TABLE OF CONTENTS

INTRODUCTION Memo Strategic Intent Client Value Proposition People Value Proposition Firm Value Proposition UNDERSTANDING FIRM STRUCTURE AND ROLES Operating Manual Description Evolution of the Organization Organization Chart Firm Governance Roles Firm Management Roles Firm Investment Philosophy Client Management Roles Firm and Client Management Institution Management Roles Global Operations (GO) Team Support Infrastructure Global Operations (GO) Team Contacts Global Operations (GO) Team Service Offerings People Model Changes Whats Out/Whats In Expected Behaviors External Key Messages

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23

RESOURCES Frequently Asked Questions (FAQs) Web Resources Glossary

24 25 26

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MEMO

Dear Booz Allen Colleagues, As Ralph Shrader stated earlier this year, This is a time of great change for us organizationally and structurally. But, it is a time of permanence as well, a time of enduring values, an enduring institution, and enduring results for clients. To help you understand the transformation that is taking place at Booz Allen, we developed the Booz Allen Guidebook. The purpose of the Booz Allen Guidebook is to support you in understanding, communicating, implementing, and modeling Booz Allen. The Guidebook includes key information on the value proposition, organizational design, governance roles and supporting infrastructure of the firm, as well as the behaviors that are expected in the firm. This should serve as an educational tool for you as well as a resource for communicating with others. We believe that staff understanding of the changes at Booz Allen is the critical link between the vision that we aspire to and the day-to-day execution of that vision with our clients. Your actions and words will be the catalysts that enable Booz Allen to be successful. Firmwide Leadership Team

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STRATEGIC INTENT

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CLIENT VALUE PROPOSITION

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PEOPLE VALUE PROPOSITION

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FIRM VALUE PROPOSITION

We are building on our proud history to redefine the consulting industry on our terms
Create value for Booz Allen clients by delivering distinctive capabilities; ensure value for our people through a values-based environment, a culture of service, and a commitment to professional excellence VALUE TO CLIENTS AND PEOPLE

Deepen impact with commercial clients by deploying a wider range of capabilities that engage clients all the way through to the delivery of tangible results

ENHANCE PRIVATE SECTOR CLIENT IMPACT

BROADEN PUBLIC SECTOR CAPABILITIES

Strengthen Booz Allens leading public sector business by adding functional and strategic capabilities that draw on commercial expertise

LEADERSHIP IN JOINT AGENDA

Establish a leading position in sectors where public and private agendas are inextricably linked, making Booz Allens combination of public and private sector capabilities a powerful source of competitive advantage

OUR BEHAVIORS

Deepen the shared commitments of staff to the institution, client results, collaboration across sectors, and firm behaviors in the next stage of growth

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OPERATING MANUAL DESCRIPTION

An Operating Manual encapsulates our concept of operations for the firm

All staff can view excerpts from the Operating Manual at http://evolution.bah.com

What It IS
Overview of our vision and guiding principles that directed the transformation into one firm High-level reference document to help all firm members understand the new organization structure and identify appropriate contacts for specific issues Compendium of information on roles and leaders: Definitions of new roles, including decision rights and accountability Members and responsibilities of governing bodies, teams, committees, and councils Compendium of information on firmwide processes: Timeline of firmwide planning process and meetings Flow charts designating operating processes, decision rights, markets, and capabilities

What It IS NOT
Complete history of the firm Memos and presentations related to the firm evolution can continue to be found on http://evolution.bah.com Complete organization chart of entire firm Lists only leadership roles Leadership roles will be periodically updated but not maintained on a daily basis Compliance document Process flow charts are to provide guidance and direction Employees will not be evaluated for adherence to Operating Manual

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EVOLUTION OF THE ORGANIZATION

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ORGANIZATION CHART

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FIRM GOVERNANCE ROLES

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FIRM MANAGEMENT ROLES

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FIRM INVESTMENT PHILOSOPHY

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CLIENT MANAGEMENT ROLES

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FIRM AND CLIENT MANAGEMENT

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INSTITUTION MANAGEMENT ROLES

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GLOBAL OPERATIONS (GO) TEAM SUPPORT INFRASTRUCTURE

The GO Team has developed a networked infrastructure to mirror clients operating styles and support the firms organization
Help shape the firm evolution at the highest level
GO Team Partners Senior Advisors to the FLT Relationship Manager for MDs Senior Advisor for service lead teams Functional Team leadership Interface for Customer Service Councils

Provide the market and functional teams with integrated, leveraged capabilities
Service Leads Cross-functional Teams are aligned to markets Teams aligned to designated GO Team Partner

WORLD CLASS SERVICE Organize to foster world-class capabilities while containing cost
Functional Teams; Centers of Expertise; Core Services Acquisition Team Global Finance Information Services Infrastructure Services People Services

Deliver coordinated quality services to the firm in every geography

Customer Service Councils U.S. West/Central U.S. Mid Atlantic U.S. Northeast/South Europe International

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GLOBAL OPERATIONS (GO) TEAM CONTACTS

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GLOBAL OPERATIONS (GO) TEAM SERVICE OFFERINGS

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PEOPLE MODEL CHANGES

We have evolved our People Model to better enable Booz Allen to leverage all its capabilities for our clients
Changes that have occurred:
Decoupled Career Development Models (CDMs) from the organizational structure to allow maximum flexibility in creating client teams and ensure development of differentiated skills Added a third CDM for client staff, Design, to enable us to scale up blueprinting and design capabilities and extend our reach across the Strategy Based Transformation continuum Created mechanisms to bring staff across CDMs together on client projects with greater ease (e.g., cross-CDM representation on some assessment committees, fixed-rate differential for eligible Transformation staff) Developed a firmwide value proposition for our people to define and articulate our commitment to attracting, developing, and retaining our people Harmonized many policies and procedures globally (e.g., Performance Commitment Statements, firmwide bonus accrual formula, four-point assessment rating scale does not meet, partially meets, meets and exceeds expectations), and some specific to the U.S. (e.g., Paid Time Off, total time reporting)

Changes underway:
Redesigning a fourth career development model for internal staff (to be rolled out incrementally) Finalizing the Design CDM

Reference as needed to update staff on people model changes For more information, read the monthly Leadership Update on People Model in http://flt.bah.com

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WHATS OUT/WHATS IN

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EXPECTED BEHAVIORS
Expected Behaviors

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EXPECTED BEHAVIORS (continued)

Expected Behaviors (continued)

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EXTERNAL KEY MESSAGES

External messaging focuses on Booz Allens differentiating and distinctive capabilities We are the one firm that can tackle the worlds biggest problems We have a strong combination of industry expertise and functional depth We have deep experience with commercial and government sectors We have the breadth and depth required to solve the worlds biggest problems We are the one firm that truly teams with clients We make their mission our mission We treat clients as partners We roll up our sleeves and help get the job done We are the one firm committed to go beyond expert advice and deliver results We deliver results with speed, precision, and certainty We deliver results that solve problems today and We deliver results that build capabilities and position the client for success in the long term

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Frequently Asked Questions (FAQs)

FAQs can be submitted and answered on http://evolution.bah.com
A formalized FAQ program has been established to : Capture and respond to questions with consistent messages Provide leaders with relevant and accurate responses that have already gone through the proper vetting process Questions are categorized into the following areas: Consulting Industry Culture and Buy-In Knowledge Management and Capabilities Marketing and Communications One Firm Project Management

Organizational Structure Paid Time Off People Model Time Reporting Policy Value Proposition

ALL STAFF sample questions posted: How are we planning to integrate our legacy sector cultures into a more common Booz Allen way? How is the One Firm concept being received on campuses? Are there best practices for joint work? LIMITED LEADER ACCESS (SA and above) sample questions posted: Will this affect the timeline to make Partner? How are we changing the assessment process? How will staffing assignments work in the future? What is happening with my Home Team? Why do we need a Design CDM?

Submit questions and find answers at http://evolution.bah.com information will be regularly updated to keep it relevant

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WEB RESOURCES
http://iShare Booz Allens new firmwide SharePoint portal for knowledge sharing and collaboration with links to the sites below
Launched end of April 2006 Replaces Answernet, KOL+, and eventually LiveLink Provides portal areas, team sites, my sites, intelligent search capability, local access control for increased security and daily firmwide news stories to foster a firm wide culture http://people.bah.com Booz Allens Human Resources information home Information on your pay, leave, benefits, awards, and other HRrelated subjects Useful forms, contact information, and helpful links Special life management links (retirement, marriage, etc.) walk you through Booz Allens recommendations for staff during these life events Profile Tool offers a snapshot of an individuals career based on location, level and CDM http://learning.bah.com Booz Allens training and development site Links to information on internal, external, and computer-based training opportunities Course descriptions, registration, transcripts, Employee Development Framework for different levels, tuition reimbursement tracking, view personal development plan, training news, career development resources, and more Supervisors can use site to grant or deny training requests and view personal developments plans and employee transcripts http://evolution.bah.com Booz Allens information site for One Firm Fact sheets, policies, messages from leaders, and answers to frequently asked questions Centralized conduit for staff to email questions concerning One Firm Leadership Resources for Senior Associates and above for leadership specific messages and resources Risk Alert Matrix and key ethics and compliance information http://flt.bah.com Partner and Principal access Includes FLT update reports and other senior information http://jeco.bah.com Booz Allens site for resources related to joint public/private projects Information to assist in mitigating organizational conflict of interest risk, guidance to ensure export compliance and pricing support Appropriate standard terms and conditions for proposals, project management assistance with the entire proposal process, and best practices about joint projects Support for project managers in identifying staff with skills/capabilities/expertise needed for joint opportunities

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GLOSSARY

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GLOSSARY continued

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