Subject: RSP Line of Business - Organization Option
From: "Neil Callahan" <[email-masked]>
To: "'Devon Archer'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>, "'Chris Heinz'" <[email-masked]>
Date: Tue, 9 Nov 2010 10:38:14 -0500

Hi guys,

Take a look at the attached rough illustration of what a Line of Business
structure could look like.

I think this model can work very well for where RSP is at in its growth
cycle.

We are top heavy with very talented and ambitious people, who all want and
need to make lots of money and are not very effective being in a command and
control / tops down environment.  That's why none of us are working at IBM
or Citibank.

Also, we do not have any mature businesses in place except for Private
Equity.  Therefore we need to dole out responsibility (and rewards) for
people to take a business and run with it and build it out.  Some will
succeed, some will not, but this is the best time tested model in a growth
oriented / entrepreneurial environment.

Providing incentives for each LOB lead to help each other is rather simple -
at one level there is an expectation of citizenship, you must do certain
things to part of the team and we enforce via peer pressure.  The next level
is economic, people know how it works if they help another LOB with sales,
delivery, ops, whatever.  Once we have a proper model, this is all plug and
chug.

There is a corporate overlay to all this - common financial and operational
management tools and processes.  Once this is set up, a junior level person
can administer this.  And there is another corporate overlay which
essentially acts as a bank:  pools operating capital, provides liquidity and
leverage - basically what a holding company does.

If the team is thinking about doing a 2011 Plan, this could be an operating
and organizing model to build a plan against.

Let me know what you think.

Best,

Neil

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Neil Callahan

Rosemont Seneca

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