Project PHOENIX What is PHOENIX Aggressive turnaround plan

Project PHOENIX

What is PHOENIX • Aggressive turnaround plan for Clinical business • Attacks the problem from the foundational level through project management, project teams and “hours management” (versus dollars management and matrix management) • Addresses all material areas of business management and culture to drive turnaround • Multi. Systemic year fix Fix to the Business Issues

Plan Components & Initiatives Five Categories of Improvement Analytics Process Project Management Tools/Systems Organizational Incentives/Training Focused Initiatives to Drive Results • • Triage projects based on potential gain loss Re-baseline Projects at hour/task level Recast contracts Communicate contract assumptions to functional owners ensure clarity & accountability • Roles and responsibilities shift to empower PM’s • Institutionalize key process changes (i. e. , COF process) • PM & core teams to operationalize new/re-cast contract & budget at individual team member level • Time reporting, bid generator, trip dictation, EDC etc. • • Decision on Periapproval fix Streamline clinical management structure in regions Resource redeployment to support project PHOENIX Global messaging and communication plan • Deliver margin based performance metrics and incentives to core teams based on re-cast contracts • Billable staff incentive alignment to profitability and milestone achievement • Training requirements

Project PHOENIX Refresher t. Transformation plan that addresses all material areas of business management and culture to drive sustained turnaround t. Attacks our write-off problem from the foundation with a deep dive on the full portfolio of 222 clinical trials t Analytics t t Re-baseline Projects at hour/task level Recast contracts & communicate contract assumptions to functional owners t Project Management t t Roles and responsibilities shift to empower PM’s Institutionalize key process changes t Tools/Systems t Time reporting, contract translator, bid generator, trip dictation, Electronic Data Capture (EDC), etc. t Organizational t t Upgrade PM leadership Streamline clinical management structure in regions Resource redeployment to support project PHOENIX Global messaging and communication plan t Incentives/Training t t Deliver margin based performance metrics and incentives to core teams based on re-cast contracts for 2007 implementation Deliver initial business training platform to PM and core team leadership Process PHOENIX Defined: Multi-Faceted Approach:

Lessons Learned, Tools Delivered & Planned Lessons Learned: Tools Delivered: t Fundamental process issues identified include: t Lack of hours budgeted at functional level t Disconnect between costing model and Change Order processes t Lack of basic tools to run the project t Core team ineffective due to lack of accountability and competing incentives t Time reporting practices inconsistent with project output t Projections based on incomplete and inadequate information t Combined Clinical/Peri approval time reporting t Time saving reports t Billing Guides t Remote Access vehicle t Recalibration opportunities remaining more prevalent than anticipated t Cultural challenges balancing the service focus of “delighting clients” vs. effective client management t IT infrastructure undermining the effectiveness of field-based employee t Tools Planned: t Time Mapped to Task Delivered t Institutionalized Project Review Process t Financial analyst staffing/assignment