22 April, 1998

 

To: Management Core, Steve Rees, Frank Lobb

From : Dom Bernardo

Re: Minutes of the 20 April Meeting

 

The meeting was called to determine whether the packaging of services and products offered byCleanAirwith Frank Lobb’s approach provided an opportunity which the company should pursue. The topics that were to be covered were:

    1. Define the Opportunity: What would we do.
    2. Identify key milestones over an agreed to period of time
    3. Define success
    4. Estimate what we thought the payoff could be.
    5. Estimate what the investment in resources and dollars would be.

The meeting convened at 10:00 am. In order to determine what we would do, we created a matrix of customer needs toCleanAircapabilities. The matrix is as follows:

Customer Needs

How canCleanAirmeet the needs

1. Customer will need to be somewhere in a continuum having as its extremes Continuous Testing (data points/hour) and Source Testing with appropriate procedures.
  1. Stack Testing capability
  2. Process Analyzers
  3. PEMS
  4. CEMS
  5. Pegasus
  6. Data Collection

2. Documentation process, data management and reporting
  • CleanAir can determine compliance
  • Analyze out of control conditions
  • Manage multi process points
  • Data mining and slicing
    		•

    3. Certify, defend and demonstrate compliance
  • Provide a shield
  • Support litigation
    		•

    4. Plan development and approval
  • Educate
  • Provide expert advice
  • Design the system
  • Support the approval process
    		•

    Process changes and equipment changes
  • Process analysis
  • Define options
  • Implement

    •  

    A brief discussion also ensued regarding whether we could shift the cost paradigm by proving to customers that being green could actually save them money.

    From the aforementioned discussions we concluded that what we would do for the customers is:

    CleanAirwill design the customer’s plan and define and implement system and processes options to ensure and defend compliance with Title V at maximum total value for the client.

    The bold and highlighted words represent those items which we felt were key in this definition.

    Having decided on what we will do for the customers, we then proceeded to lay out key milestones and success criteria for the same over the next twelve months. These were as follows:

    Milestone

    Success

    Complete our customer briefing within 1 month

    Complete the briefing

    Conduct quarterly reviews 3/6/9/12 months

    Decision to continue

    Develop a positioning strategy and begin implementation within 1 month

    Implement the strategy

    ID working committees and gain membership within 4 months

    Membership in at least 2 committees.

    Complete key account contacts during months 3 through 6

    High degree of interest from key client contacts. Moved up the food line with some, obtained an order.

    Begin to fill the funnel

    First order received month 6

    Receive the order

    Demonstrate Leadership

    Focus group feedback

    Having agreed to the milestone schedule we then moved on to defining the required resources that will be needed. It was agreed that all expenditures would be aggregated under a project number, so that we can monitor total cost. The following resource needs were identified:

    Month

    Customer development FTE

    Briefing FTE

    Positioning FTE

    Committee FTE

    Travel Dollars

    1

    1

    1.5

    1

    		  

    5k

    2

    1

    		  

    .25

    		  

    5k

    3

    1

    		  

    .25

    .25

    5k

    4

    1

    .25

    .25

    .25

    5k

    5

    1

    		  

    .25

    		  

    5k

    6

    1

    .25

    .25

    		  

    5k

    7

    1

    		  

    .25

    .25

    5k

    8

    1

    		  

    .25

    		  

    5k

    9

    1

    		  

    .25

    		  

    5k

    10

    1

    		  

    .25

    .25

    5k

    11

    1

    		  

    .25

    		  

    5k

    12

    1

    		  

    .25

    		  

    5k

    FTE = Full Time Equivalent

    The budget for the add on cost to the company breaks down as follows:

    Outside consultant 100,000

    Travel 60,000

    Miscellaneous 25,000

    Total 185,000

    Specifically which employees would perform the aforementioned activities was not decided.

     

    A discussion of potential payoff then ensued. It was agreed that the size of the market was very large (>1B). There fore we concluded that the pay off was more a function of our ability to mange the growth and agreed on the following revenue numbers over and above our baselines:

     

    Year 1 2M

    Year 2 6M

    Year 3 12M

    Year 4 20M

    Year 5 28M

    Total 68M

    The meeting then concluded with a discussion of actions to proceed. The key action taken by D. Bernardo and S. Evans was to prepare a contract for Frank Lobb by Friday 23 April.

    Having covered the agenda of the meeting, the meeting adjourned at 4:30pm.