Wal-Mart

1
Wal-Marts 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-Marts
• Good fit - Partners company culture must align
  with the Wal-Mart culture

4
Selecting A Partner Vendor the Wal-Mart Way
(contd.)

• 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-Marts 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
• Dont 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
21
The Wal-Mart Claims System
22
The Wal-Mart Claims System
23
The Wal-Mart Claims System
24
The Wal-Mart Claims System
25
The Wal-Mart Claims System
26
The Wal-Mart Claims System
27
The Wal-Mart Claims System
28
The Wal-Mart Claims System
29
The Wal-Mart System
30
Tracking The Issues

• Daily status and recap of all outstanding issues
• Workarounds
• Offer tips
• FAQ
• Whats 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
• Cant articulate a vision of success? You arent
  ready to start.
• Create a cross-functional team
• Dedicate time, money, resources at the beginning
  of the project - not at the end
• Dont 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
• Dont 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?