Leveraging Best Practices Health and Welfare - Benefits Administration

1. Leveraging Best PracticesHealth and Welfare - Benefits Administration Presented to:Lawson Software, Inc. / City of Columbus, Ohio William Bacote Manager The Hackett Group March 26, 2008

2. Objectives and Expectations • Examine current process efficiency, effectiveness, and structure • Understand current gaps to best practices, and service delivery model considerations through examination of Hackett Best Practices • Begin the development of a best practices scorecard

3. Best Practices Defined:A Hackett-Certified Practice is a proven technique that delivers measurable value • Aligns with strategy • Reduces costs • Improves productivity • Promotes timely execution • Enables better decision making • Leverages existing and exploits emerging technologies • Ensures acceptable levels of control and risk management • Optimizes skills/capabilities of the organization • Promotes collaboration across the extended enterprise Hackett’s Best Practices are certified when there is a correlation with world-class performance metrics

4. Best Practice Scorecard Strong Usage No Usage Applicable Yes Adoption of the best practice is in line with current/future business needs No Best practice does not fit the current business needs Coverage HighWidespread impact on the enterprise and/or significant value-add MediumImpacts multiple areas, value-add is significant but less relative to processes ranked as High Low Impacts a single area or has limited span of adoption throughout the enterprise Comments Statements pertaining to the technology enablement, policy enactment and other challenges and/or prerequisites associated with improving the utilization of the Best Practice

5. Best Practice Session

6. Health and Welfare – Process Overview Process Definition – The process of administrating health and welfare plans in accordance with organizational policies, government regulations, labor contracts and insurance contracts Major Activities • Plan maintenance, enrollment, and record administration • Maintenance of employee flexible benefits records (vision, dental, medical, short- and long-term disability, life, accidental death and dismemberment and dependent life insurance) • Plan enrollment and update administration • Health plan-related information administration • Maintenance of records required by third-party providers (e.g., employee eligibility records) • Development of employee assistance programs (EAP) • Communication inside and outside of the organization • Communication of plan revisions to employees • Communication with carriers and third-party administrators regarding claims problems and administrative issues • Management reporting specific to Health & Welfare Plans Administration • Cost analysis of health care plans provided • Health plan accounting and actuarial analysis • Cost analysis of health care plans provided (benefit per dollar) • Coordination with related functions to maximize employee participation

7. Health and WelfareBest Practice Review – Summary Results

8. Health and Welfare – Best Practice Assessment

9. Health and Welfare – Best Practice Assessment

10. Health and Welfare – Best Practice Assessment

11. Health and Welfare – Best Practice Assessment

12. Health and Welfare – Best Practice Assessment