Text Box: Results-Based Compensation and Performance Management Why ProFormMax Compensation Management? ProFormMax ties compensation to agreed-upon objectives, including both sales and margin goals and other critical activities. (It can also be used for non-sales positions.) Compensation drives behavior. ProFormMax provides the best system to help achieve results. In the typical commission program, the incentive does not necessarily reinforce many of the key critical performance factors. With separate commission and objective-setting processes, the reward is not effectively tied to company business goals. Why ProFormMax Performance Management? ProFormMax focuses individuals on specific objectives. The process provides ongoing relevant feedback that increases motivation, job satisfaction, growth and retention. Most other performance programs are ineffective. They go unused and do not deal with the fact that managers dislike conducting performance appraisals. ProFormMax gets used, period after period and year after year as recognition and incentive compensation are effectively tied to it. The ProFormMax Process 1. Review Of Current Compensation Plan We gather internal information by working with the management team to review position descriptions, define competencies and behaviors for positions, assess strengths and weaknesses of the current plan, and refine the compensation plan. We interview the sales personnel to understand their wants and needs, uncover issues surrounding the current plan, and gather their input regarding potential plan structure. As a result., all parties have input to the process and we create a foundation for ownership of the outcome. We gather compensation data regarding comparable sales positions in your geographic areas for the competencies and experience you require for success. We define and price the market. 2. Develop Compensation Levels A typical structure would include 2 to 3 levels for each position to recognize progression. Together we set the percentage for base versus incentive. We develop a communications process and a transition plan 3. Develop, Communicate and Finalize Objectives Overall company business goals and objectives are outlined with management followed by: Top-down/ bottom-up agreement as to attainable results. Typically, objectives are set on a quarterly basis Objectives include revenue opportunities, gross margin goals, activities to achieve results (prospecting, teaming with others, etc.). The process weights each objective based and establishes measurement tools. 4. Update Through mid-quarter reviews results/shortfalls can be recognized and addressed early. 5. Review Performance Cura provides initial training and coaching as needed for managers and participants. Performance versus objectives is clearly and simply documented. Strong performers are recognized and motivated to achieve higher performance levels. Poor performers are coached and, if unable to improve, are moved out of their positions. Senior management is involved as appropriate. 6. Calculate and Pay Incentive Incentives are simple to calculate and payments are visibly linked to attaining or surpassing objectives. Where incentives are withheld, it is clear where the performance deficiencies are and what corrective action is needed to achieve acceptable performance. 7. Set Next Period’s Objectives ProFormMax provides ongoing support to successfully continue the process. 8. Track Results and Implement Changes As Necessary Cura’s participation in the process allows for implementing appropriate changes. We also provide continued training to new managers.

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Text Box: The Cura Group, inc. "we build sales forces with our clients"