Wal-Mart’s Self-Administered Approach To A Claims Management System Implementation

1. Wal-Mart’s Self-Administered Approach To A Claims Management System Implementation Scott Ray, Director Reporting, Systems,Strategy Wal-Mart

2. Wal-Mart-eze • Terms/Phrases used by Wal-Mart • Opportunity = challenge, problem, trial • Issue = problem • Partner = a vendor or supplier • CMI = Claims Management, Inc.

3. Selecting A Partner Vendor - The Wal-Mart Way Vendors viewed as partners, not just suppliers of good or services • Skin in the game - Partner must have a vested interest in the outcome • Large-Scale Delivery - Partner must deliver on a scale as large as Wal-Mart’s • Good fit - Partner’s company culture must align with the Wal-Mart culture

4. Selecting A Partner Vendor the Wal-Mart Way (cont’d.) What It Takes - Doing Business with Wal-Mart • The right technology • The right technology standards • Product stability • Financial stability • Solid reputation

5. The Situation • Legacy system • No longer supported • Poor data mining/reporting capability • Expensive to deploy to outside offices • Falling short of supporting business needs

6. The Opportunity • Create Next Generation/ Self-Administered Claims Management Operation • New platform • New capabilities • Efficient and cost effective • Support current & future business goals

7. Partner Selection Process • Take stock of internal skill capability • Identify preferred platform • For Wal-Mart J2EE & UDB • Review of existing technology in the space

8. Partner Selection - MountainView Software • Most viable partner - Large-scale delivery capability - Solid reputation - Compatible culture • ClaimZone Enterprise Edition • Provided the functionality • Built to run on Wal-Mart’s preferred J2EE platform

9. Defining Accountability • Put in place a clear, well-defined agreement of expectations • Open and honest communication - a priority • Partner must have a vested interest in completion of the project • Partner must be able to provide alternative solutions

10. Establishing Consequences In Case Of Failure • Payment tied to milestones • Correction of Error (COE) meetings • Lessons learned

11. Establishing The Project Team • The need for a cross-functional team • Anyone impacted should participate • Appoint a steering committee • Involve a management representative • Define roles and responsibilities • Subject matter experts • Dedicated resources from each group • Wal-Mart & Partner complementary roles • Project Managers • DBAs • Etc.

12. Team Rules • Evaluate team makeup regularly • Team needs - and therefore members - change during the course of the project • Steering Committee buy-in on all team decisions

13. Managing Change: Project Leadership • Changes WILL happen • Communication • Training • “Ripple Effect” through the organization • Foresee and plan for changes

14. Developing the Project Plan • Define major milestones • Determine the necessary resources • Identify the necessary skill sets

15. Developing The Project Plan • Identify a SINGLE, common Project Plan • Use the Team to develop the Project Plan • Evaluate - is the Project Plan reasonable?

16. Planning For/Dealing With Contingencies Difficulties ARE Going To Happen • Weekly meetings • Express and raise concerns • Evaluate emerging issues • Risk mitigation planning • Adjust discussions to match situations • Understand delivery dates may change • Ensure management supports ALL decisions

17. Developing Measurement Metrics • First, define what “success” means • Goals must be S.M.A.R.T. • Specific • Measurable • Attainable • Realistic • Time bound • Gain buy-in on measurement and reporting methods • Clearly define milestones and successes

18. Managing The Implementation • Set meetings • Create and stick with a defined agenda • Don’t turn meetings into gripe sessions • Focus on resolving known problems • Appoint a project manager from both the company and the partner • Consistently and constantly update milestones and expectations

19. Testing • Unit • String • Integration • Case studies • Developed by business users

20. The Wal-Mart Claims System

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30. Tracking The Issues • Daily status and recap of all outstanding issues • Workarounds • Offer tips • FAQ • “What’s New” in each build/version

31. Technical Issues • Prioritize • Make a plan to address • Create a post-implementation plan

32. Best Practices & Lessons Learned • Clearly define what success looks like BEFORE you start • Can’t articulate a vision of success? You aren’t ready to start. • Create a cross-functional team • Dedicate time, money, resources at the beginning of the project - not at the end • Don’t assume you have all the answers

33. Best Practices & Lessons Learned • Include trading partners • Their ideas/suggestions may help remove inefficiencies • Outline milestones/deliverables in contracts • Don’t underestimate Change Management/ Training/Communication • Garner strong, visible executive sponsorship and support for the project

34. Next Steps At Wal-Mart -Where Do We Go From Here? • Business strategy • Defining the next few years • Evaluate what that means from a system perspective

35. Questions?