The document discusses the importance of organizational culture and team member engagement for business success. It notes that: 1) Strong, enduring culture is now a key success factor alongside other differentiators like products and markets. 2) Engaging the changing workforce, especially millennials, requires adapting attitudes and practices to emphasize coaching, work-life integration, and making an impact. 3) Health Catalyst's culture and engagement efforts have been as important to its success as any other factor, driving results like contract bookings, customer growth, and self-motivated team members.

1. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Culture
and
Engagement:
the New
Success
Imperative
Confessions of a
Recovering Skeptic…

2. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
My Journey…
Chief Financial Officer…
…Chief People Officer
2011 - 2015
103% 114%
2

3. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Three things…
Business success today requires a strong and enduring culture
to complement other differentiating factors such as product, market
position, timing, etc.
The changing workforce requires new attitudes and practices to
effectively engage prospective team members.
Health Catalyst culture and team member engagement
have been at least as important to our success as an organization
thus far as any other factor.
3

4. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
First thing:
Business success today
requires a strong and enduring culture
to complement other differentiating factors such
as product, market position, timing, etc.
4

5. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
What is your Why?
“People don't buy what you
do; they buy why you do it.
AAnd what you do simply
proves what you
believe”
5
-- Simon Sinek

6. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Health Catalyst Mission
Build a great firm
Be the recognized leader in
data warehousing, analytics,
and outcomes improvement
Transform healthcare
Is everything on my priority list each day contributing to at least one of these objectives?
6

7. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Outcomes Improvement
We measure our success in
patient lives saved or improved
by our partner organizations.
It’s why we do what we do
7

8. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential 8
…lives saved from
sepsis, in…
…days.

9. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Smart
Cultural Attributes
Humble
Hardworking
9

10. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Smart
I love to learn and I am a lifelong student
I strive to master new skills quickly with
limited direction
I actively discover and pursue innovative
solutions
I fail fast, recognize my mistakes and
correct them quickly
Smart
10

11. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Hardworking
I make personal sacrifices, as needed, to get the
job done
I pace myself to avoid burnout (this is a marathon
not a sprint)
I stick to the task until the job is completed, then
take on new work
I am willing to contribute more than my fair share
to a project
I recognize that not every part of my job will be fun
Hardworking
11

12. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Humble
I am grateful for what I have
I serve others without looking for recognition
I recognize that good ideas can come from anyone
I assume positive intent
I am open to and respond favorably to feedback and coaching
I am secure in my own abilities (humble self-confidence)
I seek to improve myself before trying to improve others
I ask for help when I need it (its ok to raise the white flag)
I am excited when others succeed and offer sincere praise
I put the success of the company above my own self-promotion
Humble
12

13. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Does Culture Drive Financial
Results?
Revenue growth…
Employment growth…
Stock price growth…
Net Income growth…
13
John Kotter and James Heskitt – Culture and Performance

14. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Second thing:
The changing workforce requires
new attitudes and practices to effectively
engage prospective team members.
14

15. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
How to engage team members?
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
0
50
100
150
200
250
300
350
400
450
500
550
2011 2012 2013 2014 2015 2016
Total Team Members Millenials
26% 26%
27%
35%
39% 40%
0
50
100
150
200
250
300
350
400
450
500
550
2011 2012 2013 2014 2015 2016
Total Team Members Millenials
15

16. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Millennials
By 2020, a full 86 million Millennials will be in the workplace—representing a full
40% of the total working population.
How do Millennials say they like to work?
“It’s a priority for me to make the world a better place.”
“I want a boss to serve more as a coach or mentor.”
“I want “work-life integration,” which isn’t the same as work-life balance.”
16
The Intelligence Group - 2014

17. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential 17
“Today’s organizations live in the Glassdoor era. Every corporate decision is
immediately publicly exposed and debated. Once-private issues are are now posted
online for every employee--and every potential employee--to read. An organizations
culture—which can be loosely defined as “the way things work around here”—is
increasingly visible for all the world to see… an organization’s culture cam become a
key competitive advantage,or its Achilles’ heel.
Culture and engagement are now business issues... and there’s no place for
organizations to hide.”
Global Human Capital Trends 2015, Deloitte University Press

18. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Does Engagement Drive Team Member Results?
With strong engagement, your team members are more likely to:
Stay at work late if something needs to be done after the normal workday ends…
Help someone at work even if they don’t ask for help…
Do something good for the company that is not expected of them…
Recommend that a friend or relative apply for a job at their company…
18
Temkin Group 2015

19. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Third thing:
Health Catalyst culture and team member engagement
have been at least as important to our success
as an organization thus far as any other factor.

20. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Team members engage each other
20

21. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Team Members Self-Motivate
21
Before
joining
Health
Catalyst,
my
body
had
been
on
a
long
slow
road
of
neglect
and
degrada9on
over
the
space
of
about
10
years…
...it
was
to
the
point
where
I
could
not
9e
my
shoes
without
geBng
red
in
the
face
from
held
breath
and
strain…
Health
Catalyst's
Get
Fit
Stay
Fit
challenges
have
added
some
much-­‐needed
fun
and
accountability
to
the
mix…
at
the
start
of
the
Q4
Get
Fit
Stay
Fit
challenge
un9l
today,
it
has
been
over
a
year
since
I
made
that
commitment…
My
quality
of
life,
or
at
least
my
enjoyment
of
life,
has
been
increased
exponen9ally
just
by
doing
ONE
ac9ve
thing
per
day,
every
single
day
and
by
making
it
fun…
Get Fit Stay Fit
Mobile App
85% participation

22. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
“When your team members love what they do, so will
your customers…” -Simon Sinek
22
Contract Bookings and Customer Growth
0
5
10
15
20
25
30
35
40
2011 2012 2013 2014 2015
Contract Bookings Number of Customers at YE
ContractBookings,millions
<$10 million:
>$160 million:

23. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
“If you hire people just because they can
do a job, they’ll work for your money. But
if you hire people who believe what
you believe, they’ll work for you with
blood and sweat and tears.”
23
-- Simon Sinek

24. © 2015 Health Catalyst
www.healthcatalyst.comProprietary and Confidential
Three things…
Business success today requires a strong and enduring culture
to complement other differentiating factors such as
product, market position, timing, etc.
The changing workforce requires new attitudes and practices to
effectively engage prospective team members.
Health Catalyst culture and team member engagement have been
at least as important to our success as an organization thus
far as any other differentiating factor.
24