CEO Challenge: Deloitte Detox

Core Team:

Jay Chen, Nihar Dalmia, Niraj Dalmia,

Anne-Flore Elard, Erin Shen

Developing wellness

strategies using wellness

analytics

October 14th, 2014

• Gain predictive insight by studying root causes using real-

time data from employees’ day-to-day wellness activities by

leveraging leading health software, mobile devices, and

wearable technology.

• Deloitte is well-positioned to deliver this service using our

extensive technology expertise, analytics methodologies,

vendor relationships, human capital & wellness experts,

and industry knowhow.

Solution

• Only a few companies are applying some level of

measurement of the program effectiveness due to the lack of

the analytical tools and methodologies to measure, track and

effectively manage their wellness programs.

• Until now, data gathered to assess wellness strategies is

primarily post-mortem data (e.g. health claims), which does

not address root causes (e.g. stress cause by over-time).

Industry Challenges

• The workplace wellness market is estimated to be $31 billion globally – the Canadian market growing by $390 million per year

• Based on surveys, 94% of respondents plan to have an articulated health and productivity strategy in the next three years.2

• The top 100 Canadians Firms who have applied some level of measurement on their wellness programs have reported better than

average program results in the following areas; Employee satisfaction, attracting talent, reduce employee turnover, reduce disability

cost, reduce drug costs, reduce absenteeism. (Refer to appendix 1 for more detail)

• Firms are now looking for new methods and tools to track, measure, and effectively manage their wellness programs.

Opportunity

Average Returns on Wellness Programs

Deloitte is well-positioned to lead our clients to achieve higher returns

from their workplace wellness strategies through wellness analytics

1. Data captured after the events have occurred (e.g. health claims and employee interviews)

2. Presenteeism is defined by employees that attend work, but too stressed or tired to be productive

3. Conducted by Tower Watson

$3.40 saving in medical costs

$2.43 saving in operational costs

For every dollar invested in wellness programs: For every dollar saved in productivity:

66% due to reduction in presenteeism2

33% due to reduction in absenteeismand results from other health issues

Additional references on last page2

Deloitte will provide Wellness Analytics service to help clients build capabilities to track, measure, and manage the effectiveness of

their wellness programs. This will include the analysis of external (e.g. data from wellness program providers and insurance

companies) and internal (e.g. employees’ day-to-day wellness activities using leading health software, mobile devices, and wearable

technology) wellness data to enable better decision-making and improve the return of the investment in wellness programs. This

integrated service offering will generate an estimated revenue of $11.7 million for Deloitte over the next three years and additional

recurring revenue from on-going services.

Proposition Abstract

Engagements will be conducted through four phases

Deloitte Canada can serve as the first client. This will benefit our practitioners and improve on

the Deloitte brand as the industry’s innovation leader.

Monitoring and

Continuous Improvement

• Support clients by

continuously monitoring the

activity of employee

adoption and results of

methodologies.

• Deloitte can further add

value by applying analytics

to draw insights on how to

improve workplace

wellness by policy setting

at the corporate level.

Vendor Selection and

Implementation

Performance Measurement

and Evaluation

• Partner with clients to

address workplace

wellness programs’

expansion needs.

• Define corporate wellness

objectives (e.g. increase

employees’ morale,

presenteeism and

productivity).

• Incorporate wellness

analytics as a part of the

wellness strategies to

enable effective decision-

making supported by

rigorous measurements

and intelligence.

Strategic Definition

• Define performance

metrics to improve

operations efficiency

through management of

employee welfare (reduced

presenteeism,

absenteeism, employees’

satisfaction, productivity).

• Establish ties between

wellness metrics, corporate

strategies, and financial

performance.

• Leverage existing

partnership with vendors

such as SAP, Oracle, and

SAAS to create new tools

to perform measurement of

wellness program

effectiveness.

• Seek out new partnerships

with new innovation

companies in the wellness

market such as ShapeUp,

who offers integration of

social wellness programs

with wearables, including

Fitbit, BodyMedia,

Runkeeper, and Fitlinxx.

• Wellness Strategy & Fit-

Gap Analysis

• Wellness Analytics

Implementation Roadmap

• Definition of KPIs • Implementation of tracking

technology

• Dashboards

• Predictive algorithms

• Analysis of operational

wellness data

• Recommendations on

decision making

Sample Deliverables

3

Canadian workplace wellness market is estimated to grow $390 M per year

for the next 5 years

$5 M

$2 M

$3 M

$1.7 M additional

Year 1 Year 2 Year 3 3-Year Target

3-Year Revenue Projection for the Deloitte Detox Offering

$10 M Target

$10 M

We aim to capture 1% market share of the 3-year growth in the workplace wellness

market as consulting service revenue that totals to $11.7 million

Source: Stanford Research Institute

4

The Deloitte Detox Core Team allies between Toronto and Montreal with

complementing sets of expertise

Strategy &

Operations,

Project

Management,

Sustainability

Insurance Expert,

Marketing and

Sales, Devices

Leadership

Information

Management &

Analytics, Project

Management,

Sustainability

Anne-Flore

Elard

Jay Chen

Nihar Dalmia

Niraj Dalmia

Erin Shen

5

Appendices

6

Appendix 1: Organizations are looking for methods and tools to measure,

track and improve their wellness programs

43%

21% 19%15%

21%17%

13%9%

13% 13%8%

1%

Analyzed Claims Data Conducted A Needs Assessment Consistently Evaluated WellnessInitiatives

Recorded Baseline Data

Only few employers perform some level of measurement of their Wellness Program effectiveness

500+ Employees 50-499 Employees 1-49 Employees

81%

54%

38% 35% 32% 31%

91%86%

54%

92%

67%

79%

EmployeeEngagement/Satisfaction

Attracting Talent Employee TurnoverReduction

Disability Costs Reduction Drug Costs Reduction Absenteeism Reduction

Organizations that have applied measurement also reportbetter than average results in numerous areas

All Top 100 Canadian Firms Top 100 Canadian Firms who track results

As a result, firms are now looking for new methods and tools to track,

Measure, and manage their wellness programs

Source: Medisys Health Group, survey based on 58% of the Top 100 Canadian Firms who responded

7

Appendix 2: Deloitte Detox seamlessly integrates existing multiple service

line competencies to holistically deliver value to our clients

Strategy

Definition

Performance

Measurement

and EvaluationStrategize

Data Points

Vendor Selection,

Strategic Partnerships

and Implementation

Monitoring and

Continuously

Improvement

Strategy &

Operations - FPM

Human Capital –

Organization

Transformation &

Talent

IMO – Deloitte

Digital

Technology –

Information

Management and

Analytics Technology

Technology –

Technology

Advisory

ERS – Sustainability &

Climate Change

Strategy & Operations

– Corporate Strategy

ERS – ERM &

Governance

Technology –

Information

Management and

Analytics Technology

IMO – Deloitte

Analytics

Technology –

Information

Management and

Analytics Technology

Human Capital –

Organization

Transformation &

Talent

Technology –

Information

Management and

Analytics Technology

8

Appendix 3: Preliminary evaluation of vendors reveals opportunities to

integrate a diverse range of technologies into wellness programs

Vendor Value Proposition

Body Media

The company’s around-the-clock on-body monitors utilize proprietary technology to capture data used by consumers as well as health

and wellness professionals to guide behavioral changes to help control weight and promote an active lifestyle – two factors that are

routinely cited as keys to combat and manage serious medical conditions.

FitbitWe design products and experiences that fit seamlessly into your life so you can achieve your health and fitness goals, whatever they

may be.

Polar

Polar’s unique Smart Coaching features offer the best possible guidance on how to develop your training as well as helpful feedback on

your progress, so why not find out more about how our Smart Coaching features could help and discover which ones are best suited to

your needs.

Jawbone

Jawbone’s UP® system helps people live better by providing personalized insight into how they sleep, move and eat. Its open API – the

UP Platform – includes an ecosystem of apps and services that integrate with UP to offer new, customized experiences. The company’s

approach to lifestyle tracking is unique, with over 600 patents granted or pending related to its ecosystem and wearable technology

manufacturing processes.

Garmin For athletes and fitness users who need to accurately monitor parameters like weight, body fat and hydration level.

Nike

Earns NikeFuel, a universal way to measure movement for all kinds of activities. Tracks the intensity of your workouts and enables

sleep tracking with Nike+ Sessions. Counts steps and tells time. Keeps you and your friends motivated through Nike+ Groups (available

for iOS only).

Philips Integrates with Google Glass to monitor and track health related data

AiQ

Wearable electrodes combined with modern information technology that provides vital sign monitoring for different applications in a

daily living environment without sacrificing comfort. Paired with Bluetooth connectivity to your smart device, BioMan is perfect for weight

control, sports training and health monitoring.

Recon Integrates with Google Glass to monitor and track health related data

Zephyr

We help our customers find non-obvious insights (from data that does not connect easily together). We transform data via research,

integration, modeling, analytics and visualization within our cloud-based Zephyr Platform – so our customers optimize their market-

shaping efforts.

Lark Iphone app that helps users get fitter, sleep better, eat healthier and stress less by capturing and monitoring data

Affectiva Affdex reads facial expressions to measure the emotional connection people have with advertising, brands and media.

Electric foxy Making wearable technology beautiful, simple, and meaningful

Clothing+Clothing+ is a developer and manufacturer of comfortable wearable sensor solutions for leading brands in the sports and medical

segments.

9

Main Features – Incentive & Rewards

Appendix 4: Some key features of leading health apps and

devices that could be implemented for clients

11

• Incentives can be structured to enable “Bring Your Owner Devices” in order to minimize cost while allowing employees to take advantage of the program using personal devices

• Results are then translated into Health Risk Assessments, Body Mass Index measurements, sleeping patterns and blood pressure metrics allow you to monitor your progress

• As with all of the features, employees can decide what to share and what remains private!

Employee Features Track Health Metrics

• The program will offer technologies to allow employees to track as many metrics as they want

• Weekly health challenges could be posted on the corporate social network visible to all employees

• Employees can work in teams or individually to overcome the health challenges

• Weekly winners are published and rewards are granted

• Score boards are kept up-to-date to show the top scoring health leaders

Employee Features Weekly Health Challenges

12

13

Employee Features

• Deloitte can implement the corporate social network to enable sharing of any employee activities and thoughts

• Post pictures of recent foods

• Share recent jogging, hiking, and biking paths

• Use colleague’s as motivators

• Get on top of the health score board

Corporate Social Network

14

• Find non-obvious insights, correlations, and cause & effects between employee health metrics to production quality and financial performance

• Leverage new insights to better define corporate policies and health insurance plans

Corporate BenefitsAnalytics of Welfare

• With the new trends of health apps, smartphones and smart bands, health data can now be captured more accurately than ever

• Build dashboards to track the effect and progress of workplace wellness

References

• Towers Watson, “The Business Value of Healthy Workforce”, 2013/2014

• Sun Life Wellness Institute, “Canadian Return on Investment Study”, in alliance with Richard Ivey School of Business, 2012

• Sun Life Financial, “Profits of Wellness, Turning the high cost of poor health habits into healthy returns”, May 2011

• Harvard Business Review, Leonard L. Berry, Ann M. Mirabito and William B. Baun, “What’s the Hard Return on Employee Wellness

Programs?”, 2010

• Harvard Business Review, George L. Balckburn, “The ROI on Weight Loss at Work”, 2009

• Sun Life Financial, HealthyReturns, “Healthy employees mean healthy business”, 2014

• Sun Life Financial, HealthyReturns, “A smart investment, a healthy workplace”, 2013

• Sun Life Financial, “Sun Life-Buffett National Wellness Survey 2013”, www.sunlife.ca

Note: Insert information as indicated below. DTTL communications should comply with the DTTL Language & Style Guide and the DTTL Required Legal Language document, accessiblefrom Brand Space’s “Templates” section. Member Firms should consult with their legal counsel and/or Reputation and Risk Leader for the required language.

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

The information contained herein is not intended to substitute for competent professional advice.

© Deloitte LLP and affiliated entities.

15