© 2009 API Performance Improvement Group. Confidential. A Plan for Analysis Prepared for Magic Sticks

© 2009 API Performance Improvement Group. Confidential. Presentation Overview [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline Slide 1/10 Clarification of the business problem High level strategy for gathering data Resources required for data collection Critical success factors for the analysis Timeline describing key activities

© 2009 API Performance Improvement Group. Confidential. Clarification of the problem New store profit margins are not favorable compared to legacy store rollouts. [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline Slide 2/10

© 2009 API Performance Improvement Group. Confidential. Talent Management ProcessesProceduresPerformanceTraining Follow-up support High level strategy Data collection will focus on gathering the following information: Optimals (what Magic Sticks desires) and actuals (what is actually happening) Barriers (causes) preventing new stores from successfully achieving the optimal performance and drivers of desired results Multiple perspectives from across the company including Executive Directors, Store Owners/Managers and Subject Matter Experts Relevant company data including customer satisfaction scores,and policies/procedures Slide 3/10 Systems Approach [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline

© 2009 API Performance Improvement Group. Confidential. High level strategy Stage 1 Explore executive perceptions and organizational data to identify performance optimal, actual and perceived barriers, and potential solutions. Stage 2 Compare historical and current store roll out processes to identify optimal and possible causes for weak/strong store disparity. Stage 3 Review relevant company documentation and literature to identify possible causes and validated solutions. Stage 4 Explore Store Manager and SME perceptions to identify actual and perceived barriers, as well as potential solutions. [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline Slide 4/10

© 2009 API Performance Improvement Group. Confidential. High level strategy Target of Analysis New/weak and established/strong Store Manager selection, on boarding and development Weak and strong store training and roll out processes Weak and strong store C-Sat indicators Weak and strong store performance Slide 5/10 [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline

© 2009 API Performance Improvement Group. Confidential. Resources Required Slide 6/10 [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline Stage 1 Executive Team Interviews * Customer Satisfaction (C-Sat) Survey Results * Secret Shopper Program Results * Store Manager Electronic Survey * Stage 2 Internal company data, including: New store rollout processes and documentation * New store performance standards and targets Store Manager selection and training details Stage 3 Industry articles and studies Historical Sales Data Stage 4 HR and Training SME Interviews SWAT Team Focus Group * Store Manager Focus Group *Prioritized Items

© 2009 API Performance Improvement Group. Confidential. Critical Success Factors Stakeholder buy-in Actuals Optimals Timely access to the resources needed to identify the optimals for Magic Sticks store performance Factor 1 Factor 2 Timely access to resources requested to determine current actuals Stakeholder buy-in and support of surveys/focus groups with Managers and/or employees at both weak and strong stores Factor 3 Slide 7/10 [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline

© 2009 API Performance Improvement Group. Confidential. Analysis Timeline Compare historical and current store roll out processes to identify optimals and possible causes for weak/strong store disparity. Explore executive perceptions and organizational data to identify performance optimals, actuals and perceived barriers. Stage 1 Feb Stage 2 Feb Slide 8/10 [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline

© 2009 API Performance Improvement Group. Confidential. Stage 3 Feb Analysis Timeline Explore Store Manager and SME perceptions to identify actual and perceived barriers. Review relevant company documentation and conduct interviews to identify possible causes and validated solutions. Stage 4 Feb Slide 9/10 [1] Clarification [2] Strategy [3] Resources [4] Success factors [5] Timeline