Operations Management Advisory Board Program

The Advisory Board Program (ABP) is a comprehensive consulting program covering all
aspects of the client’s home building business. Through this program, SMA will be the
catalyst for significantly improving each of the ten key operational functions:

The ABP consists of four steps:

1. Orientation
2. SMA Best Management Practices Scorecard Evaluation
3. Advisory Board Monthly Coaching Program
4. Annual Business Planning Facilitation.

SMA offers each step as a separate contract, but recommends they be contracted in
sequence, because each step builds the foundation for the next.

Within the four-step structure, SMA customizes the content to meet the individual needs
of each client.

The program includes evaluation, training, coaching, and planning facilitation

Step One: The Orientation Session -

The Orientation session is a one-day training and information exchange. The SMA
Account Executive outlines SMA’s basic approach to managing a home building
company and explains the Best Management Practices Scorecard Evaluation, which is the
cornerstone of the program. The client describes the status and long-term goals of
their company.

The Orientation session is held in Orlando, allowing multiple SMA Associates to
participate at a reduced cost. The client may bring up to five management-team members
to the session for one price. Travel expenses to Orlando are the client’s responsibility.

At the conclusion of the orientation session, the client is under no obligation to continue
with the next steps of the Advisory Board Program.


Orientation requirement waiver:

The goal of the orientation session is to make sure the client and SMA are aligned in
terms of management philosophy. It is a low cost way to make sure we are compatible
and to get started on the right foot. The Orientation is required for the complete Advisory
Board Program; however, SMA will waive the requirement if the owner/CEO of the
client company has attended one or more of the following SMA-sponsored Builders
Training Group Conferences within the 12 months prior to starting the program:

Step Two: The SMA Best Management Practices Scorecard Evaluation -

During this two-day evaluation on the client’s site, the SMA Account Executive analyzes
the company’s systems, procedures, forms, and reports in the ten functional areas of
home building. The Account Executive uses SMA’s Best Industry Management
Practices database as the benchmark to gauge the client company’s performance.

Within 10 working days of the SMA Scorecard Evaluation session, the Account
Executive delivers a written report to the client. Within the following week, the Account
Executive and client review the report in a teleconference and reach agreement on the key conclusions.

The report often serves as the client’s road map for immediate and long-term process
improvement within the company. It also becomes an integral part of the client’s
strategic planning process.

Step Three: The Monthly Advisory Board Coaching Program (ABP) -

To maintain the momentum after the Scorecard Evaluation, SMA provides the monthly
teleconference-coaching program. In this 12-month program, the SMA Account
Executive essentially becomes a long-distance member of the client’s management team.

The Coaching Program includes twice-monthly teleconferences (approximately 60
minutes in length) between the client and SMA. In the first call, the Account Executive
talks with the owner/CEO and the management team. They review key management
information reports, such as financial statements, and track the progress of key process
improvement initiatives.

The second call is a monthly coaching session for the owner/CEO of the company. The
SMA Account Executive helps the owner/CEO develop the skills necessary to build and
improve the company and to achieve their professional and personal life goals. The
session also allows for a confidential review of the process improvement initiatives.
Additionally, the client and Account Executive often analyze the local or regional
housing market and the economic conditions that might impact the client firm.

The Coaching program includes a reasonable number of additional, informal telephone
calls and unlimited e-mail support by SMA. The client has access to all SMA consulting
specialists during the engagement period, whether by phone, email, or for an additional
cost, on-site.

ABP Coaching Program Option:

As an alternative, the client may reduce the scope of work to just the management-team
teleconference, during which the participants review reports and the state of the local or
regional housing economy.

Step Four: Business Planning Facilitation -

Once the ABP has been in place for a period of time, many clients ask SMA to participate
in or facilitate their formal annual business and strategic planning process. SMA preaches
formal annual planning as a “best management practice,” and including the Account
Executive is often a catalyst for ingraining the planning process in the client’s corporate
culture.

SMA customizes its scope of work for this step. It can range from the Account Executive
attending the planning sessions like any other planning team member to SMA facilitating
the process, providing the planning workbooks, documenting the planning session notes,
and producing the first-draft business plan.

The number of days associated with the planning process varies based on the client
company and the scope of work. The normal range is one to three days annually.

SMA Travel Expense Policies:

Whenever an SMA associate travels to a client location as part of an engagement or to a
third-party location at the client’s request, the following expenses are additional to the
cost of the engagement:

SMA often requests travel expense deposits in advance of the travel. All expenses are
netted and included in the final client invoice for the travel engagement.