Presentation given by Warren Dietel, President/Owner of Puff 'n Stuff Catering & Events, at The Special Event conference on January 25, 2011.

1. Incentive Plans That Drive AccountabilityPresented by: Warren Dietel

2. About the Speaker Family business began in Trinidad as pastry shop Entrepreneurial from the start Professional Experience Car Detailing, Puff ‘n Stuff Catering, Disney Weddings, Disney Institute, Scott Kay, back Home! Industry Involvement ICA Board Member, Regular Speaker for Catersource, The Special Event, and NACE What drives me

3. The Puff Story Opened in Central Florida in 1980 as a family-owned business Purchased in 2003, annual sales of $1.8 million, at operational limit Antiquated infrastructure with inefficient space & poor equipment Tremendous potential + aggressive growth plan = 267% growth in 3 years

4. It’s all about People & Culture 40+ Full-Time Team Members and 200+ On-Call Diversified business segments and multiple markets “When employees think, act and feel like owners… everybody wins.” - Jack Stack

5. Build a culture of employee engagement Acknowledgment of individual contributions Trained leadership delivers supportive feedback Collaborative working relationships Empowerment that promotes success Expectations that set clear challenging and attainable performance goals Show you/the company cares Trust and get out of the way Before We Get to Carrots and Sticks

6. Inspiration www.greatgame.com

7. The Principles of The Great Game of Business Every Employee… Should be given the measures of business success and taught to understand them. Know and Teach the Rules Should be expected and enabled to act on their knowledge to improve performance. Follow the Action & Keep Score Should have a direct stake in the company’s success, risk or failure. Provide a Stake in the Outcome

8. Open Book Management Running a company in a way that focuses everyone on helping the business be successful. Employee goals and accountabilities are tied directly to the success of the company. All employees are taught the Critical Numbers and how THEY can make a difference – both individually and as part of a team.

9. Additional Inspiration

11. What motivates employees?

12. Money

13. Performance pay

14. Recognition/Appreciation

15. Placing value on the behaviors driving company objectives

16. Incentive programs are usually viewed as positive

17. Accountability can be a negative

18. Balance of both is criticalThe role of a good manager/leader is to guide employees to work on what is most important in the most efficient manner.

20. Make it measurable

21. Make sure it is right the first time – difficult to change

22. Review by labor consultant/attorney

23. Easy to calculate

24. Campion to manage the process

25. Begin with the end in mind – what is your desired result? Wouldn’t it be great if everyone in your organization had a real stake in the outcome and understood how they were individually impacted by company success?

26. KISS Keep it simple and special (KISS) Good plans = easy to implement and follow Be clear about what incentives are and how employees can earn them Plans that require tracking performance indicators that are too detailed waste management's time and confuse employees

28. “All for one” style programs

29. Unmotivating

30. Enttitlements

32. Motivate each department or individual to focus on things they can control

34. Event Supervisor Incentive Plan

35. Department Manager Incentive Plan

36. Employee of the MonthCatch employees doing something right and make sure everyone in the company sees that management recognizes it.

37. Sales Commission Plan Special Event Planners will be assigned annual goals based on market, prior experience, and company needs SEPs are assigned to specific vertical markets and venues Opportunity to sell outside a defined market is available through relationships Commission paid at 8.5% of gross monthly sales Non-profitable sales will not be eligible for commission (30% margin required) Plan accommodates 2 to 1 administrative support ratio at current sales goals Poor performance is addressed from a disciplinary point of view Lead rotation/generation will have set parameters Vacation and Leave of Absence guidelines

38. Annual Bonus Opportunities Additional 5% over annual individual goal bonus paid on excess Additional 5% over annual team goal bonus paid pro rata on excess

39. Lead Generation Define where individuals can be successful Creates protection for existing SEPS Creates opportunity for newcomers Inbound calls, leads and inquiries “filtered” Filtered by market and routed to sales person/event planner Relationship is EVERYTHING! Outbound marketing encouraged Within 24 hours, next SEP in rotation responsible for acknowledging/ accepting the lead, no matter how large or small the scope of work associated with the event Dispute resolution

40. Commission Reports

41. Event Supervisor Plan Drive behavior through opportunity to earn beyond hourly wage Event labor charges must be profitable for opportunity Earning opportunity based on desired behavior: Staff Profitability Customer feedback – survey Leadership Condition of returned equipment Condition of vehicle Creativity & execution Mystery shopping Balanced scorecards are reviewed by direct manager and behavior is graded

42. Calculating the Incentive Reviewed weekly by Director of Catering Operations Events scheduled to 45% budget Labor variance report generated by manager 30% of positive variance becomes eligible for SIP An Example: Staffing sold at $1,000 Budget at 45% or $450 Actual labor cost of $400 or 40% Budget $450 – savings of $50 multiplied by 30% = $15 into Supervisor opportunity.

43. Earning the Incentive – Driving Behavior

44. Management Incentive Plan - MIP The MIP incentive target is determined as a percentage of base salary Management participation in the plan will be at one of three levels: 25% - Senior Department Leaders & Managers 20% - Mid-Level Department Managers 15% - Area Supervisors and Key Leads MIP is based upon company annual/monthly revenue targets

45. Management Incentive Plan - MIP MIP revenue targets will be calculated based on the following schedule: Level 1 = Flat/below 2010 revenue = 25% payout opportunity Level 2 = 60% of 2011’s revenue objectives to goal = 50% payout opportunity Level 3 = 90% of 2011’s revenue objectives to goal = 75% payout opportunity Level 4 = 100%+ of 2011’s revenue objective =100% payout opportunity For example: Manager salary $50,000 Mid-level Manager at the 20% salary incentive opportunity or $10,000 maximum incentive Company achieves 100% revenue goal - 20% of salary – eligible for $10,000 incentive - OR - Company achieves 90% revenue goal – 75% of $10,000 opportunity – eligible for $7,500 incentive

46. Earning the Incentive – Driving Behavior Individual performance is measured monthly Incentive will be paid annually using the goal classification and percentage payout outlined below

47. Employee of the Month Peer driven and controlled Added to website Announced monthly in front of peers Dedicated parking space with name $100 gift certificate to local restaurant group

48. Final Thoughts Employee incentive programs are a very powerful concept when employees can understand and see the connection between their performance and their rewards.

49. “When you give a little respect you get a more effective organization, with reduced turnover and absenteeism and employees at all levels who are engaged, focused, and committed to succeed as a team. In short, you get maximum ROI from your organization’s most powerful resource: its people!” Paul Marciano, Ph.D.

50. Thank You! Warren G. Dietel | warren@puffnstuff.com | 407.398.6306