Exhibit 30

ASSUMPTIONS BEHIND THE "5-5-5 REPORT"

INTRODUCTORY POINTS/ASSUMPTIONS:

If you read article # 2.20 title "A Strategic Management time Management Exercise" ./articles/2_20.asp, note point 7 that refers to the 5-5-5 report. The following explains the logic behind this monthly one page branch report.

  • If you all will now get paid on exceeding PBIT targets, then management must help to take three categories of customers � core, target and lead2gold � to the next level. Sales reps generally can not do this on their own. There may be rare exceptions.
  • The biggest, fastest, easiest source of incremental margin dollars with the highest flow-through to the PBIT line will come from selling more old items to best, most trusting, most open-minded customers on a systematic, larger order size basis. (That�s why we must all super-focus on the top 5 most profitable, core customers within the historic #1 niche of customers at each branch.)
  • The biggest, fastest source of operational slack creation needed for re-deployment into taking better care of better customers will come from turning lead accounts into gold. This will answer the "we are too busy putting out today�s fires (minimally as opposed to knowledgeably) to do new stuff that we know we should be doing.
  • Even the 2 or 3 out of 10 big losers that won�t work with you will become profitable because you will still have the cherries that they need to pick.
  • Longer-term, starting 6 to 9 months out, cracking today and tomorrow�s gazelle accounts will be the biggest source of future profit growth.

QUESTIONS (see the Question Maps* for each category of accounts, then come back to invent your own questions for this section.)

*Questions Maps are:

Exhibit 31 - Map For Thinking About Most Profitable Accounts
(
./exhibits/Ex31.asp)

Exhibit 32 - Map For Lead to Gold Accounts
(
./exhibits/Ex32.asp)

Exhibit 33 - Map For Cracking The Right Target Accounts (./exhibits/Ex33.asp)