© 2005 Carlson Marketing. All rights reserved. 1 Carlson Companies Be Well Engagement Strategy 2007...

© 2005 Carlson Marketing. All rights reserved.

1

Carlson CompaniesBe Well Engagement Strategy 2007

Presented August 2006Updated August 7, 2006


Updated August 7, 2006 2

Be Well Goals and Objectives Be Well Goal

Create a culture of health and well-being, making Carlson Companies a great place for great people to do great work

Objectives Launch four essential segments of health and

well-being at Carlson Personal Health Awareness Health Benefit Solutions Culture of Wellness The Good Life



Be Well Engagement Goals and Objectives Wellness Engagement Goal

Stimulate intrinsic and extrinsic motivation towards healthful living

Objectives In partnership with Carlson Marketing Worldwide,

leverage and expand the existing Carlson Rewards incentive and recognition program to reward employees with valuable Gold Points® for their participation and achievements

Develop a program of incentives that award all participants of the new Be Well program and encourages a healthy lifestyle



Be Well Corporate Alignment Be Well incentives align with Carlson’s enterprise vision, mission and

strategyEnterprise TotalRewards Be Well Incentives

Visio

n

To become the most respected private company on earth

To be valued as experts providing TotalRewards solutions that drive achievement of business objectives

To create a culture of health and well-being, making our company a great place for great people to do great work

Missio

n

Building Better Relationships

To provide TotalRewards solutions across the enterprise that attract, reward, retain and motivate great people to do great work

To stimulate intrinsic and extrinsic motivation toward healthful living

Strateg

y

Build the Team

Satisfy the Customer

Deliver our Family of Businesses

Work Smarter, not Harder

TR expertise

TR portfolio

TR design

TR service delivery

TR technology

TR communication

Carlson Rewards incentive and recognition platform

Gold Points currency



Be Well Program Engagement Program Engagement Opportunities

CareAllies Smart Steps Chronic Condition Management Asthma Heart Disease Diabetes Pulmonary Back Pain Targeted such as Stomach, etc.

CareAllies Lifestyle Management Smoking Cessation Weight Management Stress Management

CareAllies Health Coach Available to employees at risk



Be Well Program Engagement Program Engagement Opportunities

CareAllies Health Assessment Carlson Companies Healthy Living Educational

Activities Carlson University Courses Brown Bags Webinars Special Events Guest Speakers Evening Out Sessions Hennepin Health Series New Moms and Dads



Be Well Engagement Program Assumptions Incentive Best Practices for Chronic Condition and Lifestyle

Management and Health Coaches Award at the start of program Smart Steps Chronic Condition Management: Ongoing and no end date for

incentives Based on behavior modification models, awarding at specific intervals garners the greatest

success

Lifestyle Management: Timed with ending date Award at the end of the program, regardless of how long the agreed upon program takes to

complete Stress Management 4 - 6 months Weight Management 6 - 12 months Smoking Cessation 6 - 12 months

Health Coach: Timed with ending date Typically 4 - 6 months

Based on participation and not outcome Maintain equity of incentives, avoid value judgments on which programs

should get “more” or “less” points Applies to both self-referred and program driven participants



Be Well Engagement Program Assumptions

Projected Participation Rates 12,620 total employees (including Navigant & CHW

Managed Hotels) 9,700 employees projected to sign up for benefits Smart Steps Chronic Condition Management only open to

benefits enrolled employees Lifestyle Management and Health Coach open to entire

employee population

15% or 1,455 (15% of 9,700 enrolled) employees are impacted by the disease states covered in Smart Steps Chronic Condition Management

60%, or 873 will work with a Chronic Care Coach




23% of Americans smoke, or 2,903 Carlson employees could take the Smoking Cessation program via Lifestyle Management

64% of American’s are obese, or 8,077 Carlson employees could get involved in Weight Management via Lifestyle Management

10% of American’s are stressed, or 1,262 Carlson employees could get involved in Stress Management via Lifestyle Management

Lifestyle Management maximum potential employee participation is 12,241

Assuming 25% participation brings total to 3,060 employees who begin the program




Health Coach maximum potential employee participation is 12,620

Assuming 60% qualify (7,572) and 30% participate, it brings the total to 2,272 employees

Assuming Health Assessment maximum potential employees is 12,620

Approximately 60% will fill out the assessment with an incentive (only 15-20% with no incentive), or 7,572

Carlson Companies Healthy Living Educational Activities will have 25% participation

Total projected employee participation at 25% is 3,155 Employees will take an average of three activities, with

approximately one points based activity



Be Well Engagement Recommendations

Smart Steps Chronic Condition Management 50,000 points start of ongoing program 2,000 points each month in program

Lifestyle Management 25,000 points start of timed program 50,000 points upon graduation from program

Health Coach 25,000 points at start of program 10,000 points upon graduation from program




CareAllies Health Assessment 20,000 points for completion of HA Sweepstakes for five $100 gift cards for people

who agree to be contacted by a Health Coach Positively kick off new Be Well program Provides catalyst for employees who want to live healthful

lives Great offer to employees as part of their overall health benefit

package Leverage in attracting talented employees




Carlson Companies Healthy Living Educational Activities

Online Learning Opportunities, two per month 2,500 points for completion Hennepin Health Series, Carlson University, Webinars For example, How to be a Healthy Consumer, How to Chose a Doctor Q4 2005 – Navigant Carlson University classes Logistics for providing points outside Carlson University to be

determined

Brown Bags, one per month Merchandise giveaways, such as pedometers, water bottles and

magnets Tap into vendors and operating groups, such as CMW Merchandise

Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.




Special Events, two per year Sweepstakes drawing for attendees Kick-off of Be Well launch and Town Halls for Fall 2007 new

benefits Work with partners to secure trips, free hotel stays, luggage,

grills, etc.

Guest Speakers, two per year Sweepstakes drawing for attendees Work with partners to secure trips, free hotel stays, luggage,

grills, etc.




Evening Out Sessions, one per quarter Giveaways at session, such as pedometers, water bottles and

magnets Tap into vendors and operating groups such as CMW

Merchandise Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.

New Moms and Dads Giveaways at session, such as pedometers, water bottles and

magnets Tap into vendors and operating groups such as CMW

Merchandise Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.



2007 Be Well Engagement Costs Cost Rate of Gold Points: $.0018 per point

Transfer rate, no mark up

Smart Steps Chronic Condition Management – 873 employees 50,000 points (start of program) X 873 = 43,650,000 points or $78,570 2,000 points (monthly) X 873 = 1,746,000 points X 12 = 20,952,000 points

or $37,714 Total Projected Cost: $116,284 $133.20 per participating employee

Lifestyle Management – 3,060 employees 25,000 points (start of program) X 3,060 = 76,500,000 points or $137,700 50,000 points (graduation) X 3,060 = 153,000,000 points or $275,400 Total Projected Cost: $413,100 $135 per participating employee



2007 Be Well Engagement Costs Health Coach – 2,271 employees

25,000 points (start of program) x 2,271 = 56,775,000 or $102,195

10,000 points (graduation) x 2,271 = 22,710,000 or $40,878 Total Projected Cost: $143,073 $46.76 per participating employee

Carlson Companies Healthy Living Activities – 3,155 employees

2,500 average points X 3,155 = 7,887,500 or $14,198 $4.50 per course per participating employee



2007 Be Well Engagement Costs Health Assessment – 7,572 employees

20,000 points X 7,572 = 151,440,000 points or $272,592 Plus $500 for Sweepstakes, and $8,000 for set up of

promotion $281,092 total cost $37.28 per participating employee

Miscellaneous bucket recommended for responding to Be Well needs throughout the year, i.e. if momentum begins to slow down, initiate a promotion or activity

50,000,000 points or approximately 4,000 per employee (12,620) totaling $90,000

$7.13 per employee



2007 Be Well Engagement Costs Sweepstakes Opportunities – Best Practices

Participate and Win: Sign up for one activity or program with the Be Well program in 2007 and be entered to win a full year Health Insurance covered by Carlson Companies

Cost approximately $8,000 for Sweepstakes and cost of one year insurance coverage

Grand Total without Health Assessment $776,654 $61.54 per employee (12,620)

Grand Total with Health Assessment $1,057,746 $83.82 per employee (12,620)



Be Well Measurement

$15,000 budgeted to review the effectiveness of the Be Well program, including incentives

View overall ROI Understand number of points given/cost as

compared to healthcare cost savings



Be Well Incentive Rules Currently Established Rules

Points will not be verified if employee claims that they did not receive their points. CMW will simply add points to the employees total

No limit to the number of points an employee can earn in their entire career at Carlson Companies as associated with Wellness

All point claims are subject to review and verification Carlson Companies reserves the right to change the rules Employees will receive their points once a month Health Assessment payout at the end of submission deadline Employees can sign up for the same Lifestyle Management

program or Health Coach program when a new Health Assessment is complete each year, with no limit



Health Care Engagement Summary2007 Carlson

Incentives

(Per Year)

(Per Person)

Best Practices

(Per Year)

(Per Person)

Best Practice Examples 2007 Projected Eligible Employees and Active Participation Rates

2007 Projected Cost

Health Assessment

$37.28 $50 - $500 Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts

100% of total population

60% actively participate

$281,092

Chronic Care Management

$133.20 $200 - $600 Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts

15% of benefits enrolled population qualify


$116,284

Lifestyle Management

$135 $75 - $300 Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts

23% smoke, 64% obese and 10% stressed of total population qualify


$413,100

Health Coach $46.76 $50 - $100 Rewards 60% of total population qualify


$143,073

Carlson Healthy Living Activities

$4.50 $150 - $300 Wellness Credits, Health Club Subsidies, Cash, Sweepstakes

100% of total population


$14,198

Miscellaneous Bucket

$7.13 TBD $90,000

Sweepstakes $8,000

Set Up

Averages 5-10 per year

Free Medical Coverage, Hotel Stays, $50 Gift Certificates

© 2005 Carlson Marketing. All rights reserved. 1 Carlson Companies Be Well Engagement Strategy 2007...

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