Missouri Issues in Workers’ Compensation General Session

Missouri Issues in Workers’ Compensation General Session The Missouri Division of Workers’ Compensation Business Analysis: Where we have been and where we are going. Brian Ronnau, Manager 804-306-4915 CapTech Ventures, Inc. June 8,2009 1419 West Main Street, Richmond, VA 23220 www.captechventures.com ©2009 CapTech Ventures, Inc. // All Rights Reserved.

Agenda ■ CapTech Background ■ Broad Industry Challenges ■ What is a Business Analysis? ■ Findings at Missouri DWC ■ Benefits to Users ■ Common Areas of Concern ■ Keys to Success ■ Lessons Learned ■ Q&A p.2 Proprietary and Confidential – CapTech Ventures 2009 ©

CapTech Background p.3 Proprietary and Confidential – CapTech Ventures 2009 ©

CapTech Overview CapTech is an Information Technology Consulting Firm that manages, designs, and builds information systems.  Private consulting firm founded in 1997  Services • Management Consulting • Systems Integration • Data and Business Intelligence Management Consulting  Proven success with Fortune 500 firms and Government Agencies  2005-2008 revenue growth of over 30%  180 employees with a client service focus  Nationally recognized leader in chosen niches Client Systems Data Integration Management p.4 Proprietary and Confidential – CapTech Ventures 2009 ©

Project Methodology Develop Stakeholder As-is To-be Data Assess Provide Schedule Interviews Analysis Analysis Analysis Results Reco’s  Interactive and comprehensive work-plans are fundamental  Communication and feedback are critical to success  Process engineering is a key focus  Developing the right solution for the jurisdiction is the objective p.5 Proprietary and Confidential – CapTech Ventures 2009 ©

Workers’ Compensation Experience ■ Virginia Workers’ Compensation Commission  Phase 1: Comprehensive Review of Technology, Process and Organization  Phase 2: IS Department Realignment, Collaboration, Content Management and Training  Phase 3: Design & Development Claims, Judicial Systems and Ancillary support applications ■ Missouri Department of Labor (DOLIR)  Phase 1: Current State, Future State Gap Analysis (DWC)  Phase 2: Design of DOLIR Enterprise Target Architecture (shared services & reuse) ■ IAIABC  EDI Committee  Implementation Committee  Claims Committee p.6 Proprietary and Confidential – CapTech Ventures 2009 ©

Broad Industry Challenges p.7 Proprietary and Confidential – CapTech Ventures 2009 ©

Management Domains p.8 Proprietary and Confidential – CapTech Ventures 2009 ©

Universal Problems ■ People  Aging Workforce  Resistance to change  People are individuals (Goals/Motivations)  Overlapping rolls & responsibilities  Workers’ compensation is not a priority  Politically managed (Constantly changing regulations) p.9 Proprietary and Confidential – CapTech Ventures 2009 ©

Universal Problems ■ Process  Manual processes (Workarounds)  Duplication of work  Data Quality  Engrained work habits (Decades old)  Disregard for downstream systems/processes p.10 Proprietary and Confidential – CapTech Ventures 2009 ©

Universal Problems ■ Technology  Outdated Applications & Infrastructure  Data Quality  Application Silos  Lack of security best practices p.11 Proprietary and Confidential – CapTech Ventures 2009 ©

Workers’ Compensation Unique Challenges – Laws, Regs and Case Law Laws and Statutes Modification challenges Dated Rules & Regulations Paper driven process Century of Case Law Legal challenges to change Federal Regulations Data security and privacy p.12 Proprietary and Confidential – CapTech Ventures 2009 ©

What is a Business Analysis p.13 Proprietary and Confidential – CapTech Ventures 2009 ©

Definition of a Business Analysis ■ Business Analysis is the set of tasks, knowledge, and techniques required to identify business needs and determine solutions to business problems. So… what does that mean? ■ A critical foundational step ■ First phase in a business transformation ■ Delivers sound fundamentals in support of a broader organizational and/or technological change p.14 Proprietary and Confidential – CapTech Ventures 2009 ©

Business Analysis Breakdown •Analyze Existing Current Environment State Review •Identify opportunity areas •Understand Future organizational State vision Dev •Apply industry best practices •Determine Gapping capabilities •Close gaps •Document recos Road- •Communicate mapping implementation plan p.15 Proprietary and Confidential – CapTech Ventures 2009 ©

Findings at Missouri DWC p.16 Proprietary and Confidential – CapTech Ventures 2009 ©

Findings Siloed Organization Lack of Transparency Lack of Common Goals Redundant Processes Task Replication Procedure Duplication Paper Focused Insufficient web Extraneous forms Duplicate Entry utilization Manual Communications Inefficient Applications p.17 Proprietary and Confidential – CapTech Ventures 2009 ©

Benefits to Users p.18 Proprietary and Confidential – CapTech Ventures 2009 ©

Future State Benefits ■ Recommended going from a manual, paper- based process to web-based communication Leverage electronic communication Empowering stakeholders On-line portal interaction with DWC ■ Recommended moving to R3 EDI and incorporating SROI in addition to FROI Eliminates paper based forms Timely Information Reduction in man hours p.19 Proprietary and Confidential – CapTech Ventures 2009 ©

Future State Benefits ■ Recommended re-engineering of organization into focused work areas Consolidate processes Reduce redundant activities Reduce off-line activities ■ Recommended system automation to drive efficiencies across the division Self-Insurance analysis supported by financial management module Automated Docketing Automated Claims & EDI engine p.20 Proprietary and Confidential – CapTech Ventures 2009 ©

Future State Benefits ■ Recommended strong business analytics to support robust reporting and continuous improvement Business analytics engine for reporting Focus on continuous improvement More prompt responses to information p.21 Proprietary and Confidential – CapTech Ventures 2009 ©

The Future State Summary ■ Stop paper at the door (Data Driven Claims Management) ■ Automated workflows ■ Robust reporting capabilities ■ Centralized, transparent docketing ■ Accessibility by external stakeholders ■ Automated electronic correspondence ■ Effective content management ■ Manager task administration ■ Enhanced business intelligence capabilities p.22 Proprietary and Confidential – CapTech Ventures 2009 ©

Common Areas of Concern Insurers ■ Update systems to support modernization ■ Aggressive Timeframes ■ Disjointed requirements from Jurisdictions Attorneys ■ Client impact ■ Modernizing internally Health Care Providers ■ Medical Record convergence ■ Disparate communication mechanisms Employers ■ Care and safety for workers ■ Policy information delivery p.24 Proprietary and Confidential – CapTech Ventures 2009 ©

Keys to success ■ Strong leadership ■ Develop deep relationships with key members ■ Solid change management foundation ■ Begin approval process early ■ Use IAIABC standards ■ Show success early and often ■ Evaluate all technology options ■ Insure partner needs are included ■ Map data requirements ■ Iterative methodology ■ Involve external stakeholders p.26 Proprietary and Confidential – CapTech Ventures 2009 ©

Lessons Learned Communication is key Align early and often Document requirements early Verify and validate p.28 Proprietary and Confidential – CapTech Ventures 2009 ©

Contact Information Brian Ronnau Manager Phone:(804) 306-4915 E-mail: bronnau@captechventures.com Adam Hofheimer Director – Business Development Phone:(804) 545-3384 E-mail: ahofheimer@captechventures.com Steve Holdych Principal Phone:(804) 647-4836 E-mail: sholdych@captechventures.com p.30 Proprietary and Confidential – CapTech Ventures 2009 ©

Missouri Issues in Workers’ Compensation General Session

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