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Lakeshore presentation master slides v final

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Lakeshore presentation master slides v final

  1. 1. June 17, 2009 IT T ransition I nitiative I T I T
  2. 2. How Did We Get Here? <ul><li>Market conditions: </li></ul><ul><ul><li>Reduction in luxury purchases </li></ul></ul><ul><ul><li>Sales drops in Active by Anne ® and Nordic Ridge ® </li></ul></ul><ul><ul><li>Losses for past two quarters </li></ul></ul><ul><li>If things don’t change, we are headed for insolvency. </li></ul><ul><li>We are outsourcing our IT department to reduce costs. </li></ul>
  3. 3. What Does This Mean to the Company? <ul><li>Some alternatives considered: </li></ul><ul><ul><li>Lower-cost manufacturing partner </li></ul></ul><ul><ul><li>New low-end brand </li></ul></ul><ul><li>This was not planned from the start </li></ul><ul><li>IT not a core competency for us </li></ul><ul><li>If we don’t say goodbye to a few of you now, we’ll be saying goodbye to all of you soon. </li></ul>
  4. 4. What Does This Mean to You? <ul><li>Most IT positions transferred to partner firm in Hyderabad, India </li></ul><ul><li>Applications migrated over the next seven months </li></ul><ul><li>Calling this the IT Transition Initiative </li></ul><ul><li>We can’t succeed without you. </li></ul>
  5. 5. What Does This Mean to You? <ul><li>We understand your concerns </li></ul><ul><li>Want to make this as painless as possible… </li></ul><ul><ul><li>Severance packages </li></ul></ul><ul><ul><li>Resume and job placement service </li></ul></ul><ul><ul><li>Retention bonuses </li></ul></ul>
  6. 6. What’s Going to Happen Today? <ul><li>Mark Albright, CEO: Background & current situation </li></ul><ul><li>Yaw Ofosu, CFO: Fiscal implications, retention bonus </li></ul><ul><li>Geneva Todd, CIO: Position migrations, app migration plan </li></ul><ul><li>Lisa Greenspan, HR Director: Severance packages, insurance options </li></ul><ul><li>Tammy Smith, Training & Development: Resume & placement services </li></ul>
  7. 7. Yaw Ofosu, CFO <ul><li>Critical Targets </li></ul><ul><li>Financial Metrics </li></ul><ul><li>Competitive Intelligence </li></ul><ul><li>Contract Management </li></ul><ul><li>Projected Savings </li></ul>
  8. 8. Critical Targets <ul><li>More Efficient Organization </li></ul><ul><ul><li>Remove Duplication </li></ul></ul><ul><ul><li>Consolidate Support Functions </li></ul></ul><ul><li>Respond to Demand </li></ul><ul><ul><li>Engage Contractors and Other Partners </li></ul></ul><ul><li>“ Rightshore” Organization </li></ul><ul><ul><li>Outsourcing & Reemployment </li></ul></ul>
  9. 9. Financial Metrics +2.8% -0.4% - Administrative LAKESHORE Fiscal 2008 Fiscal 2009 (Projected) Annual Revenue $97.6M $83M Annual Profit (After Taxes) 12% 4% Expenses (And Percent of Revenue) - Salaries & Benefits $27.1M / 28% $28.8M / 29% - IT Legacy Systems $2.6M / 7.4% $2.8M / 11.2% - Real Estate $1.9M / 5.5% $1.7M / 6.7%
  10. 10. Competitive Intelligence Sources: Crain’s Chicago Business, 2009 Book of Lists Market Share 2005-2007 Average 2009 2012 LAKESHORE 65% 50% 70% EXCELSIOR 25% 30% 20% IN-MOTION 10% 17% 7% ORION Inc. N/A 3% 5%
  11. 11. Contract Management <ul><li>Renegotiate All Contracts </li></ul><ul><ul><li>Terms and Conditions </li></ul></ul><ul><ul><li>Service Level Agreements </li></ul></ul><ul><ul><li>Fees </li></ul></ul><ul><ul><li>Low-Cost Offshore Delivery Locations </li></ul></ul><ul><li>Reduce Costs </li></ul>
  12. 12. Contract Management: IT Project Allocation <ul><li>Current In-House IT = 65%-80% </li></ul><ul><li>SOLUTION = Contract Out All IT prior to 2010 </li></ul>
  13. 13. Contract Management: India . IT Expectations <ul><li>Transparency </li></ul><ul><li>Services </li></ul><ul><li>Financial Viability </li></ul><ul><li>Notification </li></ul><ul><li>“ Trusted Partner” </li></ul><ul><li>Fraud -> Terminate Relationship -> No $ Penalty </li></ul><ul><li>Checks & Balances </li></ul>
  14. 14. Projected Savings: 2010 - 2011 <ul><li>Help Desk Operations Support = 5 - 10% </li></ul><ul><li>Network Service = 10 - 15% </li></ul><ul><li>Application Hosting = 10 - 20% </li></ul><ul><li>Projected Overall Savings = $13M </li></ul>
  15. 15. Geneva Todd, CIO <ul><li>IT Outsourcing Plan </li></ul><ul><ul><li>Application Movement By Date </li></ul></ul><ul><ul><li>Positions Impacted </li></ul></ul><ul><ul><li>Positions Retained </li></ul></ul><ul><ul><li>Hardware/Software & Other Considerations </li></ul></ul>
  16. 16.
  17. 17. Lisa Greenspan, Director of HR <ul><li>Severance Pay </li></ul><ul><li>Unemployment Insurance </li></ul><ul><li>COBRA </li></ul>
  18. 18. Severance Pay <ul><li>All employees are eligible </li></ul><ul><li>Employees < 5 years, 3 months’ severance </li></ul><ul><li>Employees 5+ years, 6 months’ severance </li></ul><ul><li>You must sign a separation agreement </li></ul>
  19. 19. Unemployment Insurance <ul><li>Eligible on first day of unemployment </li></ul><ul><li>To find your local office visit: http://www.ides.state.il.us/ </li></ul>
  20. 20. COBRA <ul><li>Consolidated Omnibus Budget Reconciliation Act </li></ul><ul><li>Continuation of Employer-Sponsored Heath Insurance </li></ul><ul><li>Chicago Insurance Associates will contact employees directly </li></ul><ul><li>Employees will receive information within 30 days </li></ul><ul><li>Effective from last day of employment </li></ul>
  21. 21. Tammy Smith, Manager of Training & Development <ul><li>Internal Opportunities </li></ul><ul><li>Career Counseling Services </li></ul><ul><ul><li>Support Functions </li></ul></ul><ul><ul><li>Availability </li></ul></ul>
  22. 22. Re-employment Opportunities <ul><li>HR Resource Support </li></ul><ul><li>Career Transitioning </li></ul><ul><li>Career Planning and Placement </li></ul>
  23. 23. Career Counseling: Support Options <ul><li>Internal redeployment possibilities </li></ul><ul><li>External placement program </li></ul><ul><ul><li>Job search experts </li></ul></ul><ul><li>Office services support </li></ul><ul><li>Social support services </li></ul>
  24. 24. Career Counseling: Availability <ul><li>June 2009 to March 2010 </li></ul><ul><li>Outplacement service </li></ul><ul><li>Counselors available to… </li></ul><ul><ul><li>Advise </li></ul></ul><ul><ul><li>Assist </li></ul></ul><ul><ul><li>Alleviate distress </li></ul></ul><ul><li>24-hour hotline: 800-FOR-HELP </li></ul>
  25. 25. Why is this relevant to you? <ul><li>Maintain economic viability </li></ul><ul><li>Manage the transition </li></ul><ul><li>Streamline </li></ul><ul><li>Assist employees </li></ul>
  26. 26. Final Thoughts <ul><li>Stay tuned for individual meetings </li></ul><ul><li>Difficult times, difficult decisions </li></ul><ul><li>If we don’t say goodbye to a few of you now, we’ll be saying goodbye to all of you soon. </li></ul><ul><li>Acknowledging your service </li></ul><ul><li>Thank you </li></ul>
  27. 27. Questions & Answers

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