smiles,(inc. - george mason university

Smiles, Inc. Turning Frowns Upside Down Kyle Dodge • Jacob Dilles • Lisa Strong • Nikki Sideleau • Chris Kain

Smiles, Inc. PO Box 12345, Wilmington, Delaware 19850 Phone: (555) 555-5555 Fax: (123) 456-7890 Web: SmilesInc.com

2

Table of Contents

Table of Contents ................................................................................................................... 2

Executive Summary ................................................................................................................ 3

General Company Description ................................................................................................ 4

Mission Statement .............................................................................................................. 4

Company Goals and Objectives ........................................................................................... 4

Market Segment ................................................................................................................. 4

Our Services ........................................................................................................................... 5

Attraction............................................................................................................................ 5

Workplace Culture Alignments............................................................................................ 6

Compensation..................................................................................................................... 7

Benefits............................................................................................................................... 8

Human Resource Development ........................................................................................... 9

Features and Benefits of Our Services ............................................................................... 11

Service Implementation .................................................................................................... 12

Sample Time Frame........................................................................................................... 13

Customers......................................................................................................................... 13

Demographic Profile.......................................................................................................... 14

Pricing .................................................................................................................................. 15

Operational Plan................................................................................................................... 16

Management and Organization ............................................................................................ 17

Conclusion............................................................................................................................ 18

Appendix A -‐Start up cost analysis ........................................................................................ 19


3

Executive Summary

Keeping an employee happy and productive is the biggest challenge that any organization is faced with today. Smiles, Inc. is a Human Capital consulting firm that aligns an organization’s human capital with its business goals. Specifically, Smiles, Inc. helps an organization realize the true potential of their employees by creating a workplace environment that fosters creativity and develops morale. The added value to the organization is a highly efficient, effective, and happy workforce aligned with the organizations goals.

We have developed and patented a state-of-the-art Human Capitol Engineering process that will revolutionize the industry. During a typical consultation, Smiles, Inc. conducts an initial evaluation of all current business practices and principles. After the evaluation we review and analyze all information that has been attained and identify the organization’s strengths and weaknesses. Our Human Capitol engineers then provide recommendations to the organization on areas that need to be changed.

Smiles, Inc. focuses on five specific areas that are crucial to the employers’ productivity and the employees’ morale. First, we focus on the workplace culture of an organization and identify the psychological, physical, and lifestyle improvements that need to be made. Second, we examine the capabilities of the current infrastructure to attract, retain, and develop the necessary workforce. Third, we identify areas of deficiency in employee compensation practices. Fourth, we develop benefit packages that create added incentive to employees while staying within the client’s budget. Finally, Smiles, Inc. conditions existing human resource personnel to create an organization that has an evolving workforce designed to react to changes in the business environment.

Smiles, Inc. is a low risk, high return investment. The human capital sector is underrepresented for an $18.5 billion dollar industry, with the three main competitors holding only 10% of the market. Smiles, Inc. is positioned to enter the local market immediately, and eventually expanding nationally. This means that an investment in Smiles, Inc. today will have a substantial return on investment in the future.


4

General Company Description

Mission Statement

At Smiles, Inc., it is our philosophy that the employee is the most precious resource in every company. We are a consulting firm dedicated to help organizations align their Human Capital with their business goals. By focusing on an organization’s culture, benefits, compensation, and human resource functions, it is our belief that we can design and implement procedures to attract and retain the necessary talent required for an organization to be competitive and effective in today’s market place.

Five highly motivated and experienced individuals head Smiles, Inc. With our solid core competencies and our knowledgeable staff we can create a workplace environment conducive to the business goals while incorporating employee needs.

Company Goals and Objectives

Our main goal is to become the leader in Human Capital consultation. Through our patented workplace engineering process we can create a healthy and satisfying environment for employees to be more productive for any organization. Smiles, Inc. can benefit all businesses, large and small, in any industry.

Market Segment

Human capital consulting is a highly profitable growth industry with a market cap of $18.5 billion dollars. The industry has limited competition and the three largest consulting firms, Mercer, Deloitte, and Watson Wyatt, account for only 10% of the total market. With our patented Human Capitol Engineering Process, Smiles, Inc. has the capacity to hold 15% of the market share within the first fiscal year. Furthermore, the human capital consulting industry promises major growth prospects as new companies struggle with retaining a talented workforce. Smiles, Inc. will be situated to take advantage of this opportunity and provide a valuable service to all of these companies.


5

Our Services

The Smiles, Inc. business model focuses on three specific core competencies that are designed to keep us competitive within our industry. First, we are innovators in our field using patented state-of-the-art practices that help our clients get a clear view of their future. Secondly, we provide inspiration to our clients and their workforce by fostering a unique and new workplace environment. Lastly, strategically create an evolving workforce that is sustainable in unpredictable future business conditions.

For a company to function efficiently, it is crucial that its employees are satisfied with the workplace experience. Despite numerous studies, most recently the July 2007 Journal of Business Research, showing a positive correlation between worker satisfaction and customer satisfaction, businesses often leave much room for improvement.

Smiles, Inc. addresses a business’ shortcomings in these domains through analyzing, discussing, and implementing solutions that will improve worker satisfaction. The Human Capitol Engineering Process consists of five focal points, starting with employee attraction, then workplace culture, benefits, compensation, and human resources. These areas are outlined below.

Attraction

Employee attraction is a logical starting point because first impressions are often long lasting. Smiles, Inc. will help companies realize the importance of treating particular job applicants with respect and courtesy. We recommend policies like picking up applicants from the airport, giving them complimentary accommodations, and covering expenses while being interviewed. The most qualified workers, those who the respective company would like to hire, expect to be treated well; otherwise they will look elsewhere for employment.

There are also shortcomings in the typical interview process. Businesses often find themselves with problems because they have hired someone that simply does not fit the job, or a personality that does not mesh with the situations and environments that come with the work. Smiles, Inc. will improve a company’s attraction of employees by implementing an application process that allows that company to get a more complete picture of an applicant’s personality and behavior


6

prior to investing resources in interviews--or worse, hiring them before finding out that the employee and company are not a suitable match.

Workplace Culture Alignments

The environmental conditions of workplace have a direct effect on the productivity, morale, and synergy of employees. The foundation of the patented Smiles, Inc. transformation is ensuring that this environment produces a positive and productive workplace culture. To do this, we focus on several critical areas:

• Physical comfort

• Psychological conditions

• Lifestyle improvements

Areas of improvement include:

• Ergonomic working conditions. This includes appropriate chairs, desks, and computer terminals for when employees are sitting, or shock absorbent floor mats for assembly lines or sales floors.

• Lighting. Warm color temperature fluorescent fixtures where possible, good light coverage (<25lm/ft^2 average). Studies show cold-temperature fluorescents and mercury discharge lighting causes depression, and dimly lit spaces can pose a safety hazard.

• De-industrializing the workplace. Not necessarily a “designer fashion” but rather changes to increase a sense of homeliness. Paint over exposed cinderblock or whitewashed walls with color, covering exposed conduit, and carpeting concrete floors. Even inexpensive reproduction artwork makes a difference in reducing the “prison” emotions associated with work.

• Dining. Varies depending on number of employees. A small kitchen at a minimum, with dishes and silverware, refrigerator, stove, etc. Food should be provided by corporate. Pizza on Fridays. Better food stops lunch-break abuse.

• Entertainment. A room with a large TV, couches and vending machines, open for use during approved breaks. Depending on industry, use may be incentivized on performance.


7

• Common area. Not just a water cooler at the end of the cube-row. Should be a large, open space with chairs or benches. Encourage worker interaction with others. They are people too.

• Feedback. Encourage feedback on workplace conditions. Human resource staff will listen to all suggestions and implement reasonable ones. Allocate a monthly budget for workplace changes and allow donations to said fund. Use anonymous voting to decide where funds go.

The patented Human Capitol Engineering process lays a framework for our team to evaluate current conditions and suggest client-specific methods of improvement.

Compensation

In today’s workplace, compensation is as important as ever, and affects the productivity and morale of the employees. Smiles, Inc. tries to ensure that every employee receives fair pay for the work they are doing. We evaluate every employee and his or her workload to make sure that pay is fair and reflective of the effort put forth. In the course of each consultation, a professional team from Smiles, Inc. will consider the client’s industry, the organization, and the workers in a comprehensive approach. By spending the time to understand each organization individually, we are able to more effectively design compensation programs that successfully meet the company's objectives.

The compensation component of our patented process consists of several steps including both evaluation of employee responsibilities and authority, and comparison of current practice to industry-standard compensation programs.

At Smiles, Inc. we aim to create a comprehensive compensation program that will best serve the company. Through our programs, we enable any company to reach a stable and productive work environment that allows for the maximization of profits and optimal utilization of the company’s financial resources. We empower businesses by giving their workers the incentive to live up to their true potential.


8

Benefits

Employee benefit programs are essential in today’s business world. They are put in place to help protect both employees and their families from economic hardships caused by illness, disability, loss of life, or unemployment. No individual benefit will provide for all employee needs. There are two broad categories of benefits offered by employers today, mandated benefits and optional benefits. Legally mandated benefits are those that are required by law such as Social Security, unemployment, and workers’ compensation. Optional benefits include health care insurance, disability insurance, life insurance, retirement, and paid leave.

The U.S. Bureau of Labor Statistics and the U.S. Department of Labor released a report in 2006 about employee benefits. The report, which was part of a larger National Compensation Study, found that:

• Paid leave was the most commonly provided benefit to employees. This includes paid holidays made available to 76% of employees, and paid vacation available to 77% of employees.

• Medical care plans were made available to 71% of workers in the private sector. Only 52% of workers participated in such plans.

• Employees with families contributed an average of $296.88 per month to their medical care premiums while single employees contributed an average of $76.05 per month towards this benefit.

• Employers paid an average of $617.18 per-month per-participant for family medical coverage and $266.50 per month towards medical care premiums for single employees.

While 60% of employees had access to retirement plans, only 51% of employees participated in retirement plans with 20% of employees participating in a defined benefit program (such as a pension program) while 43% of employees participated in contribution plans such as a 401k or a 403b plan.

As a Human Capital firm, Smiles, Inc. believes that the legally mandated benefits offered are not good enough. We encourage companies to offer more than the minimum, because when you give people more, they will give more in return.

The following benefits are highly valued by employees:


9

• Employee health benefits

• Retirement annuities

• Thrift savings plan

• Retiree health benefits

• Life insurance

• Childcare subsidy

• Health and wellness programs

• Vacation pay

• Holiday pay

• Education assistance programs

• Stock options

Other benefits may pertain to certain industries, and Smiles, Inc. works with clients to develop the optimum benefits package for their workforce. We create a plan that fulfills the needs of each company’s most important resource--it’s employees.

Human Resource Development

Many businesses in today’s economy have under-valued, under-trained, and poorly motivated employees. Consequently, the majority of their employees perform well below their true capabilities. A skilled, highly trained workforce is necessary to remain on the front of the business world’s constantly evolving environment.

The human resource staff is an essential part of any organization. They are designed to provide expert services to ensure the “people element” of the business is functioning correctly. Smiles, Inc. has designed a process for evaluating and recommending necessary changes to facilitate efficient workforce production. Our process is to aid businesses in developing functional and evolving employees through proper human relations management.


10

A comprehensive understanding of the business strategy is the first step. All employees need to understand the short and long term goals of their organization. Smiles, Inc. assesses this functional area of the business by:

• Highlighting the driving force of the business

• Evaluating the driving force and its implications on the people side of the business

• The contribution that people have to the bottom line of business performance

• Identifying what and how people contribute to the business strategy

Once the general overview of the organizations business strategy and the role of people have been evaluated Smiles, Inc. will then begin a thorough analysis on the organization. Smiles, Inc. mainly focuses on the internal strengths and weaknesses of the people side of the business. In the analysis we will identify:

• The current skill and capability issues

• If employees have a clear communication process with supervisors

• If employees are given clear directions to improvement and promotion

• If they are allowed to suggest improvements to outdated process

• If they are given the responsibility within the organization to feel as if they are making a difference

Analysis of the organization is a key aspect of Smiles, Inc. strategy however, it is through our recommendations that businesses receive the actual benefit. Once the organizational analysis has been conducted and reviewed Smiles, Inc. begins the recommendation process by focusing on specific areas of change:

• Where the organization is now and where it wants to be

• Identifying the gaps and the reality of closing those gaps

• Identify the critical issues that must be addressed first

• Prioritize the critical issues to focus efforts and resources


11

Lastly, Smiles, Inc. then begins the implementation plan with the prospective business. Once analysis and discussion has been conducted with the business it is time to generate the implementation plan. Smiles, Inc. focuses on broad specific areas initially for every organization and then tailors it specifically to the organizations business strategy. The broad focus areas include but are not limited to:

• Training and development

• Management development

• Organization development

• Performance appraisal

• Employee selection and recruitment

• Communication

Through these processes Smiles, Inc. develops a plan that is in line with any organizations short and long term goals. Furthermore, along with the assessment, review, and implementation Smiles, Inc. is simultaneously training your Human Resource staff the skills necessary to repeat this process for further development. Smiles, Inc. believes that once an organization has paid for our services the organization should have a staff that can continually improve these services in-line with the changing organizational environment.

Features and Benefits of Our Services

Our services have many benefits, including:

• Create the framework for a productive work environment

• Increase employee satisfaction and productivity

• Increase talent retention within an organization’s current work force

• Provide a long lasting implementation to remain competitive in future business operations


12

Service Implementation

Our services are preformed in five stages:

• Evaluation: Smiles, Inc. will conduct a thorough analysis in each of the five specific areas. This evaluation will identify the areas that need the most improvement within the organization.

• Review: After the evaluation Smiles, Inc. will then discuss the information obtained with the client. The focus will be to help the client understand deficient areas and the steps necessary for improvement.

• Analyze: Once we have evaluated the problem areas of the company and reviewed them with the client Smiles, Inc. will then analyze the deficient areas and plan the steps necessary for correction and alignment with the client’s goals.

• Test and feedback: We implement our plan in a test environment, consisting of a limited, randomized selection of employee volunteers. We listen to their feedback, and modify our analysis accordingly.

• Presentation and Implementation: We present our findings to the client, and provide any assistance needed in implementing our suggestions.

Figure 1 - HCEP Cycle


13

Sample Time Frame

An example of a six-week service time line follows.

• 1st week: Evaluation of the client’s practices and work environment.

• 2nd week: Employee survey and S.W.O.T. analysis.

• 3rd week: Review and analyze the employee response with the current procedures and practices.

• 4th week: Recommendation to client of specific areas for improvement.

• 5th week: Contract proposal to client in various options and pricing schemes.

• 6th Week: Training begins and changes are implemented until completion of project

• Bi-Annual: Follow-up visits occur every six months for the next two years for quality control and assurance.

Customers

Initially, Smiles, Inc. plans on targeting companies in the Washington D.C. metropolitan area. We believe that this is a great market initiative especially with the amount of government agencies and legal practices in the area.

Government agencies will be the main focus in the D.C. market because of the added potential for expansion. By establishing a solid reputation in the D.C. market with the government there is the potential to secure a prime vendor contract. Furthermore, once Smiles, Inc. is added to the prime vendor list we will be able to expand our efforts nationally. Legal practices also offer the same type of expansion initiative. Many legal practices are either headquartered in D.C. or are satellite branches of the firm. These types of customers will be the main initiative at Smiles, Inc. due to the fact that they offer national expansion.


14

Demographic Profile

• Government Agencies: Department of State, Department of Interior, etc…

• Washington D.C. and national satellite branches

• 40-2000 employees per agency

• Legal Practice: Baker & Mackenzie, Greenburg Traurig, etc…

• Washington D.C. and national satellite branches

• 15-200 employees per agency


15

Pricing

Pricing for our services will be explained to the client during the recommendation process. Smiles, Inc. will provide detailed pricing options and services specific to the size of the operation and required changes. Packages will range from economical options that offer only the basic services to complete overhaul of the organizations human resource functions. The main factor in deciding the price is the size of the organization and location. As a rule of thumb, the average cost associated with providing one employee with our services and training is $250.00.

When compared to our competition our pricing is competitive with the competition however, because of our package design our clients are able to tailor the specific services within their budget. This gives Smiles, Inc. a competitive advantage because no other human capital consulting firm operates on client centered pricing packages.

As an example, the standard projected pricing package and possible revenue stream is listed below and can be tailored to specific client needs.

Standard Package (< 250 employees):

Services Price

• Evaluation…………………………………………………………………………$10,000 • Review ……………………………………………………………………………..$6,000 • Analyze ………………………………………………………………..………........ $5,000

Variable Cost

• 250 Employees ……………………………………………………………………$62,500 • Workplace Upgrades: Ex. New furniture, lighting, (covered by client) ..……………. $0

Total……………………………………………………………………………………...... $83,500


16

Operational Plan

Location

Smiles, Inc. will need a location in the Washington D.C. metropolitan area that will provide us access to our major client base. We will need an office location that will be able to incorporate all our needs to establish a headquarters. Our needs will consist of space available for additional hires, compatible with today’s technology, and able to store the necessary daily operating supplies.

Physical requirements

• 5000 sq. ft.

• Office building (no less than 10 offices)

• High speed internet

• Telephone

• Restrooms

• Kitchenette

• Normal power and utilities

Cost

It has been estimated that in the current market place and with the decline in real estate prices we will be able to obtain a lease for such an office building. Currently, we have located a potential office building that incorporates all the needs specified above and has a lease price of $730,000.00.


17

Management and Organization

Five highly motivated and professional individuals manage Smiles, Inc. Each of these five personnel is an expert in their area of specialization. Along with their specialization in the specific services that Smiles, Inc. offers they also have other management roles within the company. Below is a list of the management and the role they provide.

Board of Directors:

• Kyle Dodge, CEO

• Jacob Dilles, CTO

• Lisa Strong, CIO

• Nikki Sideleau, CFO

• Chris Kain, CMO

For more information please contact:

• Culture Alignments: Jacob Dilles

• Attraction, Retention, Development: Chris Kain

• Compensation: Nikki Sideleau

• Benefits: Lisa Strong

• Human Resource: Kyle Dodge


18

Conclusion

Smiles, Inc. is grateful for the opportunity to submit this proposal. We are confident that we offer the best human capital solutions for today’s employers and at competitive prices. With our patented processes we believe that the services provided by us to our clients will help employers create a workplace environment designed to attract and retain the desired talent. Furthermore, our processes will help foster the creative and high morale environment desired by today’s talented workforce.

Even though Smiles, Inc. is a new business proposal, we believe that we have the necessary experience to be successful. Smiles, Inc. has highly talented individuals with the particular skill set to create a lasting and profitable company. The founders of Smiles, Inc. are highly respected individuals in their area of expertise and combined have over 50 years of experience in human capital consultation. We believe that our dedication and experience will help us build a solid reputation in this industry.

Smiles, Inc. is dedicated to the success of this venture and should you require additional information on our proposal please do not hesitate to ask. Please contact Jacob Dilles, who will personally set up a meeting with the appropriate personnel to answer any of your questions.

Thank you for taking the time to review our proposal. We look forward to receiving your decision about our future business venture with you.


19

Appendix A -Start up cost analysis

Category

Actual

Budget

Inflows

Net Sales 20,000,000

Donations 6,000,000

Gross Profit

168,000

Interest Income

26,168,000

Salaries 500,000

Rent 730,000

Insurance 10,000,000

Advertising 3,900

Travel and Entertainment 9,000

Total Expenses 2,000

11,279,900

Net Income

14,888,400

smiles,(inc. - george mason university

Documents