Give your shared services centre (SSC) a boost by copying the seven habits of highly effective SSCs.

1. (with apologies to Stephen R. Covey)
BC Financial Healthcare Professionals Society
2013 Conference| October 1, 2013 | Vancouver, BC
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2. Who We Are
Definitions & Trends
Lessons Learned
2
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3. Global Offices
Flexible Resource Model
Presentation handout is appended with
more information on Chazey Partners
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4. 4
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5. What is the
back office?
5
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6. Decentralized
Challenges

Disparate
processes

Duplication of
effort

Different
control
environments


High cost and
costs unclear
across the
business
Not scalable
Shared
Benefits
Multiple
standards

Centralized



Responsive
to Business
and
Operational
needs
Business/
Operations
control
decisions
Customized
solutions to
meet
Business/
Operational
requirements

Highly client
focused

Commercially
driven

Service
Partnership
Agreements

Flexible
delivery

Clear
understanding
of drivers and
activities


Common
systems and
support
Consistent
standards
and controls


Economies of
scale
Challenges

Remote from
business

Unresponsive
and inflexible

No Business/
Operational
control over
costs

Viewed as
central
overhead

Prevalence of
shadow
operations
Tight control
environment
Clear unit costs

Benefits
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7. 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
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8. Shared Services is the organization that…
Employs a
specialist team
Geographically
unconstrained
Clientfocused
Providing services that are…
High quality
Non-core
High efficiency
Lower cost
Mission
critical
Repetitive or
professional
Achieve by leveraging…
Organizational
realignment
Technology
Best Practices
Standardization
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9. Higher Quality
Lower Costs
Improved Control
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10. Shared Services Concept started in mid 1980’s. Concept initially driven by
private sector multinationals
Shared Services and Outsourcing initiatives typically result in "cost savings of
20%-50% on processes in scope” (Hfs-PWC report June 2011)
"In today's business environment, nine out of every ten enterprises have
shared services and 97 percent manage outsourcing relationships". (HfsPWC report June 2011)
Mainly Finance driven early on in Europe/HR driven in North America
Captive vs Outsource, On-shore vs Near-shore vs Off-shore Now much more
end-to-end process focused
Continued increase in scale and up the value chain in Shared Services (e.g.
O2C, Reporting, Policy
Very important now in the Public Sector – how to reduce deficits while not
impacting front line services.
Economic recession of 2008 has led to austerity agenda today in public sector:
Shared Services is moving from opportunity to necessity
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11. Technology options continue to grow (e.g. document management,
approvals, user self service, ERP, “cloud computing”, etc)
Politics around offshoring jobs has been an issue for years, but has not
stopped the trend (captive and BPO), although slowed for a while
Multi-functional Shared Services now really starting to happen after years
of this being in the textbooks
Large scale, multi-tower outsourcing not very common, despite what
many predicted.
Selective outsourcing (which actually never went away) is more the
trend “Innovative outsourcing” has not yet happened. Lift and shift
did. Partly due to client requirements.
Across all industry sectors the trend is towards shared services, hybrid
shared services organizations with some outsourcing, and
multifunctional shared services
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12. 12
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13. 13
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14. 14
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15. 15
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16. Work step
BASELINE &
BENCHMARK
AS-IS
DESIGN, BUSINESS
CASE,
RECOMMENDATION
Proposed
Complete best Practice
diagnostics
Establish detailed plan,
timelines, key deliverables
etc. for this stage
Review and catalogue any
existing process & sub
processes
High level process design
Review output from work to
date
Review a catalogue technology
landscape
Initial Communications
Key Activities
Carry out multiple site visits and
workshops
Complete Activity based
Analysis
Project kick off &
mobilisation
Review and update baseline
Calculations
Opportunity Matrix
Business Case Evaluation
High level org design
Location
Recommendations(s)
Service delivery
framework
Recommend Governance
Framework
Define high level KPIs and
Metrics
Implementation Plan
Finalise stakeholders interviews
Develop high level
operating model
Change management Plan
Identification of next steps
Key
Deliverables
Review existing reporting tools
Complete Further
Finalise Technology
and mechanisms
Stakeholder interviews
assessment
0 to 2 weeks
2 to 4 weeks
4 to 5 weeks
Checkpoints with key stakeholders:
 Project Board
 Steering Group
Current State
Analysis:
Summary of Key
Findings & Gap
Analysis
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Operating Model :
To Be Processes
& Organisational
Design
5 to 6 weeks
Recommendation,
Business Case &
Implementation
16
Plan

17. Observations
Leading Practice
As-Is (4.0)
Considered finance function, not part of procurement
Manual invoices
All payments in through single SAP ERP
Accounts payable responsibility centralized
Weekly cheque runs plus ad hoc
No statistical review of small invoices
Manual cheques infrequent
Achieve 50% of available vendor discounts
EFT not used
To-Be (8.0)
Achieve leading practices except:
Continue with manual invoices (initially no funding
for document management/scanning solution)
EFT only possible for 30% of vendors
Is part of an end-to-end purchase-to-pay process with
front end transactional processes designed to
minimize own stream error correction
Scan and route 100% of invoices when received by
accounts payable processing center
Process all payments through a single system.
Centralized accounts payable responsibilities across
the organization
Optimize number of check runs each month.
Review 100% of large dollar invoices and statistically
sample the remainder
Eliminate manual cheque request generation.
Maximize vendor discounts
Utilize EFT for payment to eliminate use of paper
cheques
Current
0
2
Future
4
6
Diagnostic Rating Scale:
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• | Leading Practice is not adopted
America 1 =Europe | Middle East
•
8
10
Score in Range 1-4
| Asia-Pacific
10 = Leading Practice is adopted in full
Score in Range 5-7
Score in Range 8-10
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18. 18
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19. Account
Management
Client Contact
Management
Service Partnership
Agreements
• CSO to client; via reporting,
interaction, escalation &
communication
• Client to CSO; to manage
and resolve queries and
drive learning/improvement
• SPAs are 2-way agreements
clarifying both CSO services
and client inputs
Client Feedback
Continuous
Improvement
Process Control
Database
• Client satisfaction
continuously monitored
both informally and formally
• Mechanisms to identify the
areas for improvement and
to develop solutions
• Documents end-to-end CSO
processes; highlights activity
of both CSO & client
Performance
Measurement
Performance
Reporting
Recharging
Methodology
• Comprehensive KPIs,
measures and metrics
framework, CSO & client
• Process performance will be
reviewed monthly by CSO
and client
• Define basis for charging for
CSO services to turn
consumers into clients
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20. 20
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21. 21
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22. Type of Activity
Characteristics
Transactional & • Results more quantifiable
Administrative • Processes benefit greatly from standardization,
•
•
Professional &
Technical
•
•
•
•
Policy &
Strategic
•
•
•
Examples
automation and technology
Clear linkage between effort and results
(outputs generally experienced in short-term)
Generally not client-facing
•
•
•
•
•
•
Accounts payable
Payroll
IT service desk
Fleet management
Facilities management
Mailroom
Results are more qualitative
Standardization, automation and technology
have less of an impact
Relationship between effort and results is not
as clear (medium-term perspective)
Generally requires interaction with client
•
•
•
•
•
•
Procurement advisory
Recruiting/staffing
IT applications
Health & safety
Space planning
End user training
Distant relationship between effort and results
(long-term perspective)
Standardization, automation and technology
are not significant factors
Clear linkage to strategic goals of organization
•
•
Signing authority policy
Business & strategic
planning
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23. 23
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24. 24
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25. 25
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26. We provide advice, guidance, support and implementation
expertise, covering strategy setting, business case production,
program management, outsourcing assessment, process
optimization, technology enablement, training and change
management.
Our functional breadth of experience includes the “big four” of HR,
Finance, IT and Procurement, plus other support services such as
Facilities, Real Estate, Legal, Communications, etc.
Example clients include Coca Cola Hellenic, Coca Cola Enterprises,
Government of New Brunswick, Agrium, May Gurney, Gilead
Sciences, Interior Health, Northern Health, Lawrence Berkeley
Laboratory, FormFactor, National University of Ireland, Bridgestone,
Gerdau, and many others.
Because we are passionate business people and Shared Service
practitioners, we care about your success and deliver solutions
relevant to your organization.
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27. We have serviced a great variety of clients across many industries and countries,
covering Shared Services and Outsourcing, Business Transformation and Technology
Enablement.
Due to the unique nature of working within the Public Sector and with Non-Profits, we
wanted to specifically highlight the following organizations and experience below:
New Brunswick Internal Services Agency, New Brunswick, Canada
Lawrence Berkeley National Laboratory, Berkeley, California
Interior Health and Northern Health, British Columbia, Canada
Stanford University
University College Galway in Ireland, Ireland
The World Wildlife Fund
The International Baccalaureate
National Health Services (NHS), UK
Health Service Executive (Ireland)
Non-Departmental Public Bodies (NDPBs)
Ministry of Defense (MOD)
South Yuba River Citizens League
Outsourced Services to Local Authorities
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28. Phil Searle, Grant Farrell, Chas Moore and Janey Jux have chaired, arranged,
presented at and facilitated workshops at a number of Public Sector Shared
Services events, including the following:
•
Shared Services in the Public Sector at the Queen Elizabeth II Conference
Centre in London
•
Chaired, presented at and help organize the Shared Services and Outsourcing
Network‘s first North American Public Sector shared Services Conference, held
in Chicago in November 2011
•
Presented at and helped organize the Shared Services and Outsourcing
Network’s second North American Public Sector Shared Services Conference,
held in Chicago in November 2012
•
Delivered a master class at the “Managing Change – Transforming the Public
Sector” conference at the Barbican Centre, London 2011
•
Chaired and presented at the 2012 “Power of Collaboration” conference for
financial professionals in BC Healthcare at Vancouver, Canada
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29. Public Sector Shared Services and “Collaboration vs. Sharing”. Phil Searle, CEO Chazey Partners
What might be the Impact of the 2012 Presidential Election on Shared Services and Outsourcing in
the US Public Sector? Phil Searle, CEO Chazey Partners
Are you getting the SPA treatment? Chas Moore, Managing Director, Canada
From front to back office. Grant Farrell, Managing Director, United States
Proactively managing your stakeholders. Janey Jux, Head of EMEA Public Sector Practice
Make or Buy Decision. Phil Searle, CEO Chazey Partners
What are Shared Services Best Practices? Phil Searle, CEO Chazey Partners
When is Shared Services not really Shared Services? Janey Jux, Head EMEA Public Sector Practice
Business Continuity Planning. Grant Farrell, Managing Director, United States
Client Relationship Management Framework. Grant Farrell, Managing Director, United States
Deploying Shared Services. Grant Farrell, Managing Director, United States
Developing the Business Case. Chas Moore, Managing Director, Canada
Shared Services Optimization. Phil Searle, CEO Chazey Partners
Technology Enablement. Grant Farrell, Managing Director, United States
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30. Chazey Partners’ Profile • What We Do
Business Transformation
We help clients to transform their
support functions to realise
significant benefits (lower costs,
optimised working capital and
improved performance) through
best practice process development
and roll out of optimal organisation,
support and delivery structures.
Functional scope covering Finance,
HR, IT and Procurement
Identify and target opportunities,
and produce powerful business
cases to reflect the opportunity and
gain organisational buy in
Implement and support approved
transformation initiatives rapidly to
drive maximum ROI
Effective acquisition integration and
business divestitures
Powerful project and change
management, focussing on delivery
and outcomes
Shared Services
Planning for, resourcing and
implementing global and regional
Shared Service Organisations (SSOs)
covering a wide ranges of functions
and processes including offshore
solutions
Turning round sub optimal or failing
SSOs
Statutory and Fiscal compliance
delivered by SSOs for multiple
countries and legal jurisdictions
Independent of any outsourcing
providers, we offer impartial
sourcing advice and support
covering both internal and external
options, to ensure that the best
solutions for your business are
found
Training and development for
Shared Service practitioners and
Shared Service customers
Technology Enablement
Implement and optimise ERP and
other technology enablement
solutions to maximise return on
investment and in quick time.
Focussing on needs and value to the
business, we view technology as an
enabler and not an end in itself.
Resource technology projects to
enhance chance of success through
an optimal mix of IT, Business
Systems Analysts, Business Process
Integration, Business Process
Owners, and Users
State of the art additional
technology enablement where
required
Effective training and support
Experience includes SAP, Oracle, JD
Edwards, BAAN, Siebel, Peoplesoft,
COINS and many others
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31. Chas Moore
Managing Director, Chazey Partners Canada
chasmoore@chazeypartners.com
Mobile: 250-469-4168
Toll-Free: 1-855-5-SHARED
Janet Garland
Associate, Chazey Partners Canada
janetgarland@chazeypartners.com
Mobile: 250-762-2501
Toll-Free: 1-855-5-SHARED
North America | Latin America | Europe | Middle East | Asia-Pacific