1. CCH Innovation Journey From NoIdeas, To Bright Ideas,To Great ideasJohn J Russo

2. Agenda CCH & Bright Ideas Program Background How We Use Bright Ideas Evaluation Process Promotions, Rewards and Recognition Innovation Lab Challenges 2 3. BACKGROUND 3 4. CCH Company Background CCH is a wholly owned subsidiary of Wolters Kluwer, Inc., a Dutch publishing company Product focus is software and publications for the Legal, Accounting, and Healthdivisions Headquarters are in Amsterdam 22,000 worldwide employees CCH domestic headquarters are in Chicago Our division is TAL - Tax, Accounting, and Legal Offices in Chicago IL, Wichita KS, Torrance CA, Pensacola FL, Renton WA, Totowa NJ, Monsey NY, Denver CO Company mission is to be the premier provider of software and services to Legal andTax community Customer base is law firms, CPA firms (from the Big 4 to single office), Corporations Company goals include increasing organic growth by 4% each year 4 5. CCH Bright Ideas Program Background Why did CCH develop a Bright Ideas Program?Paradigm shift in January 2008 with new upper level managementCompany did not have a vehicle for employee expression for innovationEmployee feedback on engagement survey indicated need for innovative outletCompany wanted to move to a more agile environmentChange process was taking too longNew ideas did not receive any tractionRecognition of innovative thinking was not rewardedProgram of ideation had the full support of top level management Agility, Innovation, CustomerCompany strategy was to move toFocus5 6. CCH Tax and Accountingglobalcentricityintegrated innovative market leader best in class customer-focusedprofessionals first choiceservices productivitytrusted strategic partner software technology leader agilevisionaryprocess-driven award-winning quality 7. CCH Mission Statement Themission of the CCH Bright Ideas program is topromote the expression of ideation and innovation forCCH products, services, and processes by soliciting ideasthat will have a significant impact on CCH business,customers, and employees. CCH values the wisdom of allemployees and provides this forum to gather and shareideas. Mottofor our program is: Inspire Today to TransformTomorrowOur first Bright Idea campaign was to solicit ideas for the motto7 8. HOW WE USE BRIGHT IDEAS8 9. How we use Bright Ideas - Administration Asteering committee of 9 employees composed of a cross section of departments with various expertise. Committee duties are to: Oversee the day to day administration of the program Insure accessibility Promote Campaigns Provide feedback to management Schedule start/stop points for campaigns Evaluate ideas, take ownership, and determine winners One full-time administrator Committee meets weekly to vet and assign owners for ideas Maintains workflow and ensures all ideas are given proper consideration Use Switchboard for maintaining status, ranking, and comments Utilize and maintain a Six Sigma methodology for ranking ideas 9 10. How Bright Ideas is Set Up and Accessed Bright Ideas is accessed through a CCH SharePoint site Have a registered web address CCHBrightIdeas.com for easy access All employees are registered and the site is maintained by the administrator All registered employees can access any active campaign Nocriteria required for submissions, ideas are entered without restriction Campaignsrun for an extended period of time, up to 6 months Mini campaigns run concurrently for a short duration, around 30 days 10 11. Workflow and Status CheckpointsStatus Checkpoints communicated to employees at each stage in process11 12. Switchboard Screen Shot Brightideas Switchboard Screen Shot 12 13. EVALUATION PROCESS 13 14. Evaluation Process Howwe evaluate ideas:Utilize a Six Sigma methodology that rates Impact, Revenue, and RiskImbedded in Switchboard2 levels of evaluation One by a committee member Second by a product or technical Subject Matter ExpertPeer comments and promotions are weighed into decisionsOften have direct contact with the author Approved ideas are given an overall ranking of 1 5Implemented to distinguish ideas that may be a minor, but beneficial change, from high level ideas that have a significant impact 14 15. IDEA Evaluation15 16. IDEA Evaluation Form QuestionsBasicFinancial Impact Assessment Does this idea fit this campaign?* The amount of revenue this idea could potentially generate is: * Has this idea been submitted to Bright Ideas before or is this an existing idea?* Potential hard cost savings achieved by implementing this idea: *Value Assessment Potential cost to implement this idea: * Is this idea customer focused?* Financial Impact Assessment comment: Does this idea create Organic Growth?* Overall Rating Does this idea encompass the areas of Operational Excellence? On a scale of 1 to 5 please give your overall ratingfor this idea. * Is this idea Innovative?* 1 - Very low impact to Low impact 2 Low to Medium impactRisk Assessment 3 - Medium impact 4 Medium High High impact Is there any significant risk involved in 5 - High impactimplementing this idea?* What type of risk is involved in implementing this idea?* Risk Assessment Comments:16 17. PROMOTIONS, REWARDS AND RECOGNITION17 18. Promoting Campaigns CCH is continually inventing ways to promote Bright Ideascampaigns Submissions fall off when focus on promotions is lost CCHcontinuously runs campaigns for topics such as: New Products and Services Process Improvements Mobile Device Going Paperless Good Corporate Citizen Lots of Give-aways: Pens, Memo Pads, Highlighters, Balloons, Food!! 18 19. Rewards and Recognition All Approved idea authors receive an award based on the 1-5 impact rating All levels receive a certificate of appreciation Low level ideas are recognized with a Bright Ideas program hat or shirt Mid level ideas receive a gift card Upper mid level ideas receive $100 cash and a premium parking spacefor a week High level ideas receive $250 and a premium parking space for a week All Approved/Implemented ideas are eligible for a grand prize of $5,000 Winner determined by the committee based on impact of the implemented idea. Impact is measured by revenue or hard cost savings. Company wide award ceremony held to present awards19 20. Promoting Campaigns The Bright Ideas Committee handed out Hershey Bars to all employees. The candy was wrapped in funny promotional wrappers urging employees to submit their ideas.20 21. Bright Ideas Newsletter21 22. Campaign Winners To Date 2009- $5,000 awarded to automation idea that resulted inresource savings of $500,000 2010- $5,000 awarded to new product idea that increasedbusiness in the Insurance market by $100,000 and directlyenabled the acquisition of a competitor Awardceremonies are broadcast company wide with VicePresidents making presentations Numerous smaller ideas approved and implemented thatresulted in process improvements with indirect (soft)savings to the company22 23. Bright Ideas Campaign #2 Award Winner Ceremony 23 24. 2009: One of the Most Innovative in our History Research & GuidanceSoftware & Services IntelliConnect ProSystem fx Tax SaaS IntelliForms ProSystem fx Practice SaaS Over 40 new publishing ProSystem fx Document SaaS products Knowledge Coach KnowledgeConnect PortalsWorkstreamSales & Use Tax(STG) integrations to SAP & Oracle 25. INNOVATION LAB 25 26. Innovation LabNewest addition to CCH innovation programWorking with off shore resources to explore ideas that: Enableopportunities for implementation of innovative ideas in the Bright Idea Program Establish a creative environment Explore, envision, & evaluate strategic technology solutions Leverage domain expertise acquired by Vendor for CCH Continuously improve process & service deliverables Access technology expertise within the Vendor Centers of Excellence Approved Idea in the works - Develop a mobile application for iPhone that will calculate and electronically file a tax return. Blackberry version is next up.26 27. CHALLENGES 27 28. Challenges Keeping the idea pipeline open For the size of our organization we should be getting many more ideas Improving communication with employee community Develop ways to stimulate creative thinking Our participation rate ranges from 4% to 20% of eligible employees. Needs to get to 50%. Great Ideas We havent received any Blockbuster ideas Invoking submission criteria that enhances, not discourages idea submission Eliminate Drive By ideas Seeking Revolutionary vs. Evolutionary ideas Evaluation process We think it could be much better, somewhat stymied with the process and look to improve it Funding It takes money to keep the process moving along CCH is very supportive, that needs to continue Adding more WK divisions to the program There is worldwide interest in the program we currently manage Recently presented to WK WW in Belgium Resources Many good ideas are passed over due to resource restrictions 29. What is Innovation? Video29 30. Ques%ons CONTACT INFO: John.Russo@wolterskluwer.comChristi.Ballard@wolterskluwer.com Alison.Scott@wolterskluwer.com30