ARMSTRONG LAING OFFERING NEW SHARED SERVICES SOLUTION SUITE

At a time when drastic corporate actions such as massive employee layoffs, discretionary spending freezes, and sub par earnings statements have become commonplace, many businesses are searching for better strategies to manage costs and maximize profitability in order to survive. As a result, the market is hungry for the new suite of performance management solutions being rolled out by Armstrong Laing Group (ALG).

ALG unveiled solutions for Strategic Shared Services Management and Multidimensional Profitability Analysis, at the Annual Cost and Performance Measurement Symposium hosted by the Consortium for Advanced Manufacturing International (CAM-I) and the American Institute of Certified Public Accountants (AICPA) in Nashville, TN. The solutions combine their consulting services and powerful activity-based costing engine, Metify ABM, with Web-based data collection, multidimensional analysis, and graphical reporting tools to equip managers with an online decision support system that addresses specific business challenges. These solutions are part of ALG's new North American strategy to focus on clients in industry-based market sectors with tailored solutions and a dedicated sales force.

Strategic Shared Services Management

Shared Services is a term used to describe the centralization and standardization of non-core corporate functions such as Information Technology, Human Resources, and Finance within a company. Under this structure, Shared Services organizations operate as "internal outsourcers," providing services to the company's other lines of business. It is estimated that over 50% of Fortune 500 companies have created Shared Services centers in their US operations. However, ALG has learned that few have reaped the full benefits that can come from this business model such as economies of scale, improved cost accountability, and operational excellence. ALG's solution is designed to bring that added lift.

Their Strategic Shared Services Management solution combines software and consulting services to create a dashboard that communicates the performance of a Shared Services organization to its executives, managers, and their internal customers. The solution provides online access to performance results, creating an important ongoing feedback loop, which enables better forecasting and management decisions on cost reduction, service level agreement, and resource deployment strategies. Features such as an online customer invoice, SLA variance analysis, and resource planning scenarios help key stakeholders quickly evaluate performance and determine corrective actions.

Clients such as the Orlando Utilities Commission (OUC), Great American Insurance, and British Airways have already recognized the value in this solution for managing their Shared Services operations. OUC has completed an initial implementation in their Corporate Services group, which includes Human Resources, Purchasing, Fleet, Facilities, Materials Management and Security and plans to extend the solution to their Information Technology unit next.

Multidimensional Profitability Analysis

Profitability is a universal measure of successful business performance. Therefore, enhancing the accuracy and flexibility with which it is reported is a critical need for many industries and clients. Multidimensional Profitability Analysis is ALG's entry point to the Customer Relationship Management (CRM) analytic applications market. While there has been a boom in the development and implementation of CRM software packages, there are few vendors that can support CRM strategies with analytics that extend the CRM focus beyond the marketing department. Moreover, with the recent downturn in the economy, companies will be more focused on "efficient growth," requiring a deeper understanding of the total cost to acquire, serve, and produce products and services for different customer segments, not just the efficacy of marketing campaigns and promotional discounts.

In an online dashboard, the solution provides a process-based view of a company's product, channel, and customer performance so that managers really understand what drives their profitability and can take actions to improve it. ALG is uniquely qualified to deliver a more robust solution than other vendors because Metify ABM can simultaneously assess profitability across all three dimensions and then trace the source of those profits back to the resources employed to produce it. Features such as market segment profit and loss statements, contribution margin analyses, and cost to serve comparisons make it possible for executives to pinpoint unprofitable pricing strategies, customer segments, or employee behavior.

While this marks the public launch of this solution, many clients have already embraced ALG's profitability methodology and achieved dramatic results. Tech Data, global provider of IT products and logistics services, announced a 33% increase in earnings per share during the first 9 months of FY 2001 and credited ALG products and the new management paradigms that it brought about as a significant contribution to that achievement. The profitability of departments using the solution in their daily operations was twice that of areas that have not yet implemented it. Market analysts are already predicting that the planned rollout of this solution in the company's European operation will improve margins in that region as well. This solution has also become a popular choice among leaders in the financial services industry such as Bank of America and PNC Bank and for consumer goods giants Hershey Foods, Heineken, and Warner Lambert, South Africa.

These are only the first in a series of ALG solutions being developed to address strategic issues for their vertical industry-based markets. Solutions for Predictive Planning & Analysis and Performance Measurement are planned for release later this year.

About Armstrong Laing Group

Armstrong Laing Group (ALG) is a global provider of performance management solutions that can be implemented across the enterprise. The company's software tools are the cornerstone of a wide range of ALG solutions that firmly establish the technology link between effective business decisionmaking and the processes employed to provide products and services to customers. Spanning back to front office systems and operations, these solutions produce measurable outcomes that focus strategies, enhance service delivery, improve customer relationships, and boost profitability. Well-positioned to serve the global needs of its customers, ALG now has offices in Atlanta, Chicago, Philadelphia, Toronto, Vancouver, Washington DC, Australia, Japan, Mexico, Philippines, South Africa, and throughout Europe. Additional information on Armstrong Laing products and services may be found at www.armstronglaing.com.

Contact Natasha Steptoe of Armstrong Laing Group, 404-842-7777, nsteptoe@armstronglaing.com.