1

Brad Wike(217)855-2072

brad@peerlessrestoration.com

Todd Garner(217)620-3662

tgarner@peerlessrestoration.com

2

PURPOSE

To better the lives of our customers and employees

through world class service and a commitment to community support.

3

CORE VALUES

World Class Service – that is peerless, “above and beyond comparison”

Integrity – the foundation of all our relationships

Courage – the moral strength to say what you mean honestly with conviction and accountability

Profitability – Ensuring the future of Peerless and job security for our employees

Winning – Be the best, never quit

4

5

Business Overview• Peerless began serving Central

Illinois in 1945 cleaning rugs and draperies.

6

Business Overview• Peerless began serving Central Illinois in

1945 cleaning rugs and draperies.

•The company eventually added dry cleaning, laundry, carpet, upholstery, air duct, tile/grout cleaning, mold remediation and fire & water restoration.

7

Business Overview• Peerless began serving Central Illinois in

1945 cleaning rugs and draperies.

• The company eventually added dry cleaning, laundry, carpet, upholstery, air duct , tile/grout cleaning, mold remediation and fire & water restoration.

•Started with 7500 sq ft building, added facilities in Decatur & Springfield for a total of over 42,000 sq ft of office & warehouse space.

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• Currently serving Macon & Sangamon Counties: Population 302,821

Business Overview

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Business Overview•Currently serving Macon & Sangamon Counties: Population 302,821

•Fleet of 37 vehicles

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Business Overview•Currently serving Macon & Sangamon Counties: Population 302,821

•Fleet of 37 vehicles

•Purchased a flood house in Springfield and began construction on new Springfield facility

11Opening Soon – Springfield, IL

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Timeline1945 ~ Peerless is founded

1978 ~ Purchased by Scott and Linda Wike

1996 ~ Decatur was hit with back-to-back tornadoes – we packed out over 30 households

2004 ~ Corporation purchased by Brad Wike

2005 ~ Moved restoration division and business offices into new facility

2006 ~ Purchased training facility and warehouse in Decatur.

2006 ~ Purchased office/warehouse facility in Springfield

2006 ~ Started practicing The Rockefeller Habits

2008 ~ Million Dollar Month

2009 ~ Started playing The Great Game of Business

2011 ~ Purchased new Springfield facility – opening in 2011

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Peerless Executive Team Required Reading:

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The Rockefeller Habits3 Winning Habits:

• Priorities: A few rules remain consistent with a firm's core values and long-term goal. Others change regularly -- what Harnish calls the Top 5 and Top 1 of 5.

• Data: Key metrics should be measured over time (Smart Numbers); short-term metrics provide a tighter focus on an aspect of the business (Critical Numbers).

• Rhythm: A well-organized set of meetings keep everyone aligned and accountable.

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Priorities Data

TYING THEM TOGETHER ON

THE

ONE PAGE STRATEGIC PLAN

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1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

6 6 6 6

Core Values / BeliefsForever

2011 2011 Quarter # 1 2010

Revenues

Profit

Gross Margin

Cash

Days Sales Outstanding

Carpet

Fire

Water

Dry Cleaning

Year Ending 2010

Revenues

Profit

Gross Margin

Cash (% of Sales)

Days Sales Outstanding

Water

Dry Cleaning

Fire

Carpet

R - Restoration - fire, water & moldD - Dry Cleaning

2011 Theme

BaselineHistorical

DRIVE FOR FIVE!

To better the lives of our customers and employees through world class service and a commitment

to community support.

Dry Cleaning

Gross Margin

Actions (How)

Cash

Days Sales Outstanding

Profit

33

Revenues

Profit

3-5 years10-30 Years

Purpose (Why)

Future Date

5

4

5

2 2

Big Hairy Audacious Goal

44

BHAGCelebration/Reward

Confidential

Water

Cash

Dec 15 & 16, 2010

Targets (Where)

Revenues

Carpet

Gross Margin

1 year

Work hard, work smart, work as a

team and have fun!

$20,000,000 in Sales with a 20%

Profit by 2020

Call to Action

Year Ending 2010 - Sales By Division

5

4

5

Peerless: Problem Solved!

2

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Winning – Be the best, never quit.

Integrity - the foundation of all our relationships.

Courage – the moral strength to say what you

mean honestly with conviction and accountability. 1 1

2

CARD

3

Cost of good soldQuick ratio

1 or 2 Critical #s

Key Thrusts/Capabilities3-5 Year Priorities

Track new business.

Elevator PitchBrand Promise

C - Carpet CleaningA - Air Duct Cleaning

The Great Game of Business and the Stake in the Outcome will provide

the rewards. Celebrations will be created as

appropriate.

3

1 or 2 Critical #s

Key InitiativesAnnual Priorities

Revenue &

Rocks & AccountabilityQuarterly Priorities (Who / When)

We go where we are needed!

Profitability ensures the future of the company

and employees. Sandbox / Market

Cash

Smart Numbers / KPINet Profit

Carpet

Quarter

Quarter # 1

Cash

Year Ending

Days Sales Outstanding

Fire

Water

Dry Cleaning

Fire

Profit

2011 1-Page Strategic Plan

ActionsTo Live Values, Purpose, BHAG

World Class Service - that is peerless, “above

and beyond comparison”.

S.W.O.T. Analysis

Opportunities (External)

Gross Margin

Goals (What)

Revenues

Threats (External)

Strengths (Internal) Weaknesses (Internal)

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1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

6 6 6 6

S.W.O.T. Analysis

Threats (External)

Strengths (Internal)

Weaknesses (Internal)

Opportunities (External)

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2011 Quarter# 2010

RevenuesProfit

Gross Margin

Cash

Days Sales Outstanding

CarpetFireWater

Dry Cleaning

RevenuesProfit

Gross Margin

Cash

Days Sales Out-standing

Celebration/RewardWaterDry CleaningFireCarpet

The Great Game of Business and the Stake in the Outcome will

provide the rewards. Celebrations will be created as

appropriate.

1 or 2 Critical #s

1Rocks & Accountability

3

2

5

Cost of good soldQuick ratio

4

Water

Dry Cleaning

Fire

Days Sales Outstanding

Carpet

Profit

Gross Margin

RevenuesQuarter #

Baseline

Quarter Historical

Year Ending 2010

Year Ending 2010 - Sales by Division

Actions (How)

Cash

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2011

A - Air Duct CleaningR - Restoration fire, water & moldD - Dry Cleaning

Brand Promise

Targets (Where)

Cash

3-5 years

4

Future DateRevenues

Key Thrusts/Capabilities3-5 Year Priorities

Sandbox / Market

ProfitGross Margin

2

Net Profit

1

3

5

Smart Numbers / KPI

Peerless: Problem Solved!

Cash

Profit

5

Gross Margin

Dry CleaningWater

Carpet

Days Sales Outstanding

Goals (What)

1 year

1 or 2 Critical #s

RevenuesYear Ending

Key Initiatives1

2

3

4

CARDC - Carpet Cleaning

Cash

Fire

Revenue &

Track new business.

Elevator Pitch

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Core Values / Beliefs

World Class Service - that is peerless, "above

and beyond

Forever

Courage - the moral strength to say what you mean honestly with conviction and

accountability.

4 Build a world class workforce. Call to Action

Work hard, work smart,

work as a team and have fun!

10-30 YearsPurpose (Why)

5

2

1

Practice the principles of The Great Game of Business.

Accountability - Using quantifiable measurements, clearly defined roles & core values.

To better the lives of our customers and employees through world class service

and a commitment to community support.

3

Become a sales driven company.

$20.000.000 in Sales with a 20% Profit by 2020

Profitability ensures the future of the company and employees.

Integrity - the foundation of all our

Big Hairy Audacious Goal

Winning - be the best, never quit.

BHAG

Actions

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RHYTHM:Daily Huddles

– Division Managers

– Executive Team FOCUS: •Daily sales numbers•What’s going on in your world•Bottlenecks•Core Values•Sidebars

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– Each Location

– All Employees

RHYTHM: Weekly Financial Literacy Meetings

FOCUS: •How to read the numbers•Learning to act & feel like owners•Saving your 1%?•Core Values•Team Celebrations

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RHYTHM:Weekly Manager’s Huddle

– Executive Team

– Division Managers

– Sales Team

SAMPLE AGENDA: 1 ¼ hoursOpening Comments Brad

Sales Pipeline Update Todd

U of I Update Randy/Paulo

Mini Game Update Debbie

Springfield Building:Business Plan

Connie/Debbie

Score Board Update All

A/R Update Connie

Closing Comments Brad

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Month

Week 1 Week 2 Week 3 Week 4 Actual Actual Plan Variance

5A -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 5B -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 5C -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 5D -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$

5 -$ -$

6A -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 6B -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 6C -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 6D -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$

6 TOTAL COST OF SALES (+6A to 6D) -$ -$

7A -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 7B -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 7C -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$ 7D -$ -$ Auto-Fill -$ -$ -$ -$ -$ -$ -$ -$

7

Auto-FillAuto-FillAuto-FillAuto-Fill

8A -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8B -$ -$ Todd -$ -$ -$ -$ -$ -$ -$ -$ 8C -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8D -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8E -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8F -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8G -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8H -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8I -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8J -$ -$ Todd -$ -$ -$ -$ -$ -$ -$ -$ 8K -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8L -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8M -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8N -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8O -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$

GROSS PROFIT DOLLARS

Fire RestorationWater Restoration

TOTAL GROSS PROFIT ( +7A - 7D)

Administrative Labor

Company Functions / Meetings

Depreciation

Buildings & Grounds - Monroe Street

Contributions / Gifts / Donations Computer Maintenance & Supplies

Buildings & Grounds - Training Center Buildings & Grounds - Corporate Office

Dues & Subscriptions Education & Training

Fines / Penalties

INCOME STATEMENT

Fire Restoration

COST OF SALES

SALES

On-Location

COMPANY SCORE BOARD

March 2011Year-to-Date

Fire Restoration

Plant

Water Restoration

On-Location

Plant

On-Location

Plant

Buildings & Grounds - Springfield Office

Fire Restoration

GROSS PROFIT PERCENTAGE

Bank Charges

TOTAL GROSS PROFIT PERCENTAGE

Advertising

OPERATING EXPENSES

Water Restoration

Account Owner

March 2010 Actual

Plant

February 2011 Actual

TOTAL SALES (+5A to 5D)

Month Forecast

Employee Benefits

Water RestorationOn-Location

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Month

Week 1 Week 2 Week 3 Week 4 Actual Actual Plan Variance8P -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8Q -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8R -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8S -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8T -$ -$ Todd -$ -$ -$ -$ -$ -$ -$ -$ 8U -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8V -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8W -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8X -$ -$ Todd -$ -$ -$ -$ -$ -$ -$ -$ 8Y -$ -$ Todd -$ -$ -$ -$ -$ -$ -$ -$ 8Z -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$

8AA -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8BB -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8CC -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8DD -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8EE -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8FF -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8GG -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8HH -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8II -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8JJ -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$ 8KK -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8LL -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$

8MM -$ -$ Connie -$ -$ -$ -$ -$ -$ -$ -$ 8NN -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8OO -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8PP -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8QQ -$ -$ Darryl -$ -$ -$ -$ -$ -$ -$ -$ 8RR -$ -$ Debbie -$ -$ -$ -$ -$ -$ -$ -$

8 TOTAL OPERATING EXPENSES (+8A to 8QQ) -$ -$ -$

NET INCOME BEFORE TAXES (+7 -8) -$ -$ -$ -$

Week 1 Week 2 Week 3 Week 4 -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$ -$ -$ Connie -$ -$ -$ -$

Weekly BalancesBALANCE SHEET

NET INCOME BEFORE TAXES PERCENTAGE

March 2010 Actual Account Owner

February 2011 Actual

Utilities - Locust St.

Utilities - Rental Properties

Taxes - Other

Utilities - Springfield Office

Travel

Utilities - Plant

Taxes - Payroll

Utilities - Corporate Office Uniforms

401k Match Misc. Vehicle Expenses

Telephone

Utilities - Training Center

Marketing Expense

New Employee Screening

Postage

Long Term Debt

CashAccounts Receivable

Accounts PayableShort Term Debt

Accounts Receivable > 90 Days

Office Supplies

Repairs & Maintenance

Professional Fees

Medical Expenses

Insurance - Business Insurance - Worker's Compensation

Rent - MMA Realty

INCOME STATEMENT

COMPANY SCORE BOARD

March 2011Year-to-DateAccount

OwnerMarch 2010 Actual

February 2011 Actual

Month Forecast

Business Purchase Debt

Interest Expense

Insurance - Health & Life

Repairs & Maintenance - Rental Properties Repairs & Maintenance - Locust St.

Miscellaneous Expense

Rent - Monroe Street

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May 11, 2011

Training Center

World Class Service – that is peerless, “above and beyond comparison”

RHYTHM – Monthly GGOB Results Meeting

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Profitability – ensures the future of the company and job security for our employees

The Great Game of Businessis when employees

Think, Act and Feel like Owners of the business

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In other words the principles ofThe Game are:

• Know and teach the rules• Follow the action and keep score• Have a stake in the outcome

Profitability – ensures the future of the company and job security for our employees

29

Mini Games

Definition:A short-term activity designed to correct a weakness or pursue an opportunity in the company.

There is a goal, a scoreboard and a reward for winning.

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October 20 – November 30, 2010

Target: Change bad habits, promote company values & generate new business

Goal: Get as many Bingos as we can in one month

Players: All Employees

Prizes: 1 Bingo = $1 Lottery Ticket

2 Bingos = $5 McDonalds Card

3 Bingos = $10 Avon Theater

4 Bingos = $20 Circle K Card

5 Bingos = $50 Visa Gift Card

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B I N G OZERO BREAKAGE

DURING FIRE CALL

3 JOBS

TWO NEW

DRY CLEANING

ROUTE ACCOUNTS

7 EMPLOYEES

VOLUNTEER

FOR 2 HOURS

AT NON PROFIT

PARTICIPATE IN

COMPANY

MEETING

KEEP TRUCKS

GASSED, CLEAN

& LOCKED

1 WEEK

EMPLOYEE

REFERS ONE

NEW CUSTOMER

(5)

NO CARPET

REDOS

1 WEEK

NEW

SOF

ACCOUNT

(3)

PERFECT

SIGN-IN &

OUT

1 WEEK

TILE

&

GROUT

JOB

NEW

CAMP

ACCOUNT

NOTE HOW

CUSTOMER

WILL PAY

14 JOBS FREEBREAKS

NOT TO

EXCEED

10 MINUTES

RESIDENTIAL

AIR DUCT

CLEANING

COMPLETE

SCHEDULES

DAILY

1 WEEK

NEW

COMMERCIAL

AIR DUCT

CLEANING

PERFECT

CLOCKING

IN / OUT

1 WEEK

RECORD

YOUR OWN

NOTES

10 JOBS

PLUMBER

REFERRAL

COMPLETE

INSURANCE

INFO

5 JOBS

ADJUSTER

REFERS

NEW

CUSTOMER

FIRST TIME

DRY CLEANING

CUSTOMER

(4)

FIRST TIME

CARPET

CUSTOMER

(5)

HAND

WRITTEN

THANK YOU

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Bottlenecks

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• Employees from different walks of life with different levels of education

• Different levels of participation

• Keeping the rhythm on a regular basis– Managers out of office– Code Blue– Workers on different shifts

• Owner’s Perspective – everyone knows your business

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Rewards

35

•Increased Revenues•Better Gross Margins•Employees thinking like owners to help reduce costs•Better Communication•Employees receive Stake in the Outcome•Creates a team culture between Management and Production

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Annual Sales

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Total Sales Linear (Total Sales)

Brad Wike joined Team

Mold made National Headlines Million $ Month

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Gross Profit

47.7%49.0%

61.5%59.9%

62.5%61.1%

59.6%

2004 2005 2006 2007 2008 2009 2010

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Dennison Survey• The Denison Model is based on research by Dr. Daniel

Denison on the link between organizational culture and bottom-line performance measures. These measures include return on investment, sales growth, quality, innovation and employee satisfaction.

• This model is the basis for the Denison Organizational Culture Survey that has been used by over 5000 organizations worldwide. The survey measures four essential traits of all organizations: Mission, Adaptability, Involvement and Consistency.

• Great Game Practitioner Companies who participated in the Denison Organizational Culture Survey consistently ranked in the top 10% of all companies surveyed! The Denison Group found this “absolutely remarkable”.

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Denison Survey Results

93%

94%

87%

93%

98%

91%

92%

94%

97%

93%

97%

98%

94%

96%

94%

91%

97%

94%

95%

96%

50% 60% 70% 80% 90% 100% 110%

Information is easily available to all employees

Business planning is ongoing and involves everyone in theprocess

Team work is used to get work done

A clear & consistent set of values that govern the way we dobusiness

When disagreements occur, we work hard to achieve "win-win"solutions

All members have a deep understanding of customers wants andneeds

We make certain that the "right hand knows what the left handis doing"

There is a long term purpose and direction

We continuously track our progress against our stated goals

Our vision creates excitement and motivation for our employees

Management Hourly

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Questions