Selecting, Managing and DeployingMetrics to Better Serve our MembersAsis DattaBusiness Change DirectorApril 20122Agenda2About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress
3Agenda3About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress4About WellPointWellPoint is one of the nation’s largest health benefitscompanies, with 34 million members in its affiliated health plansand more than 65 million individuals served through itssubsidiaries.• One in nine Americans receives coverage for their medicalcare through WellPoints affiliated plans.• We offer a broad range of medical and specialty products.4
5Select Facts About WellPoint5• IndianapolisHeadquarters• To improve the lives of the people we serve andthe health of our communitiesMission• PPOs, HMOs, hybrid services• Specialty products (dental, vision, etc.)• Other services (flexible spending accounts,COBRA administration, etc.)Products &Services• Approximately 37,000 as of 12/31/2010Employees6Agenda6About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress
7State Sponsored Business (SSB) is partof WellPoint’s full product solution7Customer Segment DescriptionNational Accounts National Accounts are generally multi-state employer groups primarily headquartered in aWellPoint service area with 5,000 or more eligible employees, of which at least 5% are locatedoutside of the headquarter state.Local Group Local Group includes customers with less than 5% of eligible employees located outside of theheadquarter state, as well as customers with up to 5,000 eligible employees.Individual Individual customers under age 65 and their covered dependents.Seniors Medicare-eligible individual members age 65 and over who have enrolled in Medicare Advantage,a managed care alternative for the Medicare program, or who have purchased MedicareSupplement benefit coverage.State SponsoredBusiness (SSB)Members are beneficiaries of State-sponsored programs includingMedicaid and Children’s Health Insurance Programs (CHIP).Federal EmployeeProgramsFEP members consist of United States government employees and their dependents within ourgeographic markets through our participation in the national contract between the Blue CrossBlue Shield Association and the U.S. Office of Personnel Management.Blue Card BlueCard host members represent enrollees of Blue Cross and/or Blue Shield plans not ownedby WellPoint who receive health care services in our BCBSA licensed markets.Specialty Products WellPoint offers a broad array of specialty products including, behavioral Health, Life, Disability,Dental and Vision, products which provide administrative efficiency and enhanced product value.8About State Sponsored Business8• Partner with various states across the country• Provide managed care benefits for nearly 1.8 million members• Built infrastructure to support Medicaid Managed Care programs• Emphasize the value of regular visits to primary care physicians• Encourage enrollment in our wellness programs
9Agenda9About WellPointAbout State Sponsored BusinessPerformance Management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress10SSB management reports prior toimplementing ActiveStrategy10Monthly spreadsheetreports distributed;one month lagEnterprise reportssaved to variousSharePoint sitesthrough the monthMonthly e-mails andmeetings of financialresultsDepartment resultsshared via e-mailsOne on one meetingsPeriodic (quarterly,annual) meetings toreview businessresultsAd hoc requests forinformation driven byexternal requirements/ urgent situations /researchKey Strategic Initiativedetails interspersedthroughoutActiveStrategy provides a coherent structure to pull all this informationtogether, make sense of the connection within and between various metricsand assess the effectiveness of strategic initiatives on a timely basis.SILOS &DISCONNECTS
11BEFORE ActiveStrategy :Excerpt of a Monthly Excel Report11PITFALLS• Manual process• Time consuming• Subject to inconsistency andinaccuracy12Agenda12About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress
13SSB needed a sophisticated performancemanagement system … and needed it fast• Present a prototype in 6 weeksto business leads.• Present the system by 3 monthsto senior management for finalauthorization.• Launch at the 6 monthmark (June 2011).13• Centralize key strategicinitiatives and data in one place.• Display key performanceindicators with drill downcapabilities.• Provide transparency,encourage collaboration andensure accountability.• Display strategic priorities in aconcise, measurable format.• Ensure that efforts are focusedand aligned to our vision.Goals Timing14Why did we select ActiveStrategy?14ACTIVESTRATEGYConsultingSupportFunction-alitySoftwareConceptWellPointApprovedVendorTechnicalSupportCost ofEntry
15How were we able to implementActiveStrategy in only 6 months?Jan Feb Mar Apr May Jun15• Established a Team of Five Associates – SSB, Finance, Care ManagementKey Milestone: Completed the ActiveStart Administrator Training• Built an Excel template to define the scorecard structure, objectives,measures and their properties.16How were we able to implementActiveStrategy in only 6 months?16• Developed one state scorecard and three product scorecards.• Set objectives and commonly used financial/non-financial measures.• Loaded prior year monthly data.Key Milestone: Presented prototype, received green light to proceed.Key Milestone: ASE Consulting facilitated development of strategy map.Jan Feb Mar Apr May Jun
17How were we able to implementActiveStrategy in only 6 months?17• Selected and built core set of measures.• Built a master scorecard.• Cloned the master scorecard to create the scorecard hierarchy.• Linked top level scorecard measures to key business unit strategic objectives.• Loaded prior year benchmarks and current year targets for performance data.• Built financial, operational and functional metrics “stoplight” charts.• Built a demonstration briefing book for monthly “deep dive” meetings.Key Milestone: Demonstrated system to senior management; received approval.Jan Feb Mar Apr May Jun18Insights at the halfway mark…18Creating a “Strategy Map” clarified the connection points between ourvision, financial objectives, customer focus and work processes.
19We recognized the importance of defining types of measuresand associated ownership:19More insights at the halfway mark…Measure OwnershipFinancial Finance and ActuaryOperational Source system reporting groupsFunctional Various owners• Membership• Program Administration• Grievance & Appeals• Human Resources• Etc…20• Requested metrics from each measure group.• The team determined which measures would make the scorecard and tiedthe measures to the objectives.• The master scorecard was reviewed with management before cloningcommenced.• Many measures did not make the scorecards but are critical elements incalculations and department focused stoplight chart reporting.• We ran into challenges with data availability at the state level but not productlevel – for consistency we built out the same measures across all scorecards.The goal was also to push for product level detail in the future.20Selecting measures for scorecards was a collaborative process:More insights at the halfway mark…
21Key Learning Points21The number of measures perobjective must be limited to a fewcritical measures in order to make thescorecard readable.Measures not in scorecards can stillbe presented via Stoplight Charts.22How did we handle measure dataas the system was built?Dilemma• The system was in the process of being built.• Data owners and variance report owners were not trained.Approach• Finance team member handled the loading of financial information.• Majority of operations metrics were handled by one department;we trained the one associate who would own the measures and made thatindividual responsible for loading the operations data.• The team accessed/collected the standard pre-implementation reports fromfunctional areas and loaded the information.• The team entered the variance explanations from standard available reports.22
23Key Learning PointsTargeted training to update measures.Up to date system at go live.Reduce the barrier to acceptance.Accelerate the system launch!!2324SSB Implementation of ActiveStrategy:Scorecard Hierarchy24Top-LevelScorecardState Level ScorecardsProduct LevelScorecardsState Reporting Level Scorecards (Future Development)
25Scorecard structure2526Key Learning Point26Settling on a core set of measuresenables faster cloning of the requiredproduct level scorecards, state levelscorecards and top level scorecards.
27How were we able to implementActiveStrategy in only 6 months?27• Contracted with ASE Consulting to support user roll-out.• Loaded previous month’s performance data.• Executed communications plan:• Contact all users to confirm measure and initiative ownership.• Confirm license cost approvals with all users and their managers.• Notify users of the kick-off and orientation meeting.• Activate user licenses.• Set dates for 3 levels of training: “train the trainers”, end users, and executive users.Jan Feb Mar Apr May Jun28How were we able to implementActiveStrategy in only 6 months?28• Trained the trainers.Key Milestone: Kick Off and Orientation Meeting• Completed end user training.• Conducted executive training (navigation, business review process).• Users are responsible for verifying historical data.• Users are responsible for loading data each month by required due date.Jan Feb Mar Apr May Jun
29How were we able to implementActiveStrategy in only 6 months?29• Additional end user training.• Development of stop light charts and briefing books.GO LIVE!!Jan Feb Mar Apr May Jun30Implementation results… by the numbers3030 Scorecards14 Objectives per scorecard4,000 Measures11 Dashboards17 Stoplight Charts3 Briefing Books102 Users
31Lessons learned for fast deployment• Strong executive sponsorship• Dedicated Internal team• Regular communications• Clear strategy map• Core set of agreed upon measures(additional build out of specific functionalareas can place after deployment)• Tasks laid out to meet the target date(ASE Initiative!!)• Executive support at the kick off andorientation meetings• End user training and support• ASE consulting and technical support3132Agenda32About WellPointAbout State Sponsored BusinessPerformance Management prior to implementing ActiveStrategyImplementation of ActiveStrategy in State Sponsored BusinessRole of ASE ConsultingUser FeedbackFuture Projects
33ASE Consulting expedited ourimplementation33• ActiveStart training• Bouncing ideas and approaches off ASE Consulting• Resolution of the measures naming convention• Development of the strategy map• Mass adjustment to measures and global recalculations• Adding/changing measure and initiative owners/groups• Removing unwanted measures and variance reports• Addition of the Forecast Comparator• Roll out and Communications• Executive TrainingWe faced the dual challenge of learning ActiveStrategyand implementing the system at the same timeASEConsultingsupport34Key Learning Point34Budget for ASE Consulting andTechnical Support.It will more than pay for itself in timesaved and speed to deploy.
35Agenda35About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress36What users have told us sinceActiveStrategy was implemented:36“The fast turnaround is great! It makes such a difference to haveresults and variance explanations for one month available by the15th of the next month.”“Next, we need proactive weekly measures to better influencemonthly results.”“For the first time I have an easy way to track performance andrefer back to historical variance explanations.”“What else will ActiveStrategy do? … my team has suggestionsabout more functions and reports we could really use.”
37Agenda37About WellPointAbout State Sponsored BusinessPerformance management prior to implementing ActiveStrategyImplementation of ActiveStrategyRole of ASE ConsultingUser feedback since implementationProjects in progress38Projects in progress38
39Our ultimate goal…39Utilize data to run our business moreefficiently and effectively, therebyhelping to fulfill WellPoint’s mission:Improve the lives of the peoplewe serve and the health ofour communities.