McKinsey standard elements

Message Title Interpretation of data (handout only)

Sales of Groglets have doubled in the last five years

Sticker Qualification of contents

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Exhibit Title Description of exhibit content

Legend Definition of shadings/colors

Source Allows use of other sources

Footnote Comments on particular elements of exhibits

Source: McKinsey

Whats to be achieved

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One clear message per exhibit

Sales are steadily increasing

Message and contents conform

SALES
$ Millions

500

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400

Readability

300

200

100

Simplicity and consistency in format

0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Source: McKinsey

"Less is always more"

Source: McKinsey

Which chart type for which comparison?

The process in action
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Component Comparison Component Pie

Item

Time series

Frequency

Correlation

Shows ... ... the size of individual components making up the total (share of , percent of )

Bar

Column

Line

Example
Our company has a market share of less than 10%

Dot

Source: McKinsey

Which chart type for which comparison?

The process in action
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Component Comparison Item Pie

Item

Time series

Frequency

Correlation

Shows ... ... ranking of individual items in a group by size (biggest/smallest, bigger/ smaller than, equal to, in n-th position)

Bar

Column

Line

Example
In terms of RoI our company is in fourth place

Dot

Source: McKinsey

Which chart type for which comparison?

The process in action
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Component Comparison Time series Pie

Item

Time series

Frequency

Correlation

Shows ... ... change over time (rising, growing, falling, changing, fluctuating, remaining steady, sinking)

Bar

Column

Line

Example
Sales have increased constantly since January

Dot

Source: McKinsey

Which chart type for which comparison?

The process in action
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Component Comparison Frequency Pie

Item

Time series

Frequency

Correlation

Shows ... ... how often a specified object appears in a number of consecutive, equally sized categories (concentration, distribution, frequency, range)

Bar

Column

Line

Example
The salary level is highest in the age group of 51 to 55

Dot

Source: McKinsey

Which chart type for which comparison?

The process in action
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Component Comparison Correlation Pie

Item

Time series

Frequency

Correlation

Shows ... ... the relationship between two groups of variables (rises/falls with, changes in parallel with, correlates with, reflects)

Bar

Column

Line

Example
Value of insurance policy reflects the level of income of the insured people

Dot

Source: McKinsey

Rules for creating charts

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Design rules Consistency (same elements for same meaning, same elements should be same size, should be placed the same, etc.) Balanced layout (optimum white space and font size) Central position of chart content (relative to slide) Accuracy (alignments, double check titles, activate spell checker)

Source: VMS

Agenda

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Instructions for VGI and Team Template Appendices

Sample charts Other Avoid two lines per bullet in table of contents Make box wider to make sure one line only Appendices in italics and not in bold

Exhibit title is sentence case not title case

Unit of measure Unit of measure is 16 point font size, left aligned, sentence case

Exhibit title is 19 point font size, bold, left aligned, sentence case

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All text is 16 point font size or smaller

as necessary All main body text on page should be same font size All text is black; use bold to highlight text as needed Always use Arial font for all text Text in box after Dsseldorf arrow

Use 1st fill color for text in

box after Dsseldorf arrows Dsseldorf arrows have black fill color

The above is the hierarchy format for

this template

Text is 16 point font size or smaller and follows this hierarchy format; all main body text on page should be same font size

Footnotes are 12 point font size or smaller; 1 point font size smaller than main body text on page
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Source: If you do not have a source for a page add <___________> placeholder as reminder

Colors used in this format keep if client hard color set, apart from that McKinsey U-Template applies
Fill colors

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1st fill 2nd fill

3rd fill
4th fill
Do not forget to change font color to white or it will not show correctly when printed nor on an onscreen slideshow
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Sample exhibit page with sample charts

Prevalence and trends, U.S. Percent

Stickers above legend Legend follows typical McK format

STICKERS Legend 1 Legend 2 Legend 3

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Unit of measure is 16 point font size, left 5 5 5 aligned, sentence case

C
4 3 2 2 2
24 19

Legend 4

57

2003

04

2005
Footnotes are 12 point font size or smaller; 1 point font size smaller than main body text on page
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Use 2nd fill color if you want to highlight part of chart

Note: National Health and Nutrition Examination Survey Source: If you do not have a source for a page add <___________> placeholder as reminder

We would like the pages to follow this format*, with the header breaking just before the stickers and legends
FTEs
Numbers are always right aligned with each other, but left aligned with column headers Current HC FTEs Improvement opportunity Percent** Total reduction FTEs

DISCUSSION DRAFT

Legend 1
Legend 2 Legend 3
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Plant

Other notes 19 34 18 36 107 43 62 30-50% 20-30 30-50 20-30 23-37 50-70 30-50 6-10 7-10 5-9 7-11 25-40 22-30 19-31

Plant finance head Accounts payable analyst

Individual boxes for

each number

Inventory analyst
General accounting analyst
Sales office

Sentence case for

titles and in bold

BFA to be in black Text should be left

aligned such as in this example and subbullets should be aligned like this This is how subbullet should be aligned

Territory finance head Route settlement analyst

Teller Sales & inventory analyst

Accounts receivable analyst
All rows and columns should be aligned horizontally and vertically

25
42 46 218 325

50
30-50 50 41-54 35-49%

13
13-21 23 90-118 115-158

Double-check totals

* Footnote 1 (Align all footnotes and also cross-check all *) ** We want the unit symbol to be displayed on the topmost and bottommost rows Source: Mark-out missing source if we did not provide

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An example of how we will number the groups and align their toplevel and also footnote alignment
From unclear due diligence findings
A Identified ~7,000 headcount No clear picture regarding core vs. non-core activities In-house vs. outsourced unknown

ESTIMATES

to a more transparent view post-acquisition

A Identified total >19,000 FTE Almost 3 times as many FTEs compared to due diligence No net FTE reduction since 2002 despite San Miguel BRP restructuring initiative* Annual sales volume dropped by ~30% from 2001 to 2006, while FTEs increased by 4%
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Labor costs unclear at ~USD60-100m Various sources during due diligence were inconclusive as to real FTE labor costs

Total labor cost estimated at ~USD98m** CCBPI regular employees account for more than 70% of the cost 34% of labor cost resides in sales (despite 30% decrease of sales volume) 27% in logistics

No clear perspective on org structure

Layers of hierarchy and span of control at head office or in the field were not clear

More transparent view on FTE distribution between HO and field 417 FTEs in HO (~2% of total FTE) PhilBev HO oversized relative to revenues: 12% of revenue, 35% of HO FTE

* Business Rationalization Program was executed after San Miguel Corporation (SMC) took over CCBG with primary mission of reducing FTE ** Based on bottom-up payroll data for regular and casuals and estimated split of labor vs. non-labor cost for third party contractors Source: Client data; client interviews; team analysis and estimates

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This is an example of how we will layout data, with the headers bold and units in normal font
Percent, USD millions
Further detail provided

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Benchmarking approach
1

Description

Potential FTE reduction Percent

Headcount savings estimate USD millions

Merger synergy

Apply percentage savings by function,

based on bottle merger experience Uses bottling benchmarks from Europe, Africa, and Latin America 20-22
19

2 19-21

Step-wise changes

Apply 4-step improvement based on

global experience Pure fat removal Processes improvement Manager to staff ratio rationalization Network optimization 25-36
25 10 25-35

Global bottler productivity benchmark

Conduct benchmarking exercise using

sales volume per FTE as the driver to rationalize the number of FTE function by function Use benchmarks from three bottlers
53-63
37 14

37-51

* Range of percentage reduction applied to different people-related cost bases/payroll mix Source: HR database; 2006 MOR; team analysis

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Instructions for VGI and team

Unit of measure keep at default size
Deadline is always 6:00 am of local sender time on the following day if input sent the
Process instructions
night before. We will advise if otherwise Output sent back to sender and those in cc list of the fax/softcopy Confirm with sender upon receipt of fax or email. This confirmation should be made regardless whether there are any questions about the document or not Questions should be made within 30 mins of receipt avoid calling CSS in the middle of the night - just mark clearly in doc if any doubts

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Full McK U-template style applies (black and white but original colors if a softcopy
Deck instructions

is sent through) Provide alternate layouts if there are better ideas but clearly mark them as such and put right behind the original slide Spell check all documents (US dictionary) before sending back and check that numbers add up in tables and waterfalls, and that footnotes match Main body text must have same font size Deleted slides should be moved to back of pack and mark as such Rename file to next version, e.g., Progress review V1.8 and NOT VGI-style NYOXX All abbreviations should be spelled out upon first use Spell out First, Second, Third, etc. Commas after e.g., Abbreviate billions to B, millions to M and thousands to K Space between currency and the amount, e.g., $50 M Dates to be: XX Month 2007 format Use Thinkcell whenever possible so sender can make last minute adjustments Mark if any slide is missing a source
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Source: Team discussion

KEY CSAG TOPICS

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Key topics

Decisions/support needed

1. Performance update 2. Friday kickoff meeting

N.A. N.A. Provide inputs

3. DSL trouble index metrics

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Different ranks of certification will ensure the continuous development of practical lean talents
Transformation improvement expertMaster Black Belt

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Top management Mid-level management District head

In-depth, value stream design knowledge Improvement is their only/main task Provide advices and knowledge management

Expert
Transformation project leaderBlack Belt

Project leader

In-depth, professional lean knowledge project owner Professional instructor with training and
coordination skills Change agentGreen Belt

Change agent Supervisor Team member Technician

Lean knowledge and experience Core basic improvement skills Project management and instruction skills Sub stream owner

Team memberYellow Belt

Team member of specific projects Understanding improvement skills Have relatively strong subjective initiative
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MOST REPEAT COMPLAINTS AT QCY BUSINESS ZONE ARE DUE TO TESTED OK (TOK) ON DIAGNOSTICS AND CUSTOMER-RELATED ISSUES
PRELIMINARY
Diagnostic related

Root cause diagnosis for repeat complaints handled by QCY business zones (~68% of complaints) 100% = 97 tickets analyzed

Repair related Customer related

Coordination related

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Tested OK by Infocom/Fulfilment Tested OK by BZ Root cause identified 6 repair not OK 2 Root cause identified 12 cant repair Root cause not identified 7 repair on symptom 8 BZ lack knowledge of 2 14 ticket history Advice to customer not clear Customers meddle or refused with equipment
16

Others

40

Examples of diagnostics related root causes Fulfillment tested OK but customer reported the same symptom the following day Technician tested OK but an equipment found to be defective the following day Examples of customer related root causes Technicians not allowed to test when connection was (temporarily) back to normal Customer, despite the advice given, tinkered with modem configurations

Customer N/A or refused entry

* QCY team prioritizes repeat complaints to be analyzed, resulting on disproportionally large Source:PLDT project team bottom-up analysis (June 24 July 8, 2008); NMOSS report

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