Smoothly passing the baton from captive to outsourced service delivery in just a few months
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The document outlines AstraZeneca's transition from captive to outsourced service delivery through its Project Bridge, detailing the methodologies, challenges, and outcomes of the initiative. Key objectives included improving finance function effectiveness while reducing costs, which were achieved by transitioning services to shared and outsourced locations. The project also highlighted the importance of staff motivation and effective communication during the transition, resulting in significant operational improvements and cost savings.
Smoothly passing the baton from captive to outsourced service delivery in just a few months
- 1. Smoothly passing the baton from captive to outsourced service delivery in just a few months Michelle Adams – European Service Delivery Director Judith Morris-King – Global Process Expert 14th March 2012 1
- 2. What you will get from this presentation 1. Introduction to AZ & Project Bridge Journey 2. How did we do it? 3. Key Challenges and how we overcome them 4. How did we keep staff motivated? 5. Did we achieve what we set out to? 6. What did we learn? 2
- 3. AstraZeneca Global Pharmaceutical Company 14 major R&D sites in 8 countries, 23 supply and manufacturing sites in 16 countries We employ over 61,000 people, 47% in Europe, 30% in the Americas, 23% in Asia, Africa and Australasia We invest over $4 billion in R&D each year and have over 15,500 people in our R&D organisation A 70-year track record of innovation that includes the introduction of many world-leading medicines. In 2010, our worldwide sales totalled $33.3 billion, with operating profit of $11.5 billion.
- 4. This is what we did over 3 years Transferred our services to be Established an delivered out of 6 locations in in-house Shared Genpact & 4 in AZ Service Centre in Asia Pac GFS EMEA & Central Genpact AZ, Lublin Genpact AZ, Cluj GFS NAM GFS LATAM Genpact AZ, Rabat Genpact AZ, Genpact AZ, Delhi GFS APBS Guatemala Realised our vision for Genpact AZ, one Global Sao Paulo Organisation Delivered the new transactional finance Operating Model 4
- 5. Why did we do it? AZ Finance Landscape – “Before” Transition Model Sweden 210 NA UK 530 Rest of Europe 400 330 Japan AsiaPac 45 MEA 30 210 LatAm 210 Business Partnering Specialist Finance Transactional Finance Administrative staff Other staff Objective of Bridge - to improve further the effectiveness of Area totals are rounded and approximate AstraZeneca’s finance function in driving, measuring and reporting business performance, while simultaneously reducing the costs of the 5 finance function toward external best practice levels of efficiency
- 6. So how did we do it? • Overview of Project Bridge Methodology, Transition and Work Stream approaches
- 7. Project Bridge Summary Change Costs Compliance • Transfer of transactional • $55m project which involved • We are 80% complete in activities through a a global project team with standardising controls combination of Business regional experts based in across all regional areas Process Outsourcing and in- region GTF supports House Service Centre delivery • Significant improvements in • More efficient compliance cash allocation and manual reporting and senior • Reshaped how and where we invoicing on overdue credit leadership report outs deliver our services globally card spend • Clear control ownership • Transitioned services out of • More than 75% of cost saving and traceability of controls 53 Marketing Companies benefits realised to date with for audit purposes across EMEA the Americas the remainder being tracked and Asia Pacific to completion • Genpact enforcing and improving our compliance • Standardised KPI reporting models approach across all regions 7
- 8. Global Transition Plan Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2010 2010 2010 2011 2011 2011 2011 UK Will finish in AZ Turkey Russia Greece & Turkey Sweden Started in Sweden CEE MEA LATAM North America Asia & 8 India
- 9. How we organised ourselves.....Programme Structure Global Finance Services - Global Programme Director Programme Mgmt Office Global Transition Director Sweden UK CEE/MEA LATAM NAM Transition Transition Transition Transition Transition Director Director Director Director Director SMEs SMEs SMEs SMEs SMEs Global Processes HR Communications Finance & Benefits IS 9
- 10. Transition Methodology - Planning Toll-gates “Plan, Execute and Completion” phases used the Tollgate approach to align to the major milestones & service transfer to Genpact. Preparation Knowledge Transfer Initiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) UAT Planning and preparation for Service Delivery through existing Knowledge AZ roles and staff. Complete Transition. Contract completion Initiate Transfer Knowledge Transfer and quality and education. Team roles & responsibilities agreed assurance. Commence retained roles education and training. Tollgate 0 UAT Agree detailed solution for each Tollgate 3 Sol ID process. Finalise retained Service Delivery by Genpact starts. capabilities and organisation design AZ remain accountable. New AZ Pilot retained organisation known and Tollgate 1 educated. Complete Genpact team recruitment. Tollgate 4 Prepare Genpact and AZ teams for Service Delivery through new Knowledge Transfer. Complete service model Genpact & AZ. Production Preparation preparation for systems access and Service Governance operational. arrival on-site. Commence AZ Refine and improve AZ and retained recruitment. Define / refine Stabilisation Genpact ways of working. Benefit AZ retained ways of working delivery underway. Tollgate 2 10 Tollgate 5
- 11. Key challenges and how we over come them
- 12. Preparation Knowledge Transfer Initiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges Impact of late joiners to Genpact teams- knowledge and access Front Line Manager (FLM) capabilities during training FLM Presence, sponsorship and support Decisions about which team members were suitable for on the job training (OJT) Quality of pre OJT training plans Scoring of assessments – Genpact Vs AZ 12
- 13. Preparation Knowledge Transfer Initiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges On the job (OJT) Plans - significant amount of work for subject matter experts (SME’s), particularly in relation to country specifics Length of OJT period, impact of 100% Vs portion of team (particularly Helpdesk) Impact & pressure of workload on Genpact teams Standard operating procedure submission & review Front Line Manager (FLM) Quality Assessments-teach backs Vs practical assessments Demands placed on AZ resources IS – Citrix Solution – use of AZ laptops 13
- 14. Preparation Knowledge Transfer Initiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges Not proactive in issue resolution More Market dependencies No root cause analysis on KPI misses Lack of Communication across Genpact sites & Working in silos Minimum sharing of best practice AZ driving Service Governance structure & process improvement initiatives Attrition & effective knowledge transfer in the teams Capability change for retained AZ teams 14
- 15. How did we keep staff motivated throughout the Transition?
- 16. How did we keep staff motivated? Shared Service Centre Bridge Programme Team •Open & honest communication Judith to share her personal journey from being a Process •Retention Packages Manager within Cash & Bank and then moving into a Subject •Created excitement for change Matter Expert role (SME) on the project. •Embeded change in the culture – change workshops & coaching How did she get though it all with the uncertainty of having a •Used people from teams in key job at the end of the project? project roles •Celebrated & communicated short term wins •Recruitment plans with new shared service centre opening in area
- 17. Did we achieve what we set out to?
- 18. In 3 years we have....... Transferred our services to be Established an delivered out of 6 locations in in-house Shared Genpact & 4 in AZ Service Centre in Asia Pac GFS EMEA & Central Genpact AZ, Lublin Genpact AZ, Cluj GFS NAM GFS LATAM Genpact AZ, Rabat Genpact AZ, Genpact AZ, Delhi GFS APBS Guatemala Realised our vision for Genpact AZ, one Global Sao Paulo Organisation Delivered the new transactional finance Operating Model 18
- 19. What additional benefits did Bridge deliver..... Change Costs Compliance • Project Bridge key enabler of • SOTC – backlogs recovered • Previously limited change through flexible resulting in $Ms cash back reporting of Fixed Assets approach to project into the system. across any AZ Region – management now in place across all • Un-allocated cash reduced by • Centralised and delivered 80% in Europe Region • Balance sheet efficiencies in additional reconciliation policies transactional finance scope • Significant increase in harmonized and payment-on-time across strengthened - improving • Delivered finance services to Western Europe by October the accuracy of the support new global 2011 balance sheet commercial business models • Cash & Banking CPI around • KPI reporting now in place number of open items on across all regions for all bank reconciliations processes improved from 1,700 pre transition to less than 97 at end of 2011 19
- 20. We have over delivered on original scope & taken on new scope..... We are here Genpact operating service in production for: UK, Sweden, GC Europe (most countries), CEE, India, NAM (P2P, T&E), MedImmune, CAMCAR, Venezuela, South Africa, Maghreb , Saudi, Gulf (P2P) and Brazil (except R2R) % of FTEs with Genpact Focus for Q4 and Q1 2012 • Transition remaining services in Production: Egypt, Gulf (R2R), Brazil (R2R), NAM (SOTC, Banking), Greece, Turkey, Russia, Columbia, Chile, Argentina, Peru • Complete Final Tollgates (TG5) We have transitioned more than 106% of original scope 20
- 21. What did we learn? • What went well, what would we do differently?
- 22. It’s not what we do, it’s the way we do it... • Project run at regional/country levels • Visibility of senior team members, open & honest culture Engagement • Focus on personal journey • AZ team primarily in-house and specific contract resources • Balance risk & reward of early exits Resources • Clear approach and criteria applied to retention • Simple project methodology Project • Standardised risk & issue methodology across all regions Methodology • Significant volume of 1:1’s between AZ leaders and AZ & Genpact leaders • Clear succession plans for critical resources • Recruitment in Genpact What would we • KPI model do differently • Over invest in time for new delivery centres • Language Dependencies 22 • Develop AZ Retained Operating Model straight away
- 23. Questions