1. Category 4 Measurement, Analysis and Knowledge Management Linda Bounds Vice President-Financial Services Joel Felten Vice President-Information Systems

2. Performance Measurement 4.1 Midway’s Performance Measurement System  Selects information  Supports organizational planning  Achieves deployment and integration Goal of Performance Measurement System  Achieve key results and strategic objectives  Anticipate organizational or external changes

3. Stakeholder Key Requirements 4.1a Company Goals Customer Satisfaction 1.Competitive pricing 2.Product availability 3.Accurate, intact shipments 4.Friendly, courteous, respectful, ethical service 5.Product selection 6.Easy to do business with 7.Fast delivery 8.Knowledge 9.Timely, relevant, quality, marketing communication 10.Industry support Employee Satisfaction Shareholder Satisfaction Vendor Satisfaction Modern Management Practices 1.Good salary and benefits 2.Job security 3.The right tools and support to do my job 4.Advancement opportunities 5.Opportunities to utilize my knowledge, skills and abilities in my job 6.Clear communication of goals, expectations and direction by management 7.Meaningful, satisfying job assignment(s) 8.Decision making authority in my job 9.Friendly, courteous, respectful, ethical environment 10.Honest, constructive feedback on my work 1.Friendly, courteous, respectful, ethical relationship 2.Easy to do business with 3.Timely payment 4.Candid two-way communication 1.Financial Performance 2.Support the NRA and Second Amendment 3.Industry Support 1.Receive the Baldrige Award 2.ISO Registration 3.Six Sigma Green Belt Certification Key Requirements

4. Performance Measurements 4.1b Company Goals Customer Satisfaction Company Requirements Product Availability Accurate, Intact Shipments Easy to do business with Department Scorecard In-stock Rate Shipping package quality Fast Delivery Abandoned Calls Individual Scorecard In-stock rate by product line Package quality rate Picking error rate Ship QC invoices per hour

5. Company Key Measures 4.1b Company Key Measures 2009 YTD Actual 2009 YTD Goal December /Q4 December/ Q4 Goal 123456789101112 Customer Satisfaction - Overall 1 93.0%92.0%93.0% Employee Satisfaction and Engagement 79.5%82%N/A na Vendor Satisfaction 91.5%90%94.1%90% Gross Sales - Overall $xxxxxx Net Income % of Net Sales 12.5%10.0%4.3%11.7% Earnings Distribution 100.0%100%100.0%100% A Timely Payment of Earnings 42.0%100% na A Inventory Turns (Paid) 9.210.09.811 Baldrige Score 100% Strategic Plan Execution 92.0%95%N/ANA na % of Customer Orders with NRA Round-Up 59.8%62.5%58.5% 62.5%

6. Process Measurement 4.1b Logistics Process Scorecard Area ProcessSection Process Measures 2009 2010 YTDJanuary/Q1 ActualGoalActualGoal StockingCost per Invoice - Stocking $X.XX Cost per Line - Stocking $X.XX ReceivingCost per Invoice - Receiving $X.XX Receiving Same Day 99.4%98.4%95.0%98.4%95.0% ShippingSame Day Shipping 98.9%99.6%99.0%99.6%99.0% Shipping Package Quality 99.7%99.9%99.8%99.9%99.8% Shipping Accuracy 97.3%97.7%97.0%97.7%97.0% Cost per Invoice - Shipping $X.XX WarehouseCost per Invoice - Warehouse $X.XX Cost per Line - Warehouse $X.XX Process Management ISO Corrective Action 100.0%100%

7. Strategic Objective Goals 4.1b

8. Detailed Area Performance Measure Company Scorecard Department Scorecard Area Key Process Measures Supervisor Daily Review Monthly SLT Review Monthly Review with President Monthly DLT Review Deployment 4.1a(3), 4.1b

9. Integration 4.1 a(3), 4.1 c Key Process Area Process MeasureValueKey RequirementStakeholder Logistics Shipping Same day shipping Customer Value Fast delivery (7)Customer Shipping accuracy Customer Value Accurate, intact shipments (3) Customer Package quality Customer Value Accurate, intact shipments (3) Customer Total Cost per invoice Profitability Financial Performance Shareholder

10. Measurement Linkage to Leadership System How do we gauge performance and Improvement? Company Key Measures Key Process Balanced Scorecard Company Goals Results Presentation Department Scorecards Individual Performance Measures Measure Results

11. It’s all about the business! 4.2 Management of Information Management of Knowledge Management of Technology

12. In House Software Development  ISO 7.3 Design Control System  Integration  Accessibility to information  Future information needs Management of Information 4.2a(1), a(2)

13. Business Intelligence – Standardized Reports  Real time reporting of key processes Customer Complaint Management Vendor Resource Center Management of Information 4.2a(1), a(2)

14. MidwayUSA Intranet (SharePoint)  ISO, process summaries and work instructions  University of MidwayUSA for training  New employee training process  Exit employee process  Knowledge Center Management of Knowledge 4.2a(3)

15. Reliable, Secure, and User-friendly Systems Monitoring Systems and Applications Change Management System Information Systems Measures Management of Technology 4.2b(1)

16. Integrated Contingency Plan  Redundancy, backups, etc. Meeting the needs of a changing business  Training, conferences, reading, networking  Strategic planning With each process area Review hardware and software product road maps Management of Technology 4.2b(1)

17. First 30 days:  4.1 Create a listing of your performance measures  4.2 Assess your information & knowledge management At 90 days:  4.1 Determine which measures provide actionable information  4.2 Prioritize the opportunities for improvement and address the quick fixes At 1 year:  4.1 & 4.2 Integrate with strategic planning process to achieve company support How can you get started? 4.1, 4.2

18. Questions? Thank you! Our best wishes to you in your pursuit of performance excellence! For more information: www.AmericaNeedsBaldrige.com qms@midwayusa.com