1. Bank of America Return on Innovation Formulas

2. Profit of new services (accounts, stocks etc.) Savings in employee turnover Increased brand value Trainings/seminars/sessions Salaries (managers, tellers, employees) Experimental costs (surveys, equipments etc.) OUTPUTS INPUTS Return On Innovation BoA in 1 Year TEAM 1 (Outputs-Inputs) = ROInn Investments (11 mill USD)

3. Revenue + added brand value (loyalty) +Customer satisfaction +employee satisfaction +added knowledge S-FACTORS = TEAM 2 S-Factors are; Start-up costs Speed Scale Support Cases (Ref.Payback article)

4. (Customer Satisfaction year N+1 – Customer Satisfaction year N ) * $1,4 * # Households (% Employee Turnover year N - % Employee Turnover year N+1 ) * # Employees * (Individual Hiring Cost + Cost lack of experience) (% Time dedicated to I&D * # Employees I&D* Average I&D Salary) - Cost of Capital * Investment / Growth of revenue due to innovation Cost of innovation + Return on Innovation at Bank of America Profit As Reminder, the Goals are : Growth revenue Customers’ satisfaction Employees’ satisfaction One-point improvement in a customer satisfaction index corresponds to $1.40 in added annual revenue per household from increased customer purchases and retention TEAM 3

5. KEY : CS = Customer Satisfaction Rate GRC = Growth and Retention of Customer Base Rate MS = Market Share Growth Rate KL = Knowledge (What Learned) Increase Rate IP = Innovation Portfolio Change Rate ES = Employee Satisfaction Rate II = Infrastructure Investment Rate SP = Salary for Innovation Personal Increase Rate CM = Cost of Management Rate OUTPUTS Return On Innovation = TEAM 5 3 CS + 2GRC + MS+ 3KL +2IP + ES 3II + 2SP + CM

6. Total Investment on Innovation (I & D Budget) Return on Innovation at Bank of America AVERAGE DEPOSIT * Number of New Customers Number of Lost Customers + Retained Customers Who Changed Their Deposit After Innovation * Average Change in Deposit Cost of Training + Cost of new Branches + Cost of Employers Reward + + Change in the Annual Teller Turnover (%) Change in the Market Value (%) TEAM 6

7. OUTPUT (Investment related) RETURN ON INNOVATION Return on Innovation at Bank of America OUTPUT: (Customer satisfaction index) * ($ 140) * (# household) + revenue growth OUTPUT (Investment related) TEAM 7

8. Employee turnover Leadership involvement Budget commitment % INPUT (k1) OUT PUTS (k3) Overall Innovation Effectiveness and Efficiency TEAM 8 = OIEE Bank of America Cycle time Capacity Reliability of experiments Ideas approved % Successful experiments, ideas rolled out Radical innovations % Customer satisfaction Profits New accounts % % PROCESS (k2) OUTCOME K1+k2+k3=1

9. Customer Value = Customer Satisfaction (quartely surveys) + Customer Profitability (services used out of service portfolio) Return On Innovation Customer Value + Company Value Investment By Company TEAM 9 Company Value = Employee Satisfaction + Increased Revenue + Market Share Investment By Company = Time Spent on Innovation (officially recorded research hours) + Total Spending on Innovation ($ spent)