The evolution Of project management process engineering And

The evolution Of project management, process engineering, And quality At LHI PMI Chapter Meeting 09. 22. 2014

Discussion Points 2 › LHI Corporate Overview › PMO – How It All Started › Organizational Challenges › Project Management › Process Engineering › Quality and Continuous Improvement › Acceptance Study › Take-A-Ways © 2014 Logistics Health Incorporated. All rights reserved.

Headquartered in La Crosse, WI › LHI was founded in La Crosse in 1999 and has additional offices in Detroit and Chicago 3 › Purchased by Optum in March 2011 › LHI employs nearly 1, 000 people across its three locations © 2014 Logistics Health Incorporated. All rights reserved.

Competencies and Customers LHI is a trusted partner of the top government agency clients as well as several industry leading private-sector clients Government › U. S. Department of Defense › Active/Reserve Components › › Reserve Components and National Guard Bureau › › Ensuring a medically ready force U. S. Department of Veterans Affairs › Veterans Health Administration › › Timely medical processing for military applicants Timely disability exams for veterans U. S. Department of Health & Human Services › National Institute for Occupational Safety and Health › Care for first responders Private-Sector › America’s leading transportation companies: CSX, BNSF, Union Pacific, Norfolk Southern › 4 Medical Support for rail and transportation © 2014 Logistics Health Incorporated. All rights reserved. 4

Care for Mission Critical › › › Service Types › Medical, Dental, and Behavioral Health › Pre and post-deployment medical readiness evaluations › Comprehensive Veterans’ disability exams Service delivery platforms to administer large-scale health care programs to ensure physical and mental readiness for duty › On-Location Group events › In-clinic Appointments › Call Center Services Provider Strength › › 5 Over 18, 500 trained and credentialed network providers In 2013, LHI provided more than 1. 9 million health care services and served nearly 480, 000 service members and veterans © 2014 Logistics Health Incorporated. All rights reserved. 5

Organization Departments Operational Support Dental Operations Medical Operations Account Services Data Control Health Services Call Center Workflow Management Customer Service Provider Network Management Credentialing Group Events Event Operations Center VADEM Distribution and Operations Center Business Operations Human Capital Marketing Finance Information Technology Project Management Office IT Platform: Med. Net › Custom Developed to meet the needs of our business › Workflow Management System that tracks orders from start to finish and uploads results to customer databases 6 © 2014 Logistics Health Incorporated. All rights reserved.

PMO – How It All Started › › PMO › Established – November 2007 with 3 employees › Run Projects and “Center of Excellence” for Project Management knowledge Mission › › Guiding Principle › 7 Support the business goals of the Organization by providing a managed approach to projects, process, and quality. The success of the PMO is weighed and measured by the Organization’s ability to meet commitments with confidence © 2014 Logistics Health Incorporated. All rights reserved.

Reactive Nature of Companies 8 › Innovation is born out of unique challenges › Capitalize on industry concepts and right size for the organization › Build your tool box © 2014 Logistics Health Incorporated. All rights reserved.

Organizational Challenges › › 9 Challenge #1 – Everything got done › Whatever it Takes – “The few the proud” › Functional Operational Silos › IT decides what you need Challenge #2 – Focus on the right projects › Contract Implementations › IT/Operational Blank Checks © 2014 Logistics Health Incorporated. All rights reserved.

Project Management Group › › 4 staged approach to Project Management › Initiation, Planning, Execute, Close-Out › Strong Matrixed › Project Mix: Operational, Operational/IT, IT Project Architecture – 80% Cost Time Solution › Goals – Increased Visibility, More accurate Estimates, Strategic Alignment › Project Discovery › › › 10 Project Discovery ROI Concept Definition ROI Pipeline › 80% Cost Time Solution › Committee – Project Manager, Business Analyst, Process Engineers Governance › Ensure projects align with strategic direction › Committee – VPs, Directors, and Program Managers © 2014 Logistics Health Incorporated. All rights reserved. Governance

Project Management Challenges & Benefits › › 11 Challenges › The Culture › Information Technology Group › Project Predictability and Visibility › Dumping Grounds › Level of Effort › Leadership Accountability Benefits › Project Visibility › Customer Representation › Focus on the “Right” Projects › Start of Process Awareness © 2014 Logistics Health Incorporated. All rights reserved.

Organizational Challenges › 12 Challenge #3 – Process Efficiency and Proactive Improvement › Poor Process Awareness › KPI Crisis © 2014 Logistics Health Incorporated. All rights reserved.

Process Engineering Group › Analysis Infrastructure (AI) – Framework developed for process improvement › Process Flows › › Process Binders › › 13 Time studies; IT Platform Business Intelligence (BI) › › Documented SOPs, WI, and Measures › › Graphical representation of the steps in a process Focal point for all analysis -- Website Process Improvement Teams › Meetings to discuss Process Improvements › Review data from Audits © 2014 Logistics Health Incorporated. All rights reserved. C Process Improvement Teams I Business Intelligence Process Flows AI A D Process Binders M Measures

Lean at LHI › Value Added Time - required steps customers pay for › Value Enabling Time – necessary for delivery of services › Non-Value Added Time - do not contribute to process, waste Current State Use LEAN to Eliminate “Waste”, Improve Process Flow Future State 14 © 2014 Logistics Health Incorporated. All rights reserved. Result Less Waste Reduced Process Time Higher Capacity Lower Cost

Process Engineering Challenges & Benefits › › 15 Challenges › The Culture › Creation and Execution of the Framework › Process Ownership › Realization of Savings Benefits › Process Awareness › Vetting Work › Six Sigma and Lean › Business Intelligence Website › Start of Continuous Improvement © 2014 Logistics Health Incorporated. All rights reserved.

Organizational Challenges › 16 Challenge #4 – Quality had a very narrow focus › Contract Customer Satisfaction and KPI Monitoring › Not Aligned › Unrealized Potential › No defined Quality Management System © 2014 Logistics Health Incorporated. All rights reserved.

Quality Assurance Group › Continuous Improvement › Create a collaborative culture that empowers employees through data driven process improvement › ISO Certification 9001: 2008 – 2013 › › URAC Accreditation – 2013 › › › 17 Defined Quality Management System and created Document Management System Health Call Center and Core Standards] Strengthen Quality Process › Audit, CAPA, Incident Management › Quality Planning Process Pursuing NCQA Accreditation – 2015 © 2014 Logistics Health Incorporated. All rights reserved.

Quality Maturity Curve 18 © 2014 Logistics Health Incorporated. All rights reserved.

Quality Assurance Challenges & Benefits › Challenges › › 19 The Culture Benefits › Unified Approach to Quality › Quality Planning and Quality Control › Auditing for Improvement and Conformance › Documented Quality Management System › Communication © 2014 Logistics Health Incorporated. All rights reserved.

LHI Model for Continuous Improvement C Process Flows D ISOM Improvement Meetings I 20 © 2014 Logistics Health Incorporated. All rights reserved. Business Intelligence Process Binders AI A Measures Lean

Organizational Challenges › 21 On-Going Challenge #5 – Leadership Accountability › Executive End-Run Around › Show me the Money › Leveraging the Framework © 2014 Logistics Health Incorporated. All rights reserved.

22 © 2014 Logistics Health Incorporated. All rights reserved. • Acknowledgement • Support • Consensus IT Buy-In • Support • Promote • Accountability Operational Buy-In Executive Buy-In PMO Acceptance Study • Acknowledgement • Support • Consensus

Take-A-Ways › Right size methods › › Capitalize on a crisis › Spring board to standardized process › Communicate, communicate! › Sometimes positive change requires a change in leadership › › › “No growth in a comfort zone and no comfort in a growth zone” Do not underestimate the culture factor › › Cannot influence and negotiate with everyone Do not become complacent › The most significant challenge will be changing the culture Leadership Accountability › 23 Aggressive maturity Essential to reduce end-runs around formalized and approved process © 2014 Logistics Health Incorporated. All rights reserved.

Contact me to learn more › 24 Wiliam T. Arnold, PMP › LHI | 328 Front Street | La Crosse WI 54601 › 608. 783. 7560 x 4608 › warnold@logisticshealth. com © 2014 Logistics Health Incorporated. All rights reserved.