north america | latin america | europe | middle east | asia-pacific slide 1 first uc-csu shared...


AgendaBrief Background on Chazey PartnersDefinition of Shared Services. What it is and indeed what it is not.Why Shared Services?Why Shared Services in the “Public Sector”?Shared Services in Higher Education in the USHow Can One Cut Costs Without Impacting Frontline Services?Does Shared Services Mean Privatization?Critical Success Factors for Implementation of any Shared Services Delivery Solution.The “nine key components” of a robust Internal Customer/Client Relationship Management CRM frameworkKey Competencies of Shared Services TeamsQ&A

North America | Latin America | Europe | Middle East | Asia-Pacific Slide 3

Who We AreChazey Partners is a specialist advisory/consulting business, that brings together a unique wealth of expertise in implementing and operating world class business support and Shared Services Organizations (SSOs) around the globe

We pride ourselves in having built, operated and turned around some of the world’s most highly commended and ground breaking Shared Service organizations

We have operationally and as consultants delivered numerous programmes globally, over the last 20 years, in both the Private and Public Sectors, in the US, Canada, Latin America, UK, Ireland, Continental Europe, India, Singapore, Australia and China, amongst others

We provide advice, guidance, support and implementation expertise, covering strategy setting, business case, programme management, implementation, process optimization, technology enablement, training and change management


Who We Have Worked With

NUIG


What Exactly Is Shared Services?


Definition and Goal of Shared ServicesShared Services

…is the organization that provides non-core services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal customer. This involves a philosophy and approach totally unlike traditional “corporate”-driven centralization.

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 customer relationship management, organizational re-alignment, economies of scale, technology, standardized end-to-end processes, and best practice.


Why Shared Services?


Why Shared Services?

Disparate processes

Multiple standards

Duplication

Different control environments

High cost and costs unclear

Not scaleable

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

Clear unit costs

Flexible delivery

Clear drivers and activities

Common systems and support

Consistent standards and controls

Tight control environment

Economies of scale

Remote from business

Unresponsive and inflexible

No Business/ Operational control over costs

Viewed as central overhead

Prevalence of shadow operations

The Best of Both Worlds!

Decentralized SharedCentralized


Why is Shared Services different to Centralization?


The Potential Scope of Shared Services Human Resources

– Payroll– Travel & Expense– Compensation Administration– Benefits Administration– Records Management– Training & Development– Relocation Services– Evaluation Planning/Review– Policies & Procedures– Labor Relations– Recruiting/New Hire On-boarding– Headcount Reporting– Succession Planning– Employee Recognition Systems

Information Services– Desktop Support– Application Maintenance– Telecommunications– Hardware & Software– Application Development– Data Center Operations– Standards– Technology Planning &

Development– Acquisition Support– IT Security

Finance– Accounts Payable– Billing/Accounts Receivable– General Ledger– Consolidations– External Reporting– Planning and Budgeting– Treasury/Cash Management– Internal Audit– Tax – Foreign Exchange– Business Support Analysis– Financial Reporting– Project Accounting– Cost Accounting– Lockbox Services– Records Management– International Accounting

Supply Chain Management– Procurement– Transportation & Logistics– Strategic Sourcing– Warehousing– Inventory Management– Vendor Management

Customer Service– Call Centers– Credit & Collections– Order Management– Returns Processing

Legal/Corporate Affairs/Administrative Services/Other

– Travel Services– Real Estate– Facilities/Site Services– Fleet Management– Security– Communication Services– Environment, Health & Safety– Regulatory Compliance– Public Affairs/Media Relations– Litigation Support & Coordination– Insurance– Mailroom– Grants Management– Health Clinics/Day Care Centers– Corporate Brand Compliance– Engineering– Subsidiary Management– Emergency Management

Source: Scott Madden & Associates


Why Shared Services In The “Public Sector”?


“Public Sector” here includes Government, Higher Education, Healthcare and Not For ProfitWhy not? Has worked well in the Private Sector for 25+ years, and is also working in the Public Sector today.Significant funding issues today … everywhere. Shared Services can deliver potential “triple benefit” of efficiency/effectiveness/controlThe same basic challenges and significant opportunities around implementing Shared Services in the Private Sector are also there in the Public Sector….but need to be adapted and applied differently.Some unique challenges in the Public Sector (and in Higher Education), namely managing “politics” and workforce, territorial and governance issues, different funding sources, and unique change management.Harvard 2009 Summit: “Harnessing new found capacity with a shared service enterprise and extending it enterprise wide increases the capacity for high performance and subsequently increases public value. Managing for efficiency and effectiveness is now a win-win proposition for public sector leaders.”

Why Shared Services in the Public Sector?


Shared Services In Higher Education in the US



The recession/slowdown impacted both Public and Private Universities, but the impact has to an extent been different for the Public Universities. The recession/slowdown and the accompanying revenue decline at the state level has left less money to fund education

The private institutions, except for grants provided by the federal government for research, are to some extent less dependent on government funding. However, many private institutions saw their endowment values decrease as a direct result of the recession, and the private institutions also responded by increasing student fees.

Increasing student fees alone has not been sufficient to close the budget at many Universities and Colleges, and these institutions are looking to shared services to help them close the budget gap, increase efficiencies and provide better service.

Efficiency/effectiveness of “back office” operations is now really a pre-requisite, and not a “nice to have”, for any organization/enterprise, in Private or Public sectors.



Shared services already underway pre recession at many Universities, e.g. Yale University, Harvard College, University of Michigan, University of Illinois & Cornell.

UC Berkeley administration division began in 2008 to move to a shared services model for HR, and successfully opened its center on July 1, 2010. In 2012 the University approved a project to implement shared services for finance, research, information technology and human resources.

As part of its Synergy Initiative, CSU’s Procure to Pay (P2P) Shared Services Initiative seeks to leverage the success of implementing CSU’s Common Financial System and improve the efficiency and effectiveness of processes to purchase and pay for goods and services.



The University of California has begun implementation of a University System Wide Shared Services center called UCPath for HR and Payroll.

The Yale Finance shared service center was formed in January 2010, to take repeatable common work out of departments. The center was formed through the consolidation of three pre-existing service units. The center provides Financial Management and transaction processing for procurement, accounting, accounts payable and client accounts.

Lawrence Berkeley National Laboratory has had an HR Service Center since 2011, and is looking to expand scope of services provided.

Accenture predicts that the next wave of implementation in higher education will see a broadening of the functional areas that are in scope for shared services.


How Can One Cut Costs Without Impacting Frontline Services?


How Can One Cut Costs Without Impacting Frontline Services?

Cost savings from the “back office” can be used to fund core and front line services.

When thinking about the possibilities for shared services in the public sector remember that the scope across the “back office” is very significant. This is just the same as in the private sector.

In terms of the public sector (and it is just the same in the private sector) one needs to determine what needs to be physically close to the internal “customer” or “client” vs what can be done remotely. Then one should ask the question that if something can be performed remotely will some level of service be lost?

Need to think about who your “customer/client” is – internal and external. Also need to think about residents and tax payers as key stakeholders.


Does Shared Service Mean “Privatization” And If Not, Why Not?


Does Shared Service Mean “Privatization” And If Not, Why Not?

Straight up – NO

Outsourcing has been an option as a potential part of the solution mix, most notably in the Private Sector.

And while the private sector has used third party Business Process Outsourcing (BPO) to some extent, in-sourcing has been the most popular model chosen in the Public Sector.


Critical Success Factors for any Shared Services Delivery Model


Critical Success Factors

Customers

Technology Processes

People

Critical Success Factors

Service orientation in place Structured way of dealing with

internal customers Customer satisfaction levels

understood SPAs in place Reality versus perception Account management

Processes documented Standardized, controlled &

repeatable activity Recharging methodology Benchmarking capability –

internal/external Metrics:

(i) Control Based

(ii) Efficiency & Effectiveness

ERP implemented Document Scanning Solution Workflow Automated Payments Elimination of Side Systems Self services tools Automated Score Cards

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


The Nine Key Components of a Robust Internal CRM Framework


Nine Key Components of an Internal CRM Framework

1. Customer/Client Relationship Management 2. Customer/Client Contact Management3. Service Partnership Agreements (SPA) 4. Client Feedback 5. Continuous Improvement 6. Process Control Database 7. Performance Measurement 8. Performance Reporting 9. Service Pricing


Nine Key Components of a CRM FrameworkElement Description

1. Customer / Client Relationship Management

This covers the traditional outward facing “Account Management” from the SSO to its customers/clients. It is about making sure that the customer/client is happy and does not have any issues that go unaddressed

2. Customer / Client Contact Management

Defines mechanism to receive, manage, communicate and resolve customer queries, and drive learning and improvement

3. Service Partnership Agreements (SPA)

A two-way agreement clarifying both services provided by the SSO to its customers and key inputs received from customers

4. Customer Feedback Customer satisfaction continuously monitored through informal channels (Relationship Management), and formal channels (customer survey)

5. Continuous Improvement Defines the mechanisms to identify the areas for improvement and develop actual solutions


Nine Key Components of a CRM Framework

Element Description

6. Process Control Database Documents end-to-end processes managed by the SSO and highlights activity split between SSO and the Campuses/Departments/Divisions

7. Performance Measurement The performance of each process to deliver on customer requirements is measured and distinguished between the SSO and the Campuses/Departments/Divisions performance

8. Performance reporting On a periodic basis, process performance will be reviewed by the SSO and Campuses/Departments/Divisions

9. Service pricing Defines the basis for charging of services by the SSO to its Campuses/Departments/Divisions customers


Challenging experience

Lack of clarity on who does what

Dealing in “perception versus reality”

Focus is on negative aspects of service delivery• one way traffic• blame culture

Strained customer relationships

Focus on “fire fighting” and maintaining morale takes the emphasis away from customer service

Customer Relationship Management distinguishes a Shared Services organization from a simple act of centralization and drives a spirit of partnership between the SSC, its customers, and all key stakeholders.

Operating with no “CRM” Framework


Key Competencies of Shared Services Teams


All SSO staffStrong focus on providing the highest level of client service to both internal and external customersCommitted to the organizationEstablish and maintain relationships across the organizationConfident, self motivated and enthusiasticHighly proactive and seeks continuous improvement in self and othersGoal and results orientatedHighly organized, with attention to detailKnowledgeable in services/processes supportedExcellent communication and interpersonal skillsTeam playerTakes ownership and is willing to be held accountable

SSO Team and Process Leadership Experience in customer service provisionExperience in managing multiple stakeholders/relationshipsProduce resultsBuild a diverse, high performance teamPeople development

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Key Competencies of Shared Services Teams