The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaim responsibility for views expressed and statements made by the program speakers.

Navigating Vendor Changes and Implementations

Suzanne Mahler Brown, CEBSDirector of Benefits

Gränges Americas Inc.Franklin, Tennessee

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So Many Vendors . . .

Advisors

Claims administrators

Wellness

Insurers

Auditors

Call Centers

Recordkeepers

Outside Counsel

Actuaries

BrokersWebsites

ConsultantsBanks

Payroll

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Agenda

• Takeaways for this session– Part I: Set clear objectives– Part II: Create a useful project plan– Part III: Build a successful long-term

partnership

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Part I: Set clear objectives

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Set Clear Objectives

• Why are you considering a vendor change or new vendor?

• What do you want to accomplish?

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Before You Start . . .

• Understand why you are considering a change– Is someone on the account team creating extra work

for you?– Is their customer service lacking?– Are you concerned about changes at their

organization?– Did they annoy someone higher up at your

organization?– Are you considering change for the sake of change?

• These are things you may able to fix

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It’s About The Business . . . • Is the vendor not performing based on the contract or

market?• Has the vendor’s pricing become unacceptable?• Are you no longer in that vendor’s “sweet spot” as a

customer?• Do you need to streamline/consolidate vendor

relationships?• Has your business changed significantly?• Is the vendor ceasing operations or eliminating your

product?• Is the change the result of a merger or acquisition?

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Objective: A Thing Aimed at or Sought

• Figure out what you want or need to accomplish– Better/best pricing– Improved quality (services, products, processes, data)– Vendor consolidation– Reduced administration– Minimal disruption– Risk management– Fresh approach– Outsourcing– Cash flow– Something else?

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Focus on Your Objectives

• Write down your objectives – Be prepared to repeat them internally and

externally, over and over again

• Keep the project focused on your top objectives

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The RFP process

• Identifying companies for the RFP– Going it alone– Using a broker

• Know what’s in the RFP– If you have been reviewing your vendor contracts on

a regular basis you know what you’d like to change– Include the sticky details when they are important– Involve your Procurement, Finance and/or Legal

department

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The RFP Process (continued)

• Drive the process on time– Failing to do so sends a message you may not

want to send– Get commitment from key players for regular

meetings, decision timelines, etc.• Negotiate• Demand performance guarantees

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Selecting A Good Match

• Base the decision on your objectives• Also consider

– Vendor sweet spots– Implementation factors including team, timing

and pricing– Is the vendor a long-term fit based on the

strategic objectives of the business

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The Internal Approval Process

• Know your internal approval process before you start

• Present what your audience wants– A succinct “ask”– The options– The finances– Your recommendation– The timeline

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Part II: Create a useful project plan

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Create A Useful Project Plan

• What must be accomplished?• When does it need to be done?• Who is going to do it?

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During The Interview Process . . .

• Ask detailed questions about implementation– How do your resources match up with their

implementation time frame– Is there an implementation team separate from the

ongoing account team• If so, when and how is the hand-off made from

implementation to maintenance• How do they optimize team sizes and assignments• What is their contingency plan for missed milestones• When does the sales team roll off the project

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During The Interview Process (continued)

– What role will your broker play during implementation– Does the vendor have a detailed implementation plan that

they have used successfully with other clients– How often do they coordinate implementation meetings– Are they accustomed to interacting directly with your other

vendors as needed, or do you need to “supervise” those interactions?

– What are the implementation costs and when are they paid?

– Who is their best implementation leader and can that person be assigned to your project?

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Make A List . . . A Long, Long List

• Make a list of what you need to accomplish– The level of detail that suits you– Milestones and deadlines– Names of responsible individuals

• Use a program/tool that you like• Set the expectation that the vendor is

responsible for keeping the project plan updated

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Implementation Phases

• Organize your project plan into phases– Planning– Documentation– Data– Administration– Communication– Go Live– Housekeeping

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Sample Implementation Plan

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Build Details Based on The Product

• Defined benefit– QDRO administration– Disability benefit provisions– Calculation testing– EDI Files– Applications in process– Check/direct deposit administration– Call center training– Communications to term vested participants– SPD updates

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More Details . . .

• Defined contribution– Enrollment– QDRO administration– Hardship withdrawals– Nondiscrimination testing– Loans– EDI Files– Call Center training– Communications to term vested participants– SPD updates

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More Details . . .

• Medical/Dental/Vision– Claims runout– ID cards– Enrollment– Communications– Call Center training– Rolling over deductibles and out-of-pocket maximums– EDI Files– Benefit setup in the vendor system– Claims ready vs. enrollment ready– Billing/banking

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More Details . . .

• COBRA– Transitioning qualified beneficiaries and

current enrollees– Special subsidies– Communications– Enrollment notification to vendors– EDI Files– Banking

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More Details . . .

• Account Based Benefits– Balance transfers– Website access– Claims filing processes– EDI Files– Communications– Black-outs– Nondiscrimination testing

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More Details . . .

• Leave Management– Eligibility– Available leave/FMLA– System configuration– HR access– Participant communications– Payroll/payment coordination

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More Details . . .

• Life/Accident– Enrollment history– Billing– Claims procedure

• Voluntary Benefits– Enrollment history– Billing

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More details . . .

• Payroll– Timing– Parallel systems– Contingency planning– EDI Files– Employee communications– Historical data

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More Details . . .

• Enrollment website– System rules– Benefit setup– Deduction calculations– Data verification– System testing– Reporting– Compliance– EDI Files inbound and outbound– Employee and HR training– Historical Data

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New Vendors

• Why are you implementing a new vendor, service or product– How does this integrate with your other vendors?

– Are there special communication or enrollment considerations?

– How long will the EDI file take?

– Who will manage the program long-term?

– What other departments need to be involved?

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Multiple, Simultaneous Implementations

• Think about concurrent projects– Medical and dental is probably easy to do together– Changing your payroll and benefits enrollment system

at the same time is much more difficult . . . unless you are consolidating to a single platform

– Keep the EDI files in mind– Make sure your vendors understand your challenges– Project time frames can intertwine and overlap

causing unforeseen problems

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Housekeeping

• Sometimes you have to go live before everything is ready– Your housekeeping list includes the things you agree

to accept as incorrect, or as manual processes, to be fixed later, etc.

– Don’t accept a housekeeping list unless it has a target completion date

– The sense of relief of having the implementation “done” will often move housekeeping items onto a back burner than never gets turned on

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Part III: Build a successful long-term partnership

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Build a Long-Term Relationship

• Best practices for productive vendor relationships:– Establish regular vendor meetings with an ongoing

agenda– Communicate effectively with your vendors

• The implementation sets the tone for the relationship– Don’t let the vendor manage you; control the project– Ask questions that help you understand how they

work

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Set Expectations

• Set expectations about:– Deadlines– Timeliness– Deliverables (format, features, etc.)– Meeting flow

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You Are The Customer

• Communicate well– Set expectations– Talk about communication preferences– Get to know each other a little bit– Spend some time in their space– Don’t rely on your broker for everything

• Make sure the broker keeps you 100% in the loop

• Communicate often– Don’t wait until there is a problem or issue to

establish a relationship with your account team

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Review

• Takeaways for this session– Part I: Set clear objectives– Part II: Create a useful project plan– Part III: Build a successful long-term

partnership

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Questions?

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