New Economic Model Working Group

Phone Conference Call, June 2th 2004

Present: Trish Barbato, Ed Kaiser, Dan Naistadt, Jim Rosen, Connie Brock, Nancy McCabe, Denny Robertson, Michael Greenleaf, Lynele Jones

We began our call by raising lungta.

The bulk of the meeting was devoted to updates from the project team leaders. These updates are summarized below:

Jim Rosen: Articulate a view and strategy of finance in our Mandala

Jim reported that he has not launched the project yet.

Connie Brock and Chris Tamdjidi: Prepare a funding model for entities in our Mandala to support the Central Office

Connie reviewed an updated draft of the North American proposal for both the major practice centers as well as the local practice centers. This draft incorporated many of the comments from our last meeting. Connie indicated that she has yet to prepare a multi-year roll-up of the total funding proposal but will do so once all input is ready.

There were a number of key comments:

Michael Greenleaf: Make a recommendation for the function and staffing of the central finance function

Michael reported that his group has had one meeting to kick off the discussion. 'The group is focusing on developing, by July, a proposal for hiring a CFO.. Michael has developed a draft proposal and will meet with the team on June 3rd to review this proposal.

Michael has also proposed that this committee serve as a defacto finance committee until one can be formally established.

Trish Barbato: Define required and recommended financial reports

Trish reported that she has worked with Terry Rudderham to develop a group vision and project objectives. She has also developed an early proposal for minimum reporting requirements and timing which has been distributed to the group. A conference call will be held next week to review.

Ed will send the European finance guide to Trish who will review it to determine if there are materials in this manual that can be incorporated into the group’s proposal.

Denny Robertson: Prepare recommendations for restructuring the legal entities in Mandala in order to simplify financial management

Denny reported that her group has had several meetings. Joe Inskeep attended one of the meetings at her request to insure that there is strong communication with the Governance Group.

Denny indicated that she will have a proposal ready for the July conference. Her current thinking is that much of this work should follow what comes out of structure and governance group and that she will recommend that no short term changes be made except where there are compelling short term issues.

Denny also reported that she will develop a short and long term strategy for policy and procedures how requested changes to legal structures should be addressed.

Group

There was a group discussion about whether this working group should get a comrehensive baseline of key financial information by putting together a questionnaire for the entire mandala. It was agreed that although such a baseline would be helpful, it is probably not possible to do so this year.  It was noted that the Central Office is making good progress putting together final 2003 statements for North America and that we will have them this fall.

Connie reviewed the dates and deliverables for the upcoming meeting of the Mandala Governing Council at the end of July. We agreed that all project teams that intend to submit proposals will distribute draft proposals by June 18 for our next call.

The next call is scheduled for June 23rd, 2004 at 3:30 EST.

We concluded with the dedication of merit.