Strategy Map Examples Healthcare 2017 ESM Software Group

Strategy Map Examples Healthcare © 2017 ESM Software Group, Inc. All rights reserved 1

How to leverage ESM’s Strategy Map examples for your healthcare organization • Strategy maps include generic, nonprofit, health clinic, hospital, insurance, pharmaceutical, and life science examples. • Examples include complex and streamlined designs. • Templates are editable to allow for map drafting from an existing example. • Once you’ve found a map that you like, work with your team to populate your content. See ESM’s Healthcare Objective Measure Library for inspiration. • Work with marketing to bring the design to life with colors and creative design. • For questions contact: Kent Smack at ksmack@esmgrp. com © 2017 ESM Software, LLC. All rights reserved 2

Generic Strategy Map Financial Shareholder Value What do Shareholders expect? Create Sustainable Revenue Growth What do our customers value? Internal Process What processes must we excel at to deliver value to our customers and meet financial objectives? Grow EBITDA Effectively Use Assets Customers’ Value Proposition Better Decisions Faster Solutions Content Cost Markets and Customers Understand Markets and Customers Relationship ROI Evaluate Opportunities Benefit Service Driven Brand Strategic Partner Trusted Provider Solutions Develop Mission Critical Integrated Information Solutions Operations Build & Use Common Platforms and Tools Provide Appropriate Support Deliver Efficiently and Effectively People What people & environment must we have to achieve our objectives? Improve ROIC Become #1 or #2 in Chosen Markets Expand Markets/ Customers Improve Shareholder Value Continuously Develop Leaders Retain & Attract High Performance People © 2017 ESM Software, LLC. All rights reserved Evolve the company Culture 3

Nonprofit Strategy Map Customer Mission/ Financial Double the Reach • Grow Revenue Treat Customers As Partners Help People Everywhere Enhance Efficiency and Effectiveness Add & retain loyal customers Develop stronger, longer relationships Address special needs Optimize corporate resources Value Proposition - Contributors Value Basics. Proposition - Prospects Differentiators Value Proposition - Buyers Basics Differentiators • • • Internal • • price/value • • trans. proc. • quality • of access • ease • positive reputation Learning & Growth Develop or acquire new revenue streams Basics • helping others • ease of access • quality trans proc • • • to daily life • relevance • unique • editorial style • authentic, trustworthy content • relationship with reader Differentiators • relevance to daily life • prayer fellowship • guidance and support • relationship with reader Strengthen churches Develop new products & services Build & leverage core brands Understand customer/market demographics & needs Close Skills Gaps • new media • market research • product development & management Grow financial assets Value Proposition - Outreach Be more accessible Get more and bigger donations Improve Financial Stability Develop more flexible business model Manage investment portfolio Supplier management Establish partnerships with like-minded organizations Culture • cross-business knowledge • customer-focused • alignment of personal and org. goals • Informed leadership Focus on improving processes across the company Manage financial/cash performance Technological Infrastructure • customer service support • management decision support • systems integration Making the Right Choices © 2017 ESM Software, LLC. All rights reserved 4

Clinic Health Systems Strategy Map Vision: ABCC is a values-driven, integrated organization which will be recognized for excellence in customer service, quality patient care, financial strength, and support of community health FINANCIAL To financially sustain our Mission, on what must we focus? Build a Strong Financial Base to Sustain our Mission and Achieve our Vision Maximize High Margin, Market Opportunities CUSTOMER To achieve our Vision, how should we appear to our customers? Primary Care Patients Personal relationships Excellent service INTERNAL To satisfy our customers, at which operational processes must we excel? LEARNING & GROWTH How will we sustain our ability to change and improve? Specialty Care Patients / Referring Physicians Leading edge technology Leading edge expertise Develop leading edge techniques and programs Friendly, attentive interactions On-Time Service Clearly communicate expectations and accountabilities aligned with strategic priorities Payers/Employers Innovative programs Develop research opportunities aligned with targeted growth areas Create an environment to support employee engagement & commitment to the mission © 2017 ESM Software, LLC. All rights reserved Price competitive service Strive for Operational Excellence Demonstrate Continued Clinical Excellence Provide Outstanding Customer Service Easy Access Deliver Cost Efficient Care Implement Managed Growth Clinical Practice Management Continually develop sub specialized clinical services Optimize Staff Efficiency Redesign operations for efficiency and effectiveness Recruit & retain qualified staff Develop Leadership & Management Talent Implement technology & develop facilities & infrastructure to support internal processes 5

Clinic Draft Strategy Map – Board Level XYZ Clinic Mission Clinic will provide the best care to every patient every day through integrated clinical practice, education, and research Payers Referring Physicians Recipients of Care & Services: Reputation / Image Growth & Integration (Goal 1) Internal Processes: Relationship Strategy Planning / Positioning Excellent Outcomes Expected Access Innovation & Scholarship Customer Relationships Care Delivery (Goal 3) (Goal 4) (Goal 5) (Goal 6) Become highly focused in our growth Ensure integration of info. & infrastructure Attract, Develop, Retain, & Advance Staff Operating Efficiency/ Systems (Goal 2) Define & utilize processes to project the most likely practice of the future Manage limited resources across XYZ Personal Enablers & Tools: High Value Patients Prompt & Accurate Reporting Develop processes to recognize, foster, and communicate scholarship and innovation for all staff Introduce new “products” and teaching methods Evolve & manage to an effective strategy / planning process (link planning w/ execution) Expand the scope of innovation, empower innovation, & communicate best practices Enable Scholarship to Support Learning & Growth for All Staff Promote XYZ Model of Care & Culture Continue to support the communities in which we work Involve all our staffs in meeting satisfaction goals Determine key satisfiers and measure against them Achieve Diversity of All Our Staffs Achieve consistent high quality outcomes regardless of site (replicate best practices) Develop tools & processes for outcomes analysis Ensure Mutual Respect as Standard of behavior Monitor efficiency through use of management tools (system & data) Enhance efficiency and effectiveness in all XYZ processes Increase clinical productivity Ensure Availability & Adoption of Integrated IT Ensure Sufficient Financial Returns to Sustain the Mission and Provide for Growth Financial Viability: Grow Revenue from Patient Care Inflows Optimize Foundation Contributions © 2017 ESM Software, LLC. All rights reserved Outflows Optimize Expenses 6

Clinic Department of Nursing Strategy Map Vision: To provide the best nursing care in the world Patients/Customers: Achieve best possible outcomes Promote positive reputation & image of nursing Post Hospital Care Agencies Physician/Health Care Team Patient/Family Foster satisfying relationships Internal Processes: Growth & Integration (Goal 1) Operating Efficiency/ Systems (Goal 2) Develop & implement strategy to manage hospital capacity and expected growth Implement efficient & effective practices, systems, & information technology and optimize clinical productivity Fully integrate management of nursing resources at XYZ Staff to workload Innovation & Scholarship (Goal 3) Develop innovative practices, systems & information technology Customer Relationships (Goal 4) Identify key customer satisfiers & measure against them Grow scholarly activity Accurately measure nursing workload Care Delivery (Goal 5) Strategy Planning / Positioning (Goal 6) Create a safe environment for patients Assure that the national goal of 66% baccalaureate is met by 2010 Develop high quality outcome measures Define & utilize processes to project the most likely practice of the future Optimize professional nurse accountability Evolve & manage to an effective strategic planning process Personal Learning/ Development & Tools: Retain & recruit qualified staff Provide opportunity for learning & growth for all staff Enable participation in scholarly activities Assure consistent application of policies, procedural guidelines & practices Enhance staff communication Provide a safe environment for staff Financial Viability: Enhance the value of patient care (value=quality/cost) while maintaining the NOI necessary to sustain our practice and support our mission © 2017 ESM Software, LLC. All rights reserved 7

Hospital Balanced Scorecard Mission To provide patients, families and primary care physicians with the best, most compassionate care possible and to excel at communications Customer Patient q % Satisfied q % Would Recommend q % Parents Could Articulate Care Plan q Discharge Timeliness Financial q Operating Margin Primary Care Physician q % Satisfied with q Cost per Case Communication q Revenue from Neonatal Care q % Parents Could Identify ACH Physician Internal Processes Wait Time q Admissions q Discharge Quality Productivity q Infection Rates q Blood Culture Contaminate Rate q Use of Clinical q Length of Stay q Readmission Rate q Daily Staffing vs Pathways (Top 10) Occupancy Research, Education & Teaching q Incentive Plan – Awareness – Implementation q Strategic Database – Availability – Use © 2017 ESM Software, LLC. All rights reserved 8

Health and Life Sciences Strategy Map Financial & Values F 1 Build an Enduring Global Health and Life Sciences Company V 1 Passionate About the F 2 Customer Motivated and Prepared People C 1 “ABC People Make a Difference” I 3 Internal Process F 1 Kind of Company We Are Building Together F 3 Grow Revenues: Target: 15% Value Added Solutions Steadily Improve Company-wide Operating Margins F 4 Customer Focused Relationships C 2 “ABC Helps Me and C 3 “ABC is a Trusted Partner” My Customers Succeed” Manage Risk / Return on Capital Invested Superior Execution C 4 “ABC Delivers On Commitments” I 7 Expand Deepen Foster a Values. Driven, High Achievement Culture I 5 Customer Relationships Offer Innovative Solutions I 6 I 2 Enable Individuals to Develop to Their Full Potential I 1 Build Superior Shareholder Value Target: 15% EPS Growth I 9 Continually Improve Efficiency and Quality Strategically Enter New Markets and Businesses I 8 I 4 Attract and Retain the Right People I 10 Proactively Build and Leverage Customer and Marketplace Knowledge Meet Requirements and Exceed Expectations Employ Technology Platforms that Support the Strategy Our Core Values Are The Foundation of Everything We Do © 2017 ESM Software, LLC. All rights reserved 9

Health Plan Strategy Map Mission: Support the health care needs of our customers through relationships, service, and overall excellence Customer C 1 -“Give me a broad choice of participating providers” C 4 -“Provide us with affordable healthcare coverage options” C 3 -“Minimize and make predictable my out-of-pocket costs” C 2 -“Quickly and correctly pay my claims and minimize my hassles” Community Employer Member C 7 -“Play an appropriate role to improve the health of the community” C 6 -“Be easy to do business with” C 5 -“Meet our performance standards” Internal Product Management Provider Relationships I 3 -Excel at benefit cost management programs I 5 -Simplify administrative processes between providers and ourselves as appropriate I 2 -Conduct analysis for product development and enhancement I 4 -Develop collaborative relations with providers to improve quality, cost effective health outcomes I 1 -Develop and actively manage quality, cost effective provider networks/ contracts Learning Customer Communication / Service I 7 -Improve response to customer inquiries and problems I 6 -Educate members and sponsors on benefits, networks, and proactive health L 2 -Ensure employees have clear line-of-site to our organization’s strategy Financial Growth / Revenue F 2 -Retain and grow membership through responsible rating and underwriting practices Community / Regulatory I 10 -Selectively improve key processes for efficiency and value, and apply IT solutions as appropriate I 12 -Educate the public about healthcare issues, our positions, and our mission I 9 -Systematically improve quality and service levels of transactional processes Technology / Information L 3 -Develop and promote whole company perspective and adaptability F 1 -Ensure responsible financial stewardship F 3 -Generate income through prudent investment strategies I 11 -Monitor and strive to influence regulatory/ legislative activities to achieve our mission I 8 -Ensure compliance and make the best of compliance mandates to drive improvements Culture / Leadership Skills / Competencies L 1 -Recruit and retain employees to enhance our performance, values, and competencies Operational Excellence F 4 -Maintain appropriate reserves © 2017 ESM Software, LLC. All rights reserved L 4 -Provide employees with more immediate access to accurate, actionable and consistent information Efficiency / Cost F 5 -Effectively manage benefit costs F 6 -Effectively manage administrative costs 10

Financial Health Plan Strategy Map Return on Investment Organic Growth • Core Business? • New Products? • New Geographies? Acquisition Investment Revenue • Buy for Customers? Customer Rationalize Benefit Costs • Low Risk? • Medium Risk? • High Risk? • Buy for Product? • Buy for Market Presence? Internal Efficiency Revenue Growth • Disease Management? • Utilization Review? • Limited Coverage? Enrollees Employers • Competitive • Increased Price • Expanded Convenience • Provider • Increased • Employee Cost • Internet Benefit Choice Transparency Customer Intimacy • Create Defined Contribution • Improve Provider Relations • Expand Enrollee Services • Optimize Employer Service • Build Tiered Networks • Couple Fee-for-Service with Convenience • Information Systems? • Process Reengineering? • Staffing? Providers • Automated • Competitive Fee Claims Processes Schedule Connectivity Product Innovation Product Choice Optimize Administrative Costs Operational Excellence • Automate Functionalities • Streamline Claims Processing • Refocus Utilization Review Regulation & Society • HIPAA Compliance • Improve NCQA Rating • Respond to Patient Bill of Rights Legislation Learning & Growth Risk Sharing Recruiting and Training Culture and Climate Leadership © 2017 ESM Software, LLC. All rights reserved Information Technology and Tools 11

Pharma Strategy Map value custome r financial strength Preserving and Improving Human Life by Putting Patients First Maximize Revenue Growth of Breakthrough Products Optimize Contribution of External Growth Opportunities Patients “Give me medicines with true clinical benefits” Discover and Develop Novel Drugs Faster Accelerate time organizati on internal processes to market (regulatory approval) Develop and successfully manage new external alliances Innovate best-inclass lab procedures & practices Grow Revenue and Shareholder Returns Achieve Maximum Efficiency and Productivity of Resources Health Care Professionals “Give me clear, concise, relevant clinical & scientific information” “Respect the demands on my time” Payers “Provide medicines with true clinical benefits at a competitive price” Implement Customer-Driven Sales Implement and. Model expand use of innovative communication channels Field Org. Focus: Reduce number of products and customers Develop new “tools” to increase effectiveness of providers Manage Financial Risk per rep Promote access; support Medicare Drug Benefit Value-added partnership Permanently Reduce Our Cost Structure Improve procurement and shared service cost effectiveness Improve manufacturing efficiency and ensure product quality Optimize asset productivity Create a High Performance / High Integrity Organization Acquire & develop specialized skills and knowledge Leverage Merck’s strong science culture Maintain highest integrity and core values © 2017 ESM Software, LLC. All rights reserved Improve everyone’s ability to execute the Merck strategy 12

Pharmaceuticals Corporate Strategy Map Passionate About the Kind of Company We Are Building Together Build Superior Shareholder Value Grow Revenues Increase Return on Capital Motivated & Prepared People Internal Process Customer Financial Build an Enduring Global Health and Life Sciences Company Grow Operating Margins Build Enduring Relationships Strategically Enter New Markets Offer Innovative Solutions Continually Improve Safety, Efficiency and Quality Meet Requirements & Exceed Expectations Better Understand our Customers/markets Enable the Strategy Through Technology Platforms Attract & Retain the Right People Build a High Performance Culture Our Core Values & Purpose Are The Foundation of Everything We Do © 2017 ESM Software, LLC. All rights reserved 13