Keith Gulledge & Ben CookConsultants—Acumen Learning, LLC

Manager Overview of

Building Business AcumenBuilding Business AcumenWorkshop

Day 1

welcomes you to

Building Business AcumenBuilding Business Acumen

““Seeing the Big Picture”Seeing the Big Picture”

July 23, 2013FACILITATED BY:

Keith Gulledge

Acumen Learning, LLCOrem, Utah

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Measuring Measuring Performance:Performance:

5 Key Business 5 Key Business DriversDrivers

Statement of Cash Flows & Balance Sheet

Income Statement

(P&L)

Balance Sheet

5 Key Business Drivers5 Key Business Drivers

Can a company have Can a company have too much too much CashCash??

$$

$$ $$

$$

$$

PROFITPROFIT

1010

PROFITPROFIT

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What This Class is NOT Primarily About…What This Class is NOT Primarily About…

1. Skill training.

2. Accounting.

3. Finance.

4. Management techniques.

What This Class IS About at Cigna…What This Class IS About at Cigna…

1. Seeing the Big Picture.

2. Leadership initiative.

3. Better decision-making.

4. Using 5-Driver knowledge for greater influence and results.

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1. Know the measures important to senior executives, why they are important, and how you impact them

2. Understand 5 Key Drivers that all businesses focus on to succeed; how measured at Cigna & your influence on them

3. Better understand Cigna’s financial statements, how you impact them, and how you impact Cigna’s stock price

4. Enhance potential for increased credibility and influence by improving decision skills with tools & processes

5. Know how Cigna compares to your competitors—ID best practices, threats, weaknesses, opportunities

6. Understand basic business terms to better articulate company performance and teach others

7. Create an Action Plan to more positively impact Cigna’s desired results

Program Objectives: To BETTER…Program Objectives: To BETTER…

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Business Acumen Topics

1. 5 Key Business Drivers & How to Measure and Impact

2. Cigna Revenue Sources & Cost Centers—Profitability

3. Participant Functional Dynamics—How Cigna Internal Customers Can Work More Effectively Together

4. Cigna Annual & Quarterly Reports—Executive Messaging

5. Cigna’s Financial Statements: P&L, Balance Sheet, Statement of Cash Flows—Analysis & How to Impact

6. Decision Process and Basic ROI Analysis for More Effective Decisions to Impact 5 Drivers

7. Competitor and Industry Review, Analysis, Key Learnings

8. External Factors & Stock Market Dynamics

9. Learning Dynamics Activities—Teach to Learn, etc.

Business Acumen TopicsBusiness Acumen Topics

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MEASURING MEASURING PERFORMANCEPERFORMANCE

2121

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1. Basic purpose & relationship to 5 Drivers

2. Governing equation

3. Key numbers, ratios and trends

4. Actions to impact results

For each statement…

Measuring 5-Driver PerformanceMeasuring 5-Driver Performance

20122012

2.98 B

2.35 B

29.12 B

2.48 B

8.5

1.62 B

28.8

33.2

22.2

16.6

5.61

5.6

VoteVote

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What is the business term that refers to how well a company employs its Assets to make money?

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1. Profit Margin

2. Asset Utilization

3. Cash Flow

4. Financial Leverage

5. Asset Strength

1. 2. 3. 4. 5.

6%

63%

19%

13%

0%

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DECISION DECISION PROCESSPROCESS

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Decision ProcessDecision Process

1ID Desired Results Stakeholder needs Problem & root causePrioritize gaps & results—set targets

Analyze ROI & Options

ST & LT impact Qualitative aspects Alternative solutions

3

Implement & Measure Process owner Involve key resources Measurement, metrics

5Make Decision

Who, how, when Responsibility Accountability

4

Use Data Gather & distributeAccurate, relevantTimely, user friendly

2

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Decision Mini-Case AnalysisDecision Mini-Case Analysis

Assignments for Case Analysis

In your Small Groups, use the Decision Process to analyze the entire case, focusing you your assigned Stage in the Decision Process Model

After 15 min., report your analysis to the larger group

Use theUse theDecision Decision Process Process Analysis Analysis

WorksheetWorksheetp. 76 or 78p. 76 or 78

What Driver does Cigna’s Differentiated Value Proposition focus on?

Customer-Customer-

centricitycentricity

External Factors:External Factors:COMPETITORSCOMPETITORS

3939

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Benchmarking Cigna’s CompetitorsBenchmarking Cigna’s Competitors

United Health WellPoint Aetna Humana

“Keep your friends close, and your enemies closer.”

— Sun Tzu

Stock Price vs. Competitors—1 yr.Stock Price vs. Competitors—1 yr.

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ProfitProfit

Discuss in your group how you personally can enhance REVENUE, reduce EXPENSES, and increase PROFIT

Write down one or more specific actions you could take to impact PROFIT (improve Revenue, reduce Expense)

General areas to consider:

Expenses you can influence

Product value you can add

Employee satisfaction & reten.

Customer service & loyalty

Action JournalAction Journal

Discussion & Notes

GROUP GROUP DISCUSDISCUS

SIONSION

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Complete an Action Planning Action Planning FormForm for at least ONE initiative you’ve developed during this program.

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1. 7 days: Teach the principals you’ve learned to someone you work with. Teach to influence.

2. 10 days: Discuss your Action Items with your manager. Follow through on your Action Items.

3. 14 days: Review your Notes and Participant Guide.

4. 30 days: Read “Seeing the Big Picture” if not completed.

5. Quarterly: 2- 4 hours. Continue to use the resources available to build your business acumen. Review Cigna and

competitor financials; use websites.

6. Ongoing: Teach others. Use Business Acumen in using the Decision Process. “What’s the impact on CASH, PROFIT, ASSETS, GROWTH and PEOPLE?”

Post-Course Action StepsPost-Course Action Steps

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2. Participants will be asked to schedule a meeting with you:

Share their key learnings from the workshop Action Plan priorities and actions to be followed up Teaching their team key concepts learned

Your Questions & Comments

3. Your important guidance and support:

Feedback, suggestions on their Action Plan items—priorities Support, direction and guidance, especially with cross-

functional process and systems issues Assistance with resources required Help to free up their time for Action Plan items Continued communication, feedback, support from you

Your Needed Support as ManagerYour Needed Support as Manager

1. Prepare Participants for the class: Read the Book, more.