TPA Exclusivity Accreditation Termination Process

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TPA EXCLUSIVITY

Accreditation andTermination Process

August 10, 2011



Objectives

• To set up an Exclusive Structured Agency per areathat will be solely responsible and accountable forarea’s market growth (sales performance),

headcount maintenance & recruitment (channel

development), and minimizing/removingdelinquency/fraud (compliance)

• To set up the criteria for cancellation of accreditation

and/or termination of the distributorship agreement.



Accreditation Process



Guiding Principles

• The selection process will

– be credible and fair, – have a pool of candidates. – have transparency & trust

• Due diligence in establishing the identity of owners and principal officers• Disclosure/Conflict of Interests

• TPA qualifications: – Integrity

• No questionable legal or financial records, Files local taxes – Excellent performance consistency (should be hitting current sales targets) – Should pass the recent TPAs for April, May & June.

• No major Fraud cases and percentage of Fraud should not exceed the company’s currentceiling.

– Must be willing to have a satellite office or hub in the assigned area thatshould be set up within a month after awarding of area.

– Must be able to have the required agent headcount within a month afterawarding of area and develop agents with continuous training.

– Has Financial capabilities – Business Conduct & Professionalism



Accreditation Process

Stage 1: Application/Initial

Screening(TPA Pooling/Pre-accreditation)

Stage 2: Accreditation

Stage 3: On-boarding(Post Accreditation)

Stage 4: TPAEnablement

Existing TPA’s in the area will be

preferred. Pooling of newagencies will follow.

The qualified applicantsbecome part of the pool (6

mos. validity period)



Stage 1:• Initial Screening – Prospective Partner shall be screened by the ASH to eliminate

unqualified applicants.

• Initial screening shall be based on the current applicant’s business operationsand documentation compliance:

• The Sales Recommendation form will be accomplished by the ASH (indicatingwhether it’s approved or disapproved), to be endorsed by the RSH and to be

concurred by SSSBPD Head.

EXISTING TPA NEW TPA

Performance

Monthly Sales Average should be at least 90% of target in

the area applied for Exclusivity. NA

Agent Headcount At least 60% of the required headcount of the area Have a manpower pool of at least 100 people.

Line of Business Manpower Manpower for at least 2 years in the business

Company Profile (Business Operations, Org. Structure,

Milestones, etc.)

Company Profile (Business Operations, Org.

Structure, Milestones, etc.)Company Financials Overview (Sales/Revenue, Expenses,

Profit)

Company Financials Overview (Sales/Revenue,

Expenses, Profit)

Territory Profile and Market Analysis Territory Profile and Market Analysis

Projected Sales Projected Sales

Deployment and Sales & Marketing Plans (Lead time to set-

up and hit the ground running)

Deployment and Sales & Marketing Plans (Lead

time to set-up and hit the ground running)

Proposed Organizational Structure Proposed Organizational Structure

Current P & L Current P & L

TPA Application Form

DTI Reg or SEC Reg & Articles of Incorp.

BIR Registration

Municipal Permit

Documentation



Stage 1:

Steps StageApplication/Initial Screening

(TD Pooling/Pre-Accreditation)

TAT(Estimated

# of Days)

Responsible# of

Days

1

S t a g e 1 : T P A P o o l i n g ( P r e - a c

c r e d i t a t i o n ) Submission of LOI

1

TPA Applicant

5

2 Initial Screening ASH and TSH

3

Sales inform applicant to preparedocuments needed (Accreditationand Legal documents). Verifies ifthe applicant is qualified byconducting interview and ocularinspection (actual visit) 1 Sales

4

Applicant completes and submitsAccreditation and Legaldocuments to Sales. Sales tosubmit to SSSBPD together withSales Reco form (with approval ofDepartment Heads) 3 Dealer Applicant & Sales



Stage 2:• Each qualifying applicant will be given the territorial profile, business background and

performance of the vacant territory.• Each one will prepare their business plans to be presented to the selection committee

(Cluster Head, RSH, ASH, TSH, SSSBPD)• Business plan rating –

– Applicants shall be required to present sound Business Plans which will be basedon the territorial profile and business potentials.

– The basic organizational and financial requirements will be identified by theASH/CSH based on the business profile and needs of the territory and would beused as the bench mark for rating including business tools and systems.

• The Selection Process: Business Plans parameters: – Organization Structure: 30% – Deployment, Sales & Marketing Plans: 20% – Operations: 30% – New Ways of Doing Things: 20%

• Each Parameter will have corresponding standards set by the CSH/ASH and each lineneed to meet or exceed the expectations to get 2 points per line, on the other hand, “0” will be given if it didn’t meet the set standards.



Stage 2:

– Top 3 passing applicants shall be chosen and shall be endorsed to the

Accreditation Committee for new TPA’s. – The best among the 3 shall be appointed and the rest of the qualified

applicants shall be considered active members of the Pool ofCandidates for 6 months.

• The candidates need to update their accreditation requirements aftersix months to remain as active members of the pool.

– The Pool of Candidates: all qualified applicants shall be included in thepool for future openings.

The qualified applicants at this stage become part of the pool and will proceed to the nextstep whenever there is an identified open territory.

Formal advise will be sent out both to the successful & failed applicants by therecommending group.



Stage 2:

Steps Stage Selection & AccreditationTAT (Estimated # of

Days)Responsible # of Days

5

S t a g e 2 : A c c r e d i t a t i o n

Reviews accreditation documents then advisesApplicant to prepare for the business presentation 1 Sales

11

6Prepares Business Plan for presentation to thePanel/Committee 1 TPA Applicant

7Actual presentation of the Business Plan to thePanel/Committee 1 TPA Applicant

8Assessment and Recommendation (decision isbased on over-all rating) 2 SSSBPD, Sales

9 Routing for approval of Accreditation Folder

5

10 Legal approval (for NEW) Legal

11 Sales Head approval Sales Head

12 CS Head approval CS Head

13 Announcement of Exclusivity 1 Sales



Stage 3:

Steps Stage On-boarding (Post Accreditation)TAT (Estimated

# of Days)Responsible

# ofDays

14

S t a g e 3 : O n - b

o a r d i n g ( P o s t

A c c r e d

i t a t i o n )

Prepares Contract and endorses forreview 1 SSSBPD

13

15 Endorses contract to Legal 1 SSSBPD

16Legal reviews, approves contract andendorses to Sales Head for signature 7 Legal

17Signing of Contract by Partner andnotarization 3 TPA Partner

18Submission of Perfromance Bond toSSSBPD 1 TPA Partner



Stage 4:

Steps Stage Enablement

TAT

(Estimated #of Days)

Responsible # ofDays

29

S t a g e 4 : T P A

E n a b

l e m e n t

Ensures TPA readiness ( org.structure, headcount, resources,

etc.) 10 Sales (ASH/RSH)

12

30TPA Orientation (Cadence &Agreements) 1 Sales (ASH)

31Product &Technical Training (SCP,etc) – NEW TPA 1 Sales (ASH/TSH)



In The Pool

• Pool membership is good for 6 months starting from theactual business presentation.

• The applicant has to submit updated accreditationdocuments to renew membership in the pool upon poolmembership expiration.

• The pool member may be tapped automatically to takeover an area or may have to be asked to present abusiness plan for the vacant area (to assess the fit to thenew area).



Conditional Policy

Agents who belong to agencies who would not be chosen and

would like to remain in the area will be given 1 month Quarantine

period instead of 3 months. This will only be applied while on the

Exclusivity Period. After which, the rule of “3 months or clearance”

whichever comes first will be applied before they can be accepted.

Note:

• Scenario that agent has a good record and no accountabilities from previous

employer .• That previous agency would still have business with Globe (other areas), if not,

agents who are qualified would be automatically absorbed by the agency who will be awarded the Exclusivity.



CADENCE of TPA



Income Model Principles

• Targets are clearly set

for the month/quarter

• Each team/member

has own set target

• Targets correspond to

specific cabinets/sites

• Size is determined by

targets; bigger revenue

target requires bigger

organization

• Optimized/maximized

positions

• Hands-on managementby the owner

• Calculated expense;

spend where it mattersmore

• Variable pay for TeamLeaders

• Pay for performanceprinciple

Revenue Goals are set Supported by right structure At controlled cost



Organization Structure

The basic structure is complete such that criticalfunctions are covered. Owner may function as OMbut defined roles must be fulfilled.

Operations Manager

Admin Staff

Team Leader 1 Team Leader 2

A1 A2

A3 A4

A5 A6

A7 A8

A1 A2

A3 A4

A5 A6

A7 A8

A9 A10 A9 A10

In bigger organizations, double-hatting is allowed when practical; depending on size and complexity of

business



Key Positions

1. The owner may function as the OM for

better control

2. Overall in-charge of the day-to-day

operations

3. Responsible and accountable for the over-

all performance of the TPA in the areas of

activations, flow-through, costs, profits,

and sales fundamentals

4. Acts as the liaison between the TPA and

Globe’s TSH and ASH.

5. Plans, conceptualizes and implements

business building programs for the TPAoperation

1. Responsible for the achievement of the

target of the team in the assigned territory

2. Trains the agents on the basic skills

needed to achieve sales objectives.

3. Responsible for ensuring that each agent

is deployed the assigned cabinets/sites

based on the plan

4. Responsible for team’s complete line-up

and actively participates in the recruitment

of new agents

5. Handles the daily briefing and may

coordinate directly with the TSH on blitzschedules

Compensation may vary depending on what is more practical and workable for the

business owner and more effective for Globe.

Operations Manager Team Leader/s

Identified critical roles within the TPA organization that will drivethe agents to high performance.

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TPA Exclusivity Accreditation Termination Process

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