2015

This document provides the information necessary to

participate in the New Horizons Five Star Award. This
includes the measurement criteria, award benefits,
award period timelines, and example measurement
calculations.

Five Star
Award for
Performance
Excellence

201
5

Program Overview
The Five Star Award recognizes New Horizons centers for achieving performance
excellence. Centers receiving this award demonstrate superior performance in their
revenue growth, market penetration, plus customer and employee loyalty. The Five
Star Award aligns with the networks desire to:

Recognize performance excellence

Align to the prescribed business model
Adapt new programs
Strengthen the New Horizons brand
The Five Star Award identifies five Key Performance Areas, both quantitative and
qualitative, that focus on results. Each year, the award areas of measurement will
evolve to adjust to the standards of the market and the New Horizons network.

QUALITATIVE

Key Performance Areas for the 2015 Award Year

Alignment

Demonstra
tion of
Values

QUANTITATIV

Learnin

Operate in accordance with the New

Horizons Business Model
Adapt network Strategic Initiatives according to
documented standards
Demonstrate that the New Horizons values are
adhered to in your business practices
Meet or exceed the overall Event MTM
average for your country

g
Effectiven
ess
Reven
ue
Growt

Meet or exceed the established network

standard in the follow-up to post-event
evaluation comparison average
Meet or exceed the established network
standard for sustained revenue growth

Market
Penetrat
ion

Meet or exceed the established network

standard for days of training (DOT) per
Purchasing Population

2
Company
Confidential

Award Benefits for 2015

Those receiving the Five Star Award for the 2015 Award Year will receive:

for display in the public area of your center

Five Star Plaque

Press
Release
Five
Star Award
Process for 2015

to use with your local marketing channels

The Five Star Award measurement period aligns with the International Conference
available
through
NewHorizons.com
that In late-Feb
awards cycle, beginning on
June 1, 2014
and concluding
May 30, 2015.
recognizes
the
awarded
centers
to mid-Mar, the Corporate highlights
office may,and
at its
option, send
out
an employee
survey to
use in establishing the Values criteria score for a center. In April, Corporate
marketing rights
to add alignment
the Five Star
logo
to living
all
Executives will conduct a center-by-center
business
review
and
the
print
and
web-based
marketing
materials
corporate values assessment. If an employee survey has been issued, it will be
used to help determine this criterion. Only centers that corporate management
believes epitomizes the business model and the company values will be eligible to
proceed. In early June, reported revenue gathered from the Franchise Information
System (FIS) and Metrics that Matter (MTM) reports for the Award Period will
determine which centers meet the revenue growth, market penetration, and
customer loyalty criteria. Centers must qualify in all criteria to receive the 5-Star.
The specific timeline is as follows:

Web Page

Five Star Logo

2014
Jun

JulAugSepOctNovDec

2015
JanFebMarAprMay

Important Dates
1
2

Mid Feb Mid Mar,

2015
Apr/May, 2015

May 30, 2015

Activity
Values surveys (if used) are sent to centers
reviewed and evaluated upon receipt.
Corporate Operations team conducts center
business model and company value reviews.
Centers final performance for the year is
reviewed against the criteria

Alignment
To receive a Five Star Award, you must demonstrate alignment with the New
Horizons business model and strategic efforts. You must operate your center
according to the defined New Horizons business model, offer all strategic initiative
products and programs, and demonstrate that your center represents the New
Horizons Values.
The Business Model Criteria is defined in the various Operations Manuals within
the Owners Library on the Extranet. These manuals include role-based manuals
such as Account Executive, Sales Manager, Operations, and General Manager, etc.
Further, there are Program Manuals such as Mentored Learning, Career
Development, etc. Corporate representatives will review adherence to the
documented franchise standards. See Appendix for a Business Model criteria
Checklist.
Strategic Initiative criterion evaluated for this year, (see Appendix), includes
items such as sales management and product training, Product offerings in both
Cisco and Microsoft technologies, active web presence, and adoption of the LMS.net
and CMS.net (where available).

Demonstration of Values
New Horizons
Values:
Act with Integrity,
Ethics & Honesty
Celebrate Success &
Recognize Outstanding
Achievement
Treat Everyone with Respect
Succeed through Teamwork
Take Initiative &
Expect
Accountability
Exceed Customer

The New Horizons values are an integral

component of the overall New Horizons
approach and extend into all facets of your
center, from employees to customers.
Throughout the year, the Franchise
Operations - Franchise Support team will
capture information on your center; from
customer calls regarding your service to
dialogues with your staff. An employee survey
may be issued and used by corporate to
further understand your centers performance
against the values.

Using these feedback mechanisms, we will

assess your centers adherence to
Demonstrating the New Horizons Values
and issue a pass/fail recommendation.

Reports generated from data entered into the Franchise Information System (FIS)
for the 12 months ending May 2015 are used for all Quantitative criteria. This
includes:

Revenue
Growth

2015 Revenue Growth

Criterion:

Must be positive growth and

perform at median or above in
year-over-year revenue growth
percentage for the twelve
months ending May of 2011,

The Revenue Growth criteria

measurement begins by determining
each centers year-over- year growth
percentage for the last 3 years, then
stack ranking all centers in order from
largest to smallest growth. Centers who
rank in the top 50% of revenue growth
for all three years qualify for further
consideration.
Only Centers that show positive growth
for three consecutive years are
considered for Five-Star status.

Market Penetration
The Market Penetration criterion
also compares the results of the
entire network; stack-ranking center
performance against
each other, with the top 50% of
centers qualifying.

2015 Market Penetration

Criterion:
Must perform at median or above
in market penetration DOT per

Economically Viable Population.

The metric is calculated by
comparing revenues to the
economically viable
population. For the United States, the calculation is straightforward: Population /
Revenues/$300, with $300 representing the average class price per Day of Training.
For other countries, we estimate the countrys economically viable population by
using a factor derived from the World Banks Purchasing Power Parity Index,
diminishing the total population by the % of the population compared to the United
States Index. Days of Training (DOT) are then calculated by applying the New
Horizons suggested pricing tier per country x $300. All centers, regardless of
country, are stack-ranked with the top 50% of Centers considered for Five-Star
status.

Learning Effectiveness
There are two measurements of Learning Effectiveness: the post-event quality score
and the 60-day follow- up evaluation.

2015 Learning Efectiveness

Criteria:
Must perform above the average
within your country on MTM postevent overall average.
Percentage of decrease in NSAT
from post- event to 60 day follow-

For the post-event quality score

criteria, the average Metrics that
Matter scores post evaluation score
for the year is calculated. Centers
who exceed the Metrics that Matter
benchmark average for all training
centers in their country qualify. If a
country average benchmark is not
available, then their region (APAC,
Europe, MEA, LATAC) average
benchmark will be used.

The 60-day follow up criteria is

determined by establishing the
decrease in Net Satisfaction
(NSAT) from post-event evaluation to the 60-day follow-up evaluation. Centers are
stack-ranked by this factor with the top 50% of centers qualifying to proceed under this
criterion.

up evaluation must be median or

Sample calculations for all criteria appear in the

Appendix.

Appendix
Sample Calculations for Validation Criteria
In order to successfully complete the Validation period, your center must meet ALL
of the criteria below:
Sustained
Revenue
Growth

Determine 2013 growth rate

o (Rev 2013 / Rev 2012) -1 = % Growth

Rank all centers for 2013

o Median or above qualifies step 1
Determine 2014 growth rate
o (Rev 2014/ Rev 2013) -1 = % Growth

Rank all centers for 2014

o Median or above qualifies step 2
Determine 2015 growth rate
o (Rev 2015 / Rev 2014) -1 = % Growth
Rank all centers for 2015
o Median or above qualifies step 3

7. Determine centers at median or above Revenue Growth all

3 years

Market
Penetrati
on

Determine DOT to standardize the volume measurement

o (Rev) / ((Avg. US$ per DOT) X (Economic
Adjustment Factor)) = DOT
Determine Economically viable population
o Population x Purchasing Parity Index
Divide DOT by Economically Viable Population to establish penetration
o DOT / Economically viable Population = Penetration
Group all centers by Market Size
o Median or above by market size qualifies

Learning
Effectiven
ess

Determine Overall Post-Event center average

o Obtain MTM Post Event Scores from Knowledge
Advisors
Compare center average to MTM country average
o (Center Avg) (Country MTM Avg) = >0 to qualify
Determine center average Post-Event NSAT
o Obtain MTM Post Event Scores from Knowledge
Advisors
Determine center average 60-day Follow-up NSAT
o Obtain MTM 60-Day Follow Up NSAT Scores
from Knowledge Advisors
Determine percentage of decline
o (Post-Event NSAT 60-day NSAT) / Post-Event NSAT
Rank centers
o Median or above qualifies

Business Model Checklist

The following is not a comprehensive list of items, as Franchise Agreements may
influence expectations:

Brand
Standards

Adheres to brand standards in

o
o
o

Course

Schedule

Operatio

ns

Testing
Center

Center
Standards

Print
Signage
Internet and electronic mediums

Using disclaimers
Using copyrights and trademarks appropriately
Uploaded to NH.com
Uploaded to Microsoft.com
Uploaded to Cisco Learning Partner Management System
Learning Guarantee printed on Course Catalog
Open 5 days a week
Open 1 Saturday per month
Open 2 weeknights per month

Testing center available

Authorized Training Center for:
o Microsoft
o Cisco
o CompTIA (if applicable)
Center clean and well maintained
Break area
Conference room

Insuran Carry insurance for: General liability,

Property, Workers Compensation,
ce
Accounting &
Finance

Automobile
Use standard GL accounts
Royalty payments on time
FIS reports submitted
Abiding by TROC
No ongoing interfranchise dispute

Mentored
Learning

Dedicated classroom
Certified Instructor present at all times
Vendor-authorized content
Adhering to regulatory compliance
Approved marketing used
Placement tracking maintained
Conduct career seminars

Career
Development

eReven Micro-site in place

ue
Authorized Cisco Learning Partner Associate

2015 Strategic Initiative Criteria:

Have installed or be in the process of migrating to the LMS.net and CMS.net (where
available).
Properly use the Lead Management process to qualify or disqualify leads. If
qualified, convert the Lead to an Opportunity then complete the sales process by
marking the qualified lead as either Won or Lost such that a report run for the year
shows less than 10% of Leads or Opportunities as Open.
Possess and maintain a properly branded local New Horizons eRevenue site
(or equivalent web platform), which at a minimum you update monthly.
VMware
Offer Authorized VMware training in your market (where available). Sell at least 25
seats during the measurement period across three different courses.
Cisco
Offer Authorized Cisco training in your market. Sell at least 35 seats during the
measurement period across three different courses.
Microsoft
Offer Authorized Microsoft training in your market. Sell at least 50 seats during the
measurement period including IT Pro and Developer titles.

201
5

13