--000000000000b31bea0624d3a281 Content-Type: multipart/alternative; boundary="000000000000b31be80624d3a27f" --000000000000b31be80624d3a27f Content-Type: text/plain; charset="UTF-8" Folks, After speaking with a few of you yesterday after the group call, I wanted to circle back on a couple things. This is one of the few times I won't be brief in an email - but I think the extra length is warranted: 1) Clarify margin incentives 2) Share visual depictions of how each of the metrics work 3) Line out next steps ------- *1) MARGIN INCENTIVES:* After chatting with a few of you after the call, I realized there was definitely misunderstanding around how Kevin explained the incentive. Isn't his fault, nor was he technically wrong...he just used different language. It is just a sign of how careful we need to be in explaining and illustrating this to our teams. In short, the program does NOT START at 30% and 50% margin...it tops out at those, just as we discussed it last week and the week before. When he was saying you earn 1 key at 30% and 50%, he meant AN ADDITIONAL KEY (from the assumption that we start with 1 key per metric). The complex if/then ranges that were included are actually a protection against losing keys if you started with a higher margin and it decreases, not at extra hurdle to get across. To help clarify this and set as simple a way of showing explaining as possible, see below & attached. I could have called this out at the time and bridged the gap on the call - that is my fault for dropping early. I updated the language in our overviews and decks to try and prevent that very easy misinterpretation going forward. *2) VISUAL DEPICTIONS:* If you look at pages 8 and 9 in the attached deck it lays out each of the metrics in two different ways. Regardless of which one you look at, they say the same thing...personally I find 9 easier to understand, but that is just how my brain works. Additionally, Audra, Tiffany, and Melissa have done a great job coming up with working scenarios to explain the mechanics of how the metrics work. You'll see those in pages 10-14. Take a look, hopefully these help clarify the program. Let us know if things are not as clear as they could be, which one(s) you like more, and if you have better ideas for language / depictions to help communicate with teams. *3) NEXT STEPS:* I continue to be impressed with the feedback and potential solutions each of you has brought to this and other situations we've dealt with in the short time I've been with the team. We definitely have some curve-balls to deal with, but I value the candor and input each of you are bringing. Keep it up. Regarding allocations & spend: We'll work on the accounting allocations, Biz Dev spend allocation / oversight, and teammate mapping early next week - these are ours to solve. Regarding Line of Business margins: will construct and push a margin by line of business approach to account for primarily Live-In and Carescout. We have a path forward on this and