Program Manager’s Meeting 2007
Slide 1
McKesson Specialty
McKesson Empowering Health Care
McKesson Specialty Overview

Slide 2
Our Business Today
McKesson Pharmaceutical
•	Number 1 in United States, Canada, and Mexico
•	Large Rx repackaging
•	Leading generics provider
•	Number 1 in retail pharmacy automation
•	Specialty distribution and patient services for manufacturers
•	Number 1 in medical management software and services for payors
•	Number 1 in disease management for Medicaid agencies

McKesson Medical Surgical
•	Number 1 in primary care
•	Number 1 in extended care
•	Total supply solution in acute care
•	Private label product offerings
•	Rapid growth in physician office pharmaceuticals and equipment

McKesson Provider Technologies
•	63 percent of health systems
•	51 percent of hospitals with 200 plus beds
•	Leader in clinical, revenue cycle, and resource management solutions
•	More “Best in KLAS” products than any other vendor
•	Number 1 in robotic hospital pharmacy dispensing
•	Number 1 in bedside scanning

Slide 3
Voice of Customer:  We’re Hearing You

Voice of Customer:  
Distribution Accuracy
Responding Action:	
•	Increased Staffing and Senior Management
•	Quality Control Checks and Audits
•	Re-configured Pick, Packs Ops
•	UPS 1079 Compliant
•	Six Sigma Quality Practices

Voice of Customer:
Chemical Monitor Implementation
Responding Action:
•	Multiple monitors utilized
•	Implementing November 7
•	117k Total Doses Returned YTD – 0.244 percent – Returns from Monitors

Voice of Customer:
Split Shipment Management
Responding Action:
•	Master Packing List
•	Enhanced Picking – Staging Process – Maximize Cube Space
•	Reduction in Number of Boxes
o	Implemented add ional box sizes
o	Boxes per order has dropped from 1.51 to 1.06

Voice of Customer:  
Customer Service
Responding Action:
•	Single Channel Service Requests
•	Technology Utilization
•	Best-in-Class Metrics Reporting
•	Enhanced SOP’s and Scripting

Voice of Customer:
Communication Strategy
Responding Action
Shipping Log Reports
Welcome packet Development and Enhanced “Go Live” Process
Surveys, Developing e-Newsletter
Slide 4
Daily Operations Quality Check
Quality Control Checks

Date:  October 22
Checks: 182
Lines: 844
Defects: 2
Monitor: 0
Ice: 0
Packout 2:
Paperwork: 0
Accuracy Percent: 98.90 percent
Accuracy Lines Percent: 99.76 percent

Date: October 23
Checks: 252 
Lines: 1518
Defects: 0
Monitor: 0 
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent 100 percent:
Accuracy Lines Percent:  100 percent

Date: October 24
Checks: 212
Lines: 984 
Defects: 1
Monitor: 0
Ice: 0
Packout: 1
Paperwork: 2
Accuracy Percent: 99.53 percent
Accuracy Lines Percent: 99.90 percent

Date: October 28
Checks: 227
Lines: 1089
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: October 29
Checks: 201
Lines: 1006
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: October 30
Checks: 186
Lines: 1051
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: October 31
Checks: 116
Lines: 336
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: November 1
Checks: 117 
Lines: 359
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: November 3
Checks: 319
Lines: 1024
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Date: November 4
Checks: 190
Lines: 726
Defects: 0
Monitor: 0
Ice: 0
Packout: 0
Paperwork: 0
Accuracy Percent: 100 percent
Accuracy Lines Percent: 100 percent

Totals:
Checks: 2062
Lines: 8937
Defects: 3
Monitor: 0
Ice: 0
Packout: 3
Paperwork: 2
Accuracy Percent: 99.85 percent
Accuracy Lines Percent: 99.97 percent

Slide 5
Flu Performance    (As Noted at EOB on Nov 6th, 2007)
New Expedited Service 
•	3,985,040 Flu Doses Shipped
•	4,222,016 Flu Doses Ordered
•	1,824,940 Flu Doses Remaining in Inventory
•	3,180 Total Flu Doses Returned to Memphis

Slide 6
Customer Operations Overview

Slide 7
Customer Operations Key Developments – Senior Leadership & Philosophy
Tom Hart – Senior Director of Customer Operations 
•	20+ Years Experience with Customer Operations & Customer Service
•	Key Contributor with Implementation of “Best in Class” Metrics (Purdue Certification) at McKesson US Pharmaceutical and McKesson Pharmacy Systems
•	Senior Leader & Key Sponsor for Customer Service Alignment and Technology Initiatives in Customer Operations
Jennifer Boss – Manager, Customer Care
•	Customer support staff for McKesson Clinical Team
•	McKesson Specialty Distribution STORM Admin and Trainer
•	Joined the Lewisville team focused on process improvements, issue resolution and technology
“Customer First” Philosophy
•	Remove Guesswork – Empower CSR’s to Resolve Issues at Time of Call
•	Create a “Bullet Proof System” that enables anyone at anytime to receive calls and empowers them to deliver resolutions
•	Enhanced Standard Operating Procedures
•	Standardized Scripting and Messaging
•	Report, Measure and Improve

Slide 8
McKesson Specialty defines customer service as:  “Customer Service is the ability of an organization to constantly and consistently exceed the customer’s expectations”

Slide 9
Where have we been?

Project Ambassadors:
•	Designed and implemented as administrative staff to track and escalate the disposition of packages en route.
•	Take phone calls, voice mail and email and escalate to DC for resolution
No single point of contact (SPOC)
No clear escalation path
Lack of responsiveness
Little to no follow up

Slide 10
How did that look?

Grantee to Project Ambassadors
Grantee to public – Is anyone out there?
Grantee to Client Exec
Grantee to Distribution Staff
Grantee to CDC

Slide 11
Where are we headed?
Meeting & Exceeding Expectations
•	Customer Service:
−	Empowered with tools, SOPs and authority to resolve issues for Grantees on the very first telephone call
−	Act as the advocate for the Grantee and Provider, owning issues from inception to resolution

Slide 12
What does this look like?

CDC Consolidated Customer Care team
Grantee 
CDC Customer Care
CDC Dedicated Customer Care Rep
CDC 2^nd Level Support
Escalate
Client Exec
CDC 
Distribution Center Staff

Benefits
•	A Single Point of Contact (SPoC)
•	(877)VAC-PRGM or 
•	CDCCustomerService@McKesson.com
•	Clear accountability for reported issues
•	Ability to reporting, measuring and improving

Slide 13
Customer Operations Re-Org

Re-aligned CDC Project Ambassadors from an administrative Group to Customer Service Representatives, under Customer Care
•	Formerly Project Ambassadors are now Customer Service Representatives
•	Empowered to resolve issues at time of call rather than facilitate issue resolutions
•	Added two new CSR’s to the group

Tom Hart, Customer Operations, manages Trish Patton, Support Services
Trish Patton, Support Services manages:
Credits
Returns
Contracts
Debits
New Accounts Team
Inventory 
Drop Ships

Tom Hart, Customer Operations, manages Jennifer Boss, Customer Care
Jennifer Boss, Customer Care, manages:
Buy and Bill
Preferred Account
CDC - Moving the team to Customer Care brings a new focus

Tom Hart, Customer Operations, manages Open Program Management
Under Open Program Management there is:
Project Management 
Reporting/Analysis

Slide 14
Escalation Path

Who do I call in the event the new model is failing my expectations?

Start Here:
Jennifer Boss, Customer Care Manager
Jake Frost, Client Exec
Tom Hart, Sr. Director of Customer Ops
CDC

Slide 15
Customer Operations Key Developments – Technology and Customer Service Alignment

Technology
•	100% of Calls logged in Share Point as of Oct 1st
•	Capable of Delivering Key Customer Operations Metrics
−	Issues by Category; by CSR; by Project; Created over Date Range
•	STORM “Go-Live” Projected for Mid-December
−	Escalation Tracking; Mean Time Resolution; 1st Call Resolution; Re-Open Rate; Temp Monitor Reporting
•	Internet Protocol Call Center Manager 
−	Average Wait Time
−	Abandon Rate
−	Speed of Answer
−	Talk Time

Slide 16
Key Metrics

Data retrieved from Oct 15th – 31st 

Service Level (Average Speed of Answer): >=80% calls answered in 30 seconds or less:  Previously not measured
Answer rate:  >=95% calls answered: Previously not measured
Time to resolution: Issues Previously not resolved on first call: Previously not tracked
First call resolution: >=98% of total tickets logged: Previously not tracked
Capture rate: >=96% of total Telephone Calls: Previously not tracked
Total Call Volume (email & telephone): Previously not tracked

Slide 17
Service Request Data

Slide 18 
Top 10 Contacts by Grantee

California around 135 contacts
Texas around 90 contacts
New York City around 60 contacts
Pennsylvania around 58 contacts
Virginia around 50 contacts
Washington around 45 contacts
Indiana around 42 contacts
Tennessee around 40 contacts
Maryland around 38 contacts
Rhode Island around 34 contacts

Slide 19
Contact Volume Trend by Grantee

California 
June around 23
July around 23
August around 16
September around 38 
October around 38
Total around 138

Texas
June around 4
July around 4
August around 2
September around 55
October around 35
Total around 100

New York City
June around 16
July around 16
August around 7
September around 8d
October around 16
Total around 63

Pennsylvania
June around 10
July around 10
August around 8
September around 10
October around 20
Total around 58

Virginia
June around 15 
July around 7
August around 8
September around 15
October around 15
Total around 50

Washington
June around 10 
July around 6
August around 10
September around 8
October around 11
Total around 45

Indiana
June around 11 
July around 13
August around 6 
September around 8
October around 5
Total around 43

June around 8
July around 8
August around 10
September around 3
October around 14
Total around 43

Maryland
June around 10 
July around 4
August around 10
September around 6
October around 13
Total around 43

Rhode Island
June around 8
July around 8
August around 2
September around 4
October around 16
Total around 38

Slide 20
Top Ten Contacts by Category

June to October 18^th
Box Returns around 310
Tag Alert around 130
Other around 120
Order status around 105
Delivery exceptions around 50
Kool Watch around 40
Missing Product around 25
Complaint around 20
Shipment error around 10
Warehouse error around 10

Slide 21
Top Issue by Grantee

Grantee: California
#1 Issue: Return Boxes
#2 Issue: Temp Monitors
#3 Issue: Order Status

Grantee: Texas
#1 Issue: Temp Monitors
#2 Issue: Return Boxes
#3 Issue: Delivery Exceptions

Grantee: New York City
#1 Issue: Return Boxes
#2 Issue: Split Shipments
#3 Issue: Temp Monitors

Grantee: Pennsylvania 
#1 Issue: Return Boxes
#2 Issue: Split Shipments
#3 Issue: Delivery Exceptions

Grantee: Virginia
#1 Issue: Return Boxes
#2 Issue: Delivery Exceptions
#3 Issue: Order Status

Grantee: Washington
#1 Issue: Return Boxes
#2 Issue: Order Status
#3 Issue: Temp Monitors

Grantee: Indiana
#1 Issue: Return Boxes
#2 Issue: Temp Monitors
#3 Issue: Order Status

Grantee: Tennessee
#1 Issue: Temp Monitors
#2 Issue: Return Boxes
#3 Issue: Order Status

Grantee: Maryland
#1 Issue: Return Boxes
#2 Issue: Order Status
#3 Issue: Temp Monitors

Grantee: Rhode Island
#1 Issue: Return Boxes
#2 Issue: Order Status
#3 Issue: Delivery Exceptions

Slide 22
Email Contacts – Oct 1st – 18th 
114 Contacts

4 percent were internal
20 percent were site
76 percent were grantee

Slide 23
Email Contacts Resolution Rate

Grantee
Incoming Email: 86
Total Resolved: 35
Resolution Rate: 40 percent

Site
Incoming Email: 22
Total Resolved: 19
Resolution Rate: 84 percent

Internal
Incoming Email: 5
Total Resolved: 5
Resolution Rate: 100 percent

Slide 24
Transition timing
Transition from administrative support team to CDC dedicated customer care group:
•	Organizational restructure: Complete Oct 6th.
•	Cisco Phone implementation: Complete Oct 15th.
•	CRM implementation: Mid Dec.
•	Enhanced SOPs: Mid Dec.
•	Data reporting: Mid January
•	Customer Service Rep training: Ongoing

This document can be found on the CDC website at:
http://www.cdc.gov/vaccines/programs/vmbip/downloads/prog_mgrs_mtg/mckupdate-07-mtg.rtf