Talking Points, Bay Cruise, Cliff Dodd, CIO

Event: Bay Cruise Celebrating Successful October MMA Release Date: Thursday, October 13, 2005 Speaker: Cliff Dodd, CIO and CAO Themes: Unprecedented methodologies brought sweeping change to make order out of chaos

These unprecedented methodologies will shape the way KP does business in the future Understanding of the scope of the project done in a highly compressed time frame Success of October implementation was flawless There is as much ahead of us as behind us

Talking Points:

Welcome aboard the Cabernet Yacht. You definitely deserve a break. Between all of you, you have already logged 40,000 hours towards this project.

With the enormity of the MMA project, we saw a cross-portfolio team from KP-IT and business people work together to complete the largest single initiative KP history.

Had these cross functional teams not done all the requirements well, the ASM team would not have been able to achieve testing in such a short time frame, and wouldn’t have made the first implementation date.

Of course, a “single initiative” is really a complicated, multi-faceted project with 27 separate work streams and literally hundreds of business development requirements to define and implement it. This required unprecedented cooperation and teamwork, and a new way of thinking about the way we work.

For this, we implemented revolutionary new cross-functional methodologies that allowed for a tremendous amount of work in a very compressed time frame.

These methodologies that you pioneered will be a model for the way KP does business in the future.

An example of how cross functional teams working together with such tools as Borland and ASE include the BI and Pharmacy Teams, who were able to help business storyboard the information, so everyone had the same information needed to test.

On October 9, the first Foundations System implementation went into effect, virtually defect –free. The work has continued, non-stop, from there. The project management has so far been flawless, and that is a testament to your professionalism and dedication.

Moving On:

Right now, a lot of work is going on in test planning. The short time frames continue, and although I know this is not the ideal situation, I am fully confident in your abilities to carry on in this new cross-portfolio environment.

Next week, we roll out the Common Membership implementation in the other regions. We have a lot of work ahead of us on with every aspect of MMA, and I want to take this time to recognize your efforts and to thank you for all your hard work thus far.

I want to take the opportunity here today to speak with you about how you think things are going, hear about some of the challenges you are facing, and to hear it directly from you if there is some way the KP-IT leadership team can better support your efforts. We’re on this voyage together, and as you know, cross-portfolio communication is crucial. So I look forward to speaking with you as we cruise the bay today. Thank you for coming and thank you again for the tremendous hard work you are doing.