Changing the GameFrom Time-Based Billing to Deliverable-Based Billing –

A Case Study on Making the Shift to Better Business

Sheri Millar, NASCOSteve Beaumont , Planview

© 2013 Planview, Inc. | 2 | Confidential

PresentersSheri Millar, Systems Analyst, NASCO

• 10 years as system administrator and analyst with four different Planview customers – Commerce Bank, U.S. Central, Hallmark Cards, and NASCO

• Expert evangelist in best practices in program and project management and maintaining enterprise project frameworks and companion processes

• Key in the design, creation and implementation of Work and Request Lifecycles – Most recently to capture and track customer special requests through more than 20 business groups

Steve Beaumont, SRP Solution Marketing Manager, Planview

• 25-years experience as a management consultant• Years with Deloitte, Coopers & Lybrand, and E&Y• Currently owns the client-perspective for the Planview Services

Resource Planning (SRP) technology solution

© 2013 Planview, Inc. | 3 | Confidential

Operations

Strategy

Financials

PORTFOLIOMANAGEMENT

Maximize opportunity by balancing strategy withpeople and money

Create an agile, efficientorganization

Differentiate and build competitive advantage

by driving innovation

Establish metrics in order to

measure value

The Portfolio Management Advantage

Changing the GameFrom Time-Based Billing to Deliverable-Based Billing –

A Case Study on Making the Shift to Better Business

Sheri Millar, NASCOSteve Beaumont , Planview

© 2013 Planview, Inc. | 5 | Confidential

Who is NASCO? We Are Blue

OUR LEGACYFormed in 1987 through a partnership between the major BlueCross® and BlueShield® Plans, NASCO set out to create a shared integrated administrative system to support national accounts.

OUR RELEVANCE

NASCO evolved from solely being a system for national accounts claim processing into a single-system solution that is capable of serving a Plan’s entire book of business. Today our evolution continues as we align with our customers around the creation of exchanges, consumer engagement and new network models/reimbursement methodologies.

OUR FOCUS – NASCO IS DIFFERENT!

• We Know - Processing claims and supporting the membership and billing for over 3200 accounts and 18.5 million members

• We Share - Offering a shared system – Capitalizing on commonalities across Blue Plans

• We Support - Offering a variety of business process outsourcing services to our Plan customers

• We Collaborate - Making the Blues more competitive by concentrating on the needs and issues facing Blue Plans

• We Innovate - Continually investing in innovation, like consumerism, health insurance exchanges and payment reimbursement models

• We Save - Consistently lowering Plan costs through growth, operational effectiveness, mutual investment and technology initiatives

• We Protect - Taking an enterprise view of risk, data management and information security and support through comprehensive auditing/reporting

© 2013 Planview, Inc. | 6 | Confidential

The Challenge

Billing WhenKey Portionsof Work AreCompleted

Accrued Time& Materials

MonthlyBilling

© 2013 Planview, Inc. | 7 | Confidential

The Solution…Deliverable Based Budget Methodology (DBBM)

• Payment Gates:1) Requirements & Design2) Model Office3) Production Implementation

• Each gate has pre-defined success criteria that must be confirmed before invoicing occurs

• Gates 1 & 2 are a % of the budget

• Gate 3 final payment is a true-up of actual expense

© 2013 Planview, Inc. | 8 | Confidential

Challenges to the DBBM Solution

Billing• Determine when key portions of work are completed and

ready for invoicing

Cash Flow• Revenue only comes at Payment Gates; still must cover

outgoing labor expenses

Visibility• How can we know what the Payment Gate forecast looks like

for the year?

Real Time Information• Need data immediately and without manual manipulation

into report formats

© 2013 Planview, Inc. | 9 | Confidential

The Integrated Solution…to the DBBM

Project

Planning

ReportingProject

Financials

© 2013 Planview, Inc. | 10 | Confidential

The Integrated Solution…to the DBBM

Work

Manager

Business

Objects

Financial

Mgmt

PLANVIEW

ENTERPRISE

© 2013 Planview, Inc. | 11 | Confidential

The Integrated Solution…to the DBBMProject Planning

Planview Enterprise – Work Manager

CSR

Project

CSR

Deliverable

Deliverable

Deliverable

SOW Attachment

SOW Attachment

SOW Attachment

2013 Statement of Work

(Program)

Structure:Parent

Deliverable

Structure:Parent

SOW Project

WorkPortfolios

WorkPortfolio

WorkPortfolios Financial Management

andBusinessObjects

© 2013 Planview, Inc. | 12 | Confidential

The Integrated Solution…to the DBBM

• Simplified WBS template• Added Financial Pay Gate Milestones

• Notes functionality for Pay Gate success criteria

Project Planning Planview Enterprise – Work Manager

© 2013 Planview, Inc. | 13 | Confidential

The Integrated Solution…to the DBBM

• New FM Model, Versions and Accounts

• Budget Versions for Baseline history

• Security settings for each Version

• Automated daily Load from Work Manager into Current Forecast

• Lifecycles to ensure Versions were captured and locked when appropriate

Project FinancialsPlanview Enterprise – Financial Management (FM)

© 2013 Planview, Inc. | 14 | Confidential

The Integrated Solution…to the DBBM

• DBBM FM Validation Every budget Version; review data across all at once

• DBBM Payment Gate Tracking Cash Flow forecast; indicates Deliverable gates ready for invoicing

• DBBM Invoice Master Template

• DBBM Variance Report

Reporting Business Objects

© 2013 Planview, Inc. | 15 | Confidential

© 2013 Planview, Inc. | 16 | Confidential

The Integrated Solution…to the DBBM

• DBBM FM Validation Every budget Version; review data across all at once

• DBBM Payment Gate Tracking Cash Flow forecast; indicates Deliverable gates ready for invoicing

• DBBM Invoice Master Template Standard template used to generate monthly invoice

• DBBM Variance Report EAC variance, % Variance at Complete, Burn Rate

Reporting Business Objects

© 2013 Planview, Inc. | 17 | Confidential

Results & BenefitsReduction of manual, time-consuming processes

Enhanced Project/Program Management

Increased visibility for Finance & Management

Enhanced user skill set

Increased confidence in the data from the tool

Increased level of support for the use of Planview across the Enterprise

© 2013 Planview, Inc. | 18 | Confidential

Integrated Services Resource Planning

© 2013 Planview, Inc. | 19 | Confidential

Changing the Game: From Time-Based Billing to Deliverable-Based Billing

Live question:

Are you using Planview for resource planning and scheduling as well?

© 2013 Planview, Inc. | 20 | Confidential

Changing the Game: From Time-Based Billing to Deliverable-Based Billing

Live question:

What was Finance’s a part of creating DBBM?

Was Finance able to articulate their requirements or were they more of a driver to this endeavor?

© 2013 Planview, Inc. | 21 | Confidential

Changing the Game: From Time-Based Billing to Deliverable-Based Billing

Live question:

Deployment?

© 2013 Planview, Inc. | 22 | Confidential

Changing the Game: From Time-Based Billing to Deliverable-Based Billing

Live question:

Is NASCO a typical or unusual use-case for the Planview Services Resource Planning (SRP) tool?

© 2013 Planview, Inc. | 23 | Confidential

Changing the Game: From Time-Based Billing to Deliverable-Based Billing

Sheri MillarSystems Analyst, NASCO

Steve BeaumontSRP Solution Marketing Manager, Planview

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