Selecting, Managing and Deploying Metrics to Better Serve our Members Asis Datta Business Change Director April 2012

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.
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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
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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
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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.
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About State Sponsored Business
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• 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
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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).
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• 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
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Why did we select ActiveStrategy?
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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?
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• 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?
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• 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
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Insights at the halfway mark…
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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:
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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…
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• 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.
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Selecting measures for scorecards was a collaborative process:
More insights at the halfway mark…

11. 21
Key Learning Points
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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.
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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.
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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!!
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SSB Implementation of ActiveStrategy:
Scorecard Hierarchy
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Top-Level
Scorecard
State Level Scorecards
Product Level
Scorecards
State Reporting Level Scorecards (Future Development)

13. 25
Scorecard structure
25
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Key Learning Point
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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?
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• 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?
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• 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?
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• Additional end user training.
• Development of stop light charts and briefing books.
GO LIVE!!
Jan Feb Mar Apr May Jun
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Implementation results… by the numbers
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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
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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
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• 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
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Key Learning Point
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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:
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“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…
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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.