1. Los 20 Mejores Patronos
en Puerto Rico
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
2. Today’s Goals
Describe Engagement and Why It’s Important
Discuss Findings from our Best Employer Research
Employee Benefits: Market Practice and Trends Recommendations
Communications: Bringing it all To Life
Next Steps
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3. A Global and Local Perspective
of Engagement
Engagement and Best Employer
studies with over 5,000 organizations
Conducted Engagement Research in
80 markets, 60 industries, and 40+
languages
150+ organizations in Puerto Rico
(41,000+ employees)
Our solid experience and proven
methodology: 65+ years of experience
in HR consulting, 30+ years of
experience in employee surveys
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4. What is Engagement?
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
5. Engagement is…about Results
Higher
Business Results
Positive Correlation to Business Performance
The extent to which people will
Engagement act and intervene to improve
business results
Commitment The extent to which people want to
contribute to business success
Satisfaction The extent of people’s approval of
their employer
Lower
Hewitt’s Employee Research Over Time
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6. Six Categories Drive Employee Engagement —
Experiences that Influence Engagement Behaviors
Drivers Engagement
People Work
Senior Leadership Work Tasks SAY
Manager Sense of Accomplishment
Co-Workers Resources
Valuing People Process
Engagement
Total Rewards Opportunities
Career Opportunities STAY
Pay
Benefits Learning and Development
Recognition
Company Practices Quality of Life
Communication Work Life Balance
Performance Assessment Physical Work STRIVE
Company Reputation Environment
Employee Perceptions Behaviors
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7. Why is Engagement
Important?
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
8. The Engaged Associate Adds More Value
Companies With Engaged Employees Report…
Growth in
employee productivity
Recruitment Higher profitability
costs 55%
Higher
lower
customer loyalty
Turnover down $3,800 more
40% to 50% profits per employee
$80,000–$120,000
additional revenue
per month
$18,600 more
market value per
employee
Source: Impact of Engaged Employees on Business Outcomes; Ongoing Employee Engagement Research, Hewitt Associates, 2005
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9. Best Employers Attract and Retain More Employees
Best Employers have higher Engagement
scores
Best Employers have significantly lower levels
of turnover:
“Being a Best
– Asia: 40% lower Employer is worth
$75 million annually
– Australia: 45% lower
in recruiting,
– Canada: 54% lower retention, and
productivity gains.”
– Europe: 30% lower
—Scott McNealy
– U.S.: 50% lower Sun Microsystems
– Puerto Rico: 32% lower
Best Employers have larger pools of talent—
nearly twice as many applications per employee
in most studies
Source: Hewitt Best Employer Studies
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10. What We Learned from Our
2009 Best Employer
Research in Puerto Rico
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
11. What Differentiates the 20 Mejores Patronos?
Senior Leadership
– Leaders:
> Hold a deep belief that people are their greatest asset
> Deliver on their promises to their employees
> Are champions of their organization’s values
> Create a compelling picture of the future
> Instill a culture of accountability
> Grow and stretch their people
> Are open and involved
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12. What Differentiates the 20 Mejores Patronos?
Well defined communication strategy
– In a monthly basis the Mejores Patronos informed their employees of:
> Business goals/objectives
> Organizational operating results
The Mejores Patronos provide different tools to continually listen to their
employees, such as;
Los 20 Mejores The Rest
Employee surveys 100% 83%
E-mails from the highest executive of the organization 95% 67%
Employee focus groups 75% 40%
Formal employee suggestion program 80% 40%
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13. What Differentiates the 20 Mejores Patronos?
Performance Management Process
– 75% of the Mejores Patronos link performance process results to pay –
moving toward a pay by performance organization
– Frequent management training about performance management
process
– 80% of the Mejores Patronos include leadership competencies as part
of the performance management process
– Between 25% - 75% of a leader’s performance assessment is based
on their ability to develop leaders for 70% of the Mejores Patronos vs
31% of the Rest
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14. High Performance Workforce
Index and Alignment
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be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
15. The Business Case for Building a High Performance
Workforce is Strong…
…We don’t have to look far for
the reasons this matters
People Who Are…Focused
Accountable
Achieving
Everyone focused Energized
on the right priorities,
feeling accountable to deliver Engaged
great results, energized and engaged
and equipped to give their best, and Skilled
building skills important for growing the business
Growing
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16. Hewitt’s Performance and Development Framework
Across the organization, we have to get four things right:
Accountability Rewards
High-Achievement Trust Ratings That
Goal-Setting Send the
Performance Authentic, Right
Coaching Business- Messages
Focused Rewards That
Conversations Motivate
Opportunity
Growth Built Into Every
Job
People Directed Toward
Future-Critical Skills …Sustainable high
performance requires manager
capability in these essentials
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18. Trust
Accountability Accountabilty
Reward
Opportunity
80%
60% 65%
47%
We set aggressive goals Managers are provided
at all levels of the with the tools and
organization training to set
aggressive goals that
will have a positive
impact in our business
results
20 Mejores Patronos Rest
20 Mejores Patronos 2009 PPI
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19. Trust
Opportunity Accountabilty
Reward
Opportunity
70% 70%
57% 60%
43%
33%
We have identified and All our employees have We provide employees
provide training in skills the opportunity to learn with many opportunities
required for the future new skills and grow in to grow and learn
success of our their current jobs without relying on
organization promotions
20 Mejores Patronos Rest
20 Mejores Patronos 2009 PPI
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20. Trust
Accountabilty
Reward
Opportunity
Rewards Trust
90%
63%
50%
27%
A significant portion of Our people practices
people manager's make it clear to
reward is based on the employees that they are
capability to develop this organization's most
people valued assest
20 Mejores Patronos Rest
20 Mejores Patronos 2009 PPI
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21. Additional Key Findings
Benefits: Employee satisfaction 92% Regular employees
Best Other Orgn's
Medical insurance 100% 100%
Prescription drug coverage 100% 100%
Employee assistance program 100% 100%
Dental plan 100% 100%
Group life insurance paid by employer 100% 100%
Accidental death and dismemberment insurance paid by employer 100% 100%
Business Travel Accident Insurance (BTA) 100% 100%
Short-term disability (additional to SINOT) paid by employer 100% 100%
Long-term disability paid by employer 100% 100%
Medical insurance for retirees paid by employer 100% 100%
Other (Specify) 100% 100%
Communication: Employee satisfaction 84%
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22. Employee Benefits
Market Practice and Trends
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
23. 2009 Benefit Survey
Findings
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
24. 2009 Survey Findings
Retirement and healthcare are the benefits with the higher price tag. Not
surprisingly, these reported the most significant changes since last survey
was conducted in 2007
Retirement Benefits
– A number of defined benefit plans were either “frozen” or modified since
2007.
– Over 90% of the companies reported a defined contribution plan. This
represents an increase of approximately 5% compared to the 2007
survey results.
– Employers continue changing the define benefit formulas or replacing
these plans with non-contributory defined contribution plans or “hybrid”
pension plans.
Healthcare Benefits
– The average copays and coinsurances have increased slightly since the
2007 survey was conducted.
– Employee contributions have increased significantly since 2007. These
increases range from 32% to 58% depending on the tier coverage.
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25. Additional findings
Benefit costs continue to be a top three expense for most organizations,
yet many do not have metrics to measure their actual of perceived value.
Employers have to think through what are the appropriate benefit changes
to achieve benefit cost reductions and optimization at a time when some of
these changes may be inadvisable since the employees are feeling the
impact of the global economic situation.
As health care costs continue to rise in this struggling economy, employers
are challenging employees to take more responsibility for healthy
behaviors and retirement saving.
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26. Emerging Trends in HR
and Employee Benefits
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
27. Wellness / Disease Management Initiatives
Like it or not, people frequently don’t do what will help them stay healthy
and live longer.
In our most recent survey 2009 The Road Ahead: Emerging Health Trends,
“Promoting employee accountability” was ranked the number one health
and prevention component of organizations’ health care strategy in 2009.
Our biggest challenge: About half of eligible employees participate in
health promotion program activities when they are presented at the
worksite. That number declines unless significant effort is expended to
enhance participation using a range of different incentive and engagement
strategies.
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28. Wellness / Disease Management Initiatives
An effective wellness initiative requires a new approach. It should
consider the following:
Design an incentives program. Research the population in order to
structure incentives to be complementary to the desired behavior;
– Ensure balance between incentives that change behavior and those
that give away the potential ROI.
– Rewards or incentives should be focused on participation rather
than on results or outcomes.
Provide two-tiered incentives (for initial and ongoing participation);
Communicate the rationale; use at least three different communication
channels and forms during the year; and share participation results at
the end of the incentive cycle;
Compliance with HIPAA and ADA. As a general guideline, employers
can avoid discrimination and fulfill compliance with incentive programs
that are both voluntary and targeted toward behavior versus health
status.
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29. Wellness / Disease Management Initiatives
Examples of incentives that could be used include:
Entering employees into a raffle,
providing a monetary bonus,
providing health coverage credit,
and providing other wellness incentives such as gift certificates.
Measurement is the basis for success! Continually review the
incentive program for maximum effectiveness.
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30. Pharmacy Purchasing Groups
Purchasing groups give mid-sized employers access to the same deeply
discounted pricing usually afforded only to the very largest companies–
while offering a full range of quality guarantees and consulting services to
ensure the highest standards for your pharmacy benefits.
Main features:
Include a complete set of rigorous vendor guarantees for financial and
service performance.
Client retains complete flexibility of plan design, including utilization
management programs like prior authorization and step therapy.
Expected savings of 7% – 10% off current net plan costs
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31. Benefits competitiveness and perceived value
Quantitative assessment of value relative to the market
By what percent does each benefit and the aggregate exceed or fall short
of the market?
How many are richer and how many are less rich?
What programs are provided by each of the competitors?
What specific plan features are found in the market place: e.g., what do
the other companies require for prescription copays?
What would happen to the values if plan changes were implemented?
Employee perception
Assess employees’ awareness, understanding, and perception of
adequacy and competitiveness of both the overall benefit plan and each
key component.
Assess employee readiness in the areas of health/well-being and
retirement.
Through these type of analysis employers understand the current value of
the benefits package offered to employees and define its future direction.
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32. Flexible work arrangements (FWA)
Volatile economic factors, the effect of a long-term recession, as well as
new legislative proposals are leading employers to re-think how work is
performed and delivered.
What are the options?
Compressed workweeks: Working a full-time schedule in fewer than five
days in a week or ten days over two weeks.
Flextime: Varying the start and end time of a standard day around core
hours either on a regular basis or adjusted daily.
Part-time: Working less than a full-time schedule with a corresponding
reduction in pay and benefits.
Phased Retirement: Working part-time or stepping down to less
responsibility in preparation for retirement.
Virtual Work: Working in an entirely goal-driven environment with no
defined work schedule or workplace. In this arrangement, there is no
requirement to be anywhere at any time, the only focus is on results.
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33. P. De la C. 2218
A bill was recently introduced to allow flexible work arrangements based on
a compressed workweek.
If approved, employees and employers will be able to mutually agree on a
work arrangement in based on a compressed workweek schedule. Under
such arrangement:
The workweek will not exceed 40 hours; daily working hours must not
exceed 10 hours
Hours worked in excess of 10 hours a day will be paid at 1.5 times pay
Hours worked in excess of 12 hours a day will be paid at 2.0 times pay
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34. FWA – Additional considerations
The bottom-line is that FWA benefit both employees and employers.
Nearly 80% of workers say they would like to have more flexible work
options and used them if there were no negative consequences at work.
FWAs are not about working less, but about working differently.
The organization must have a performance/goal driven culture in order to
be able to implement these arrangements successfully.
FWA programs must be formalized and clearly communicated to
employees.
Document and measure success by establishing ROI metrics and link
FWAs to prove the business results.
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35. Change is in the Air – The Health Care Reform
There are growing doubts about what benefits the residents of Puerto Rico
and other US territories would see under the healthcare reform legislation
that results from a divided Congress.
The Senate bill excludes Puerto Rico and US territories from the
exchange
The under funding of Puerto Rico’s Medicare and Medicaid programs is
estimated at $2.8 billion annually.
Supporters of the current formula note that most residents of the US
commonwealth do not pay federal taxes.
Proponents of a funding fix say that no Medicaid beneficiaries -- the
country's poorest residents -- pay taxes, and Medicare beneficiaries on
the island pay the same taxes as stateside residents.
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36. Communications
Bringing it all To Life
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
37. The Purpose of Communication — Employee Perspective
Provide education and tools – Promote employees’ sense of
value
Provide timely information
– Maintain healthy levels of noise
Clarify expectations or uncertainty
Increase awareness – Sustain employees focus on
Improve the emotional business
environment Reinforce decision to join and
– Increase job remain with the company
satisfaction/morale
Employees expect communication to be
honest, thorough, understandable and relevant.
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38. The Purpose of Communication — Employer Perspective
Reinforce mission, vision, values Change/set proper employee
and culture attitudes and behaviors
Pave the way for program goals – Change any entitlement
mentality
Align administration processes
– Increase employee
Comply with legal requirements appreciation
Improve utilization or programs = – Establish and sustain a sense
improvement in ROI of equity and efficiency
Increase understanding and Set the ground for a trustworthy
responsiveness relationship
Improve productivity Helps ensure there is a proper
change management process in
place
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39. The Purpose of Communication — Change Management
Defined
Change management is the planning and execution
of activities that ensure a workforce is
committed, enabled, ready, and organizationally
aligned to implement lasting change
to achieve specific business objectives
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40. Importance of Investing in Change Management
In a study conducted by McKinsey & Co., they examined 40 organizations’
major change initiatives and found an:
ROI of 143% when an excellent change management program was part of the
initiative (translates to 43 cents gain for each dollar invested);
35% when there was a poor change management program or no program at all
(translates to 65 cents loss for each dollar invested);
According to a Harvard University study of 93 companies, a high percentage
of business initiatives fail to achieve their stated objectives for the following
reasons:
Took more time than allocated 76%
Unanticipated problems 74%
Coordination was ineffective 66%
Competing crisis caused distractions 64%
Capabilities of employees inadequate 63%
Insufficient training of participants 62%
Uncontrollable external events 60%
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41. Hewitt 5C Change Management Approach –
A Framework for Producing Results and Sustaining Change
Commitment
■ Clear vision, linked to the business strategy
■ Sponsorship from major stakeholders
■ Ability to influence and partner
Culture
■ Connection to broader business and Communication
organization goals
■ Messages and actions that set the
■ Align leaders’ values & behaviors to right expectations
shape culture
■ Communication at all levels to both
■ Align people policies and programs define and reinforce behavior
to reinforce desired culture
Consequence
Capability
■ Incentives to change and
consequences of not changing ■ New skills and behaviors defined
■ Alignment of performance, reward, and ■ Support of organizational capability with
recognition education, processes, and tools
■ Disable the ability to support old
behaviors
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42. Managing Change to Drive the Right Results – Develop
Strategy and Execute
Commitment – Stakeholder readiness Culture – Honest assessment of
Leadership and employee engagement cultural barriers to change, cultural
Feedback mechanics supports for change and required
organizational alignment
– Lesson Learned: Assume that all
stakeholders have different needs – Lesson Learned: “Culture eats
strategy for lunch.”
Communication – Context setting,
clear messages and a flexible, Consequence – Clear requirements
responsive plan for behavior change, rewards and
consequences for changing or not
– Lesson Learned: Different groups
changing and specific links between
may need different media—one size
pay and performance goals
does not fit all
– Lesson Learned: Behavior
Capability – Employee training,
measurement is labor intensive—it
manager coaching, systems and
requires ongoing monitoring.
process support
– Lesson Learned: Timing is critical—
train “just in time,” and provide the
tools people need
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43. Manage Change at Both the Program and Individual level
Transformation
Transformation • Objective External:
Objective, Facts, tasks Transformation
a different policy,
Program Predictable
(Focus on • Outcome focused process,
View (Focus on • Predictable All People
Business “Same” for structure or
Business • Facts
Outcomes) technology
Outcome) • Reality & Tasks
• “Same” for All People
Transition
Transition • Subjective
Subjective Experience Transition is
Internal:
(Focus on a • Unpredictable & Feelings
Perception internal:
a reorientation
(Focus on • Perception & Feelings
person’s ability a psychological
that people have
Individual
People View Where to • Psychologicalfor All People peoplethrough go
to adjust
“Different”
reorientationto
to go have that
People
change) Experience through
• “Different” for All People How will I be
Are)
impacted?
What is How will I get the
changing? What do you need What’s in it knowledge, skills, and
for me to do? for me? information that I need?
Change Undermines a Person's Sense Of Comfort, Control, & Competence
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44. Change Challenges Clients Typically Face during Transformation
Change challenges / risks clients Hewitt’s recommended best practices
typically experience as result of our client experiences
•Define success as “get the technology up”, Ensure project team and sponsors define success as behavior change
instead of defining success as “end-users
adopted desired behaviors” Clearly define desired behaviors (e.g. “stop/start/continue” doing)
Define and track metrics indicating adoption of desired behavior
Develop “consequence management” plan to encourage desired behaviors
and discourage unwanted behaviors
•Stakeholders, especially managers, are Conduct a stakeholder analysis to understand which and how employees
resistant to the change (e.g. using work- are impacted, their concerns, how to best address those concerns
arounds or continue to use old system), or
have emotional reactions to the change Develop “what’s in it for me” messages tailored to managers and other key
stakeholder groups
Conduct workshop to support “personal transitions”
Develop tailored and timely 2-way communications
•Insufficient engagement from sponsors and Develop strategy for involving sponsors and leaders in leading the change
leaders and holding them accountable for the results
Provide sponsors and leaders with on-boarding and skill-building sessions
Hold regular check-ins with sponsors and leaders
•Insufficient Change Management capability Outline the role and required skills of Change Team members and select
and/or resources on client team and fully staff based on the role profile(s)
Provide Change Team with on-boarding and skill-building sessions
Hold regular reviews of change management lessons learned
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45. Checklist of Actions for Successful Change
Commitment Consequence
Determine the business case for change Review stakeholders
Determine what will change Determine behaviors to stop/start/continue
Engage executive sponsors who own the change
Determine reinforcement mechanisms
Define success metrics
Identify and prioritize specific actions
Create change dashboard
Implement plan
Communication
Culture
Conduct stakeholder analysis
Review change readiness assessment
Define key messages
Identify stakeholder issues that help or hinder
Create communication plan change
Prepare the 60-second speech
Align with organizational structure (if needed)
Evaluate communication effectiveness
Align with selected processes (if needed)
Capability
Redefine jobs to fit the change (if needed)
Identify the roles impacted by the change
Identify change impacts and readiness issues
Identify knowledge/behaviors required
Create a learning plan
Identify timing/sequence for learning
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47. Next Steps
To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
48. Steps to Consider
Leadership Effectiveness Tools
• Prepare managers and direct reports for
their role providing them learning & • Leadership style assessment.
development opportunities that
equipped them to conduct evaluations, • Develop Leadership profile.
feedback discussions and other critical
instructions with their employees. • Work on gap’s between actual and desire
profiles.
• Provide strong vision with clear
business objective. Driving and • Coaching and/or mentoring formal programs.
affirming key messages.
• Build strong leadership pipeline for the
organization.
Tools
High Performance Workforce
• Link individual goals to organizational • Assess Performance Management process
objectives. and keep moving forward to a high
• Reward success; reject mediocrity. performance organization mindset.
• Apply work processes consistently. • High Potential Program.
• Coaching and mentoring.
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49. Steps to Consider
Initiatives: Process/Tools:
Wellness and Disease Management • Population and group utilization assessment.
• Structure incentives to be complementary to the
desired behavior.
• Communicate and measure participation and
results. Share results with the employees.
Pharmacy Purchasing Groups • Evaluate the option of joining a PPG for higher
cost efficiency for your pharmacy benefits.
Assess your benefits program • Measure benefit program alignment against
competitiveness and perceived value market from a quantitative standpoint.
• Identify what specific plan features are found in
the market place.
• Assess employees’ awareness, understanding,
and perception of their benefits and what would
happen to the quantitative value if plan changes
were implemented?
Evaluate work/life balance or similar • Re-think how work is performed and delivered.
initiatives • Assess your organization’s readiness for these
type of changes (i.e. culture, performance
management process).
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