Shared services workshop
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This document provides an overview of shared services and examples of shared services implementations. It begins with defining shared services and comparing it to other models like outsourcing and decentralization. It then provides examples of shared services at a university, in government, and in the private sector. Some key lessons from implementing shared services centers are strong sponsorship, union partnership, an effective governance model, building a new culture in a greenfield location, and using performance management and technology innovation.
Shared services workshop
- 1. Shared Services WorkshopCopyright © 2009 Accenture All Rights Reserved
- 2. AgendaCopyright © 2009 Accenture All Rights Reserved1
- 3. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved2
- 4. What is Shared Services and how does it compare to other initiatives?Shared Services is a way of organizing service delivery to optimize the delivery of cost-effective, flexible, reliable services to all “clients”. Shared ServicesCentralized OutsourcingDecentralizedStandardizedShared Services CenterDept.Dept.Dept.Dept.Dept.Dept.Dept.Dept.Dept.Dept.Dept.Dept.Single department, division or site which performs the function
- 5. Focus on efficiency and control
- 6. Typically some common sub-systems
- 7. No service level agreements nor performance targets
- 8. Departments, divisions, or sites run similarly
- 9. Typically some common sub-systems
- 10. Common processes
- 14. Different systems & non-standard processes
- 15. Separate functional staffSeparate organization but linked to customers through governance modelManaged service delivery through clear SLA’s Customer driven transactionsPerformance driven culture through measurement and feedbackProcess ownership end-to-endContracted services provided by a third-party vendor
- 16. Balances responsiveness with efficiency
- 17. Access to vendor capabilities
- 18. Focus on labor arbitrage and service management
- 19. Profit center for vendor
- 20. Potential political impactCopyright © 2009 Accenture All Rights Reserved3
- 21. Service Level Agreements are at the Core of Service ManagementEffective Service Management establishes an ongoing Operating Cycle for Shared Services to ensure that customer expectations are understood and managed through service delivery. 2Performance MeasurementBi-Directional Process KPIsService Level Agreement13GovernanceDecision-making, EscalationService DefinitionService Catalog, SLAThe Shared Services Service Level Agreement is central to the relationship with each key customer. 4Financial Model ChargebackCopyright © 2009 Accenture All Rights Reserved4
- 22. How does the Shared Services Center interact with its customers?Service Center Operating ModelDesign ElementsInquiry and Interaction Handling ApproachEnabling Technology BlueprintShared ServicesCustomerSegmentsChannelsCustomersEnablingTechnologyProcessesIssue EscalationStrategic DirectionReporting StructurePolicyDefinitionPhone / Live AgentCaseMgmt.CaseMgmt. App.EmployeeRelationship ManagementService ManagementPerformance ManagementContinuous ImprovementKnowledge ManagementPerformance ManagementERP App.E-mailProcure to PayEmployeeEnabling Technology Functional DesignsdepartmentInquiry ManagementChannelManagementACD / CTIFaxTravel &ExpenseVendorAccounts PayableAccounts PayableAccounts PayableT&EVendorMgmt.MSExchangeVendorWebPortalVendorMgmt.Transactional Processing DesignsMobili-zationInte-grationRight FaxdepartmentOtherMailEnterpriseLearningITFacilitiesTrainingFiscalITHRCom.FacilitiesFacilitiesImagingCustomer Segmentation – Preference in treatment of various user groups
- 23. Channels – Interaction streams through which customers engage the organization
- 24. Enabling Technologies – Technologies used to aid processing of customer inquiries and resolutions
- 25. Processes – The actions necessary to complete transactions based upon rules, requirements, and technologyChange Management, Training5Copyright © 2009 Accenture All Rights Reserved
- 26. Shared Services Performance ManagementOperational Cadence & ControlsKPIsReportingCopyright © 2009 Accenture All Rights Reserved6
- 27. Accenture Survey of 275 Shared Services Organizations – Research Results7
- 28. What is the typical scope of Shared Services activities?OtherRecord to ReportProcure to PayTechnology ServicesHire to RetireOrder to CashFixed AssetsInbound SalesVendor Data ManagementStrategic Workforce PlanningProduct DesignInfrastructure MgmtOutbound SalesRequisition & PO ProcessingIntercompany AccountingStaffing ServicesManufacturingEnd User SupportOrder ManagementSupplier SchedulingTotal Rewards PlanningGeneral LedgerInventory MgmtInfrastructure DevelopmentCollectionsTotal RewardsAdministration Receipt ProcessingCost AccountingWarehousingApplication MaintenanceCustomer BillingAccounts PayableExternal ReportingDistributionApplication Dev & ImplementationTime & AttendanceCash ApplicationTravel & ExpenseCompliance MgmtIT Business PlanningFacility MgmtPayroll AdministrationSourcing ExecutionCash MgmtPlanning & Performance MgmtEnterprise Architecture PlanningReal EstateData Mgmt, Reporting, & ComplianceSupplier Mgmt & DevelopmentCapital & Risk Mgmt Business AnalysisEmerging TechnologiesWarranty MgmtWorkforce Dev ServicesSourcing & StrategyFinance Function MgmtQuality AssuranceMarketing/Public RelationsOrganizational Effectiveness ServicesCompliance MgmtRisk MgmtLegalHR Function MgmtLegendProcurement Function MgmtIT Function MgmtInternal CommunicationsTypically in Shared ServicesTypically not in Shared ServicesCopyright © 2009 Accenture All Rights Reserved8
- 29. What are the Major Steps?Planning 6--9 MonthsImplementation 9+ MonthsGo / No-Go6-12+ Months3-6 Months10-12 WeeksWide RangeAssessDesignBuildDeployDevelop Shared Services Mgmt Processes
- 30. Build Performance Support and Training Materials
- 32. Recruit Shared Services Personnel
- 33. Draft Service Level Agreements
- 34. Develop Key Performance Indicators
- 35. Develop / Deliver Build Communications
- 38. Define the Shared Services Vision and Strategic Objectives
- 39. Perform Data Collection and Benchmarking
- 40. Develop the Operating Model
- 41. Develop the Implementation Plan
- 42. Develop the Business Case
- 43. Design the Business Processes
- 44. Design the Organization and Governance Model
- 45. Design the Enabling Technology
- 46. Select Location and Real Estate
- 47. Develop Hiring Plan and Recruit Shared Services Leaders
- 50. Develop Training Plan and Management Development Program
- 52. Design Service Mgmt Framework
- 54. Confirm Service Level Agreements
- 55. Conduct Training and Work Shadowing
- 56. Develop / Deliver Deployment Communications
- 57. Test Shared Services Center Readiness
- 58. Execute Workforce Transition PlanIn Italics: Key to successCopyright © 2009 Accenture All Rights Reserved9
- 59. What decisions do you have to make?The first phase of Shared Services must answer key questions to define the operating model and build a fact-based case for changeWhat is the strategic intent of establishing shared services? Dramatically cut costs? Position for growth? Deliver better service?What is the right scope of the SSC? Which processes? Which operating organizations?How does shared services fit with the current initiatives currently underway? How will the initiatives be aligned?How many service centers are required? Where should they be located? What is the advantage of Greenfield vs. Brownfield?How should the change be managed to ensure that goals are achieved - securing buy-in and creating a new high performing operating model?What is the portfolio of initiatives required to implement shared services? How should they be prioritized? How should we organize the program?What service and economic benefits are feasible? What level of investment will be required? What are the key risks to be managed? 1. StrategicIntent2. Scope of SharedServices3. Fit with “Current Initiatives”4. Shared Services Operating Model5. ChangeManagementRequirements6. ImplementationStrategy7. Cost/BenefitAssessmentCopyright © 2009 Accenture All Rights Reserved10
- 60. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved11
- 61. A Call to ActionInstitutionally-recognized compliance issuesCumbersome and inflexible financial reporting capabilitiesMultiple and diverse business models inherent in university settingsIncomplete technology implementation and integration Complex processes and systems constrain ability to improveConfluence of growth and the retirement bubble poses a risk for business continuityFaculty and administration expect better service and say that there are gapsPeople-dependent processes make it difficult to scale to meet Yale’s anticipated growthCopyright © 2009 Accenture All Rights Reserved12
- 62. BackgroundFounded in 1701, third oldest college in the US
- 64. Endowment ~$17B (down from $23B last year)
- 65. Largest employer in New Haven, CT (16,000 employees)
- 66. Rankings
- 68. Law – #1
- 69. Medical – #12
- 70. Business - #13
- 71. 26,000 applications, 7% accepted
- 72. Oracle EBS suite (Finance and HR) installed in 1999
- 73. 476 administrative systemsCopyright © 2009 Accenture All Rights Reserved13
- 74. Imagine 141 ‘divisions’ in 3 square miles…82112146544655744417454441057761256101914664610Copyright © 2009 Accenture All Rights Reserved14
- 75. Assessment ApproachAssess Business Practices and Application PortfolioDefine Target Operating ModelEstablish Administrative Services VisionDetermine Business Case, Roadmap and PlanEngagementFact BasisCopyright © 2009 Accenture All Rights Reserved15
- 76. What Yale hopes to achieveCost Savings
- 78. Business staff spend less time on administrative tasks, more time on forward-looking financial planning and analysis
- 79. Less frustrating, more challenging work, with clearly defined career development opportunities
- 81. Protect against additional investigations; reassure regulators that we have a concrete plan with significant investment
- 82. Enhance reputation among key stakeholders: donors, alumni, faculty, PIs, science recruits, graduate students
- 83. Highly Responsive, Customer-Centric Service
- 84. Make Yale an easier place to work
- 85. Academic staff spend less time on administrative tasks, freeing up time for more grant development, research, and teaching
- 86. Potential for more sponsored research funding
- 87. Increased “Capacity for Future Growth”
- 88. Increased and more efficient administrative capacity is essential for Yale’s plans for future growthCopyright © 2009 Accenture All Rights Reserved161616
- 89. Core Elements of the ApproachCall Center Telephony – Telephone-based technology targeted at triaging, routing and tracking service requests.
- 90. Contact and Case Management – Process and applications focused on tracking and resolving service requests, supporting service providers and managers.
- 91. Knowledge Management – Process and applications for cataloging and presenting policy and procedures information to end-users and service providers, underlying case management and self-service capabilities.
- 92. Workforce Management – Processes and applications for managing staffing and productivity in a service center environment.
- 93. Quality Monitoring - Processes and technology for call monitoring, evaluation and quality improvement.
- 94. Self-Service – Portal-based capabilities allowing end-users to make transactions, find answers, log issues, and track resolution.
- 95. Operational Metrics – Performance metrics established to measure the efficiency and effectiveness of the service delivery model.
- 96. Continuous Improvement – Process cycle devoted to improving process, as informed by metrics and facilitated by proven analytical approaches.Contact ManagementCase ManagementOperational MetricsContinuous ImprovementSelf-ServiceKnowledge ManagementCall Center TelephonyHR Shared ServicesPOAP Shared ServicesResearch Admin Shared ServicesIT Shared ServicesOther Shared ServicesWorkforce ManagementQuality MonitoringFocus areas for Service Delivery WorkstreamCore Process Capabilities –Developed by Functional WorkstreamsCopyright © 2009 Accenture All Rights Reserved17
- 97. Shared Services Operating ModelCopyright © 2009 Accenture All Rights Reserved18
- 98. Proposed F&A Organization19Copyright © 2009 Accenture All Rights Reserved
- 99. Governance ModelResponsibility:Approve major scope changes
- 100. Approve program funding requestsCorporation5% of issues2 daysResponsibility:Support the strategic direction of the program
- 101. Review key design decisions
- 102. Provide the customers’ point of view
- 103. Act as change agents to peers in schools and departmentsFacultyCommitteeSteering Committee Responsibility:Set strategic direction of the program
- 104. Sponsor the change
- 105. Support major scope changes
- 106. Support program funding requestsEngagement Team10% of issuesResponsibility:Participate in key design sessions
- 108. Support change in home organizations1 weekExtended TeamOperating CommitteeResponsibility:Review project status and key design recommendations
- 109. Provide executive sponsorship and communications
- 110. Address escalated program issues
- 111. Minimize resource conflict, controlling change outside of the programEscalation85% of issues*1 weekManagement Group/Workstream SponsorsResponsibility:Monitor status and finances
- 112. Make key funct/tech decisions
- 114. Manage staffingCore TeamCopyright © 2009 Accenture All Rights Reserved20
- 115. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved21
- 116. A Call to ActionNew Administration
- 117. Budget: revenues not keeping pace with expenses
- 118. Aging workforce
- 119. 14% eligible to retire in 2011
- 120. 33% eligible to retire in 2014
- 121. “Inefficient” business processes supported by policy and legislation
- 122. Assessment results
- 123. Travel reimbursement processing costs: $37/T&E report
- 124. AP vendor invoice processing costs: $29/invoiceCopyright © 2009 Accenture All Rights Reserved22
- 125. Shared Services Operating ModelShared ServicesCustomersGovernancePolicy DefinitionIssueEscalationStrategicDirectionReporting StructureManagement ProcessesRelationship ManagementService ManagementPerformance ManagementContinuous ImprovementKnowledge ManagementEmployeeService DeliveryContact CenterInquiry ManagementCaseManagementFinance OperationsVendorAccounts PayableTravel & ExpenseVendor Master & 1099 ProcessingClient & Process IntegrationMobilizationIntegrationAgencySupportFunctionsInformation TechnologyFacilitiesTrainingFiscalHuman ResourcesCommuni-cationsCopyright © 2009 Accenture All Rights Reserved23
- 126. Business CaseAggressive ScenarioModerate ScenarioConservative ScenarioKey AssumptionsScope: A/P, T&E, ISTV, COA Maintenance, and Vendor Master
- 127. 9,077 AP vouchers / FTE / yr. (5 / hr.)
- 128. 10,892 Travel vouchers / FTE / yr. (6 / hr.)
- 129. 13,486 Change Requests / FTE / yr. (7 / hr.)
- 130. 10 to 1 Span of Control
- 131. Current department FTE: 378
- 132. Shared Services FTE: 219Key AssumptionsScope: A/P, T&E, Payroll, Time Reporting, ISTV, COA Maintenance, Vendor Master, Staffing, Total Rewards Admin, Data Mgmt, Workforce Dev, Accounting/External Reporting, Compliance Mgmt, and Revenue Cycle
- 133. 41,688 AP vouchers / FTE / yr. (22 / hr.)
- 134. 17,246 Travel vouchers / FTE / yr. (9 / hr.)
- 135. 28,562 Change Requests / FTE / yr. (15 / hr.)
- 136. 20 to 1 Span of Control
- 137. Current department FTE: 1,699
- 138. Shared Services FTE: 862Key AssumptionsScope: A/P, T&E, Payroll, Time Reporting, ISTV, COA Maintenance, and Vendor Master
- 139. 25,382 AP vouchers / FTE / yr. (13 / hr.)
- 140. 14,946 Travel vouchers / FTE / yr. (8 / hr.)
- 141. 20,401 Change Requests / FTE / yr. (11 / hr.)
- 142. 15 to 1 Span of Control
- 143. Current department FTE: 660
- 144. Shared Services FTE: 255Copyright © 2009 Accenture All Rights Reserved24
- 145. Governance ModelAgency Partnership GovernanceUnion GovernanceOSSGovernanceCouncilLeadershipResponsibilitiesFocus on:ResourcesBuy-inStrategic directionStrategicMeet Bi-Annually PartnershipCommitteeResponsibilitiesFocus on:Working with OSS managementResolving escalated issuesMeet quarterlyCFOCouncilManagementResponsibilitiesFocus on:“How well”“What’s next”Meet QuarterlyResponsibilitiesFocus on:Performance Management & CompensationTraining/Development,Continuous ImprovementWorkingGroupsWorkingGroupsProcessCouncilOperationsResponsibilitiesFocus on:Continuous improvementOperational performanceWorkingGroupsOperationalMeet MonthlyMeet MonthlyCopyright © 2009 Accenture All Rights Reserved25
- 146. Lessons LearnedStrong sponsorship from central agencies and customer agenciesUnion partnership (e.g., self-directed work teams)Governance model (e.g., CFO council)Greenfield location – critical to building a new culture of workingPerformance driven operations (e.g., SLA’s linked to individual KPI’s)Process innovation (e.g., call center and transaction operations)Technology innovation (e.g., scanning, document management CTI)Copyright © 2009 Accenture All Rights Reserved26
- 147. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved27
- 148. Marriott Business Services (MBS)Open in November 2000Two-story building accommodates nearly 300 peopleOpen office design to encourage teamwork, problem solving, and continuous process improvementTraining center to facilitate associate developmentCopyright © 2009 Accenture All Rights Reserved28
- 149. Marriott Business ServicesFull-Service PropertiesKnoxville, TennesseeBusiness Processes:Direct bill approval and credit authorization
- 150. Daily bill reviews
- 151. Invoice approval & coding
- 152. Capital project tracking and reportingCentralized Processes:Credit recommendation
- 153. Direct bill collections, adjustments and reprints
- 155. Credit card reconciliation and chargebacks
- 156. Transient customer billing inquiries, adjustments & reprints
- 159. PCard administration
- 160. MarrExpress expense auditsMarriott Computing and Networking CenterFrederick, MarylandTechnology Components:Server/Network infrastructure
- 162. Accounts payable check production
- 163. Production monitoringOther Business Units and Administrative Offices Business Processes:Invoice approval & coding (limited)
- 164. T&E processing & approvalShared Services Delivery ModelTransactions that begin at the hotel or otherbusiness unit are completed by MBS. MBS functions as an extension of the client operation. Copyright © 2009 Accenture All Rights Reserved29
- 165. MBS – Lessons LearnedIssuesActionsMake the jobs new and different; Change job specs and make employees interview for new jobsSet expectations that every executive must accept a responsibility outside of their regular job, like own a management processForce measurements and metrics; Make tough decisionsLeverage peer pressure; Trade people who are obstaclesChoose basic messages that everyone can rally around; Don’t be too academicPassion of the leader is critical; Spend time every week with next level; create forums several levels downThink of 1or 2 bold things to show things are differentThe number one source of resistance is from within Shared Services – not from the client
- 166. Passive resistance is everywhere…and reinforced by peers
- 167. Without a material change, Shared Services employees are still burdened by the culture around them
- 168. There is no concept of a performance driven mindset in a legacy organization
- 169. Excuses are everywhere, but they are all anecdotal (no facts)
- 170. Even a passionate leader feels like giving upTurning a centralized organization into Shared Services takes time……Pam Murray, Marriott Business ServicesCopyright © 2009 Accenture All Rights Reserved30
- 171. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved31
- 172. What are the Major Steps?Planning 6--9 MonthsImplementation 9+ MonthsGo / No-Go6-12+ Months3-6 Months10-12 WeeksWide RangeAssessDesignBuildDeployDesign the Business Processes
- 174. Design the Enabling Technology
- 175. Select Location and Real Estate
- 176. Develop Hiring Plan and Recruit Shared Services Leaders
- 179. Develop Training Plan and Management Development Program
- 180. Design Facilities
- 181. Design Service Mgmt Framework
- 182. Define the Shared Services Vision and Strategic Objectives
- 183. Perform Data Collection and Benchmarking
- 184. Develop the Operating Model
- 185. Develop the Implementation Plan
- 186. Develop the Business Case
- 188. Confirm Service Level Agreements
- 189. Conduct Training and Work Shadowing
- 190. Develop / Deliver Deployment Communications
- 191. Test Shared Services Center Readiness
- 192. Execute Workforce Transition Plan
- 193. Develop Shared Services Mgmt Processes
- 194. Build Performance Support and Training Materials
- 195. Build-out Facility
- 196. Recruit Shared Services Personnel
- 197. Draft Service Level Agreements
- 198. Develop Key Performance Indicators
- 199. Develop / Deliver Build Communications
- 201. Conduct Deployment PlanningCopyright © 2009 Accenture All Rights Reserved32
- 202. Are all Shared Services Centers created equal?Based on independent research, there is a significant gap in performance between laggard and world-class Shared Services, but it is never too late to follow Shared Services practices that will have a material impact on cost and service performance.Laggards$9.60Leaders$3.75PTP: Cost per InvoicePerformance Gap: 2.6 TimesLeaders$156.60Laggards$323.36Payroll: Cost per Employee PaidPerformance Gap: 2.1 TimesLaggards$11.00Leaders$4.76Travel: Cost per Expense ReportSource : Hackett GroupPerformance Gap: 2.3 TimesCopyright © 2009 Accenture All Rights Reserved33
- 203. Benchmarking is used to compare operations to othersBenchmarking – Key Questions AddressedIncluding “formal finance” as well as “shadow finance”
- 204. Including all cost components – labor, professional services, technology, etc.
- 205. Across all finance processes and activitiesHow much do I truly spend to deliver finance services?How is my finance staff’s time spread across various finance processes?Often this differs from the “organization chart” view – e.g. FP&A personnel spending significant time on general accounting
- 206. Quality
- 207. Cycle time
- 208. Positive impact on the businessHow effective is my finance organization at meeting its objectives?Comparison to a cross industry peer set of companies of similar size and characteristics
- 209. Cost and performance; in total and by processHow does the cost and/or performance of my finance function compare to others?Which process areas have the most improvement opportunity (cost and/or performance)Focus on the key opportunity areas – specific processes, regions, business units, cost components, etc.What is the value of closing the gaps?Dollar benefit of moving to median or first quartile cost and/or performance
- 210. Supplement with qualitative analysis to set meaningful improvement targetsCopyright © 2009 Accenture All Rights Reserved34
- 211. Expected Shared Services EconomicsTypical net benefits for enterprise-wide processes range from 15-30%* (individual processes can realize higher savings) with a 2-4 year payback.Payback PeriodNet BenefitsSource - Shared Services: The Evolution of Higher PerformanceCopyright © 2009 Accenture All Rights Reserved35
- 212. How are the benefits from Shared Services different from the benefits from Centralization?Global End-to-End ProcessVisibility, GovernanceTransition from Centralization to Full Value of Shared Services Many organizations stop here leaving value behind and decreasing the likelihood of sustainability and scalabilityService/Cost TransparencyPerformance Mgmt.Metrics, Targets, ScorecardsSLAsClear 2-way services agreed by clientsRANGE OF BENEFITSContinuous ImprovementBenefits of centralization recede due to lack of shared accountability for performance and increase in shadow cost over timeRe-engineeringSimplified, standardized system/processLack of Clarity Services, CostsOrg. Culture - Tenure, wages, back-office mentalityNew LocationWage and real estate arbitrageExceptions Increase ConsolidationRe-organization and de-layeringShadow Cost IncreaseCENTRALIZATIONSHARED SERVICESNOTE: Benefit ranges are illustrative.Copyright © 2009 Accenture All Rights Reserved36
- 213. Benefits from Shared Services Range from 15 – 35%Typical Financial Benefits from Shared ServicesStandard systems, processes, and procedures …………………….Centralization – economies of scale and skills ……………………..Wage and real estate arbitrage (lower cost location) ………………Efficient call/contact management process …………………………Clearly defined Service Level Agreements ………………………….Higher performing organization through rigorous metrics …………Further productivity improvements through automation ………….Formal management processes ………………………………………(Continuous improvements, CRM,etc.)5 – 10%3 – 5%2 – 5%1 – 3%1 – 3%1 – 3%1 – 3%1 – 3%Characteristics of high-potential opportunitiesDecentralized operations
- 214. High cost locations
- 215. Lack of standard processes
- 216. Fragmented systems
- 217. Multi-functional scope15 – 35%Annual continuous improvement benefit+1 – 3%Copyright © 2009 Accenture All Rights Reserved37
- 218. Assessment Phase – High Level ApproachRoadmapBusiness CaseMobilizationFunctional AnalysisTo-Be Operating ModelStakeholder Update Materials
- 219. Inventory of Existing documentation
- 220. Site selected
- 221. To-be Shared Services capability model
- 223. As-is assessment
- 224. Inventory of current and past initiatives
- 225. Implementation Plan
- 226. Implementation Costs and Risks
- 228. Value Proposition by Stakeholder GroupDeliverablesDevelop specific recommendations
- 229. Identify specific program workstreams
- 230. Develop formal implementation plan – approach, sequencing, timing, dependencies
- 231. Review findings, recommendations, and implementation plan with key stakeholders
- 233. Request funding / approval to proceed with next phase
- 234. Plan next steps
- 235. Refine, confirm, and communicate shared services vision
- 236. Confirm target process and sub-process scope
- 237. Gather available data including headcount, labor costs, IT costs, transaction volumes, service level metrics,
- 238. Plan site visits to other SSCs
- 239. Finalize team structure and participation
- 241. Define process, activity, sub-process, scope for SS
- 242. Identify SSC location for each in-scope activity
- 243. Define / confirm technology approach
- 244. Identify cost / performance improvement opportunities
- 245. Develop SS operating model including high-level process impacts
- 246. Set preliminary performance targets
- 247. Define how services will be provided to internal customers
- 248. Develop high level change plan including training, plan and communication plan
- 249. Conduct SSC site visits and/or conduct phone based discussions
- 250. Validate scenarios, variables and values
- 251. Collect regional data (labor, real estate, regulatory, severance, expansion plans)
- 252. Provide outsourcing costs for alternative sourcing options
- 253. Define cost savings
- 255. Run business case scenarios and document pros / cons
- 256. Create value proposition for all stakeholders
- 257. Summarize, analyze, and interpret data
- 258. Complete organization, process, and technology assessment
- 259. Understand and document current cost structure by process / region
- 260. Understand current performance levels by process / region
- 262. Conduct additional stakeholder interviews
- 263. Inventory past, current, and planned initiativesKey Activities38Copyright © 2009 Accenture All Rights Reserved
- 264. Shared Services for youDo you believe there is value in shared services?
- 265. What functions would you anticipate being most appropriate for Shared Services?
- 266. What expectations (low / med / high) would you have for:
- 267. Improved service
- 268. Lower costs
- 269. Improved controls
- 270. Enhanced careers
- 271. What are the top ideas for improving service and cost performance?
- 272. What do you see as the key challenges / barriers to success?
- 273. What are the change management and communications challenges that must be addressed? Copyright © 2009 Accenture All Rights Reserved39
- 274. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixCopyright © 2009 Accenture All Rights Reserved40
- 275. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixShared Services – It's not just centralizationShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionCopyright © 2009 Accenture All Rights Reserved41
- 276. Governance ModelC- LevelStrategic Direction SettingIssue EscalationPerformance SteeringCommitteeShared ServicesLeadershipService delivery strategy
- 277. Scope expansion
- 279. Funding reviewAdvisoryBoardShared ServicesManagementSLA approval
- 280. Process & strategy review
- 281. Issue resolution
- 282. BUbehavior influence
- 283. Continuous improvement feedbackShared ServicesOperationUserCommitteeService performance issues
- 285. New requirementsCopyright © 2009 Accenture All Rights Reserved42
- 286. What are the key components of an effective Service Level Agreement (SLA)?The SLA is effectively the contract between the SSC and its customer, though legal language should be avoided if possible.Copyright © 2009 Accenture All Rights Reserved43
- 287. How can Shared Services lead the way as an end-to-end process owner?Shared Services acts as a steward for the end-to-end process across the enterprise and reports performance of the process to each key stakeholder in the process.T&E Reimbursement Example:End-to-end Process KPI – Average time to process T&E Reimbursement
- 288. SSC KPI – Average time to process T&E Pre-Audit
- 289. department KPI – Average time to resolve T&E ExceptionsCopyright © 2009 Accenture All Rights Reserved44
- 290. How do we decide what is “shareable”?Shared Services CriteriaScoring RationaleCan answer “Yes” to each of the criteriaRemote – Can process be completed without “in-person “ contact including remote access to the data/information?Transactional – Is the activity volume driven and/or involving transactional processing (e.g. average daily execution or more than 20 times per month)?Repeatable & Rules-based – Can a standardized, rules-based policy framework be implemented to handle the transaction? Measurable – Is the activity performance measurable?GCan answer “Yes” to a majority of the assessment criteria (>50%) through moderate business process and or policy changesYRDoes not meet any of the assessment criteria.Copyright © 2009 Accenture All Rights Reserved45
- 291. How does it work?: As-IsCreate Requisition & Process POReceive Goods & ServicesReceive InvoiceProcess InvoiceManage InquiriesPay SupplierOther pitfalls of a traditional organization: Disparate reporting and many versions of the “truth”
- 292. Sub-optimal compliance, risk and control environment
- 293. Little focus on continuous improvement Vendor$Departments$$Invoice information is entered into a system; multiple, non-standard processes may exist Invoices are received at multiple locationsPayments are made to vendor based on multiple payment termsInquiries are received at multiple locations!!!!!Copyright © 2009 Accenture All Rights Reserved46
- 294. How does it work?: To-BeCreate Requisition & Process POReceive Goods & ServicesReceive InvoiceProcess InvoiceManage InquiriesService ManagementPay Supplier Service Management aligns the delivery of its services with the needs of its customers
- 295. Includes a governance model, service level agreement, key performance indicator (KPI) scorecards, and management processesVendor$$$Shared ServicesDepartments Invoices are received at a single, central location through the use of unique PO boxes, fax numbers, and/or email addresses
- 296. Documents are scanned using imaging application solution
- 297. Invoice data is entered into an ERP or common system
- 298. Exceptions are managed by the shared services center with input from business units
- 299. Payments are made based on one common vendor profile
- 300. Working capital is optimized through comprehensive payment management
- 301. Inquiries are received through one front office
- 302. Information is captured to categorize, route, and resolve inquiries
- 303. Departments continue to manage the purchasing and receiving processes.Copyright © 2009 Accenture All Rights Reserved47
- 304. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixShared Services – It's not just centralizationShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionCopyright © 2009 Accenture All Rights Reserved48
- 305. Ohio’s ResponseReorganize and restructure department operationsImplement new cash management strategies & controlsManage staff headcount – reduce positions throughAttrition
- 306. Unfilled vacanciesDevelop and execute equipment control policiesBuild and operate Ohio Shared Services CenterSeparate back-office from programs
- 307. Gain union buy-in of a high performance workplaceCopyright © 2009 Accenture All Rights Reserved49
- 308. Looking Back – a brief historyNov ‘07Jan ‘08May ‘08Apr ‘08Feb ‘08OAKS Financials Go-LiveAssessment ResultsShared Services Project Start-upGovernor’s ExecutiveOrder 2008-01SRFP AwardImplementation &Quality AssuranceBusinessCasePublishedCopyright © 2009 Accenture All Rights Reserved50
- 309. Shared Services End-State ScopeOtherRecord to ReportProcure to PayTechnology ServicesHire to RetireOrder to CashVendor Data MgmtFixed AssetsInbound SalesStrategic Workforce PlanningProduct DesignInfrastructure MgmtOutbound SalesRequisition and PO GenerationISTVStaffing ServicesManufacturingEnd User SupportOrder ManagementSupplier SchedulingTotal Rewards PlanningChart of AccountsInventory MgmtInfrastructure DevelopmentCollectionsTotal RewardsAdministration Receipt ProcessingCost AccountingWarehousingApplication MaintenanceCustomer BillingAccounts PayableExternal ReportingDistributionApplication Dev & ImplementationTime & AttendanceCash ApplicationTravel & ExpenseCompliance MgmtIT Business PlanningFacility MgmtPayroll AdministrationSourcing ExecutionCash MgmtPlanning & Performance MgmtEnterprise Architecture PlanningReal EstateData Mgmt, Reporting, & ComplianceSupplier Mgmt & DevelopmentCapital & Risk Mgmt Business AnalysisEmerging TechnologiesWarranty MgmtWorkforce Dev ServicesSourcing & StrategyGeneral LedgerOrder-to-Cash Function MgmtQuality AssuranceMarketing/Public RelationsOrganizational Effectiveness ServicesCompliance ManagementRisk MgmtFinance Function MgmtLegalHR Function MgmtProcurement Function MgmtIT Function MgmtInternal CommunicationsLegendScope of End-StateSource: OSS Business CaseCopyright © 2009 Accenture All Rights ReservedOther Services51
- 310. OSS Chargeback ApproachThe OSS Chargeback strategy is comprised of a three-stage approach to achieving steady state transaction processing through a budgeted charge with SLAs model.Oct. 2009Jan. 2010July 2010Voluntary OSS ServicesNominal Chargeback PeriodChargeback rates will be substantially lower than current cost/budgeted rates
- 311. Actual volumes will be used to calculate the chargeback
- 312. Commitments and Service Measures with tentative targets are identified in SLAs and baseline is conducted
- 313. Deductions and payment forgiveness will not be assessed during this period
- 314. This period would be repeated for each new Partner department in the OSSBudgeted Chargeback PeriodChargeback rates will be based upon the budget required to recover OSS costs
- 315. Actual volumes will be used to calculate the chargeback
- 316. SLA baselining is continued
- 317. Deductions and payment forgiveness will not be assessed during this period
- 318. This period would be repeated for each new department in the OSSBudgeted w/ SLAsSame as Budgeted Chargeback Period, but Deductions and Forgiveness charges will be agreed upon in new SLA
- 319. department deductions and OSS payment forgiveness for SLA short-falls will be netted against the volume totals
- 320. SLAs will be approved and finalized
- 321. This will be the steady state for voluntary OSS services with SLAs being re-evaluated annuallyMandatory Statewide OSS ServicesBudgeted Chargeback ChargeChargeback rates will be based upon the budget required to recover OSS costs
- 322. Actual volumes will be used to calculate the chargeback
- 323. There will be no formal SLA for mandatory statewide servicesCopyright © 2009 Accenture All Rights Reserved52
- 324. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixShared Services – It's not just centralizationShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionCopyright © 2009 Accenture All Rights Reserved53
- 325. AgendaShared Services – It's not just centralizationShared Services Example – Higher EdShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionWrap-up and Next StepsAppendixShared Services – It's not just centralizationShared Services Example – Government SectorShared Services Example – Private SectorShared Services Project – DiscussionCopyright © 2009 Accenture All Rights Reserved54
- 326. How are these benefits achieved?Global End-to-End ProcessVisibility, GovernanceEnd-to-End Process Ownership – exists when individuals across the enterprise understand process activities, dependencies, and performance regardless of whether the activities are completed within or outside Shared ServicesPerformance Mgmt.Metrics, Targets, ScorecardsPerformance Management – defines Shared Services’ metrics and reporting both for internal and external purposes, and their appropriate use to throughout the organization to enable High Performance . Key components include: rationalization of Key Performance Indicators, creation of Internal and External Reporting capabilities, and definition of daily, weekly, monthly, quarterly, and annual Operational Rhythm and Key Controls.Service / Cost TransparencyService Management – includes the process and tools in place to effectively manageexpectations and quality of services delivered to Customers. Key components include: Service Level Agreement (SLA), Service Catalog, and Service Chargeback methodology.SLAsClear 2-way service agreement w/ clientsCopyright © 2009 Accenture All Rights Reserved55
Editor's Notes
- #7: Viewing the organization from the customer’s point of viewDeveloping process and enabling technologiesBased on customer needs & objectivesLeveraging the right segmentation, right channels, right services, and right resolution expectationsTailoring service to exceed customer expectationsEstablishing ‘Service First’ cultureTraining of staff to embrace ‘Service First’Exhibiting ‘Service First’ in every customer interactionCustomer Experience framework ties People, Processes and Technology efforts back to the Shared Service Mission and goals, ensuring that each is constructed with serving the customer as its purpose.