Shared Services Client Interaction Framework
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The document outlines the concept of shared services, emphasizing its role in providing high-quality, non-core services to businesses while achieving cost savings and efficiency through centralized operations. It highlights the critical success factors for effective shared services, including client engagement, technology implementation, and performance measurement. Furthermore, it discusses the importance of service partnership agreements and continuous improvement mechanisms to enhance client satisfaction and operational effectiveness.
Shared Services Client Interaction Framework
- 1. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 1 DELIVERING THE PROMISE … © Chazey Partners 2016 Without Client Engagement… There is No Shared Services
- 2. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 2 Shared Services Concepts
- 3. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 3 What Exactly is Shared Services? Shared Services …is the organisation that provides non-core Services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal customer/client. This involves a philosophy and approach totally unlike traditional “corporate”-driven centralisation. The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself. Shared Services achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, standardized end-to-end processes and best practice.
- 4. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 4 Remote from business Unresponsive and inflexible No Business/ Operational control over costs Viewed as central overhead Prevalence of shadow operations Centralized Challenges Disparate processes Multiple standards Duplication of effort Different control environments High cost and costs unclear across the business Not scalable Decentralized Challenges Responsive to Business and Operational needs Business/ Operations control decisions Customized solutions to meet Business/ Operational requirements Benefits Shared Highly client focused Commercially driven Service Partnership Agreements Clear unit costs Flexible delivery Clear understanding of drivers and activities Common systems and support Consistent standards and controls Tight control environment Economies of scale Benefits
- 5. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 5 ATTRIBUTE SHARED SERVICES CENTRALIZATION Accountability Business Unit Corporate Key Performance Target Service excellence and continuous improvement Cost reduction and central control Service Partnership Agreements Widespread Rare Classification An independent unit Another corporate function Responsibility Partnership Demarcation
- 6. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 6 Critical Success Factors
- 7. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 7 Client • Service orientation in place • Structured way of dealing with customers • Customer satisfaction levels understood • SPAs in place • Reality versus perception • Account management Process • Processes documented • Standardized, controlled & repeatable activity • Recharging methodology • Benchmarking – internal/external • Metrics: Control Based; (ii) Efficiency & Effectiveness Technology • ERP implemented • Document Scanning Solution • Workflow • Automated Payments • Elimination of Side Systems • Self services tools • Automated Score Cards People • Skilled Leadership in place – do not compromise on competencies • Team shape & stability – process shaped/spans of control/staff – perm v temps • Team members – culture, values & behavioral competencies assessed • Team morale, reward & retention • Working environment conducive to team working
- 8. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 8 Client Interaction Framework (CIF)
- 9. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 9 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 10. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 10 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 11. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 11 …is not involved in bulk of transactions that flow directly to SSO …acts as escalation point …acts as the “voice of the client” Responsible for Facilitating Successful Client Relationships Account Management …meets regularly with client in addition to informal and adhoc dialogue …collaborates and drives process improvement “How operations needs to support service delivery” “What service needs to be delivered” …conducts service expectation discussions Client Shared Service Account Management… Account Management …helps establish and manage Client Interaction Framework …fosters dialogue with fact-based analysis & reporting ...effectively manages transparency and process compliance
- 12. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 12 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 13. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 13 Transaction Processing Call Centre Online Query Function Online Shopping Cart Purchase Cards Electronic Data Interchange Electronic Authorizations Online PortalsDirect Delivery Of Mail Client Contact Management defines how regular/daily interactions with clients are managed, how they contact the SSO to request service, and also how requests are managed to completion Client Contact Management Funnel Approach
- 14. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 14 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 15. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 15 Service Partnership Agreement Different from SLAs DirectionTypically one-way outlining SSO services & cost to client Bi-directional outlining SSO & client responsibilities in service provision Service itemsCatalogue of services that can be purchased by clients End-to-end breakdown of service by process, showing ownership (whether client, corporate or SSO) DevelopmentCan be inflexible & imposed; often presented to clients near go-live Negotiated & agreed between clients and providers; developed during Design & Build phases LanguageLegal/contractual language Includes legal/contractual language and guide to operating business KPIsSometimes Negotiated & agreed How UsedGenerally avoid invoking SLAs as use indicates contractual/legal issue SPAs used regularly to enhance understanding & drive process improvement Service Level Agreements (SLAs) Service Partnership Agreements (SPAs)
- 16. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 16 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 17. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 17 Client Feedback Communication Mechanism Regional Client Forum (monthly) Strategic Review Forum (quarterly) Internal Client Survey (bi-annual) External Client/Supplier Survey (Annual) Regular Client Calls (weekly) Be clear on your purpose/intent and use the right type of communication (remember the 3 C’s): Communication you own message, generally one-way information transfer Consultation recipient can influence/impact message, but you have veto Collaboration you do not control final result
- 18. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 18 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 19. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 19 Process Control Database Service Offerings List is incorporated into Service Partnership Agreement and identifies: • Respective responsibilities of SSO and Department/Corporate • Department deviations from standard services Detailed Service Offerings
- 20. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 20 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 21. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 21 Performance Measurement Performance Measurement Framework
- 22. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 22 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 23. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 23 Performance Reporting Monthly Reporting Contents • Achievements past period • Initiatives for next periods • Other commentary: main risks and issues, improvement activities, high-level summary of KPIs Performance Commentary • Output and inputs KPIs • Selection of operational KPIs • Department specific KPIs • Root cause and effect analysis Key Performance Indicators • Process improvement overview • Adhoc services delivered • Risks and issues • Service incidents • Backlogs Appendices
- 24. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 24 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 25. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 25 The implementation of an equitable recharging methodology to recover operating costs enables the SSO to operate as an independent business and encourages better behaviour throughout the organization 25 Recharging Methodology Influence Behavior SIMPLE Avoid very complex time collection and billing systems VISIBLE Sufficiently detailed metrics and billing so critical cost elements are understood FLEXIBLE Embed flexibility to account for variations in business requirements FAIR Ensure fairness for each client involved and SSO FOSTERS CONTINUOUS IMPROVEMENT Encourage better business practice through the chargeback mechanism Recharging methodology critical success factors: Not one-size-fits-all; consider: cost per transaction, variable cost based on complexity/non-standard service, allocation of historical, future or actual costs, initial moratorium, availability of baseline funding
- 26. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 26 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 27. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 27 Continuous Improvement Driven by All CIF Elements Recharging MethodologyPerformance Reporting Performance Measurement Process Control Database Client Feedback Client Contact Management Service Partnership Agreement Account Management What issues are being escalated? Achieving targets for volumes by type? Continues to reflect reality and is effective? Captures exceptions? Any need to realign? Any complaints? Are we driving positive behaviors?Are we discussing, following up and acting? Do KPIs or targets need to be adjusted? What are our clients telling us?
- 28. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 28 Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
- 29. North America | Latin America | Europe | Middle East | Africa | Asia North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 29 Contact us www.chazeypartners.com enquiries@chazeypartners.com
Editor's Notes
- #6: Philosophy and approach totally unlike: Shared Services Focus on service to the client. Requires collaboration. Traditional centralization of services. Focus on cost savings. Decision making is concentrated in a specific area or group. Less focus on meeting service needs of clients/clients Shared services achieves its goals through: focus on customer leveraging economies of scale technology organizational realignment best practice end-to-end process re-engineering