1. Sonora Quest Laboratories Business Impact Based Cloud & Project Investment Decisions Arizona IT Symposium – April 10, 2013

2. Sonora Quest Laboratories Impact Based Decision Process Sonora Quest Laboratories Background –Joint Venture between Banner Health and Quest Diagnostics Provides management of the laboratories of the Banner Health System located in the Arizona hospitals Provides laboratory services to 7,000 physician clients, performing 75,000 tests per day Employs 2,600 people in Arizona –Long history of Six Sigma/Lean quality focus Active development of Green Belts under the direction of Master Black Belts on site and through Quest

3. Sonora Quest Laboratories Impact Based Decision Process –In 2010 we engaged Booz & Co to review our operations One of their recommendations was the formation of a Project Management Office to oversee the implementation of their identified opportunities. While most of their identified opportunities involved process improvements, some involved the replacement of older legacy administrative systems or supplementing existing systems with additional functionality. Our internal processes were geared toward process improvement. We really did not have a methodology in place to evaluate make or buy software system decisions.

4. Sonora Quest Laboratories Impact Based Decision Process –Booz - Client Information Packet Automation Multiple manual inputs into several different computer systems. –90% of inputs were received incomplete –Consistently missing SLA for starting a new client We initiated a Green Belt project to automate several manual processes when we hit the wall. –There were no cross departmental corporate guidelines developed. –There was no central Steering Committee to make decisions. –There was some Capital Investment funding available.

5. Sonora Quest Laboratories Impact Based Decision Process –We decided to get help from Insight to Develop a process for project selection and design, Project Opportunity Assessment (POA) Use it on the CIP project to prove it out And teach our PMO staff how to use it –One of the deliverables was a process to evaluate and rank projects It is very straight forward and easy to use. It presents the outcomes in a graphical easily understood fashion. We immediately applied it to our IT project backlog to help differentiate the tasks for the real projects.

6. Sonora Quest Laboratories Impact Based Decision Process –When we presented the IT project rankings to the Senior Leadership Team, they wanted to see how the rankings were derived. –Then they wanted to apply it to their own areas: HR was evaluating several SAAS learning systems to replace a legacy system. Marketing was looking at replacing a legacy Appointment Scheduling Service. Compliance and Risk had been using a manual process to rank items and was very intrigued by the tool. Customer Service was evaluating replacing a legacy trouble ticket tracking system.

7. Sonora Quest Laboratories Impact Based Decision Process –We had to revisit some of the guidelines to align them with the departmental requirements Strategic Impact Items –Alignment with the Business Plan (Roadmap) –Level of Standardization –Risk/Reward to Customer –Total ROI Business Impact Items –Risk/Effort to SQL –Cost to Market Ratio –Impact on SQL resources –Integration/Adoption Complexity

8. Sonora Quest Laboratories Impact Based Decision Process –We had to revisit some of the guidelines to align them with the departmental requirements (continued) Technical Impact Items –Type of Solution –Solution Adoption Complexity –Integration Complexity –IT Resource Requirement –Revisited Impact Item Definitions –Revisited Impact Item Weighting

9. Sonora Quest Laboratories Impact Based Decision Process Finished Product now adopted by Senior Leadership Team for evaluating all future departmental projects –Risk/Compliance is looking to adapt –CEOs comment = Cool PMO is using POA for all projects and SDLC for any project that has a score in the IT Resource Required field.

10. Sonora Quest Laboratories Impact Based Decision Process Ticketing System

11. Sonora Quest Laboratories Impact Based Decision Process Learning System

12. Sonora Quest Laboratories Impact Based Decision Process Appointment System