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RISING PH-OENIX

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Inside this Issue

What is ProjectPhoenix? 1

More AboutUltiPro 1

What areWe Changing? 2

Why areWe Changing? 2

Payroll Team 2

What is Project Phoenix?Welcome to the inaugural issue of Rising Phoenix,designed to keep you informed about the ProjectPhoenix implementation of the UltiPro softwaresolution.

In the past, HR Transformation focused on makingexisting HR services more efficient, effective, andcompliant. The unspoken assumption was that HRwas already doing all of the things that needed to bedone- it just needed to do them more effectively,faster, and cheaper.

Now, the rules of the game are changing. Basic capabilities - such as efficient andeffective service delivery, integrated Human Capital Management (HCM) systems,employee self-service, and timely access to relevant/correct workforce data - are asimportant as ever. But today, they are only basic building blocks that comprise a "bestpractice" HCM system. This is truly a story of the sum of the parts being greater than thewhole.

Looking ahead, businesses require HCM capabilities that do not just support thebusiness strategy, but enable it. For example, HCM can enable business growth bydeveloping standard, repeatable systems, processes, and capabilities that make it fast andeasy for the company to enter new geographic markets and integrate new acquisitions.

Since this publication is for you, it's also important to know your questions or concerns;please email themtophoenix@airmethods.com. Your suggestions for topics and contentare necessary and appreciated. Enjoy!

More about UltiPro

Ultimate UltiPro is a product of Ultimate Software, a leading providerof human resources, payroll, and talent managementsystems for organizations delivering a continuously-evolvingHuman Capital Management solution. They combine allthe functionality of older systems that companies have

developed over time into one integrated suite of web-based HR, Payroll, and TalentManagement systems.

SOFT\VAREPeople first.

Why are we changing?

To remain competitive like otherbusinesses today, Air Methodsrequires Human Capital Management(HCM) capabilities that do not justsupport the business strategy butalso enable it.

Traditional HR has primarilybeen tasked to deliver products andservices more effectively, faster,and cheaper. Traditional HR is nolonger sufficient to support a winningoperation.

The game has changed, and nowHCM capabilities add measurable

business value to support thelonger-term strategic intent andgoals of the business. Phoenixwill build repeatable and auditableHCM business processes for thefundamental and historically HR-driven activities.

Process-driven HCM businesssystems are at the core of theadded value for Air Methods inmaintaining its competitive leadershipposition and support the operationaldifferentiators that set Air Methodsapart in the market.

"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, thanto take the lead in the introduction of a new order of things." (Niccolo Machiavelli, "The Prince" 1532)

Payroll Team

Ardith Pace and Del Englen havecompleted UltiPro training andare actively involved with theconfiguration of the system.

They are excited about thepossibilities for improvement thesystem will bring and the additionalinformation available to managersin making good, well-informedbusiness decisions for their areasof responsibility. They and theentire payroll team are particularly'excited about the opportunity toprovide Air Methodsemployees real-time access to theirpayroll information,along with thedramatic reductionin re-work andadjustment relatedto manual input.

What are we changing?There will be a number of significantchanges in some of the coreHR processes. One of the mostimportant is the ability to capture timeelectronically rather than on papertimesheets. Three changes that willtouch the most people are:

• Employees will own the payprocess initiation by recording theirtime electronically

• There will be a single payrollcalculation cycle for all employees

• There will be moreconsistent applicationof pay practicesacross all employeegroups

There is a longerlist of specificimprovements that we

can share as things move along to thego-live date. We still have substantivedetails to be finalized over the next 30- 60 days as we work with the UltiProimplementation team.

Please email questions to theproject team at phoenix@airmethods.com, and they will respond within 24hours with an answer.

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Communication: An essential tool in change initiatives

Communications is sometimes likethe weather. It gets a lot of air playand people sometimes participate,but in many instances questionsremain about.it really being effective.

An important element of asuccessful project is to make surethat everyone is well-informed andaware of the changes that will affectthem. Additionally, these importantmessages must be delivered in atimely manner so employees canutilize the information and ensurethey are prepared to adopt andsustain the change going forward.

Effective communication is anessential activity in any changeinitiative. Depending on how thecommunication is managed, it can beeither an enabler or barrier. Researchshows that communication is one ofthe most critical success factors to betaken into account when designing aneffective change program.

Studies of Fortune 500 companiesconfirm that in 30 percent oftheir projects, poorly-managed

communication was a barrier toproject success. In those sameFortune 500 companies, qualityand timely communications werea success factor for 70 percent

of projects. The Project Phoenixcommunication process follows thepattern for success as illustrated inthe accompanying diagram.

Our communication objectives are:

• Deliver transparent and timelycommunications in all phases ofthe project to all parties involvedto create a collaborative changeprocess and maximize opportunitiesfor a two-way dialogue.

• Deliver timely, open, transparentand honest messages to keepall stakeholders informed of theprogress of and potential impact ofthe change

Q: I'm content with the way thingsare. Why can't we continue theway it is?

A: There are three importantreasons: First, Air Methods'multiple payroll calculationcycles are inefficient and proneto inaccuracy. Second, tocompletely comply with the FairLabor Standards Act (FLSA), AirMethods must pay employeesfor actual time worked and notan estimate in advance of theirscheduled work hours. And third,Air Methods has the responsibilityto pay its employees equitablyand consistently, using the same

.calculation rules for all employees.

Q: Who will be affected by thischange?

A: All Air Methods employeeswill be touched in some way byaspects of the change.

Q: Air Methods is profitable. Whydo we need to do this?

A: Like most other successfulorganizations, we need tocontinually adapt to changes in thebusiness environment and identify

opportunities for improvement. .AirMethods is committed to continualevaluation of its strategies and plansto maintain alignment to the ever-changing competitive environment.These changes wi.1Itransform how wemanage an important element of ourbusiness. As with any chang.e, theremay be some challenging aspectsfor some of us, but the transitionis necessary for all of us to be aneven better organization in today'scompetitive environment.

Q: Have other companies done this?

A: Yes, a significant number ofworld-class companies focusedon growth and maintaining theirleadership position amongst theircompetitors have implementedprograms to make their businessprocesses more flexible, agile, andefficient. This includes providingmore timely management informationand data used to provide decisionsupport to managers as wellas accurate, consistent, timely,and equitable pay processes foremployees.

Got a Project Phoenix-related question?

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Q: What are the potential benefitsto Air Methods?

A: Project Phoenix offers thesepotential benefits;

• Standardized, simplified, best-practice HH, recruiting and payrollprocesses

• Reduction in payroll re-work as aresult of time submission errors

• Increased focus on value-addedactivities

• Enabling employees ownershipof their time reporting

• Faster, more accurate payinformation for employees to viewonline

• Reduction in costs

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