Starting with the End in Mind

Sabrina Prouty Strategic Consultant, Relationship Management Organization

June 2013

The Power of the Crowd

Highlights

1. The Team

2. Our Journey

3. Success Stories - Results

4. How we did it – Case Study

5. Lessons Learned

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WHAT WE DO SERVICES • Consulting • Collaboration enablement • Crowdsourcing • Idea Management

MISSION WHAT WE ARE AIMING FOR • Integrate an enterprise-focused

approach • Strategic alignment to business

priorities • Deliver insights-driven results • Improve the consumer experience • Re-think routine

CONNECTING THE DOTS OUR APPROACH • Strategic alliances & partnerships • Company–wide idea challenges • Target department idea challenges • External crowdsourcing strategy • Focus groups / idea workshops

INSIGHTSINTEGRATION Connecting the dots…

Facilitate

Create

Measure

Integrate

Engage

Impact

Improve

Educate

Analyze

ABOUT US OUR TEAM • Shared Services Organization • 62 years of combined Humana

experience • 6 Six Sigma Green Belt Certified • KYCPE - Level 2 Baldrige Certified • 3 Project Management

Professionals

Consult

Results

Ideate

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Idea Sources… According to Gallup, IBM, and

the Institute for Employment Studies, the best ideas come from those closest to the customer.

Engagement… Crowdsourcing allows associates to

collaborate across competencies to solve problems, network with their peers and improve the likelihood of remaining with the organization.

Cost Reduction… Sourcing Ideas from associates leads

to the best ideas, increases associate engagement, and allows strategic deployment of external consulting services.

Sources: Gallup, IBM, Institute for Employment Studies

What we do.

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Our Roadmap to Results

2Q2011 – 4Q2011 Proof of Concept Campaigns (2)

1Q2013 Results

Results and Recommendations

1Q2012 – 3Q2012

Internal Challenges

Best practice and lessons learned

4Q2010 – 1Q2011

Research, Selection and Approval

4Q2012 – 1Q2013

Research / Change

Consulting Approach

Results from our journey….

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1DEA Dashboard

Qtrly Trend of Idea Submission Viewing Trends by Quarter Unique Logons & Trend

DA

TAD

RIV

EN

0

5,000

10,000

15,000

12 13 12 13 12 13 12 13 12 13

Jan Feb Mar Apr May

0

500

1,000

1,500

2012/Q3 2012/Q4 2013/Q1 2013/Q2

Log. (Trend)

0

5,000

10,000

15,000

20,000

25,000

30,000

OPPORTUNITY Realize significant portion of the $2.5b worth of rewards available for improving Humana’s STAR rating within The Centers for Medicare and Medicaid Services (CMS) Medicare Advantage program.

CHALLENGE SUCCESS

• 1st Proof of Concept for 1DEA (Bright Idea)

• Multi-year portfolio of idea challenges

• Two-year total:

• 50% participation rate (9,474 out of

19K eligible associates)

• 1,094 ideas submitted

• 1,500 comments

• Educated and focused associates on STARS,

their importance to Humana’s membership,

and sustainable growth.

Idea Challenge: Corporate Strategy Alignment

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OPPORTUNITY Increase associate engagement in four areas of opportunity identified in an Associate Pulse Survey

CHALLENGE SUCCESS • Educated associates on measurable value of

engagement

• Achieved 60% participation (500 eligible audience)

• Created a portfolio of associate generated ideas to

increase engagement (Awaiting latest survey

results)

• Increased associate engagement scores in each

area using quarterly survey as indicator

Idea Challenge: Associate Engagement

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Idea Challenge: Process Improvement

Challenge Objective Reduce cycle and touch times for Benefits Team processes.

Challenge Success • Gained client advocate and repeat business

• 64% participation rate (170 associates eligible)

• 43 ideas gathered, 273 votes and 171 comments

• Significant cost savings opportunities identified in

top 13 ideas* *Cost savings based on 3 year timeframe and include soft dollar savings

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Idea Challenge: Process Improvement

Challenge Objective Increase efficiency and effectiveness, and improve quality within Information Technology.

Challenge Success • 73% participation rate (2400 eligible associates)

• 158 ideas gathered, receiving over 2900 votes and

638 comments

• Significant cost savings opportunities identified in top 18 ideas (*Cost savings based on 3 year timeframe and

include soft dollar savings)

• Gained client advocate and repeat business

• Significant knowledge gain through partnership with financial expertise

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Idea Challenge: Corporate Strategy Alignment

Challenge Objective Identify simpler ways of doing business by removing/stopping non-value added steps/processes or creating new more efficient methods.

Challenge Success • 1st Enterprise initiative sponsored by C-level

Executives

• Built framework and team credibility to launch future Enterprise challenges aligning to values

• 18% participation rate (6,284 out of 34K eligible)

• 757 Ideas Submitted, with 1,538 Comments and 7,609 Votes

• 45 Ideas proposed to Leadership

• Cost Savings/Revenue: TBD/Ongoing

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How we did it… IT Case Study

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Ask

Identified Director level sponsor

Asked questions about IT culture, previous collaboration efforts, and need for services

Gathered 2013 IT priorities and goals

Requested expert resources to serve as project team

Identified stakeholders

Design

Proposed options and asked client feedback on design

Provided specific content and instructions for users

Displayed the judging criteria and process for idea management

Ran 4 week challenge with steady activity attributed to the communication plan

Started weekly SME meetings to review ideas

Consult

Brainstormed with project team for collaboration opportunities

Challenged and consulted to narrow focus and align to 2013 priorities and goals

Shared best practices used in prior challenges

Gained agreement on cost savings focus

Agree

Defined Problem statement

Level set on scope

Agreed on idea selection criteria and goals

Established roles and responsibilities

Outlined client preferred process for filtering ideas

Set targeted timeline 12 – 14 weeks

Gained approval from Sponsor (accountability)

Start with the end in mind… “The key to success is to build mutually beneficial partnerships that are equally invested.”

- Deborah Marshall, Johnson & Johnson

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Idea Selection: Process Overview – IT Challenge

158 Ideas Received

18 ideas for consideration with either positive cost/benefit attributes or

intangible benefits

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Phase 3 Review – Estimated CBA analysis

Phase 2 Review – Benefit versus Effort Ranking

Phase 1 Review – Eliminate the “no’s”

Outcome – Final ranking and recommendation

“Key to success was building off of the SME team’s expertise”

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Content: • Executive Summary • Trends and Insights • Participation • Top Ideas • Benefits / Effort Analysis • Next Steps

Deliver Results and Recommendations

Lessons Learned

1. Equally invested partnerships

2. Continuous experimentation / new functionalities and process

3. Sell and Market

4. Re-visit process and identify Best Practice

5. Listen to the customer

6. And finally…. Leaders need to hire talent smarter than themselves

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A HUGE THANKS to our Partners at Brightidea!!

Michelle Fairbanks Brian Brown Kristen Fotter Ron Orlovetskiy Jesse Leone