1. 1 FOCUS ON SUPERVISION: Guiding Principles for Supervising Success Marcia Thomsen Washington, D.C. October 25, 2005

2. MRT 102505 2 Recognize & Reward Infrastructure In Place Set Clear, Universal Goals Measure & Report Results EXECUTIONAL EXCELLENCE GUIDING PRINCIPLES FOR DRIVING EXECUTION

3. MRT 102505 3 Set Clear, Universal Goals Articulate precisely what is expected Focus entire workforce against same goals Translate goals for every business unit Communicate, communicate, communicate EXECUTIONAL EXCELLENCE GUIDING PRINCIPLE #1

4. MRT 102505 4 EXECUTIONAL EXCELLENCE Infrastructure In Place PHYSICAL Qualified, trained people at each level Workable spans of control Support System to enable success people (trainers) systems & processes materials & equipment PHILOSOPHICAL Interdependency Training/coaching/enabling culture On-site mentality GUIDING PRINCIPLE #2

5. MRT 102505 5 Every goal must be measurable Data collection must be credible Results are King mentality Regularly report to all levels Data drives decision-making and deploys workforce EXECUTIONAL EXCELLENCE Measure & Report Results GUIDING PRINCIPLE #3

6. MRT 102505 6 Recognize & Reward EXECUTIONAL EXCELLENCE Results = Rewards Structure Incentives to Reinforce Desired Results/Activities Promote all available incentives to drive team financial recognition opportunity for advancement GUIDING PRINCIPLE #4

7. MRT 102505 7 SUCCESS LOOP Connecting the four principles in a continuous loop drives success and continuous improvement

8. MRT 102505 8 4 State region 600 Restaurants 16,000 employees $350MM sales 28MM transactions/yr APPLYING THE PRINCIPLES: A CASE STUDY

9. MRT 102505 9 EXECUTIONAL EXCELLENCE Set Clear, Universal Goals Deliver in < 30 minutes, 85% of the time Achieve customer loyalty score of 65%+ 100% staffed restaurants/100% trained employees Hit profit plan ($40MM)

10. MRT 102505 10 SET CLEAR, UNIVERSAL GOALS Articulate precisely what is expected Focus entire workforce against same goal(s) Translate goals for every business unit Communicate, communicate, communicate Deliver in < 30 minutes, 85% of the time Achieve customer loyalty score of 65%+ 100% staffed restaurants/100% trained employees Hit profit plan ($40MM) PRINCIPLES

11. MRT 102505 11 EXECUTIONAL EXCELLENCE Infrastructure In Place DVP MARKET COACH AREA COACH RESTAURANT MANAGER SPAN OF CONTROL 600 90 – 130 9 - 16 1 FACTORS INFLUENCING SPAN OF CONTROL: Expertise/Tenure of Supervisor Health of Restaurants Geography Physical Infrastructure

12. MRT 102505 12 DVP MARKET COACH AREA COACH RESTAURANT MANAGER ON-SITE VISITS 1x/year 1x/month 1x/week FRIDAY NIGHT: ALL-HANDS ON DECK! Physical Infrastructure EXECUTIONAL EXCELLENCE Infrastructure In Place

13. MRT 102505 13 Purposeful Interdependence Train and Coach to enable success Effort Results Single Unit Mentality, not averages On-site culture; no ivory tower Management Exists to support unit We serve those who serve our customer EXECUTIONAL EXCELLENCE Infrastructure In Place Philosophical Infrastructure

14. MRT 102505 14 Philosophical Infrastructure supports inverted pyramid We serve those who serve the customer DVP MARKET COACH AREA COACH RESTAURANT MANAGER/ EMPLOYEES Training Specialist EXECUTIONAL EXCELLENCE Infrastructure In Place

15. MRT 102505 15 INFRASTRUCTURE IN PLACE PRINCIPLES DVP MARKET COACH AREA COACH RESTAURANT MANAGER/ EMPLOYEES PHYSICAL Qualified, trained people at each level Workable spans of control Support System to enable success people (trainers) systems & processes materials & equipment PHILOSOPHICAL Interdependency Training/coaching/enabling culture On-site mentality

16. MRT 102505 16 EXECUTIONAL EXCELLENCE Measure & Report Results Identify Problem Units (Outliers) Identify Best Practices Focus & Deploy Workforce Report Widely & Often

17. MRT 102505 17 65 CLI % < 30 Minutes Staffing/Training Profitability Customer Phone Surveys (Weekly) Automated Thru Driver Dispatch System Certified HR Specialist Register Downloads, Creates P&L CLEAR, UNIVERSAL GOALS MEASUREMENTS EXECUTIONAL EXCELLENCE Measure & Report Results

18. MRT 102505 18 TRIAGERECOVERING STABLE HEALTHY EACH BUSINESS UNIT IS LIKE A PATIENT BEST PRACTICES Observe/replicate Train Peers Promotion Pool EMERGENCY ROOM TACTICS Diagnose Problem Deploy Specialists Performance Management 30, 60, 90 day milestones Multi-level interventions

19. MRT 102505 19 TRIAGE RECOVERINGSTABLE HEALTHY Data Drives Purposeful Activity MOTIVATION Restaurant Staff Market/Area Coach Division Staff Training Specialist

20. MRT 102505 20 Data Reported Widely and Often KPI data polled weekly, monthly, quarterly Restaurant level data organized & personalized - by Market Coach - by Area Coach Rack em and Stack em - rank Best to Worst Triage Units trend reports - analyzed weekly for progress

21. MRT 102505 21 Frequent Forums to Review Results & Share Best Practices Cascading Conference Calls (or Webcasts): - DVP Market Coaches (MC) - MC Area Coaches (AC) - AC Restaurant Managers (RM) - RM Crew Attendees - DVP - MC - Specialists Attendees - DVP - MC - AC - Specialists WEEKLY ROUND-UP MONTHLY MEETINGS QUARTERLY CONFERENCES

22. MRT 102505 22 Every goal must be measurable Data collection must be credible Results are King mentality Regularly report to all levels Data drives decision-making and deploys workforce EXECUTIONAL EXCELLENCE Measure & Report Results GUIDING PRINCIPLE #3

23. MRT 102505 23 EXECUTIONAL EXCELLENCE Recognition & Reward

24. MRT 102505 24 RECOGNITION ADVANCEMENT PERFORMANCE = REWARDS

25. MRT 102505 25 PERFORMANCE REWARDS RECOGNITION ADVANCEMENT

26. MRT 102505 26 PERFORMANCE = REWARDS PERFORMANCE APPRAISAL! Annual process Tied to results vs. goals Standardized data-driven evaluation PAY RAISE % increase off base BONUS Incremental Meet or exceed result targets Exponential if excelling

27. MRT 102505 27 PERFORMANCE = REWARDS KEY PERFORMANCE INDICATORS CLI %< 30 Profit Staffing Overall RECOGNITION WEEKLY MONTHLY QUARTER ANNUAL Phone call e-Newsletter Broadcast v-mail Newsletter Personal letter Pin Award @ Qrtly Mtg Opportunity to teach Join DVP Roundtable Nominated for Manager of the Year CEO/COO Visit

28. MRT 102505 28 Restaurant Manager Training Specialist Area Coach Market Coach Division/HQ Staff ADVANCEMENT Broader Skills Broaden Influence Higher Salary Greater Prestige PERFORMANCE = REWARDS

29. MRT 102505 29 Recognize & Reward EXECUTIONAL EXCELLENCE Results = Rewards Structure Incentives to Reinforce Desired Results/Activities Promote all available incentives to drive team financial recognition opportunity for advancement GUIDING PRINCIPLE #4

30. MRT 102505 30 FOUR GUIDING PRINCIPLES FOR SUPERVISING SUCCESS