Area Meeting Owners Retreat 2011 Welcome to Alabama Mississippi Franchise Owners

1. Area Meeting � Owners Retreat 2011Welcome to Alabama � Mississippi Franchise Owners

6. Goals and Objectives for Corporate (2011) a.) 15% Overall Volume Growth b.) 20% Pre-Tax Profit Margin c.) Optimize franchise work process, training, and validation systems d.) Facilitate the use of the operating system e.) Quality Franchise Owner, executing the operation system in every license f.) Aggressively grow commercial market g.) Advance the SERVPRO franchise management system � management training

7. II. Goals and Objectives for WT (2011)

8. Audits A. Progress in the Making

9. Audits (Continued) B. New Audit Scorecard � Audit Measurements (Great News!) C. April 1, 2011 � Scorecard Measurement Only Weighted Criteria - Handout

10. a. Generate Additional Revenue (Its all about the $, isn�t it?) Great Learning Experience for All�.Better Qualified for Larger Jobs or Events at Home c. Additional Employee Earning Opportunity d. Pay Off Debt�Accelerate Snowball! Generate Surplus Funds to Purchase Additional Assets Great Team Building Opportunity Storm Work Volume Can Offset Those Slow Revenue Months The Golden Rule�..Benefits THE BRAND!

11. V. New Storm Areas Assigned � Missouri, Arkansas, S. Illinois, S. Indiana, Kentucky�in addition to current states of Alabama, Mississippi, Georgia, Florida and Tennessee RESPONSIBILITY FOR 10 STATES! We have created a new alert format to be able to easily email out to each storm team when an event occurs. (Listed by State) Best Practices for Participation Storm (Goal � At least one 3 person team per franchise) A. Preparation to Participate Option #1 - Owner/Crew Chief/P.T. Option #2 - Qualified Production Manager/Crew Chief/P.T. Option #3 - Qualified SMR/Crew Chief/P.T. * Great reason to have second SMR/Project Manager Note: All three options could/should be supplemented with temps. * Pre qualified and approved (PM or SMR) prior to Event by Storm Team.

12. Storm (continued) B. Roles of Each Position on Storm Owner/Qualified Production Manager/Qualified SMR I. Minimum Credentials a.) WRT Certified b.) Xactimate Trained c.) Understands and has experience in First Responder d.) Has experience in the documentation requirements and can provide the quality control function on each job, including all forms, files, etc. 1. Has the ability and understanding to do own estimates in a timely manner. (OPEN DISCUSSION on �timely manner�) Note: Failure to provide timely and accurate files will result in Franchise losing 5% quality control fee. 2. Understands the requirement to have Storm Team sign off and Team Leader sign off on document that Franchise Quality Control person has provided all that Storm Team needs prior to leaving Storm Event (Release).

13. Storm (continued) Drop/Rock/Roll (Ready for Whatever Happens) I. Alert sent out via email II. Assignment area dispatched from Corporate CAT Loss Division a.) Goal � Get there within 24-36 hours of �GO� call. III. Stay until Event is deemed by Storm Site Team to be �under control� �For the Sake of the Brand�. * Storm Teams Agreement to Cooperate �Release Required��. Example: Scott and Joni Craft � SERVPRO of LDB SMR for 3 years - Started business in August �10 Largest month Volume: 5th month - $23,129.36 Has one employee�.brought their entire staff Came early�stayed late # of Jobs 10 for Volume of $36,040.00

14. Storm (continued) LLRT Approved Franchises Commercial spread out among participating franchises Expected to help with �Res Claims� until Storm Site Team feels they can be handled in a timely manner by those who typically only do �Res Claims� Required documentation for handling �Commercial Claims� a.) Asbestos testing for floors/ceilings/dry wall removal b.) Lead Base Paint test c.) �Mold� in certain states Other Franchises performing commercial work a.) Should you be assigned any commercial work , you too have to follow the same guidelines for handling/performing work on these claims. XTREME Team Members a.) You are dispatched by Corporate to go and sell larger losses (commercial). If you choose to sign up with our Storm Team and you are assigned any commercial losses, you have to produce, finish and inform us of your sold work. b.) As an XTREME Team member, you are not allowed to secure help from any Storm Team franchises to assist in your production of jobs unless approved by Storm Team

15. LLRT Participation Requirements Current Inventory Subcontractors Safety Equipment & PPE Office Equipment Mobile Office Set-up Financial Requirements Experience Requirements Scope and Action Plans Penalties Additional Guidelines

16. Red Light Status � No Storm Jobs can be assigned Remote Call Center Assignment of jobs from Storm Site Dispatch Leader a.) Your requirement: 1.) Confirm appt and inform dispatch leader within 2 hours of dispatch 2.) If customer chooses for us not to come, let dispatch leader know it is cancelled. Completion of Job(s) a.) Bring completed files and all documents to audit team in Command Center for processing. Note: Do not wait until the end of the event to bring all files in to Storm Site Team What happens if you hold the files until the end of the event? 1.) You delay auditing of files 2.) You delay estimating process 3.) You delay billing process 4.) You delay collecting process 5.) You delay distributing of funds 6.) You cause the Storm Site Team to have to stay behind longer than planned. Note: Overall you could lose your 5% quality control fee for creating delays.

17. TRAVELING Generate Additional Revenue (It�s all about the $, isn�t it?) Great learning Experience for All�Better Qualified for Larger Jobs or Events Additional Employee Earning Opportunity Pay Off Debt�Accelerate Snowball! Generate Surplus Funds to Purchase Additional Assets Great Team Building Opportunity Storm Work Volume Can Offset Those Slow Revenue Months The Golden Rule�Benefits THE BRAND!

18. FIRST RESPONDER PROGRAMBRADY WILSON

19. Objectives / FAQ History of �Why a First Responder?� What is a First Responder? What are their Roles and Responsibilities? What Type of Equipment do they use? What Type of Technology do they use? How do they report? Who can First Respond? How long should it take? What is the process? What about After Hours and Weekends? Is there any additional compensation? First Responder and Crew Expectations/Consequences?

20. History Beginning of 2009 � Closure Rate Jobs (Opportunities) being called in but not closing Crews not getting jobs signed up Crews not being productive � Too much paperwork Crews not being thorough on paperwork causing office additional headache Quality of work hindered Too many jobs being lost Expectations not be set with Customer Job Process You don�t really know your number unless you track it

21. Sample Water Closure Rate Report

22. Sample Fire Closure Rate Report

23. What is a First Responder? Question: Who responded to losses when you were first started in business? Answer: The Owner Question: How was the quality and productivity of the work? Answer: Met or Exceeded Customer expectations Question: Why did that change? Why wouldn�t we want someone with an �Owner� like mindset to respond quickly and set the expectation with the customer and ensure the quality of work each and every time? �You never have a second chance to make a good first impression� - Unknown

24. What is a First Responder? A First Responder in our business most of the time is a Production Manager Can be a Sales Rep Reps do not help unless absolutely necessary In spiked events and storms Water ECTP � Required WRT � Not required at the beginning, but needed ASD � a plus First Responder Rotation and Monitoring Scheduling A Production Manager can handle 6 jobs per day in a normal 9 hour Work Day First Responder Rotation is set based on Job Number Capacity

25. What are their Roles and Responsibilities? That of a Production Manager (Directly from Stages) Job Estimates Develop clear and accurate estimates Scheduling Project Management Review Job Scope, job estimate, and job brief with production staff (critical in First Responding) Monitor Subcontractors Manage communication with customers Note: we try to get the same person who First Responded to a loss to also monitor that loss (Cradle to Grave)

26. What are their Roles and Responsibilities? That of a Production Manager (Directly from Stages) Project Management Manage Work-in-Progress (every job monitored) Inspect services and final walk through COS, ATP, etc. Ensure compliance with safety practices i.e. Electrical Safety (Breaker Box, Generator, etc.) Production Job Documentation

27. What are their Roles and Responsibilities? That of a Production Manager (Directly from Stages) Manage Production Staff (3 to 6 people) Recruit production personnel Train production personnel Manage production personnel WIP meetings (STA / Toolbox Talk) Manage communication with Centers of Influence Adjusters, Contractors, etc.

28. What are their Roles and Responsibilities? That of a Production Manager (Directly from Stages) Financial and Asset Management Job cost analysis (i.e. $3.50 sf, AM - $100 DH - $400) Damage Reimbursement Manage operating expenses Expense Control Asset Management Manage vehicles, equipment and facilities

29. What Type of Equipment / Technology do they use? Server setup with Remote Access to Applications ManagER Drying Workbook Xactimate Etc. Laptop Inverter in Vehicle Air Card � we use Verizon MiFi�s Smart Phone � Blackberry, iPhone, Android Laser Measuring Tape

30. Day in the Life of an FNOL This is the Timeline in our Operation FNOL comes in FNOL is emailed to fnol@servproofbirmingham.com (everyone) Based on First Responder Rotation, a First Responder replies to email stating they are calling customer Once the First Responder has made contact with the customer, they will reply to email with general directions for crew Example: �Roughly 1,000 sf affect. Crew will need 16 AM and 2 DH� This should occur less than 10 minutes from the FNOL being sent out This is mainly for the Scheduler/Dispatcher to know what the crew needs to load up

31. Day in the Life of an FNOL This is the Timeline in our Operation First Responder arrives at loss Walks through property with customer Gets initial paperwork signed Authorization Customer Information ATR (if applicable) Once initial paperwork is signed, First Responder calls for crew First Responder then fills out the other paperwork

32. Day in the Life of an FNOL This is the Timeline in our Operation Drying Workbook Summary Cover Page Drying Zone Calculation Worksheet Air Mover Calculations Dehumidifier Calculations Sketch in Xactimate For accurate measurements Pictures Taken with Smartphone Front Loss Site Every Affected Area Email pictures to pictures@servproofbirmingham.com

33. Day in the Life of an FNOL This is the Timeline in our Operation Scope Sheets One for every room affected Record Measurements Measurements should match the Drying Zone Worksheet in the Drying Workbook and Xactimate Note: Water Damage Estimates are not done in the field. Circle Services that need to be done. The Crew Chief will fill in what was actually done

34. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol (Checklist) Notes: How long did it take for you to respond to home? Have you downloaded the latest Drying Workbook? Customer Information (We need a way to get a hold of them in the process)? Phone 1 � Phone 2 � Phone 3 � What is the best time to Monitor the Job (Morning/Afternoon)? What was the cause of the damage?

35. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol In what year was the house built? In what year was the affected floor put in? What areas were affected? How much sf is affected based off the Drying Workbook? How long has the water been there? What work needs to be done? Have pictures been taken? Front of Structure? Loss Site (What caused the damage)? Affected Areas (at least 1 picture of each room)? Did you send the pictures to the office from your Blackberry to pictures@servproofbirmingham.com?

36. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol Insurance Information Does the customer have insurance? Who is it with? Have they turned in a claim? How much is their Deductible? Did you collect the Deductible? Has an adjuster been assigned yet? Adjuster Name: Self Pay If Self Pay, did you collect half of �Customer Estimation Agreement� (We take Check, Visa, MasterCard, American Express, Discover)? If Self Pay, did you explain to the customer that balance of payment is due upon completion of services provided?

37. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol Water Category (1,2,3) What Category of Water Damage is it? Why did you choose this Category? Water Class (1,2,3,4) What Class of Water Damage is it? Why did you choose this Class? If Category 1 and a State Farm Loss, are we doing In-Place Drying?

38. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol Equipment Air Movers How many Air Movers are needed according to the Drying Workbook? What types of Air Movers are needed? Regular? Axial? Dehumidifiers How many Dehumidifiers are needed according to the Drying Workbook? What types of Dehumidifiers are needed? Conventional? Low Grain Refrigerant? If Class 4 (i.e. Hardwood Floors), do we need a Floor Drying System with LGR�s? Power Can the house hold the power or do we need a generator (i.e. 30KW, 50KW, 100KW)? Would this job be better suited for the TES Unit (can dry about 1,500 sf)? Would this job be better suited for the E-TES Unit (can dry about 500 sf)?

39. Day in the Life of an FNOL This is the Timeline in our Operation Complete Water Damage Protocol If Liberty Mutual, what was the name of the representative you spoke with? If Liberty Mutual, call 1-800-969-4307 ext. 45766 and answer the following questions: What is your IICRC #? Insured�s Name, Claim Number and Loss Address Franchise Name Category of Water Loss? Class of Water Loss? Cause of Loss and any pertinent details Affected Areas (need rooms and what damaged) Any potential demolition needed Moisture Readings from outside, unaffected and affected areas including moisture content Total count of dehumidifiers and air movers All dehumidifier readings including AC is utilized Date and time we were notified of the loss Date and time we contacted the insured Date and time of onsite arrival Drying Plan to include equipment, scope and estimated days of drying

40. Day in the Life of an FNOL How long does the entire process take? Should take 1 to 1.5 hours for experienced First Responders Will take longer for inexperienced Pitfall Do not wait to call for crew until all paperwork is complete This is not taking care of the customer

41. Expectations / Consequences First Responders Rejection Ratio < 20% Monthly Crew Chief Rejection Ratio < 20% Monthly Helper Rejection Ratio < 20% Monthly Everyone is Responsible

42. Sample Rejection Ratio Report

43. Sample Rejection Ratio Report

44. After Hours / Weekend Manager On Call $100 / Week First Responder On Call $100 / Week up to 4 Calls $200 / Week for over 4 Calls Weekend Monitoring Performed by First Responder On Call $150 / Day

45. Objectives / FAQ Covered History of �Why a First Responder?� What is a First Responder? What are their Roles and Responsibilities? What Type of Equipment do they use? What Type of Technology do they use? How do they report? Who can First Respond? How long should it take? What is the process? What about After Hours and Weekends? Is there any additional compensation? First Responder and Crew Expectations/Consequences?

46. This has dramatically improved the quality of work by having a manager handle the job from Beginning to End.

47. VIDEOLEADER TO LEADERJACK WELCH

48. Employee Retention Team Building Dream Building

49. 212 Degree VideoClick Here

50. Goals for each Division

51. Marketing General Contractors Mold Estimates Independent Agents Commitment Tracking Adjusters Direct Sales

52. Production Science of Drying Roles & Responsibilities Know and Follow Management / Leadership Employee Training on every service we offer Commitment Tracking

53. Office Client Rules / SLA�s Accurate Numbers Jobs Estimated Timely / Accurately Commitment Tracking Collections

54. Evaluations (A,B,C)

55. Teamwork makes the Dream work

56. The Strangest SecretClick Here

57. Dream Building

58. Dream Building Criteria No more than 2 Tardies per Month No more than 4 LWOP for the Year No more than 4 Write Ups No �C� Players as deemed by your manager Cannot be deemed �C� more than 4 months out of the year Must be employed here at least a year � Starting January 3, 2011

59. Dream Building 2 People from each Division Production Production Manager Crew Chief Production Technician Office Marketing Wilson Trainership

60. Dream Building Reward Note: Draw 2 names from each division

61. Dream Building Birmingham Do not achieve goal of $6,500,000 $1,000 per person Achieve goal of $6,500,000 $2,000 per person Achieve Pinnacle volume - over $7,000,000(?)TBD $3,000 per person 1 out of the 2 from each division, drawing for additional $2,000

62. Dream Building Wilson Trainership Do less than 2010 - $50,000,000(?)TBD $1,000 per person 5% increase from this year $2,000 per person 10% increase from this year $3,000 per person 1 out of the 2, drawing for additional $2,000

63. Total Potential Payout$48,000.00

64. Finish StrongClick Here