Macro & Micro Org Design Reference Guide The macro design provides the big picture on how the organization will align with future-state strategy and business demands The micro design helps clarify the macro design will fit together at all levels of the organization Description Summary The first step in the organization design is to determine the macro design, an outline of the ideal organization with ideal processes, structures, and systems for the whole organization. The second step is the micro design that is needed to detail team configurations, roles, responsibilities, and staffing numbers Content / Steps Macro Focus Streamline and simplify core processes spanning the entire business Reconfigure how business units, departments, support groups and teams organize around processes Eliminate functional silos and integrate people and resources around activities critical to organization success Assign dedicated and shared resources to sections or levels of the organization Consider policies, procedures, and information sharing, and development systems like recruitment and selection, training, performance management, and rewards Micro Focus Determine number and size of teams Design specific roles and responsibilities for each team 12/7/2018 © 2016, 2017 Change Healthcare Solutions, LLC. All Rights Reserved.

Macro & Micro Org Design Reference Guide Benefits of Four Classic Macro Design Options Function Builds functional excellence and depth of expertise Employees like it: roles and decision-making are usually clear within the function Efficient in terms of achieving benefits of scale Provides clear career paths within functions Good for a single product-line business; all businesses start with a functional structure Geography Creates a local focus – recognizes that not all regions are the same Good for accountability – the head of a region coordinates everything happening in the region Can enable efficient use of infrastructure through regional support services Product Moves decisions down to general managers; builds executive experience Allows for diversification and focus based on product line or category Fosters product development and innovation Increases line of sight, accountability, and team identity Allows success against niche competitors Best when organization is large enough for each product line to have enough scale and product lines are very different Customer Allows for diversification and focus based on customer groups (size, industry, channel, market characteristics) – go-to-market innovation B to B: do business the way key accounts or types of customers want to do business with you; build deep relationships B to C: exploit insights into consumer segments 12/7/2018 © 2016, 2017 Change Healthcare Solutions, LLC. All Rights Reserved.