1 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Work Force Shift: Business Needs Driving Corporate IT Strategy Mitch Stein CIGNA Information Technology January 5, 2006

2 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Flow of Today’s Presentation Compounded Productivity Decline Absenteeism Unscheduled absence Non-occupational disability Alignment of Information Technology to Business Imperatives  IT Employees Shift Focus to Business Functions  IT Processes and Priorities Better Aligned with those of the Business De-commoditization of IT Contribution – IT Engaged in Value Added Activity To Achieve True IT to Business Alignment Requires a Cultural Shift  Reorganization  Business Education for IT Employees  Operating Model Modification  Organizational Development Activity to Sustain Focus/Cultural Shift

3 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Movement to Consumer-Directed Products and Decision- Support ToolsMovement to Consumer-Directed Products and Decision- Support Tools Consumers Becoming More Involved in Managing Their Health and Health Care CostsConsumers Becoming More Involved in Managing Their Health and Health Care Costs Consumers and Employers Wanting Access to Technology, Information, and Services that Enable Education and ChoiceConsumers and Employers Wanting Access to Technology, Information, and Services that Enable Education and Choice Value Added ServicesValue Added Services More Options and More Help in Making Decisions about Benefit Plans More Options and More Help in Making Decisions about Benefit Plans More Information about Medical Procedures Available More Information about Medical Procedures Available Preventive Health Care Preventive Health Care Cost Containment through AutomationCost Containment through Automation Cost Reduction through Predictive ModelingCost Reduction through Predictive Modeling Health Insurance Industry Trends

4 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. ns Cultural Transition: Creating a Business/IT Partnership Organization  Alignment of IT with Business Functions  Creation of Application Service Groups (ASGs) Knowledge  IT Employees to Acquire Necessary Business Knowledge Leadership Commitment  Clear Road Map to Change  Ongoing Leadership Communication and Updates  True Investment in Planning and Managing Change Process  Design New Work Flows that Encourage Greater IT Participation Earlier in Product Development  Define New IT Roles Planning and Managing Change  Work Stream Work Teams to Design Work Flows, Organizations, and Roles  Creation of Team to Ensure a Common Model across ASGs

5 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. IT Employees Enhanced Business Knowledge Allows Them to Function as Business Partners IT People Approach their Work with: Knowledge of the Products and Services We Deliver Understanding CIGNA’s End-to-End Business Model Awareness of Roles and Responsibilities of Players Involved Appreciation for How CIGNA Makes Money As a Result: IT People are Better Positioned to Design Business Solutions IT People Understand How Software Applications Impact the Business (What’s Important) Capabilities of Technology can be More Finely Aimed to Produce Business Value Those with Knowledge of Technical Capabilities Can Recommend Enhancements

6 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. The CIGNA Invitational defines the Company’s operating model, how the Company provides value for Employers, Health Services Consumers and Health Care Providers. 1 Selling 2 Underwriting 3 Client Installation Installation 4 Member Enrollment Enrollment 5 Inquiry 6 Services to Members 7 Provider Relations Relations 8 Claims Processing Processing 9 Reporting Renewal ProductDesign SharedValues

7 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. 4 How We Make Money illustrates the Company’s revenue sources and expense model.

8 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Clear Definition of Job Roles Career Level Guide Duties and Responsibilities Technical Skills Functional Competencies What is a broad description of the work performed? What key technical Knowledge or skills Are applied in my Work? What key behaviors are critical for successful performance? Common framework for all families Career levels within each job family are broadly defined: - Knowledge - Work complexity - Business impact - Level of independence - Level of leadership Descriptors may be tailored to the family Duties and responsibilities expected of individuals within the job family and at specific levels Intended to apply to family more broadly – across departments, projects, or other organizational entities Knowledge and skill that is required to perform a particular work activity: - Knowledge - Skill Indicates the relevant knowledge and skills by proficiency level - Range of problems and situations - Scope of responsibility - Business impact A set of behavioral skills described in observable terms that guide employees toward effective activity in applied situations Selected by job family because of special relevance to their work Defined for each of the relevant levels within the career path framework What are the fundamental responsibilities of the position?

9 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. IT Resource Development Model Skills Gap Analysis Resource Solution Design & Delivery Tracking Business Imperatives Business Strategies Organizational Development Operating Procedures Strategic Alignment Resource Assessment IT Project Portfolio Management Satisfy Ongoing Project Resource Requirements Improve Resource Availability Improve Effectiveness in Resource Utilization over Time

10 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Focus on Enterprise-wide Project Delivery  Role-based Processes and Organizations  CIGNA Project Solutions Development of Role-based Competencies  Project Management  Requirements Definition  Solution Design  IT Frameworks Design  Testing and Quality Assurance  Application Development  Process Improvement Effective Resource Management  Shared Efforts across Organizations  Virtual Teams  Employees Focused on Value Added Work  Introduction of Enterprise-wide Formal Resource Management Quality Responsiveness Cost Unified and Business Aligned IT Organization

11 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Best Practices: Business Aligned Functions, Standardization of Redundant/ Common IT Services, Focus on Value-Added Activities Transition is Difficult. Manage it, Provide Support Framework Quality Responsiveness Cost Reality is Commoditization of IT Functions that Used to be Value-Added Considerations: Changing Business Needs, Available Technology, Application Life- Cycle, Flexible Enough Strategy to Accommodate Change Conclusion

12 Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. (c) Copyright 2005 CIGNA. Question, Comments, Remarks?