Human Resources has traditionally been a cost center, where value creation has been less than cost. To some degree this is because there has been a lack of metrics, focus on value creation, and simply challenging historical notions. A talent gap risks lost possibilities and opportunities to create new value. It prevents companies from growing into new and promising markets or sectors and from gaining a competitive edge. And while solving the global talent gap is the work of nations, companies will increasingly look to HR. When talented people have more choice, high-impact HR leaders can recruit and keep them with strategic investments in key areas: • Growth: Better learning, development and expansion pathways. • Impact: Closer connections to the meaning and value each individual creates. • Relationships: Stronger, more collaborative, more creative processes and team structures. These HR investments are direct business performance drivers, with returns to both top-line and bottom-line growth: Top-Line Drivers: • Productivity: How much each employee contributes. • Quality: How well each employee contributes. • Customer Satisfaction: How much market value each employee’s contribution creates. Bottom-Line Drivers: • Efficiency: How quickly and cost-effectively each employee contributes. • Retention: How long each employee continues to contribute to the company and not to a competitor. • Advocacy: How positively employees speak and write about their company. Attracting, developing, nurturing and supporting talented people in their success and growing revenue while controlling costs are not bureaucratic functions. In the new normal of chronic talent shortages, they offer a competitive edge. Talent is the business, and in this profit center, HR leads the way. Return on Investment (ROI) Metric (Value Created - Cost / Cost).

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End-to-End
Talent Management

2. 2
Executive Summary
Human Resources has traditionally been a cost center, where value creation has been less than cost. To some degree
this is because there has been a lack of metrics, focus on value creation, and simply challenging historical notions. A
talent gap risks lost possibilities and opportunities to create new value. It prevents companies from growing into new and
promising markets or sectors and from gaining a competitive edge. And while solving the global talent gap is the work of
nations, companies will increasingly look to HR. When talented people have more choice, high-impact HR leaders can
recruit and keep them with strategic investments in key areas:
• Growth: Better learning, development and expansion pathways.
• Impact: Closer connections to the meaning and value each individual creates.
• Relationships: Stronger, more collaborative, more creative processes and team structures.
These HR investments are direct business performance drivers, with returns to both top-line and bottom-line
growth: Top-Line Drivers:
• Productivity: How much each employee contributes.
• Quality: How well each employee contributes.
• Customer Satisfaction: How much market value each employee’s contribution creates.
Bottom-Line Drivers:
• Efficiency: How quickly and cost-effectively each employee contributes.
• Retention: How long each employee continues to contribute to the company and not to a competitor.
• Advocacy: How positively employees speak and write about their company.
Attracting, developing, nurturing and supporting talented people in their success and growing revenue while
controlling costs are not bureaucratic functions. In the new normal of chronic talent shortages, they offer a competitive
edge. Talent is the business, and in this profit center, HR leads the way.
Return on Investment (ROI) Metric (Value Created - Cost / Cost).
Forbes, © March 7, 2019 “Is Human Resources Your Next Profit Center?”
Migrating Human Resources from Cost Center to Profit Center

3. 3
Executive Summary
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
1 Evaluate Performance of Current Broker for H&W, WC, PLGL, fire, casualty, BI, EPL $150,000 $750,000
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195
3 Implement Cost Reduction Incentive Challenge to Workforce $50,000 $1,000,000
4 Implement Workers Compensation Cost Control Program $50,000 $750,000
5 Amend Health & Welfare Plan Design $100,000 $750,000
6 Deploy Employee Engagement, 3rd Party Intervention Avoidance Program OR Labor Management Partnership (LMP), with
employment “at-will” / class action waiver (with opt out) / PAGA limitations
$50,000 $750,000
7 Deploy Talent Management Program Solutions (TMS) $250,000 $2,500,000
8 Undertake Leadership Conference (Strategic Planning, Enterprise Risk Mgmt, Mergers & Acquisitions, Performance Excellence,
Sales, Clinical, Talent)
$50,000 $500,000
All Grand Total(s) $800,000 $20,186,195
Migrating Human Resources from Cost Center to Profit Center
Return on Investment (ROI) Metric (Value Created - Cost / Cost)
* See Item #2 for formulas, assumptions, and sample illustration(s) Yielding 671% ROI

4. 4
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
1 Evaluate Performance of Current Broker for H&W, WC, PLGL, fire, casualty, BI, EPL $150,000 $750,000
CFO, HR
Mercer, AON, Lockton, Risk Retention Group (RRG)
Migrating Human Resources from Cost Center to Profit Center

5. 5
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

6. 6
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

7. 7
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

8. 8
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

9. 9
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

10. 10
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

11. 11
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

12. 12
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

13. 13
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

14. 14
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

15. 15
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

16. 16
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

17. 17
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

18. 18
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

19. 19
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center

20. 20
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center
VP HR http://www.nationaltraining.com/
https://etp.ca.gov/

21. 21
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
2 Work to Migrate HR from Cost Center to Profit Center $100,000 $13,186,195.00
Migrating Human Resources from Cost Center to Profit Center
CFO, VP HR
https://www.irs.gov/site-index-
search?search=WOTC&field_pup_historical_1=1&field_pup_historical
=1
https://www.irs.gov/businesses/small-businesses-self-
employed/work-opportunity-tax-credit

22. 22
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
3 Implement Cost Reduction Incentive Challenge to Workforce $50,000 $1,000,000
VP HR
Create an incentive based competition for the workforce on cost
control / efficiency and ICP of 10% of savings back to WF in the
form of lump sum bonuses.
Migrating Human Resources from Cost Center to Profit Center

23. 23
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
4 Implement Workers Compensation Cost Control Program $50,000 $750,000
CFO, COO, VP HR
The AMAXX based workers comp cost control program
Deploy EDEX
Approved & deploy WC ICP.
Add to ED / Administrator / DON ICP.
Implement ED / Administrator / DON accountability.
Enhance hiring practices.
http://www.dir.ca.gov/dwc/edex.html
https://hw359.infusionsoft.com/app/storeFront/showProductDetai
l?productId=76
Migrating Human Resources from Cost Center to Profit Center

24. 24
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
5 Amend Health & Welfare Plan Design $100,000 $750,000
VP HR, Broker
Migrating Human Resources from Cost Center to Profit Center

25. 25
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
6
Deploy Employee Engagement, 3rd Party Intervention Avoidance Program OR Labor Management Partnership (LMP), with
employment “at-will” / class action waiver (with opt out)
$50,000 $750,000
VP HR
Migrating Human Resources from Cost Center to Profit Center

26. 26
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
7 Deploy Talent Management Program Solutions (TMS) $250,000 $2,500,000
C-Suite, VP-HR
Migrating Human Resources from Cost Center to Profit Center

27. 27
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
7 Deploy Talent Management Program Solutions (TMS) $250,000 $2,500,000
C-Suite, VP-HR
Migrating Human Resources from Cost Center to Profit Center

28. 28
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
8 Undertake Leadership Conference (Strategic Planning, Enterprise Risk Mgmt, Mergers & Acquisitions, Performance Excellence,
Sales, Clinical, Talent)
$50,000 $500,000
Migrating Human Resources from Cost Center to Profit Center

29. 29
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
8 Undertake Leadership Conference (Strategic Planning, Enterprise Risk Mgmt, Mergers & Acquisitions, Performance Excellence,
Sales, Clinical, Talent)
$50,000 $500,000
http://www.nist.gov/baldrige/publications/hc_criteria.cfm
http://www.ahcancal.org/quality_improvement/quality_award/Pages/default.
aspx
Migrating Human Resources from Cost Center to Profit Center

30. 30
Execution Framework
Item # Description & Summary of Options Conservative
Estimated
Savings / Value
Creation
Aggressive
Estimated
Savings / Value
Creation
8 Undertake Leadership Conference (Strategic Planning, Enterprise Risk Mgmt, Mergers & Acquisitions, Performance Excellence,
Sales, Clinical, Talent)
$50,000 $500,000
http://www.ahcancal.org/Pages/Default.aspx http://www.ahcancal.org/quality_improvement/Pages/default.aspx
Migrating Human Resources from Cost Center to Profit Center