Faculty/Presenter Disclosure Faculty: Joanne Hohenadel, Brenda Merkle, Ashley Taylor Relationships with commercial interests: –Grants/Research Support: Nothing to disclose –Speakers Bureau/Honoraria: Nothing to disclose –Consulting Fees: Nothing to disclose –Other: Brenda Merkle – employee, Plexxus Joanne Hohenadel - employee, University Health Network Ashley Taylor – employee, University Health Network CFPC CoI Templates: Slide 1 1

Fast Track to Business Transformation: The Journey of 10 Hospitals E-Health 2013 May 29, 2013 Presented by: Brenda Merkle, BASc, CMA Joanne Hohenadel, BASc, PMP Ashley Taylor, HBA, CMA 2

Agenda Context Plexxus The Project Success Strategies Lessons Learned In Summary and Continuous Improvement 3

Purpose/Objective of Presentation Story of a journey started in 2003 that is a collaboration among 10 hospitals and Plexxus, their shared service provider, in the procurement and implementation of a back office business transformation enabled by SAP Share experiences and lessons learned about regional inter- hospital collaboration –Overview of the shared services model to gain efficiencies in master data maintenance, procurement and business reporting and analytics –The opportunities and challenges of University Health Network (UHN) being the first of 10 hospitals to go-live 4

Background One of the largest academic health sciences centres in Canada Ranks of the world’s leading providers of exemplary patient care, innovative research and teaching The first of the Plexxus Member Hospitals on SAP Largest provider of enterprise-wide business application software in the world 109,000 customers in more than 120 countries 12 million users A not-for-profit shared services provider for 11 hospitals across the GTA, 10 of which are on SAP Expertise in supply chain management, information technology and business transformation 5

The Plexxus Membership 6

Plexxus Business Model Plexxus was created to transform the back office of Member hospitals, reducing cost and improving quality through: –Group purchasing –Common and integrated systems –Leading practices and standardized processes Member owned Not for profit shared service Over $75 million in purchase price savings to date 7

Supply Chain Management –Strategic Sourcing –Sourcing and Contract Management –Purchasing –In-Hospital Logistics –Distribution –Clinical Support And Now…Information Technology (Finance, Supply Chain) –Ongoing Support, Maintenance and Enhancement –Master Data Governance and Management Scope of Plexxus Services 8

Integrated Technology Solution (ITS) Project What is ITS? –Major business transformation project –Integrated “single build” SAP-based platform for 10 hospitals and Plexxus –Standardized business processes and leading practices –Delivers significant efficiencies (EDI, e-Requisitioning) Scope –Finance general ledger accounts payable grants and funds management fixed assets and capital project management –Supply chain management –Data governance and management Groundwork laid between 2006 and And then… 9

The ITS Project 11 organizations (including Plexxus) 7,000 users 1 Harmonized Chart of Accounts 27 companies (legal entities) 48 plants (site locations) 7 Advisory & Validation Committees 250 interfaces 125,000 material and 42,000 vendor records harmonized 350+ project deliverables 40 training courses 65 Steering Committee meetings 6 go-lives …In 2 years and 2 months from start to finish and under budget 10

ITS Project Timeline Mar 2010Sep to Dec 2010Jan to Aug 2011Sept to Oct 2011Nov 2011 to Oct 2012 All Hospitals and Plexxus participated in business blueprint and build phases Project Launch Individual roll-outs: 2 hospitals every 2 months or Build Project End 11

ITS Project Governance Model Plexxus Core Team 3 rd Party Vendors Hospitals Project Teams Advisory and Validation Committees Strategic Management Tactical Management Operational Management Plexxus Board ITS Committee ITS Steering Committee Program Management Office 12

What is –Project to deliver ITS to UHN Scope –UHN participation in the overall governance of the ITS initiative –Collaborate with Member Hospitals on design and decisions related to standardized features across all hospitals –Lead UHN implementation Business process redesign Technical (installation, integration) Change management (communication, education and training) First of ten Plexxus member hospitals to go-live 13

Governance 14

– Success Strategies Strong commitment from senior leadership Authority to make decisions Support for UHN Finance Subject Matter Experts to participate in SAP configuration while maintaining Hospital functions Supporting UHN project management and technical teams Extensive ITS Advisory and Validation Committee involvement Internal communication and engagement (strong communication and change management strategy, daily huddles, UHN Shared Information Management Education Department support) Took holistic view with decisions on project – not just what was best for UHN Only one temporary junior staff person was hired by UHN with the result that knowledge stayed in the organization and built a very strong team post go live 15

ITS Project Success Strategies Extremely strong Board support –Signaled importance by establishing ITS Committee of the Plexxus Board –All scope additions and customizations required Plexxus Board approval Clear governance down to the deliverable level Adherence to guiding principles –Single build –Shared service is a “compromise” ‘Tough love’: zero tolerance for slippage, leverage the power of the Membership Repeatable ‘rollout kit’ 16

ITS Project Success Strategies Forums for participation, communication, collaboration, transparency –Advisory and Validation Committees, CEO calls, project sponsor meetings Choice of first Hospital to go live Interface strategy buffered dependency on connector systems Two independent third party reviews −Governance and processes −Budget, benefits, risks 17

Ongoing ITS Governance Structure Strategic Management Plexxus Board Resources and Audit Committee Plexxus Senior Mgmt & ITS Service Delivery User Groups Tactical Management Operational Management E-Requisition/SRM Reporting/Finance/Accounts Payable Purchasing/Logistics/Finance Integration Technology Production Change Control Board ITS Council Functional Governance Material Governance Vendor Governance Reporting Governance Security Forum Security and Privacy Advisory Committee Others TBD 18

Lessons Learned Data: quality Data: incremental consolidation –adding new materials and vendors for each rollout Data: governance, change management –Data S.W.A.T. team, quality check reports Importance of complete and accurate material master especially in critical patient care areas e.g. operating rooms Train more, train later More business resources on project team 19

In Summary and Continuous Improvement Continue to leverage inter-hospital collaboration and perseverance 6 key areas of focus for ongoing stabilization are –Data refinement –Security –eRequisitioning ramp up –Enhancing reporting access –Configuration refinement Activities that transcend specific stabilization activities are communications, data quality control and governance 20

In Summary and Continuous Improvement Desired outcome - gain efficiencies in supply chain management and ability to make more judicious and informed decisions for our healthcare organizations and our patients –Improved procurement processes and savings –Elimination of paper purchase requisitions –eRequisitioning adoption –Flexible financial reporting capabilities –Access to timely information for business decisions 21