IPM1

Existing Client Revenue (FY)

Consultant Realization (By Region) (FY)

100% 105%

75% 80% 85% 90% 95%

FY2013 FY2014 FY2015 FY2016 FY2017

Figure 7.2-11 Revenue Growth: Account Management

Central

Eastern

Western Company

Average Annual PMC Headcount by Region

FY '13 FY '14 FY '15 FY '16 FY '17

- 10 20 30 40 50 60

Benchmarks SPI Mgmt. Consultancies SPI 95 th %tile

2013

2014

2015

2016

2017

70.9%

70.9% 79.5% 91.6%

71.8% 84.6% 91.0%

Previous Baldrige Award recipient

89.1%

89.8%

90.7%

Figure 7.3-4 PMC Realization Company growth and greater name recognition have increased the overall demand for IPM services resulting in the continual need for additional PMCs, as reflected in Figure 7.3-5 . Budgeted headcount serves as a guide for recruiting but is also impacted significantly by retaining employees and actual demand for our services. In 2013 through 2015, we experienced a higher volume of terminations than budgeted, meaning more new hires were required to meet demand. In 2016, lower-than-anticipated turnover meant fewer new hires were needed. In 2017, IPM experienced significantly lower- than-anticipated turnover but significantly greater demand for our services, which required us to hire more resources than budgeted. In 2015, we implemented a 90-day candidate pipeline to better manage supply and demand. The pipeline (Figure 7.3-6) is calculated by multiplying the number of candidates at each stage of the recruiting pipeline (i.e., phone screen through offer accepted) by the percentage of historical candidates who are hired from each recruiting stage. The 90-day candidate pipeline flows from the BD backlog; therefore, the pipeline target correlates with movement in the BD backlog. Both the 90-day pipeline and backlog are in-process measures.

Central

Eastern

Western

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Figure 7.3-1 PMC Headcount by Region

Average Annual Company PMC Headcount

100 120

99.1

92.3

82.7

69.4

0 20 40 60 80

66.4

FY2013 FY2014 FY2015 FY2016 FY2017

Figure 7.3-2 Average Annual Company PMC Headcount

YOY Headcount Growth (FY)

10.0% 12.0% 14.0%

New Hires: Actual vs. Budgeted (FY)

0.0% 2.0% 4.0% 6.0% 8.0%

0 10 20 30 40 50

41

40

35

34

34

34

33

31

31

30

27

18

2015

2016

2017

2012

2013

2014

2015

2016

2017

IPM Growth SPI Mgmt Consultancies Benchmark

New Hires - Budgeted New Hires - Actual

Figure 7.3-3 YOY Headcount Growth

Figure 7.3-5 New Hire: Actual vs. Budgeted

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