1© 2003 Six Sigma Academy

The 8 Step Approach

Strategic Business Alignment Workshop Part 2

Case Study Materials

2© 2002-2003 Six Sigma Academy

The Stevens

Shawn Stevens – 39Works for IBM making $60K per year as a financial analyst

Betsy Stevens – 39Works for New Jersey School System making $53K per year

Susan Stevens – 12 Plays Piano, Club Soccer Goalie, B Student

Britney Stevens – 9Cheerleader, Basketball Player, A Student

Justin Stevens – 7Football, A Student

3© 2002-2003 Six Sigma Academy

The Stevens

Needless to say, Shawn and Betsy were shocked when they reviewed the results of the Money magazine calculator. Shawn decided to bring all of his financial records with him when the family went to the cabin this weekend to put together a plan for college while they readied the boat for winter storage.

On the car ride to the cabin, Shawn told Betsy of his annual review with his boss Mr. Smithers. IBM has always been good to Shawn providing him a 3% salary increase year over year…Shawn felt this could continue. Betsy’s work is covered by contract and she felt a 2.5% increase each year is reasonable to expect.

Shawn is really happy that his job at IBM is low pressure and he can work 40 hours per week… (4 – 10 hour days). This really helps his golf game at the country club where he and Betsy are able to spend wonderful summers while Betsy is out of school.

4© 2002-2003 Six Sigma Academy

The Stevens

Housing Includes: 1st home in NJ (30 year fixed mortgage 8.5%), plus 2nd home (cabin - $600/month 30 year fixed mortgage 9%)

Other Includes: Boat payment of $250/monthTransportation: Includes all 3 cars – the new corvette ($700/month)

and the upkeep on the 2 1995 minivans (paid off last year)The Stevens’s are proud of their ability to budget entertainment dollars

5© 2002-2003 Six Sigma Academy

The Classifieds…

Wanted: Summer School Teacher - $1500/week for 6 weeks

Wanted: Private Math Tutor $30/hr… 10 hours/week guaranteed

Wanted: Weekend Tax Consultant HR Block 2-3 days per week$25/hr… no benefits

Wanted: Babysitter - $4 per hour

Wanted: Newspaper routes – old fashioned carriers wanted for startup routes – Sunday only $15 week.

6© 2002-2003 Six Sigma Academy

The Stevens

Stevens’s Financial Information

Federal tax rate 27%State tax rate 7%Current College Fund $8750 in 30 day CD 3%Betsy heard from a teacher at work about a 529 account for college

savings.Betsy’s friend is investing in a simple mutual fund that has been able to provide 8-10% in good times and bad.

7© 2002-2003 Six Sigma Academy

The Stevens

Last weekend Shawn’s boss and his daughter went to an open houseAt Rutgers university – just 5 miles from where Shawn and Betsy live.

Mr. Smithers and his daughter were very impressed with the schoolAnd were thankful of the close proximity allowing “Suzy Smithers” To commute.

Shaun thought he’d look at the website when he returns from the Cabin next week.

http://admissions.rutgers.edu/html/060101.asp