EBR and the Open Standards Benchmarking Collaborative

1. EBR and the Open Standards Benchmarking Collaborative Willis comments in these text boxes or in red text in the slides. Added EBR Logo Thoughts for Discussion Houston, August 31st, 2004

2. Do we need a slide with this topic? To start I think it helps to focus the meeting Objectives and Outcomes • Objectives: • Better understanding of respective efforts • Assessment of common areas of interest • Identify specific interoperability topics/areas • Outcomes: • Process to define interoperability • Define Specific Next Steps

3. Agenda • Background • Update on status from each initiative • Objectives • Structure, Deliverables, Timeline etc • Business models & funding • Points of synergy and collaboration • Frameworks • Member benefits • Interoperability Opportunities • Next Steps

4. EBR Background and update • To Add (also need to send business plan) • Update on status from each initiative • Objectives • Structure, Deliverables, Timeline etc Add in the Hourglass And key points of exec summary- I will send the updated Mike Krzus powerpoint to draw from

5. Discussion Overview - DRAFT PCF EBR Business Operations Internal Mgmt Reporting External Reporting Investment, Lending, Regulation Economic Policymaking Reporting Processes Other Operational Processes EBR Industry Groups Business Reporting Consumers Transparency increased Enhanced analysis XBRL, RIXML APQC Industry Groups Best Practices Process Metrics Functional KPI’s Research/knowledge base XBRL, BPEL, Others

6. Discussion Overview - DRAFT PCF EBR Business Operations Internal Mgmt Reporting External Reporting Investment, Lending, Regulation Economic Policymaking Reporting Processes Other Operational Processes EBR Industry Groups Business Reporting Consumers Transparency increased Enhanced analysis XBRL, RIXML APQC Industry Groups Best Practices Process Metrics Functional KPI’s Research/knowledge base XBRL, BPEL, Others

7. Framework Synergy: PCF & EBR Etc… Strategy & Plans Risks & Opportunities Value Drivers Key Performance Indicators Information Technology Industry Oil & Gas Telecom Retail Manage Financial & Physical Resources See Next Slide for Detailed Example Design Products & Services Develop Vision & Strategy Process Classification Framework Understand Markets & Customers Etc … Enhanced Business Reporting Framework

8. Framework Synergy: PCF & EBR Detailed Example Etc… Strategy & Plans Risks & Opportunities Value Drivers Key Performance Indicators Information Technology Industry Oil & Gas Telecom Retail Retail Sales Per Sq. Ft. KPI = formula of ‘Primes’ Manage Physical Resources Changed the KPI formula here. Manage Financial Resources Process Finance & Acctg. Transactions Manage Financial & Physical Resources Report Information Etc … Enhanced Business Reporting Framework

9. Conceptual Image- Existing Structure & EBR Enhancements • Revised Slide based on Mike’s comments & collaboration with board members- this slide will stay • The point of this is showing what “currently exists” and “what is EBR enhancing”- conceptual image only • I think the new slides add a lot of value for a different reason- process orientation • Changed slide title • Internal reporting is addressed in management acctg- which is where it currently resides • View on slide show • Intended to clarify big picture Internal Management & Reporting External Reporting & Assurance -Benchmarking -Segment Analysis -Continuous Improvement Voluntary Disclosures Accessible to the Public • Business Reporting • Consumers • Transparency increased • Benchmarking • Independence in analysis • XBRL enabled • APQC & • Industry Groups • - Data Warehouse • Best Practices • Process Metrics • Functional KPI’s • Industry Networks • Research/knowledge base • XBRL enabled IMA/CMA -Internal Reporting -ABC/ABM- Process/Cost -Value Drivers -KPI’s (Measures Intangible Value/Kaizen) • CPA • Disclosure • External Reporting • Risk Management • Assurance • (Close the • “expectation • gap”) Critical Success Factors Assurance Provided • EBR Consortium • -Framework • Integration • Standards • Guidelines • Measurements • XBRL enabled

10. Critical Processes and Business Reporting • Industry specific key success factors should be externally reported with assurance services provided (protection of investor) • Business Reports should contain a subset of the KPIs used by management in running the business which will be voluntary & open disclosure to the public. • KPIs can be mapped to business processes that could be selected from any component of the Process Classification Framework (or Industry extensions thereof). • In order to develop a comprehensive reporting model (taxonomy), that includes a process dimension, it will therefore be necessary to incorporate all processes from the PCF. What does this last point mean?

11. Synergy II = Framework Integration = EBR Framework = Process Classification Framework External Metrics Performance Metrics Strategy, Risks and Opportunities, Value Drivers I like the slide but this should be with the other slides- I am unclear on why GAAP is included- also I changed the title I have no idea what this slide is attempting To communicate. Think that we should develop an outline of the increased membership benefits which would accrue to members from a more collaborative effort. GAAP Internal Metrics = XBRL

12. Extension of Scope of Industry Teams: Unique Key Process Classification Framework EBR Framework Industry We need to better understand what they mean when they say ‘industry specific extensions’ to the PCF. Seems like the primary benefit to companies here is in the benchmarking capabilities. The power here is in the cross industry analysis via the PCF. If we are trying to discuss industries here; then we would likely be better suited to pick a few and give some specific examples. That will move us towards next steps and begin to integrate the existing research.

13. Benefits of Interoperability to Members • Connectivity of specific processes with key value drivers (Enhanced alignment) • Enhanced transparency with management and other stakeholders • Greater market visibility • Others?? - Process Benchmarking -Outsourcing Decisions -Continuous Improvements -Near Real Time -Comparability within industry -Improved Data Reliability This should be a discussion document for our meeting where we brainstorm on the benefits.

14. Interoperability Opportunities • XBRL Example: • Actively seek ways to avoid duplication of efforts and overlapping development: • Notify one another whenever new work is initiated • Encourage technical working groups to interact with other consortia on related efforts • Communicate in an open forum on a regular basis, scheduling regular teleconferences to review potential overlaps • Participate in regular face-to-face meetings as appropriate What is the funding model structure between the 2 org? Do you collaborate on marketing- cross pollination?

15. Industry Framework concepts • Industry Segmentation • International Reach • Regulated & Unregulated • Identification of Industry leaders ARP: Still discuss coordination here or not? This is vague & so OK to discuss in general terms but not in terms of coordination at this time Changed title of slide to tie into the framework discussions. Also, moved up in deck. Changed priorities.

16. OSBC ? EBRC IT Pharma Oil & Gas Banks Telecom Industry Focus ARP: Still discuss coordination here or not? We may want to avoid this topic for now-- we have additional industries signing on & not comfortable on how we derived this list- we need industry analysis before we can draw any certainty on industries My 2 cents here is that we could have a listing of sectors and maybe talk about companies. This is simply an information sharing idea and not ‘co-marketing’. Are these EBRC sectors in priority order or are these the top 5? Do we want to talk about the industry associations?

17. Here are some points on next steps…. New slide. Next Steps • Develop outline key benefits to respective members • Process around communication of priority industry sectors • Explore potential collaboration on development framework interoperability • Explore potential collaboration on a joint white paper on integrated or interoperable framework • Examine the benefits of sharing research and development activities. Possible incentive for participation is influencing development and advanced awareness of findings.

18. Next Steps • To Add

19. Here are some points on next steps…. New slide. Questions we need to answer • What are the primary objectives of the meeting and the relevant outcomes? This is on slide one. • What is the thinking on the relevant priority processes from the APQC which would be most relevant to the EBR effort? This is a consortium decision-- TBD in early 2005 but we can discuss conceptual only at this time. • What is the APQC biz model with respect to their model: standards, data, benchmarking services, implementation guidance, etc. • Who are the APQC / PCF primary stakeholders? What level of management is the primary target? • What is the value proposition we offer to companies considering participation in either/both initiatives?

20. Business Model and Funding • Propose coordinated marketing and development but maintain separate pools of funds. • Each participant decides whether to sign up for OSBC, EBRC or both. • Discount incentives for those signing for both? • Open sharing of research and development activities. Incentive for participation is influencing development and advanced awareness of findings. Eliminate this slide- this will be addressed in next steps depending on our meeting success & consortium members consensus It is very common for consortiums to collaborate on joint areas of interest…………’interoperability accord’ type of concept. This approach provides for the institutional sanctity of each consortium. The way this slide currently reads ………..it will be interpreted as very threatening.

21. Joint Marketing Opportunity • How should we collaborate in approaching industries? • What is the value proposition we offer to companies considering participation in either/both initiatives? Eliminate this slide- this will be addressed in next steps depending on our meeting success & consortium members consensus. Moved point 2 to Questions Slide

22. Additional Concerns Open discussion on additional concerns or further clarify understanding Note: While in the meeting it is absolutely essential that we display a united front on EBR