Wellpoint: Selecting, Managing and Deploying Metrics

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Selecting, Managing and Deploying Metrics to Better Serve our Members …

Selecting, Managing and Deploying Metrics to Better Serve our Members

Asis Datta
Business Change Director
April 2012

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  • 1. Selecting, Managing and Deploying Metrics to Better Serve our Members Asis Datta Business Change Director April 2012 2 Agenda 2 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress
  • 2. 3 Agenda 3 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress 4 About WellPoint WellPoint is one of the nation’s largest health benefits companies, with 34 million members in its affiliated health plans and more than 65 million individuals served through its subsidiaries. • One in nine Americans receives coverage for their medical care through WellPoint's affiliated plans. • We offer a broad range of medical and specialty products. 4
  • 3. 5 Select Facts About WellPoint 5 • IndianapolisHeadquarters • To improve the lives of the people we serve and the health of our communities Mission • PPOs, HMOs, hybrid services • Specialty products (dental, vision, etc.) • Other services (flexible spending accounts, COBRA administration, etc.) Products & Services • Approximately 37,000 as of 12/31/2010Employees 6 Agenda 6 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress
  • 4. 7 State Sponsored Business (SSB) is part of WellPoint’s full product solution 7 Customer Segment Description National Accounts National Accounts are generally multi-state employer groups primarily headquartered in a WellPoint service area with 5,000 or more eligible employees, of which at least 5% are located outside of the headquarter state. Local Group Local Group includes customers with less than 5% of eligible employees located outside of the headquarter 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 Medicare Supplement benefit coverage. State Sponsored Business (SSB) Members are beneficiaries of State-sponsored programs including Medicaid and Children’s Health Insurance Programs (CHIP). Federal Employee Programs FEP members consist of United States government employees and their dependents within our geographic markets through our participation in the national contract between the Blue Cross Blue 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 owned by 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. 8 About State Sponsored Business 8 • 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
  • 5. 9 Agenda 9 About WellPoint About State Sponsored Business Performance Management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress 10 SSB management reports prior to implementing ActiveStrategy 10 Monthly spreadsheet reports distributed; one month lag Enterprise reports saved to various SharePoint sites through the month Monthly e-mails and meetings of financial results Department results shared via e-mails One on one meetings Periodic (quarterly, annual) meetings to review business results Ad hoc requests for information driven by external requirements / urgent situations / research Key Strategic Initiative details interspersed throughout ActiveStrategy provides a coherent structure to pull all this information together, make sense of the connection within and between various metrics and assess the effectiveness of strategic initiatives on a timely basis. SILOS & DISCONNECTS
  • 6. 11 BEFORE ActiveStrategy : Excerpt of a Monthly Excel Report 11 PITFALLS • Manual process • Time consuming • Subject to inconsistency and inaccuracy 12 Agenda 12 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress
  • 7. 13 SSB needed a sophisticated performance management system … and needed it fast • Present a prototype in 6 weeks to business leads. • Present the system by 3 months to senior management for final authorization. • Launch at the 6 month mark (June 2011). 13 • Centralize key strategic initiatives and data in one place. • Display key performance indicators with drill down capabilities. • Provide transparency, encourage collaboration and ensure accountability. • Display strategic priorities in a concise, measurable format. • Ensure that efforts are focused and aligned to our vision. Goals Timing 14 Why did we select ActiveStrategy? 14 ACTIVE STRATEGY Consulting Support Function- ality Software Concept WellPoint Approved Vendor Technical Support Cost of Entry
  • 8. 15 How were we able to implement ActiveStrategy in only 6 months? Jan Feb Mar Apr May Jun 15 • Established a Team of Five Associates – SSB, Finance, Care Management Key Milestone: Completed the ActiveStart Administrator Training • Built an Excel template to define the scorecard structure, objectives, measures and their properties. 16 How were we able to implement ActiveStrategy 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
  • 9. 17 How were we able to implement ActiveStrategy 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 Jun 18 Insights at the halfway mark… 18 Creating a “Strategy Map” clarified the connection points between our vision, financial objectives, customer focus and work processes.
  • 10. 19 We recognized the importance of defining types of measures and associated ownership: 19 More insights at the halfway mark… Measure Ownership Financial Finance and Actuary Operational Source system reporting groups Functional 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 tied the measures to the objectives. • The master scorecard was reviewed with management before cloning commenced. • Many measures did not make the scorecards but are critical elements in calculations and department focused stoplight chart reporting. • We ran into challenges with data availability at the state level but not product level – for consistency we built out the same measures across all scorecards. The goal was also to push for product level detail in the future. 20 Selecting measures for scorecards was a collaborative process: More insights at the halfway mark…
  • 11. 21 Key Learning Points 21 The number of measures per objective must be limited to a few critical measures in order to make the scorecard readable. Measures not in scorecards can still be presented via Stoplight Charts. 22 How did we handle measure data as 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 that individual responsible for loading the operations data. • The team accessed/collected the standard pre-implementation reports from functional areas and loaded the information. • The team entered the variance explanations from standard available reports. 22
  • 12. 23 Key Learning Points Targeted training to update measures. Up to date system at go live. Reduce the barrier to acceptance. Accelerate the system launch!! 23 24 SSB Implementation of ActiveStrategy: Scorecard Hierarchy 24 Top-Level Scorecard State Level Scorecards Product Level Scorecards State Reporting Level Scorecards (Future Development)
  • 13. 25 Scorecard structure 25 26 Key Learning Point 26 Settling on a core set of measures enables faster cloning of the required product level scorecards, state level scorecards and top level scorecards.
  • 14. 27 How were we able to implement ActiveStrategy 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 Jun 28 How were we able to implement ActiveStrategy 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
  • 15. 29 How were we able to implement ActiveStrategy in only 6 months? 29 • Additional end user training. • Development of stop light charts and briefing books. GO LIVE!! Jan Feb Mar Apr May Jun 30 Implementation results… by the numbers 30 30 Scorecards 14 Objectives per scorecard 4,000 Measures 11 Dashboards 17 Stoplight Charts 3 Briefing Books 102 Users
  • 16. 31 Lessons 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 functional areas can place after deployment) • Tasks laid out to meet the target date (ASE Initiative!!) • Executive support at the kick off and orientation meetings • End user training and support • ASE consulting and technical support 31 32 Agenda 32 About WellPoint About State Sponsored Business Performance Management prior to implementing ActiveStrategy Implementation of ActiveStrategy in State Sponsored Business Role of ASE Consulting User Feedback Future Projects
  • 17. 33 ASE Consulting expedited our implementation 33 • 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 Training We faced the dual challenge of learning ActiveStrategy and implementing the system at the same time ASE Consulting support 34 Key Learning Point 34 Budget for ASE Consulting and Technical Support. It will more than pay for itself in time saved and speed to deploy.
  • 18. 35 Agenda 35 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress 36 What users have told us since ActiveStrategy was implemented: 36 “The fast turnaround is great! It makes such a difference to have results and variance explanations for one month available by the 15th of the next month.” “Next, we need proactive weekly measures to better influence monthly results.” “For the first time I have an easy way to track performance and refer back to historical variance explanations.” “What else will ActiveStrategy do? … my team has suggestions about more functions and reports we could really use.”
  • 19. 37 Agenda 37 About WellPoint About State Sponsored Business Performance management prior to implementing ActiveStrategy Implementation of ActiveStrategy Role of ASE Consulting User feedback since implementation Projects in progress 38 Projects in progress 38
  • 20. 39 Our ultimate goal… 39 Utilize data to run our business more efficiently and effectively, thereby helping to fulfill WellPoint’s mission: Improve the lives of the people we serve and the health of our communities.