This document discusses how to allocate scarce resources like capital, talent, and time between a core business and new opportunities. It provides criteria for determining if a new business opportunity meets their standards, such as maintaining and increasing core business profits, producing a better return on investment than the core business, and counteracting core business profit fluctuations. It also outlines estimating costs, revenue, return on investment, and comparing opportunities to the core business and alternatives as a way to determine if an opportunity meets their criteria and then monitoring performance against the plan.

1. PSA Core Business Temporary Staffing Direct Hire Placement $ 6.0 MM $ 8 % EZBuy E-Procurement / E-Commerce Software Out- Source Purchasing Link ? Consulting Negotiate, Award & Administer Contracts Venture Funding ?

2. Scarce Resources: Capital Talent Time How Should they be Allocated? 1. Ability to Maintain and Increase Core Business Profitability 2. Probability of Producing Better ROI than the Core Business 3. Ability to Counteract Core Business Profit Fluctuations 4. _____________________________________________ 5. _____________________________________________ 6. _____________________________________________ Decision Criteria:

3. How Could we Determine if a Business Opportunity meets our Criteria? Estimate Costs: Start-up, On-Going Fixed, On-Going Variable Estimate Revenue Estimate Return on Investment Compare to Core Business and Alternative Opportunities. Monitor Performance Against Plan Modify Plan Based on Performance