New Jersey Department of Labor

1. New Jersey Department of Labor Unemployment Insurance Modernization Project Business Process Conceptual Design April 2003

2. Executive Summary

3. Executive Summary… Why Modernize UI? • New Jersey demographics are changing rapidly - tides within the workforce employer base are shifting and substantial numbers of New Jersey’s current workforce are “baby-boomers”, including a huge number of the agency’s own employees. This shift in demographics is also shifting customer service needs. These needs are substantially different from the last State UI modernization effort (mid -1980s). • Impacted by the counter-cyclical effects of the first major economic downturn in over a decade, the agency is currently suffering with a substantially increased workload, an increasingly frustrated staff, and greater employer and claimant demands. • The US congress, through the Reed Act has provided substantial funds to the States (including New Jersey), to streamline and modernize their Unemployment Insurance services.

4. Executive Summary… Why Modernize UI? (cont.) • The UI Division recognizes the need and possesses the commitment (and the funding) to improve UI customer service by combining industry best practices, redesigning workflow effectively and efficiently, and by updating supporting technology. • In recent years, legacy systems and associated business processes, some of which are more than two decades old, have been updated with patchwork ingenuity. However, investments in replacement infrastructure were cost-prohibitive, so these systems have sadly fallen far behind in their ability to serve today’s workload demands and customer expectations. As a result, all stakeholders suffer.

5. Executive Summary… Why This Approach? • A basic business tenet is that systems must support business processes. So, before a modern UI system is designed and built, the Division has taken the critical step of reviewing and redesigning its business processes. • Leadership has also recognized that the best approach to developing business processes requires a collaborative effort – input from across the UI Division (from front-line staff through to senior managers) and from its customers (claimants, employers and partner agencies). This deliverable is part of a series of tasks that leads to a strategic plan for modernization of UI services:

6. Executive Summary… Successful Projects Start With a Vision! • The Business Process Conceptual Design sets out both a framework and blueprint for UI Modernization…

7. Executive Summary… Our Vision for UI Modernization • We will deliver revolutionized unemployment insurance services, while maintaining the integrity of the Trust Fund • At each point of customer contact, we will provide a fair, friendly and high quality service to every member of the workforce community • For claimants, we will help them to focus on reemployment by making the claims process timely, efficient, and informative. We will also help them to access related government services by improving referrals from UI, in partnership with the workforce community • For employers, we will simplify correspondence and improve our responsiveness. We will treat employers as partners in the provision of unemployment insurance • For staff, we will empower them to deliver superior service by ensuring a stable work environment, creating equal opportunities for career growth and providing appropriate tools and training to do the job. We will treat our employees with the same professionalism and respect they are expected to share with every UI customer.

8. Executive Summary… The Vision, Objectives and Business Design Principles Set the Framework for UI Modernization • The phrases highlighted in red (in the vision) illustrate the need to: • Maintain the integrity of the trust fund • Provide timely and efficient services • Work as a partner to other workforce services (Disability, Workforce New Jersey, etc.) • Improve responsiveness to customer (whether claimant, employer, or internal agency) needs • Provide superior customer service • Provide an environment where our employees can succeed • These and the business design principles together provide the boundaries and guidelines for future UI Modernization projects

9. Executive Summary… Creating the Blueprint: Where Did We Start? • With a framework established, we needed to create a blueprint to describe the UI of the future. • We started with the acknowledgement that certain processes are necessary to delivering UI services, both today and in the future. These processes include: • Claim intake • Adjudication • Certification • Appeals • Payments • Controls • Revolutionizing UI is not about replacing these processes but rather making them more efficient, timely and, in parallel, enabling our staff to provide superior customer service

10. Executive Summary… Creating the Blueprint: Changes Providing multiple means for customers to communicate with us in real-time (phone, internet, in person) and for us to communicate with our customers Enabling customers to self serve wherever possible Establishing a triage function that enables a quick assessment of a customer’s needs and linking him/her to the service that they need Enabling UI staff to view and work with a claimant’s or employer’s full case information easily (everything from claims to appeals information) Allowing claimants and employers to update specific information (e.g. address, etc.) depending on the claim processing step Improving coordination between UI partners through phone/internet web links Enabling claimants and employers to access (by phone or internet) their own case information Enabling claimants and employers to interact with UI on a 24 hour, 7 day a week basis

11. Executive Summary… Creating the Blueprint: Changes (Cont.) Providing meaningful training and career paths better to enable our workforce Providing UI staff with the ability to create their own reports Preventing improper payments or overpayments by performing systematic cross checks at multiple points in the life of a claim (at claim entry, certification, etc.) Linking performance throughout the agency - from Division objectives & measures to PARs Create a channel for comments that enables all staff to propose process / policy improvements and a and feedback loop to inform them of the results Enabling what if analysis on process changes before they are implemented – understanding the ramifications of decisions early Providing different payment options: direct deposit and debit cards Showing all UI staff the end-to-end process, where their roles fit in, and how their efforts contribute to overall success

12. Executive Summary… Making It Happen • Continued contribution from all members of UI is key; the business redesign workshops and interviews involved over 120 UI stakeholders, from front-line staff to senior managers and included union representatives. • These modernized UI conceptual business processes have been designed by the people who will live through the change and provide these services in the future • The time is right, funding is available and the motivation is there to create a revolutionary new UI for New Jersey. • We hope that you will enjoy reading the rest of this document to see in detail how NJ UI will fulfill its vision.

13. Contents

14. Contents… Contents of the Business Process Conceptual Design • Executive Summary 2 • Contents 18 • Introduction: This Document Is the Framework and Blueprint for UI Modernization 21 • Our Approach: Facilitating UI to Develop Your Own Framework and Blueprint 25 • Articulating the Vision in Terms of Objectives and Measurements 33 • UI Modernization Objectives, as Redefined in April ‘03 39 • Business Design Principles to Guide Future Operations and Change Projects 43 • Design Principles for Our External Customers, Internal Customers and for Agency Excellence 47 • Elaborating on Key Design Principles 50 • Our Blueprint for Revolutionized Unemployment Insurance Services 61 • Introduction 63 • Simplified, Efficient, Responsive Processes 66 • Triage and Inquiry 67 • Intake and Adjudication 85 • Continued Claims and Payments 99 • Preventing Overpayments 112 • Investigating Overpayments 123 • Appeals 137 • Policy and Procedures 153 • Financial Processes 170 • Internal Controls 189

15. Contents… Contents (cont.) • Simplified, Efficient, Responsive Processes (Cont.) • Process Enablers 192 • New and Changed External Process Interfaces 204 • Process Differences, by Benefit Program 211 • Real-time Information to Transform Management Responsiveness 217 • Creating the Right Environment: Organization and Culture Changes 224 • Building the Momentum for Change 236 • What UI Modernization Means to Our Stakeholders 238 • Our Inclusive Approach has Supported Our Change Objectives 244 • Next Steps 249

16. Contents… Contents (cont.) • Appendices: • Appendix A: Customer Focus Group Reports • Appendix B: Process Scenarios • Appendix C: Best Practices Crosswalk • Appendix D: Management Information Example • Appendix E: Detailed Implementation Ideas • Appendix F: Policy and Procedure Impacts • Appendix G: Cross-walk With RFP Requirements • Appendix H: Cross-walk With Business & Systems Characteristics List • Appendix I: Cross-walk With Parallel Initiatives

17. Introduction: This Business Process Conceptual Design is the Framework & Blueprint for UI Modernization

18. Purpose and Audience… Why a Conceptual Business Process Design? Situation NJDOL Division of Unemployment Insurance has received federal Reed Act money and made the commitment to spend some of this money modernizing its business processes and IT systems for UI. Challenge The core IT system supporting NJDOL was built in 1975 with the last major upgrade in 1984. The associated business processes have not had a major review since 1984. The existing UI functions and associated IT systems are not operating efficiently nor providing the level of customer service needed. Answer The Division of UI needs to redesign its business processes before it designs its new IT system. This deliverable, the Business Process Conceptual Design, and the process undertaken to create it will provide both the framework for action and a blueprint that articulates the envisioned end-state. Both also contribute to the change process (already started within the agency) that is needed to ensure project success. Articulate the vision in terms of objectives and measurements Design principles guide future operations and change projects A high level blueprint articulates and confirms the vision, objectives and design principles Building the momentumfor change

19. Purpose and Audience… This Design Document Provides Both a Framework and Blueprint for UI Modernization… Articulate the vision in terms of objectives and measurements Design principles guide future operations and change projects A high level blueprint articulates and confirms the vision, objectives and design principles Begin the change process Building the momentumfor change

20. Purpose and Audience… As Such, It Is a Firm Foundation on Which to Build Detailed Plans This Conceptual Business Process Design sets out a framework for action and a strategic blueprint for the delivery of UI services in the medium term future. This design will be the foundation from which the UI Modernization team – in partnership with experts from all relevant parts of the organization – will develop the Technical Architecture and the Strategic Implementation Plan. The Strategic Implementation Plan (due in July 2003) will set out the timetable for both design and implementation projects. High level plan, UI Modernization Nov 2002 – July 2003 Our primary audiences are: • Senior Management, Income Security • Subject Matter Experts across UI • UI Modernization core team • IT specialists in DIT, OIT and UI Systems Management • Managers and experts within interfacing organizations – our workforce partners

21. Our Approach: Facilitating UI to Develop Your Own Framework and Blueprint

22. Approach… Scope of the Business Process Conceptual Design • In this, the Business Processes Conceptual Design phase of the project, the team was chartered to develop: • A detailed description of the reengineered Division of UI processes and the workflow for these processes. Beyond the core functions (e.g. Claim intake), these new processes needed to accommodate the following list of UI benefit programs: • Unemployment insurance • Standard, in-state benefits • Interstate unemployment insurance • Combined wage claims • UCFE (prior federal employees seeking unemployment benefits) • UCX (prior US military employees seeking unemployment benefits) • All extensions • Disability During Unemployment • Additional Benefits during Training • Self-Employment Assistance • Disaster Unemployment Assistance • Trade Re-adjustment Act assistance • This description also needed to validate and update the Business and Systems Characteristics and Systems Initiatives that are currently underway. These were incorporated into the business design principles for UI Modernization, in a session with the UI Modernization Project Team.

23. Approach… State Guidelines for the Approach to the Business Process Conceptual Design • As part of the RFP, the State provided approach parameters for this effort: • Work closely with the project manager and the subject matter experts • Ensure that each business function is addressed in the reengineered processes and meets the objectives of the Division for a seamless and integrated service • Employ an efficient combination of document reviews, interviewing, process observation, and collaborative group discussion (focus groups) in order to analyze current business processes and identify and develop the reengineered business processes, workflow, and interfaces. • Interview and conduct focus groups to obtain input from external customers (including claimants, employers and employer agents) We also added a framework of principles to control project delivery throughout UI Modernization: • Manage change as a core project theme, recognizing that our employees are central to successful change • The UI Modernization Project will not threaten the job security of our employees • Throughout the design and delivery of new processes and system tools, we must maintain the integrity of services - benefits, system, data, trust fund • All new processes and systems must be flexible and easy to change – for example, changes required by new legislation • The Department of Labor does not want to outsource support of any resulting system(s) to a vendor – and we must plan accordingly • Achieve UI Modernization within reasonable costs

24. Approach… Our Methodology: Build and Iterate • The methodology – particularly applied in workshops - to build out the new conceptual business processes emphasizes best practices used many large government projects… Vision The view of the future Technical Architecture Ideas Key points from the Vision Business Processes Principles Key points affirmed by the Project Team Objectives Focused principles Measurements Determining objective fulfillment

25. Approach… Our Methodology: Build and Iterate (cont.) • Vision –The team started by developing the Vision (in our Kickoff workshops – Late November, 2002). The vision defines the future UI by describing, in broad terms, the key attributes and stakeholder characteristics for our claimants, employers, and employees. • Key Ideas - Using the vision and the external and internal interviews, we identified key ideas. These included: • Revolutionary Customer Service • Partnership with the Workforce Community • A Stable Work Environment • Professionalism and Respect to our customers and fellow employees • Principles - The key ideas were further refined to identify the underlying principles (principles being an affirmation of a key idea at a greater level of detail). An example: • Make the customer experience easy, efficient and informed – so that each customer can make the right choices for themselves (e.g., access, payment and correspondence methods) These principles helped to direct and define the business processes • Objectives and Measurements - Through follow-up sessions, the vision and principles were used to identify the key objectives and their corresponding measurements. The objectives (based on the Principles) provide the actions needed to achieve the vision. An example of one of our objectives and its corresponding measurement is: • Objective: Deliver timely seamless service without sacrificing quality • Measurement: Identify the average number of handoffs when processing an initial claim This methodology builds an integrated approach: from where we are going (the vision) to determining that the process and project is a success (measurements)

26. Claimants Employers Employer agents Claimant advocates Intake to adjudication Continued claims, appeals, and inquiry Control of benefit payments Financial processes Policy and procedures One Stops/Workforce New Jersey Organization and Culture Management Information Consolidation and communication approaches Approach… Business Process Conceptual Design Schedule February (2003) March (2003) April (2003) Customer Interviews Expert Workshops Partner Interviews • Other DOL partners • Federal DOL representatives • CWA • Other partner agencies

27. Approach… Breakdown of the Schedule: Interviews & Workshops Customer Interviews • Before starting the redesign workshops, the project team met with NJDOL UI customers to gain a better understanding of their needs and issues with the existing processes, recognizing existing process steps that work well, and identifying any additional quick wins. Claimant information was gathered through interviews and focus groups help at One Stop centers. Employer and employer agent information was developed from a series of focus groups. We also met with claimant advocates to better understand the customer experience during the appeals processes. • Expert workshops have been the heart of this redesign phase. Our approach was to enable UI staff to redesign the future UI through a collaborative and informed process. Representatives in each of these eight sessions included front line staff through to senior UI managers as well as other DOL experts. Each workshop discussed and developed new processes in an open forum, where participation and free discussion was encouraged. Each session started with a review of the vision, moved on to the identification of key principles and finished with the development of future process steps. Further iteration on the detailed process steps was developed using scenarios. • After the completion of the conceptual process redesign workshops, we met with key partner agencies to review potential changes to the way we work with them. These sessions helped us to confirm process interface changes, given the new UI processes. In addition, we met with two key stakeholders with no ‘process’ interface – namely the CWA (Communication Workers of America) and officials from the Federal Department of Labor – to ensure that we continue to solicit their advice and support. Expert Workshops Partner Interviews

28. Approach… Key Benefits of Our Approach • Over the past 11 weeks, we have found that • Identifying customer needs early, before the workshops, allowed non-front-line UI representatives to better understand the processes from both the customer and front-line worker’s perspectives • Focused workshop sessions on a particular component of the overall process (e.g. One Stops) – allowed participants to focus on a specific set of functions and not get overwhelmed by the enormity of the entire UI process • Participation from a broad spectrum of UI functional groups in each workshop provided “out of the box” comments and ideas, allowing people to hear, listen, and learn from people across the spectrum of UI functions • Participation from a broad range of employees in differing roles provided the ability to hear how a process might work from a multitude of different perspectives • Participation from over 120 UI personnel provided the ability to get a broad perspective of a process (everyone has a chance to contribute to the answer), to arrive at a solution designed by the organization (not by a small team or by the consultants), and to start the mindset change needed by UI to successfully implement the solution • Having the members of the team focus on informed facilitation and note-taking allowed the UI members of the Team and the workshop participants to focus on designing the new processes • Quick documentation and communication – getting results out quickly to other affected parties – provided the ability to keep everyone engaged and maintained project momentum • Identifying “quick wins” got people excited about the possibility that things might change now. Not all process improvements need to wait until the completion of the project before they are acted upon. Some of these initiatives were started before the end of the project • Please note that, throughout this document, we refer to UI staff as ‘representatives’ rather than agents. We use this generic term to avoid any confusion with the current ‘claims agent’ role.

29. Articulating the Vision in Terms of Objectives and Measurements

30. Vision, objectives & measurements… Articulating the Vision in Terms of Objectives and Measurements The Division of UI needs to redesign its business processes before it designs its new IT system. This deliverable, the Business Process Conceptual Design, and the process undertaken to create it will provide both the framework for action and a blueprint that articulates the envisioned end-state. Both also contribute to the change process (already started within the agency) needed to ensure project success. Articulate the vision in terms of objectives and measurements Design principles guide future operations and change projects A high level blueprint articulates and confirms the vision, objectives and design principles Building the momentumfor change The vision statement for unemployment insurance Objectives & measures for external customers Objectives & measures for internal customers Objectives & measures for agency excellence

31. Vision, objectives & measurements… Vision, Objectives and Measurements Provide Clear Endpoint for Us to Target The UI Modernization vision expresses our desired end-state for the initiative. Our objectives and measurements provide specific targets to aim for, that should together deliver the vision. The objectives also fit with the Department of Labor’s overarching goals.

32. Vision, objectives & measurements… Our Vision for Modernized Unemployment Insurance We will deliver revolutionized unemployment insurance services, while maintaining the integrity of the Trust Fund: At each point of customer contact, we will provide a fair, friendly and high quality service to every member of the workforce community. For claimants, we will help them to focus on reemployment by making the claims process timely, efficient and informative. We will also help them to access related government services by improving referrals from UI, in partnership with the workforce community. For employers, we will simplify correspondence and improve our responsiveness. We will treat employers as partners in the provision of unemployment insurance. For staff,we will empower them to deliver superior service by ensuring a stable work environment, creating equal opportunities for career growth and providing appropriate tools and training to do the job. We will treat our employees with the same professionalism and respect they are expected to share with every UI customer.

33. Vision, objectives & measurements… Objectives and Measurements • Objectives and their associated measurements are key components of a successful project framework. These are not established in one session but created through an iterative process that last through project implementation. In most cases, objectives are fully defined during the strategic design phase (now) and measurements in the requirements definition phase (so that the project team(s) have a clear understanding of the expectations). Measurements can also be honed through the project testing phase. • Developing objectives and measurements for UI Modernization: • As a function of creating the vision (late November), we created the first view of the project’s objectives and measurements • We have revisited the objectives and measurements following the Conceptual Business Process Design – results on the following slides • We will continue to refine the objectives and measurements through to the end of July: • At completion of the Technical Architecture – possibly to add objectives and to iterate further on the defined objectives and measurements • During strategic planning – objectives will be fully defined and we will make the measurements more specific (but not finalized) • When RFPs are developed, objectives and measurements must be fully defined, and the agency must be confident that they represent exactly the targets we want to achieve • Objectives are the targets for the vision Measurements quantify whether the objective is reached

34. Vision, objectives & measurements… UI Modernization Objectives, as defined in November 2002 • Customer objectives (claimant and employer) • Ensure that claimants are aware of reemployment and other related services as early as possible • Ensure that process transfers between specialized units are seamless to the customer • Allow customers to self-serve wherever feasible • Improve responsiveness to employer and claimant inquiries • Meet our customers’ expectations on making services accessible Objectives for excellence • Exceed the Federal timeliness targets but not as the expense of high quality, fair decision-making • Achieve efficiency improvements through specialization • Strive to ensure we communicate clearly on all occasions, with all stakeholders • Be able to support initiatives led by our workforce partners through close co-operation and data-sharing Staff objectives • Ensure that our staff have the knowledge, tools and support necessary to deliver the best service they can

35. Vision, objectives & measurements… UI Modernization Objectives, as redefined in April 03 • Objectives for external customers (claimant and employer) • Ensure that claimants are aware of reemployment and other related services as early as possible • Deliver timely, seamless service without sacrificing quality • Provide superior customer service Objectives for excellence • Be able to support initiatives led by our workforce partners through close co-operation and data-sharing Objectives for internal customers (staff) • Ensure that our staff have the knowledge, tools and support necessary to deliver the best service they can

36. Vision, objectives & measurements… Objectives and Possible Measurements (4/03) • Objective 1: • Ensure that claimants are aware of reemployment and other related services as early as possible • Possible Measurements: • Number of times people transferred from UI to our workforce partners within various key timeframes • Number of people that • activated their OSOS pended records (web) • used scan card in One Stop Center • Number of events per claimant • Objective 2: • Deliver timely and seamless service without sacrificing quality • Possible Measures: • Timely – Federal Standards for transaction times • Seamless transfers • Number of handoffs obvious to the customer • Amount of time between steps • Quality – QPI measures

37. Vision, objectives & measurements… Objectives and Possible Measurements (4/03) • Objective 3: • Provide superior customer service • Possible Measurements: • Percentage of self-serve • Time on inquiries • Surveys of customer satisfaction and trends in services used • Reduction in wait time • Number of contacts per customer • Number of employees requiring retraining • Number of repeated steps or rework • Number of appeals that are really inquiries

38. Vision, objectives & measurements… Objectives and Possible Measurements (4/03) • Objective 4: Be able to support initiatives led by our workforce partners through close co-operation and data-sharing Possible Measurements: • Number of file sharing incidents • Number of IT problem tickets open relate to file transfers • Number of duplications of same element data entries • Violations of service level agreements • Numbers of complaints from partners • Number of partner surveys • Work related injuries • Objective 5: • Ensure that our staff have the knowledge, tools and support necessary to deliver superior service • Possible Measurements: • Number of days absent and staff turnover • Skill assessment surveys and follow-up of results of training • Frequency of retraining • Gap between the time training is requested and delivered • Number of resolutions of calls to the help desk • Trend in type of grievances filed • Customer service survey feedback

39. Business Design Principles to Guide Future Operations and Change Projects

40. Business design principles… Principles to Guide Future Operations and Change Projects The Division of UI needs to redesign its business processes before it designs its new IT system. This deliverable, the Business Process Conceptual Design, and the process undertaken to create it will provide both the framework for action and a blueprint that articulates the envisioned end-state. Both also contribute to the change process (already started within the agency) needed to ensure project success. Articulate the vision in terms of objectives and measurements Design principles guide future operations and change projects A high level blueprint articulates and confirms the vision, objectives and design principles Building the momentumfor change Business design principles to guide future activity The business design principles Explaining key principles that came out of the workshops

41. Business design principles… Business Design Principles Support UI Modernization Objectives • The design principles support UI Modernization objectives and can therefore be categorized to support the different groups of objectives External customers (claimants, employers & partners) Internal customers (staff & managers) Agency excellence

42. Business design principles… Business Design Principles Provide a Guiding Framework • The business design principles provide a guiding framework for • The UI Modernization blueprint • How we deliver services going forward • Future design, development and delivery of change initiatives across UI The business design principles should inform every aspect of future service delivery. They will be a constant reference point in the detailed design of UI Modernization projects

43. Business design principles… Design Principles for Our External Customers • Our customers are our claimants, New Jersey employers, our partners and NJDOL staff – and we will treat them all with respect. (See diagram below as illustration). • Treat customers as people, not numbers… after all, it could be you on the other end • Make the customer experience easy, efficient and informed – so that each customer can make the right choices for them (e.g., access, payment and correspondence methods) • Communicate clearly, in a way the customer will understand – including the language they understand wherever possible • UI is a gateway to reemployment services: educate customers about workforce services throughout the process and transfer them quickly and seamlessly, via effective collaboration with workforce partners • Minimize cost barriers to customer access (e.g., with a local phone number per One Stop) • Encourage remote self-service (via phone, web or email), while preserving in-person service for those who need it • Ensure there are sufficient public access terminals to enable remote self-service for all constituencies • Achieve a high-quality determination or decision as soon as possible • Customers have the right not to participate in UI processes (e.g., drop out of an appeal / stop certifying) but must be informed of the implications • Where insufficient information is available to make a firm decision, our default position is to pay benefits • Customers will be able to access a holistic UI electronic case file remotely • Streamline communications using modern tools and encourage customers to use the same tools, particularly employers

44. Business design principles… Design Principles for Our Internal Customers • Our staff is central to successful change • Make the Division of UI a fulfilling place to work • Ensure that staff have the tools and training they need to succeed • Communicate: listen and give customers and staff the information and assistance they need - in a way they’ll understand • Automate the repetitive tasks, thereby freeing up staff to help our customers • Ensure the physical environment is conducive to staff productivity • Managers and all staff should be held accountable for realistic performance targets which are sensitive to variation • Where needed, redirect inquiries to the right person to resolve a problem, first time

45. Business design principles… Design Principles for Agency Excellence • Maintain equally the integrity of systems, processes and finances • Apply rules fairly and consistently and maintain regard for due process • Prevent incorrect payments, before they happen • Get it right first time, reducing rework • Continuous improvement is a mainstay to ongoing success – and we’ve all got a role in achieving it • Optimize staff resources by balancing workload across the state • Align activities and performance with annually-reviewed strategic goals / objectives, and measure performance against objectives Technical excellence (sub-set): • There is one system and uniform, easy to access data • Use tools effectively to enable performance management, development and policy improvement • Use workflow and case management to optimize end-to-end case processing • Get accurate data from the start – and reuse it to avoid redundancy

46. Business design principles… ELABORATING ON KEY DESIGN PRINCIPLES Some of the principles listed above evolved during the workshop sessions. In the following pages we provide further detail on these principles. They are: • A focus on customer service – broken down into a number of principles: • Treat customers as people, not numbers… after all, it could be you on the other end • Make the customer experience easy, efficient and informed – so that each customer can make the right choices for them (e.g., access, payment and correspondence methods) • Encourage remote self-service (via phone, web or email), while preserving in-person service for those who need it • Achieve a high-quality determination or decision as soon as possible • Where insufficient information is available to make a firm decision, our default position is to pay benefits • Customers will be able to access a holistic UI electronic case fileremotely • Encourage remote self-service (via phone, web or email) • UI as the gateway to reemployment services • Our staff is central to successful change • Getting it right first time, reducing rework • Continuous improvementis a mainstay to ongoing success • There is one system and uniform, easy to access data

47. Business design principles… A Focus on Customer Service • What is it? A focus on customer service is a value to which UI Modernization aspires. Achieving great customer service means that every aspect of the agency is aligned to deliver services that our customers (claimants, employers, staff, partners) recognize and appreciate. • A focus on customer service therefore includes (but is not limited to): • Providing a fast, friendly and personalized service • Listening, showing empathy for our customers and resolving their needs – whether they are employers, claimants or others • Redirect to the right person, first time • Respecting our customers – and our staff • Ensuring our end-to-end processes are designed, managed and delivered from a customer-centric perspective – for example, not failing our customers because ‘our system is down’ • Provide clear, easy to understand information via all channels – IVR, web, paper and in-person • Purpose? To improve both the UI customer experience and UI as a place to work. • What will it look like? See overleaf for the results of a workshop brainstorm on this topic – some of these ideas were translated into the customer service related principles on the previous slide. Note also that agency sees every aspect of the business contributing to delivering a great service.

48. Satisfied customers Smiling faces Earned trust and respect from customers Positive public opinion Able to resolve problems quickly and accurately Exceed expectations Good information quickly Correct and consistent information Fast & accurate No waiting time Clear understanding of the need Easy access – remote in particular Personalized service Customer is the only person that matters Treat each need and person individually Anticipate customer’s needs Take the time to listen Consider the audience and their abilities Strive to act the way we want to be treated Knowledgeable, friendly, efficient assistance Good communications Provide follow up Customer gets benefit of the doubt Genuine concern Treat people with respect Provide sense of security Minimal handoffs Minimize handoffs No complex phone trees Others Reflection of positive work environment (Trend of ever improving service – can’t continually keep “ratcheting up the bar”, set it at the right level) Customer confidence that the system will work Business design principles… A Focus on Customer Service: Workshop Brainstorm The comments below are the result of a brainstorm conducted in workshop 8 of the business process conceptual design. They show desirable characteristics of a focus on customer service, not a full definition.

49. Business design principles… A Focus on Customer Service: Workshop Brainstorm (cont.) Also needed: • Cross-training of staff • Smooth and integrated (IT) services • Integrated picture of the customer • Integrated processes • The right environment to enable people to focus on customer service Issues: • Setting the desired level of service • Managing the expectations of the customers – customers’ expectations are high: we are benchmarked with services provided by the private sector Summary: • We are in a customer service business (externally and internally) • Providing good customer service will make all of our jobs easier • Front line staff attitudes and the right tools are key to the organization’s success • Must provide advice and options to customers so they can make the right choices for them We should enable Employee positive Customer positive

50. Business design principles… Customers Will Be Able to Access a Holistic UI Electronic Case File Remotely • What is it? The ability of the customer (claimant or employer) to access claim-specific information via the web or phone. • This will enable the claimant to: • Identify the status of their claim, or previous claim (including appeals, approved training or even investigations into the claim) • Review information used to make the determination (e.g., see the wages and weeks information) • Make informed decisions and understand their next steps better (e.g., by using a ‘pre-monetary’ calculator) • See the available benefits and to assess the impact of deductions or garnishments • It will enable the employer to: • Review live and historical claims against the company, including information used to make determinations • Review charges, with an explanation of the impact on the employer’s experience rating (to be requested from Employer Accounts) • Purpose? To enable our customers to understand the status of their claims. This achieves the following benefits: • More of our clients can self-serve, at times convenient to them and without queuing for assistance • The Division of UI and partners will also be able to see the entire customer history (exact length of history stored to be determined, owing to cost/benefit implications – e.g., 3/10/15 years?) • The volume of simple inquiries and issues will reduce (such as change of address), thereby freeing up staff to concentrate on those customers with more complex needs • [Greater access will need to be accompanied by a feedback mechanism, so that customers can voice satisfaction/issues/requests more easily – thereby allow faster continuous improvement].