CX 5YR Strategic Action Plan (STRAP) Kristin Guthrie 2018

’19 -’22 CAGR 42%

2018 STRAP Synopsis

CXM Certification

Agent CXi Score

• Earn Agent Customer Experience Index > 84

•VOC Penetration: 26% Agent; 40% insured

•Generate $20M in Revenue via NPI

• Reach 14% TM and 54% EMC CXM Certification

•Achieve 13% Six Sigma White Belt Certification

•Achieve Enterprise-wide Shingo Gold Certification

Results by 2022

New Product (NPI)

’18 -’22 CAGR 48%

’18 -’22 CAGR 43%

0 $923

$1.8M $2.7M

$3.7M

72

75

78

81

84

18 19 20 21 22

CXi Score

BoB Revenue

% Staff Certified

Count Certified

18 40

62 84

106

2%

5%

8%

11%

14%

18 19 20 21 22

$2.8M $7.7M

$11.8M $15.2M

$20M 28

77 117

151

198.5

18 19 20 21 22

Strategy and Organization

VOC Penetration Agent

1028 1780

2452 3087

3687 7%

13% 18%

22% 26%

18 19 20 21 22

VOC Penetration Insured

% Penetration

Total VOC

1461 2313

3090 3800

4448 13% 21%

27% 34%

40%

18 19 20 21 22

% Penetration

Total VOC

• Customer Experience Blueprints

• CX Strategic Maturity

• Green Sheet CX Criteria

• Segmentation

• Business Decisions Infused with VOC

• Customer Insights

• Multi-channel Insight tools

• Observational Voice of the Customer

• Predictive “At Risk / Lost Customer” Analytics

• Shingo Certification Progression

• Bronze

• Silver

• Gold

Highlights

’18 -’22 CAGR 29%

’18 -’22 CAGR 25%

Strategy and Organization

VOC Penetration Injured Worker

% Penetration

Total VOC

92 253

506 759

1012

0.4%

1.1%

2.2%

3.3%

4.4%

18 19 20 21 22

’18 -’22 CAGR 62%

STRATEGIC PLAN Strategy and Organization

2017 Interested

2018 invested

2019 committed

2020 Engaged

2021 Engaged/embed

2022 engaged/embed

Customer Insight Mgmt: Examination of existing customer insights to determine baseline and VOC gaps.

Customer Understanding: Formalize VOC in order to develop a holistic understanding of our customers’ needs, and the relative priority of those needs.

Planning and ROI: Development of CX HOSHIN; execution tied to financial goals.

Customer Advocacy: • Proactively define key customer experience opportunities to improve. • Infuse customer POV in decision making.

Customer Insight Mgmt: • Multi-channel Insights-Variety of research methods to determine what constitutes customer value. • Evangelize the use of VOC data across the company.

Cross-Org Coordination: • Build network of customer experience advocates across the company. • Share best practices across the company.

Customer Advocacy: Experience blueprints created for 1-2 major break points. Lead by CX.

Customer Insight Mgmt: • Segments & Value-Customer segments are identified based on psychographics; particular attention paid to understanding emotional value. • Tailored customer insights shared and digestible by department.

Customer Understanding : Experience Lifecycle Audit - • Understand the breadth of touch points that affect customer experience and loyalty. • Identify high-priority areas of improvements to quickly eliminate break-points.

Customer Advocacy: • Understanding of channels, customer value and company processes used to 1) design the experience at individual channels, 2) create seamless multi-channel interactions. • Experience blueprints created for 1-2 major break points. Lead by CX.

Customer Insight Mgmt: • The quality of interactions with target customers is closely monitored. • Predictive analytics-ability to predict departures/lost customers in advance to allow for recovery plans. • Observational VOC-see the experience as it happens. Cross-Org Coordination: Achieve Shingo Bronze

Customer Advocacy: • Customer needs embedded-Green sheet funding requests for new projects must attach a copy of the specific persona(s) being addressed by the effort and completed QFD/Kano. • Experience blueprints created for 1-2 major break points. Lead by LOBs. Customer Insight Mgmt: • Our insight mgmt. process differentiates us in the marketplace and drives market value (customers can easily see/feel improvements tied directly to feedback.) • Predictive analytics-utilization of data to identify at risk customers prior to defection. Cross-Org Coordination: Achieve Shingo Silver

Customer Advocacy: • Customer problem resolution - We rapidly identify and diagnose root causes of customer problems, then aggressively mobilize resources to take corrective action. • Experience blueprints created for 1-2 major break points. Lead by LOBs.

Customer Insight Mgmt: Structured enterprise-wide systemic collection and mgmt. of customer insights and the processes to feed back into the ecosystem. Cross-Org Coordination: Achieve Shingo Gold

STRATEGY & ORGANIZATION

Finance and Governance

Agent CXi Score

• Build CX Measurement Framework

• Improve Agent CXi Score > 84

• Launch HR Hotline Offering

• Launch Risk Mgmt. LMS Offering

• Develop Service Offering Pipeline

• Measure and Analyze Cost to Serve

Highlights

Hotline Renewals

$2.8M

$6.3M $7.9M

$8.8M $9.1M

28

62

79 87

91

18 19 20 21 22

0 $923

$1.8M $2.7M

$3.7M

72

75

78

81

84

18 19 20 21 22

Renewal Count

Renewal Revenue

CXi Score

BoB Revenue ’19 -’22 CAGR 42%

’18 -’22 CAGR 27%

Finance and Governance

NPI (3) Renewals Renewal Count

Renewal Revenue

0 $1.5M

$3.8M $6.5M

$10.9M

0 15

38

64

108

18 19 20 21 22

’19 -’22 CAGR 64%

STRATEGIC PLAN Finance and Governance

2017 Interested

2018 invested

2019 committed

2020 Engaged

2021 Engaged/embed

2022 engaged/embed

Governance & ROI: • Build CX Team and infrastructure (HIPPO) • Measure demand for new service products; develop business case and secure resources.

Differentiation: Launch 1 new service offering to further differentiate ICW and increase revenue (HR Hotline). Customer experience measurement: • Define customer experience measurement framework. • Create overall customer experience dashboard. • Track metrics and provide regular scorecard of results.

Differentiation: Launch 1 new service offering to further differentiate ICW and increase revenue (LMS offering). Customer experience measurement: • Evaluation of existing Cost to Serve (CTS) data, identification of gaps, deployment of additional collection methods. • CX KPIs are used to measure experience improvements and set experience goals. Policy alignment: Ensure metrics (process, performance & incentives) are aligned with CX goals across departments.

Differentiation: Build new service offering pipeline – 5 year plan. Customer experience measurement: Calculation of WC Cost to Serve by customer type: agent, injured worker & insured. Work system assessment: Conduct WSA, identifying systems or structures hindering CX change and adoption.

Differentiation: Launch 1 new service offering to further differentiate ICW and increase revenue (TBD). Customer experience measurement: Refinement of CX strategy and resources based on CTS financial goals. Work system assessment: Develop WSA action plan and modify at least 4 work systems or structures hindering CX change and adoption.

Differentiation: Launch 1 new service offering to further differentiate ICW and increase revenue (TBD).

Customer experience measurement: Achieve agent CX Index of > 84.

FINANCE & GOVERNANCE

Operations, Supply Chain and Procurement

Six Sigma Cert

• Six Sigma Tool Adoption: QFD, FMEA, C&E

• Six Sigma White Belt Certification Program

• Develop MPN VOC Measurement System & Baseline

• Deploy ROW 3rd Party VOC Measurement (WC)

• CX Optimization – Channel Partners

• Introduction of SVIP programs (Supplier Six Sigma)

Highlights

’19 -’22 CAGR 75%

0 10 38

66 94

1%

5%

9%

13%

18 19 20 21 22

% Staff Certified

Count Certified

STRATEGIC PLAN Operations, Supply Chain and Procurement

2017 Interested

2018 invested

2019 committed

2020 Engaged

2021 Engaged/embed

2022 engaged/embed

Process improvement: Introduction of Six Sigma rigor and continuous process improvement. Procurement optimization: Evaluate current PVMS vendor selection and assessment tools; is CX measured?

Process improvement: • Help claims design improved processes. • Proactively define key customer experience opportunities.

Process improvement: • Help WCU design improved processes. • Increase depth and breadth of Six Sigma knowledge (deploy White Belt training).

Channel management: Develop and deploy VOC measurement system for our MPN.

Process improvement: • Increase level of Six Sigma expertise across the org; 5% white belt certified. • Adopt Quality Function Deployment (QFD).

Channel management: • Establish MPN CX baseline; identify key drivers of satisfaction and gaps. • Identify and launch “vital few” improvement projects.

Process improvement: • Increase level of Six Sigma expertise across the org; 9% white belt certified. • Adopt Theory of Constraints (TOC).

Channel management: • Significant training and SVIP programs to ensure quality CX via our MPN. • Develop and deploy VOC measurement system for remaining (Rest of World: ROW) WC 3rd parties: Auditors, Mitchell, Safelight, etc.

Process improvement: Increase level of Six Sigma expertise across the org; 13% white belt certified.

Channel management: • Establish ROW 3rd party CX baseline; identify key drivers of satisfaction and gaps. • Identify and launch “vital few” improvement projects.

OPERATIONS, SUPPLY CHAIN & PROCUREMENT

Innovation and Technology Management

• Deploy Voice of the Customer “Go To Green” Plans

• Deploy CRM Contacts “Auto Glean” Tool

• 360o CRM View of Customer Interactions

• Deploy Marketing Research Online Community (MROC)

• Deploy Mobile VOC – Ad-hoc Field Feedback

• Build WCU and Claims Knowledge Management Resource

• Desktop / Contact Center QA Recording System

Highlights

STRATEGIC PLAN Innovation and Technology Management

2017 Interested

2018 invested

2019 committed

2020 Engaged

2021 Engaged/embed

2022 engaged/embed

Issue management & resolution: • Deploy Avaya solutions to measure call effectiveness and responsiveness. • Translate VOC into action goals; traceable, assignable and ROI measurable (GGPs).

Marketing/Comm. effectiveness: Secure technology to capture communication effectiveness data.

Issue management & resolution: • Define process for identifying and responding to customer problems. • Escalate problems that do not get resolved. • Secure and deploy email messaging sentiment tool to measure and enhance “tone.”

Business intelligence: Develop and deploy Marketing Research Online Community (MROC) for qualitative and real-time feedback.

Issue management & resolution: Secure and deploy data “auto glean” tool to enhance and complete CRM contacts. Quality assurance: • Identify QA gaps in contact centers; define behavioral and technology changes needed. • Call monitoring.

Business intelligence: Develop and deploy mobile VOC to capture qualitative field feedback.

Issue management & resolution: • Omni-Channel and the empowered customer. • Synchronized desktop recording, enabling us to play back call and screen recording simultaneously to identify workflow issues and improve CX. • CRM 360 view of all customer interactions. Quality assurance: • Significant improvement in contact center QA; 100% visibility and measurement of performance. • Creation of QA contact center DAIS.

Innovation management & issue resolution: Adopt practices/tools that help the organization define an experience that is truly unique by revealing unmet customer needs, reframing customer problems, and rethinking the entire customer ecosystem. Quality assurance: Building a knowledge management resource for claims and using it to provide relevant and accurate answers/response (75% of questions). Business intelligence: Contact center recordings shared across the company for BI purposes.

Innovation management & issue resolution: • Interaction analytics – Ability to visually identify when we interrupt, when there’s dead air, and to make coaching notes directly on the video/audio recording. • Fully integrated seamless, cross-departmental, multichannel interactions.

Quality assurance: Building a knowledge management resource for WCU and using it to provide relevant and accurate answers/response (75% of questions).

INNOVATION & TECHNOLOGY MGMT

Leadership, Change and Human Resources

CXM Leadership

• Develop Comprehensive CX Roadmap

• CX Employee Engagement Awareness and Training

• Incorporate CX Competencies into Hiring and Recruiting Practices

• CXM Team Member and EMC Certification Program

• CX Permeates the Organization

Highlights

CXM Team Member

’19 -’22 CAGR 63%

’18 -’22 CAGR 43%

% Staff Certified

Count Certified

18 40

62 84

106

2%

5%

8%

11%

14%

18 19 20 21 22

0 1 3

5 7

10%

23%

38%

54%

18 19 20 21 22

% Staff Certified

Count Certified

STRATEGIC PLAN Leadership, Change and Human Resources

2017 Interested

2018 invested

2019 committed

2020 Engaged

2021 Engaged/embed

2022 engaged/embed

Leadership: Develop and deploy a well sequenced roadmap – a balance between policy and field-driven improvements. Ensuring majority of customers feel the change. Employee communications: • Identify most effective communication channels (VOC). • Establish team member CX knowledge baseline.

Culture and training: • Develop programs for instilling CX into the culture for new and existing employees. • Define measurements for cultural alignment. • Assess the ability of our training program to develop employees’ level of knowledge, skill, attitude and overall engagement required to deliver the customer experience.

Leadership: Stimulate CX engagement through Task Force nomination(s) and support. Employee communications: • Develop communication plan for ongoing and episodic communications. • Establish Intranet access to customer experience efforts and progress.

Culture and training: • Top of mind CX awareness across the org (personal ownership). • CX competencies incorporated into hiring and recruiting practices. • Predictive Index optimized to accurately identify candidates with natural CX traits. • 5% of organization is CXM certified.

Leadership: • Active Executive involvement – significant CX goals in bonus plans; 50% EMC mtgs. dedicated to CX. • 10% of EMC is CXM certified.

Culture and training: • Decentralization of customer experience management. Percentage of CX team efforts switch from “driving each project” to “consulting” on large # of team member driven CX efforts. •Many employees feel a personal responsibility for delivering a good customer experience. • 8% of organization is CXM certified.

Leadership: • View their roles as keeper of our customer-centric culture. • Customer Experience aptitude considered in all new hire decisions. • 23% of EMC is CXM certified.

Culture and training : • Customer experience recognized and rewarded as a competency vs. a function. •Most employees are deeply committed to helping the company better serve customers. • Build permanent workgroups from different departments – around specific customer journeys and the total customer experience. • 11% of organization is CXM certified.

Leadership: • Senior executives regularly interact with target customers. • 38% of EMC CXM certified.

Culture and training : • Customer experience included as a measurable performance review component, across the organization. •Almost every employee is fully aligned with the ICWs clear mission to deliver a world-class customer experience. • 14% of organization is CXM certified.

Leadership: •Obsess about customer needs. • 54% of EMC CXM certified.

LEADERSHIP, CHANGE AND HR