter for each target industry. • Broaden current geographical boundaries for greater prospect access. • Conduct carrier sales plan presentations with Hartford & Citizens on June 21. • Continue to use telemarketing program for contractor business until no longer desirable. Implement Banner/Polestar production and retention business model for new markets. Total Agency Revenue (M) 2004 – 1.0 2005 – 1.3 2006 – 1.75 Create and implement staff training, coaching, and support program for all initiatives. Develop value-added sales plan for existing clients that proactively identifies x-selling opportunities. Establish hiring schedule, job descriptions, candidate profiles for new positions. Determine minimum account profitability requirements and segment existing book. Create base-line sales and service plans for all non-top 100 accounts Custom build value-added service plans for all top-100 accounts Cross-sell appropriate accounts based on need and the desire to truly take care of each client on all fronts. Retention for new market segments: 98% Build agency staff and valuation while maintaining the “no hired guns” strategy. Revenue per employee: $ 156.00 Continue to improve Agency Infrastructure for maximum efficiency. Profit per account of $7,500 - $10,000 Build the book by adding larger accounts and removing smaller, less profitable ones.

11. Action Plan Development Integrated Model z Establish target markets and build a unique value-proposition for each: Technology, Printers & Publishers, Manufactures, Etc. STRATEGY # 1 END RESULTS Profile Opportunities, Evaluate Impact of Each, Segmented Prospect List, Created Personalized & Strategic Approach for Each Prospect. KEY ACTION Primary Research: Conduct Market Assessment SUPPORTING ACTIONS ResponsibilityStart Finish $ Support Identify top 20 targets in each market based on size & need. Join Industry Associations and actively participate. Create educational programs to inform about unique risks. Create referral prospecting list for each market. ABC/BP 5/1 6/10 ? Staff/BP Pat & Walt 5/1 7/31 ? BP Pat & Walt 5/1 10/1 ? All ABC 5/1 6/15 0 All Q1Q2Q3Q4 KEY RESULTS MEASUREMENTS X X X X X X Research target companies and develop personalized target marketing plans for the CEO of each top-20 account Research and enroll in a minimum of one trade association for each target market and subscribe to the emailing lists of at least three per market. Conduct at least one seminar or round-table for each target market per year. Attend one trade show and give workshop for each target market per year. Ask for a minimum of two referrals per week from industry contacts, associates, etc. Target one large affinity marketing program per year

12. Action Plan Development Integrated Model z Implement Banner/Polestar production and retention business model for new markets. STRATEGY # 2 END RESULTS Coordinated, cross-functional, and proactive strategic marketing, sales and service plan that truly differentiates ABC. KEY ACTION Create “Tool Box” of offerings with new look and feel SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC/BP 5/1 7/1 ? Staff ABC/BP 5/1 6/1 0 BP/Staff Pat & Walt 5/1 10/1 0 Staff/BP BP/ABC 5/1 6/1 0 All BP/ABC 5/1 6/15 ? All Construct Sales Kit Construct Needs Assessment Construct Client Management Plans Create ABC Positioning Statement Develop ABC Corporate ID KEY RESULTS MEASUREMENTS Q1Q2Q3Q4 • Implement “off-ex-date marketing strategy that focuses on needs assessment and unique sales model. • Conduct at least one prospect assessment per week. • Develop complete list of value-added service offerings for each market and segment based on size of account. • Develop quarterly RM&LC newsletter for each target industry. • Broaden current geographical boundaries for greater prospect access X X X X X

13. Action Plan Development Integrated Model z Create and implement long-term, staggered marketing plan with Banner/Polestar. STRATEGY # 3 END RESULTS Coordinated, cross-functional, and proactive strategic marketing, sales and service plan that truly differentiates ABC. KEY ACTION Establish ABC value, integrity, & trust in key markets SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC/BP 5/1 7/1 ? Staff BP/ABC 5/1 7/1 ? All BP/ABC 4/1 8/1 ? All Create a list of client-centric marketing events that differentiate ABC. Uniquely brand, package, & merchandise the ABC value-proposition. Launch “Full Sail” like website with client resources that educate and train. Q1Q2Q3Q4 KEY RESULTS MEASUREMENTS X X X X • Initiate prospect marketing touch schedule for all top 20 accounts with the goals of differentiation and client education. • Scrub residual market list for Top-100 clients and initiate marketing touches focused on RM & LC expertise. Create S.W.A.T. team impression. • Conduct at least two joint EPLI or substance abuse seminars with Law Firm associates by year end. Invite clients, prospects, and referrals. • Continue to use telemarketing program for contractor business until no longer desirable.

14. Action Plan Development Integrated Model z STRATEGY # 4 Partner with national or large regional carrier in 2004, another in 2005. END RESULTS Co-develop market opportunities and develop two-year business development plans based upon ABC strategic plan. “Sell” the new ABC Strategy to true carrier partner not focused on short-term commitments. KEY ACTION SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC/BP 5/1 6/15 0 Staff ABC/BP 5/1 6/15 0 Staff ABC/BP 5/1 6/21 ? Staff Create Carrier Partnership Profiles for each target market segment Identify 3-4 Prospective Carrier Partners that fit Partnership Profile Create and present two year sales & agency growth plan to staff & carrier partners. Q1Q2Q3Q4 KEY RESULTS MEASUREMENTS • Develop Carrier Promotional Program for New Corporate ID • Create Carrier Specific Marketing/Sales/Service Plans for Targets • Conduct Carrier Day Seminars • Create detailed Partnership Proposals For Each Prospective Carrier • Secure Signed Partnership/Business Plans with Key Carriers X X X X X KEY DEPARTMENTS FOR COORDINATION

15. Action Plan Development Integrated Model z Cross-sell appropriate accounts based on need and the desire to truly take care of each client on all fronts. STRATEGY # 5 END RESULTS A strategic cross-selling and account renewal strategy that proactively diagnoses gaps in coverage and rounds-out client portfolios. Create and implement a comprehensive renewal/cross-selling checklist. KEY ACTION SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC 5/1 6/10 0 Staff/BP ABC 5/1 6/15 0 Staff/BP ABC 5/1 6/21 0 Staff/BP ABC 6/21 7/15 0 Staff/BP Analyze current book and establish cross-selling objectives by product Create a one-page renewal checklist Create a pre-renewal needs assessment Develop value-added sales plan for existing clients that proactively identifies x-selling opportunities. KEY RESULTS MEASUREMENTS Q1Q2Q3Q4 • Turn over management of remaining contractor book to account managers and sales center. • Create and implement a mid-term client assessment schedule indicating phone, email, or face-to-face contact. • Determine minimum account profitability requirements and segment existing book. • Create base-line sales and service plans for all non-top 100 accounts X X X X

16. Action Plan Development Integrated Model z STRATEGY # 6 Populate new agency organizational chart with selected specialists – build agency staff and valuation while maintaining the “no hired guns” strategy. A “specialized” team-based approach to client development and client management that promotes agency expertise. END RESULTS Align organizational structure to maximize visibility and viability of team approach. KEY ACTION SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC 6/1 8/1 0 Staff ABC/BP 5/1 6/21 0 Staff/BP Establish hiring schedule, job descriptions, candidate profiles for new positions. Create and implement staff training, coaching, and support program for all initiatives. Q1Q2Q3Q4 KEY RESULTS MEASUREMENTS • Train & Implement Banner/Polestar Training & Consulting Program • Create and Maintain Recurrent Training Program • Initiate Team Approach to Sales Process & Client Management Strategy • Establish Recruiting Strategy X X X X

17. Action Plan Development Integrated Model z STRATEGY # 5 Create and populate Top 100 client portfolio and increase qualification requirements over time. Build the book by adding larger accounts and removing smaller, less profitable ones. END RESULTS A strategic growth strategy focused on carefully targeted accounts A high touch, high visibility, efficient, targeted strategy to building agency value KEY ACTION SUPPORTING ACTIONS ResponsibilityStart Finish $ Support ABC 51 6/1 0 Staff ABC 6/10 7/5 0 Staff/BP ABC 7/1 8/30 0 Staff/BP Determine minimum account profitability requirements and segment existing book. Create base-line sales and service plans for all non-top 100 accounts Custom build value-added service plans for all top-100 accounts KEY RESULTS MEASUREMENTS Q1Q2Q3Q4 • Develop complete list of value-added service offerings for each market and segment based on size of account. • Initiate prospect marketing touch schedule for all top 20 accounts with the goals of differentiation and client education. • Review existing book for Top 100 accounts and initiate client retention plans immediately – including quarterly client performance report cards, annual OSHA audits, reserve audits, MOD reviews and forecasts, etc.. • Turn over management of remaining contractor book to account managers and sales center. X X X X

18. Action Plan Implementation Integrated Model

19. Action Plan Implementation Integrated Model

20. Action Plan Implementation Integrated Model

21. Action Plan Implementation Integrated Model

22. Action Plan Implementation Integrated Model

23. Action Plan Implementation Integrated Model

24. Carrier Roll as a Partner • Prioritize Submissions – regardless of expiration date. • Provide “non-administrative”, proactive service support to clients and prospects – RM & LC program design and management assistance. • Engage in strategic renewal strategy. • Co-develop new opportunities – UWs participate in assessments & presentations – new and renewal. • Participate in non-traditional joint marketing efforts – seminars, newsletters, dead-file looks, orphans, etc. • Focus on agency growth – not short-term results – using a three-year relationship management plan.

25. ABC Agency Roll as a Partner • Deliver Quid Pro Quo. • Maintain strict guidelines to all Production, Retention, Efficiency & Profitability Objectives • Provide market exclusivity to target segments. • Pre-select market and proactively participate in underwriting process. • Represent value, integrity, and trust of program – not price. • Abide by all submission standards and respond immediately to requests for additional information. • Commit to true partnership and conduct performance reviews quarterly.

26. 3119 Pelham Place Doylestown, PA 18901 P: 215-794-0117 800-795-3553 F: 215-794-0118 gopolestar.com