The Sales Maximization Plan was developed to accurately segment a customer base over time using key indicators to point a sales organization to operate in a consistent way that delivers results.

1. Improving Outside Sales Effectiveness & Efficiency January 23, 2009 Final Tollgate

4. Project Team Information DEFINE XXX Big Y: Energized Employees Operational Excellence Financial Performance Customer Satisfaction X Outside Sales Tollgate Review Dates Project Lead (BB): Project Coach (MBB): Project Champion: Team Members: Resource Plan General Information Tollgate Date Signoff (xx/xx/xx) Contact Information for Project Lead: Define Measure Analyze Improve Control Industry/Function: Josh Heebner Tim Chlebinski Mark Thramer SME SME SME SME Kat Baum Stacey Jensen Tanya Bacon Bridget Primavera Josh Heebner 401-338-4588, 401-681-5142 [email_address] X X 11/1/07 COMPLETE 12/1/07 COMPLETE 2/1/08 COMPLETE 2/15/08 COMPLETE 10/1/08 COMPLETE X

5. SIPOC – Current Process DEFINE

6. Identifying Project CTQs DEFINE

7. Kano Analysis DEFINE Tracking for management tracks progress Utilization of FirstComp market share within the agency Tracking is easy to follow and implement in sales manager routine Utilization of Earned Premium per Indemnity count ratio Utilization of Luke’s legacy SMP studies Utilization of loss ratio Actions defined in comparison to segment Tracking movement of segments over time Utilization of hit ratios (I/Q, I/S, Q/S) Agencies Segmented Delighters Must-Be Primary Satisfiers

10. Data Collection Plan MEASURE

11. Data Segmentation MEASURE BEHAVIOR Grade Count % A 2 1.46% B 12 8.76% C 64 46.72% D 34 24.82% F 25 18.25% POTENTIAL Grade Count % A 61 44.53% B 33 24.09% C 6 4.38% D 3 2.19% F 3 24.82% RESULTS Grade Count % 1 23 16.79% 2 7 5.11% 3 4 2.92% 4 24 17.52% 5 79 57.66%

12. SMP Development MEASURE BEHAVIOR – Measures submit, quote, and bind behavior A = 100% average of I/Q, I/S, Q/S B = 60 – 99.99% avg of I/Q, I/S, Q/S C = 40 – 59.99% avg of I/Q, I/S, Q/S D = 30 – 39.99% avg of I/Q, I/S, Q/S F = 0 – 29.99% avg of I/Q, I/S, Q/S POTENTIAL – Measures inforce premium to total WC Volume F = 100% Market Share D = 60 – 99.99% Market Share C = 30 – 59.99% Market Share B = 10 – 29.99% Market Share A = 0 – 9.99% Market Share RESULTS – Measures Loss Ratio and Earned Per Indemnity 1 = 40 – 100% Loss Ratio 1 = $0-$50,000 Earned/Indemnity (E/I) 2 = 20 – 39.99% Loss Ratio 2 = $50-$70,000 E/I 3 = 10 – 19.99% Loss Ratio 3 = $70-90,000 E/I 4 = 0.01 – 9.99% Loss Ratio 4 = $90=$110,000 E/I 5 = 0 Loss Ratio 5 = $110,000+ E/I Optimal Agency Score : AA5 Worst Agency Score : FF1 *NH Specific Numbers*

13. Pareto Charts ANALYZE Data as of 9/31/2008 BEHAVIOR Grade Count % A 493 7% B 740 11% C 3228 49% D 1589 24% F 549 8% POTENTIAL Grade Count % A 5123 74% B 752 11% C 366 5% D 227 3% F 493 7% RESULTS Grade Count % 1 646 10% 2 143 2% 3 92 1% 4 154 2% 5 5564 84%

14. SMP Life Cycle Diagram ANALYZE The Life Cycle of An Agency Phase DG/HM Visit Recognition Testing Production Appointment Optimal Penetration Book Saturation HIGH MAINTENANCE LOW MAINTENANCE MISFITS MISFITS R A T P OP BS Underwriting Visit X-date promo/ Relationship Bldg Maintenance Mktg

15. Potential Problems Matrix DEFINE

16. Ishikawa Diagram ANALYZE Led to creation of action matrix Led to creation of Scorecard and Dashboards

17. Agency Segmentation / Identifier / Action Matrix IMPROVE New Agency Starting Point

18. Pilot and Full Action Plans / Responsibility Chart IMPROVE

19. Control Plan CONTROL

20. SMS Documentation / Agency PIP & Cancel Lists CONTROL

21. Month Over Month Agency Movement CONTROL

23. Positive/Negative Agency Movement Tracking CONTROL National

24. Positive/Negative Agency Movement Tracking CONTROL Midwest West Southeast Northeast

25. Current Process Map CONTROL Changes to the process all reside in the Pre-call Planning Stage (originally 9 steps)

26. FMEA CONTROL 540 point drop 558 point drop 378 point drop