Developing High-Performance Operating Models Presented by Musheer Robinson – CEO

1. Williams-Wallace Management Consultants (WWMC) Delivering Deep Insight, Accelerated Excellence & Significant ROIs Developing High-Performance Operating Models Presented by Musheer Robinson – CEO musheerc@wwmcinc.com – 314.283.8777

2. Introducing Williams Wallace Management Consultants (WWMC) • WWMC is an enterprise process management (EPM) consultant focused on helping its customers create leveraged growth platforms for near-term cost reductions, increased profitability and long term growth • WWMC customers are senior government leaders and CEO/CFO/COO/CIO’s and/or board of directors and line of business leaders • WWMC helps its customers to develop action oriented value propositions, enterprise class strategies, business processes and execution capabilities that clearly differentiate our customers from their competition • WWMC is expert in helping customers optimize their supplier, partner and customer value chain positions including helping them establish (or leave) business relationships fluidly and inexpensively • WWMC strategies are informed by the voice of our customers’ customers, are flexible and sustainable • WWMC delivers process management toolsets that leverage customers existing business infrastructure investments • WWMC consultancies achieve bottom line savings quickly with modest investments increasing profitability quickly

3. Order Entry Before Order Entry After WWMC Links Strategy and Execution Results Assessment & Ongoing Agenda (PMO) Process Performance Model Determine unique customer value position and strategic operating goals Design operating model to support strategy Establish process performance metrics and objectives Design and implement process, system and people related changes Establish a change management infrastructure Customer Value Profile 1 2 3 4 5 Operating Model Implementation Enterprise Process Model Strategy

4. WWMC’s Strategy Process is Focused on Value Innovation and the Customer Experience

5. WWMC Clarifies Accountability and Control Creating controls and methods to link strategy and process execution

6. WWMC Helps its Customers to Manage ResourcesMore Effectively Through Process Based Budgeting Mapping operating, capital, fte’s and chart of account budgets to process immediately highlights the need for realignment of budgets & the project portfolio… “Should WWMC’s client invest more in customer processes or supplier processes?”

7. Enrollment Form Inventory (Commercial) 40,000 9 Forms Days on Hand 8 35,000 7 30,000 6 25,000 5 Days on Hand Forms 20,000 4 15,000 3 10,000 2 5,000 1 0 0 Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- 00 00 00 00 01 01 01 01 01 01 01 01 Source: "E&B Weekly Statistics", Jill Munroe Combined Commercial Accuracy Rates 98.0% 97% 96.0% All Forms Standard 94.0% 92.0% 90.0% 94% 94% 94% 94% 93% 93% 93% 93% 93% 92% 88.0% 91% 89% 100% 86.0% Electronic (EDI & HPHConnect) vs. Manual (Commercial Paper) Transactions 95% 84.0% Group Retention Rate Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 00 00 00 00 00 00 00 01 01 01 01 01 90% Electronic Manual 100% Source: "E & B Monthly Statistics", Jill Munroe 80% Commercial Incoming Calls and Abandon Rate 70% 95% 60% 9,000 14% 90% Calls Abandon Rate 50% 83% 8,000 12% 85% 40% 8,197 7,895 7,000 7,992 30% 80% 10% 6,000 20% 75% 8% 10% 5,000 6,709 Abandon Rate Calls 5,606 0% 70% 4,000 6% 4,557 4,902 4,304 4,496 63% 4,440 4,354 4,340 3,000 65% 4% 2,000 60% 2% 1,000 55% 0 0% Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- 50% 00 00 00 00 01 01 01 01 01 01 01 01 Aug Jan Feb Mar Apr May Jun Jul Source: "E&B Weekly Statistics", Jill Munroe WWMC Assigns Performance Accountability & Enterprise-wide Measurement Systems Administer Accounts • Setup Accounting & • Reserves • Bill Premiums • Issue Invoices • Post Premium Payments • Manage Accounts Receivable • Reconcile Premiums • Research & Resolve Non-Payments • Pay Sales Commissions • Prepare Account Financial Reports • Account Reports • Standard • Ad Hoc • Utilization • Reinsurance

8. WWMC Helps its Customers to Manage their Operating Model & the Relationships Between and Among Processes Parent-Child Organizational Unit Participates Owns Manages Parent-Child Parent-Child Individual Role Process Participates Owns Manages Fills Represents Owns

9. WWMC Engages Senior LeadershipWe help Start the process management journey from a different vantage point – the top

10. Why Customers Need WWMC’s Holistic Enterprise Process Management™

11. ALL Businesses are a Collection of Processes Holistic Enterprise Process Management™ Optimizes the Biz • Managing the business through innovations and execution in the value platform (product/service/delivery methods) • Begins with a process model that inventories the processes of the business: we call it an Enterprise Process Model 1 Strategic Processes determine what value propositions, what customers, and the how the organization will invest to deliver to those customers. 2 Core Processes develop, produce, market and support the core products and services of the organization. A health plan, as illustrated, has processes for managing a provider network. 3 Enabling Processes allow the organization to be in business, but are not part of the core value proposition. Typically, human resources, facilities management, finance and accounting, and information technology fall into this class.

12. Holistic Enterprise Process Management™Moves business & gov. entities beyond traditional operating models • Enterprise Process Management— an approach that places business process at the center of business management • Tied to customer value delivery • Supported by alignment in key business dimensions — organization, partners, technology, budget, content, change • Monitored through process-based performance metrics FromTraditional OrganizationalManagement ToProcess Optimization ToHolistic Enterprise Process Management™

13. Benefits of WWMC’sHolistic -Enterprise Process Management™ • Improve Performance. Managing processes allows leaders to affect directly the sources of value and the sources of costs of the organization • Customers experience business processes, not org charts and budgets • Operational metrics (e.g. call abandonment rates) tie to customer experiences and strategic objectives • Applying the right control intervals • Improve Accountability. Process Owners are identified and held accountable for the effectiveness and efficiency of their processes – and rewarded for performance • Improve Investments. Process management enables better investment and resource allocation decisions by linking capital budgets to the processes that directly impact customer experiences and financial performance • Improve Agility. Process management creates agility, enabling an organization to design and implement process changes to respond to market opportunities and competitive threats. In addition, effectives responses to changes in the legal and regulatory environment, like Sarbanes-Oxley, begin with a knowledge of the underlying business processes • Enhance Competitive Advantage. Competitors are unable to duplicate the operating model 1 2 3 4 5

14. WWMC Institutes a Holistic Process-Centric Operating Model The Model clarifies “What Do We Do?” and “Where do we start?”The Example Below is restructuring a failing HMO Strategic Processes: Brand, Communication, Value Innovation, Resource Management and Budgeting Core Processes DevelopProducts &Services Manage Customers &Products Develop & Manage Provider Network Manage & Provide Care Administer Accounts Manage “Loyalty” & Renewals 1 2 3 4 5 6 • Develop Strategy • Analyze Environment • Consumers • Competitors • Regulatory Government • Forecast Membership • Segment Markets • Identify Customer Needs & Concerns • Analyze Pricing • Develop Business Plans for New Products • Develop & Maintain Master Product Plan • Obtain Regulatory Approval • Pilot/Test Products & Services • Launch Products Manage Distribution Channels – Direct, Indirect, Self-Service Respond to Inquiries & Concerns License/Commission Brokers & Agents Target Customers Advertise & Market Brand/Products Prospect Customers Process Census Underwrite & Determine Rates Develop Proposals Negotiate & Close Account Contracts Configure Account Contracts Enroll Members Train Plan Administrators Initiate Premium Processing Issue Member Determine Network & Contracting Strategy Create Medical Management Agenda Develop Standards & Policies for: Medical Policy Practice Guidelines Service Standards Delegation Policy Create Standard Provider Templates Determine Provider Reimbursement Policy Maintain Regulatory Compliance Negotiate/Renegotiate Provider Contracts Credential Physicians & Facilities Configure Provider Contracts Enroll, Orient & Setup Providers Produce/Update Provider Directory Adjudicate & Process Claims/Status • Eligibility • Manage Utilization • Pre-certification & Pre-authorization • Referral & Authorization Management • Benefits Verification • Case Management • Retrospective Review/Denial • Encounter Management • Ensure Clinical & Service Quality • Influence Provider Performance • Compensation & Incentives • Profile Providers • Track Satisfaction • Analyze Care • Delivery Patterns • Provider Group Reports • Standard Reports • Ad Hoc Reports • Promote Wellness • Manage Diseases • Report Clinical Outcomes & Performance • Setup Accounting & • Reserves • Bill Premiums • Issue Invoices • Post Premium Payments • Manage Accounts Receivable • Reconcile Premiums • Research & Resolve Non-Payments • Pay Sales Commissions • Prepare Account Financial Reports • Account Reports • Standard • Utilization • Reinsurance • Solicit Customer • Feedback • Conduct Surveys & Studies • Track Member Call Center Concerns • Track Provider Call Concerns • Analyze Purchased Research Data • Analyze Customer Feedback Data • Evaluate Internal Performance • Identify Service Improvements • Research Markets • Reward Customer Loyalty Enabling Processes: Finance & Accounting, Human Resources, IT, Project Management, Legal, Audit, Training, Facilities

15. WWMC Aligns the OrganizationHelping the Executive team to develop an agenda for the turnaround by getting the team aligned on priorities After Before

16. WWMC answers the critical value proposition questions and provides efficient actionable solutions Before we even leave the gate – the team gathers Working with broad cross-functional team including process owners and participants With WWMC Partners • Is business strategy clearly understood? • Is business strategy valid? • Are customers identified? • Is customer value and customer experience understood? • Is customer value differentiated? • Is operating strategy understood (Make, Buy, Ally)? • Is operating strategy feasible? • Are executives aligned on process link to strategy and performance? • Can operating model be expressed as Enterprise Process Map (EPM)? • What are process families? • What are major processes & sub-processes? • Do budgets and people map to the EPM? • Do systems map to the EPM? • Are processes formally defined? • Are process owners identified? • Do processes clearly create value for customers? • Are processes measured? • Are incentives aligned with process results? • Are processes managed end-to end and across functions? • Do IT systems support all processes? • Are process metrics integrated with enterprise objectives? • Are process changes coordinated and measured? • Is process documentation accessible to process participants and owners? • What are major business performance gaps? • What are major process performance gaps? • What processes are inadequately designed or documented? • Where are resources incorrectly applied to processes? • Where are IT systems not matched to processes? • What are major people issues? • Training • Management • Incentives • How should improvement opportunities be prioritized? • How should process management capabilities be strengthened? • What training and change management needs must be addressed?

17. WWMC Creates Timelines for results, not simply a menu of consulting activities. We don’t stop with system implementation Assess & Design EPM Implementation Develop Pilot & Install Changes Deliver & Accelerate Results Timeline for Illustration Only wk 34 wk 15 wk 22 wk 46 wk 8 • Build EPM • Gain Executive Alignment • Process Managed Enterprise • Methodology • Define Process Metrics & Dashboard • Map EPM to • Systems • Organization • Budgets • Projects • Assess Performance Gaps • Prioritize Opportunities • Define Process Redesign Projects • Launch PMO • Agree Outcomes, Baselines and Measures • Agree Methodology • Enterprise Process Management • Change Management • Complete Project Planning • Identify and On-Board Team • Initiate “Quick Wins” • Develop Systems Plan • Develop Training and Development Plan • Process Redesign Workshops / Lab • Complete Quick Wins • Roll-out Process Performance Incentives • Pilot Wave 1 Process Changes • Complete Enterprise Process Training • Process Owners • Process Participants • Install System Changes • Roll-out Wave 1 Process Changes • Transition Process Ownership • Identify New Opportunities • Drive Results Generation • Agreed Results Delivered • Demonstrate Sustainability • Behaviors Changed • New Management System Functioning • Incentives Aligned • Enterprise Processes Directly Support Customer Value Innovation

18. Have Your Advisors Helped You Achieve These Three Fundamental Goals ? If Not, Call WWMC! High performance requires both excellence in customer experience AND operations A new operating model is required - supported by strategies with every day utility for MANAGEMENT processes The new enterprise model must engage senior leadership – in both operating model design and ongoing management processes Point 1 Point 2 Point 3