Shared Services 2.0- Where next?

Paul WickensDirector - NICS Shared Services Organisation

Getting the process right

Reasons for establishing SSO

Are no longer just about cost: Effective service delivery is now as important as improving efficiency.Are becoming more strategic: ‘Link to strategy’ is the fastest growing driver for shared services

© The Hackett Group 2009

Bringing them all together!

Integrating Shared Services• Greater clarity on accountability• Sharper focus on the customer experience• Enhanced level of collaboration, co-ordination and

integration• Improved efficiency through rationalisation and co-

ordination of specific skills e.g. contract and supplier management

• Opportunity to benchmark and share best practice

Direction of Travel

Today

SSO“As Is” Model

Target Operating Model

SSO 2.0

Transition Transformation

Letting the

paint dry…. Moving on

Journey Map

Out of breath!

Reason to Operate as a Multi-function SSO

76%73%

55%52%

48%

3%

Service delivery moreeffective across

functions

Shared managementinfrastructure reduces

costs

Suits our businessmodel to be cross

functional

Enables SSO to havecritical mass it would

lack as a single function

Enables end to endprocess management

Other

© The Hackett Group 2009

Nearly half of organisations now have multi-functional SSOs

76%72%

58%55%

51% 52%

26% 28%

42%45%

49% 48%

2003 2004 2005 2006 2007 2008

Within individual functions Across several functions © The Hackett Group 2009

Functions included in SSO

15%

17%

19%

19%

25%

30%

33%

50%

76%

Others

Supply Chain

Executive & Corporate Services (Real Estate, Facilities, Government Affairs, etc.)

Legal

Customer Service

Procurement

Information Technology

Human Resources

Finance

© The Hackett Group 2009

Hype Cycle for Government Transformation, 2009

© Gartner, 2009

Moving to World-Class• Customer Experience:

– “The customer’s perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier’s employees, systems, channels or products.”

• Customer Experience Management– “The practice of designing and

reacting to customer interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy.”

• Gartner (2009)

Efficiency vs. Effectiveness• Being efficient doesn't

mean you are effective in reaching your goals.

• “Efficiency is doing things right; effectiveness is doing the right things.” – Peter F. Drucker

The SSO Hackett Value GridTM

EFFECTIVENESS

Partnership

Quality

Talent Management

Cost Cycle Time Technology Enablement

Complexity Governance

EFFICIENCY© The Hackett Group 2009

Productivity

SSO implementation’s impact on performance

Customer ServiceQuality

83% of companies saw more than 10% of productivity improvement

79% of companies saw more than 10% of quality improvement

75% of companies saw more than 10% of customer service improvement

25%

24%

22%

13%

1%12%

3%

21 to 40%41 to 60% World-Class>60% 11 to 20% 1 to 10% No Change

15%

30%

22%

15%

1%12%

5%

20%

22%24%

15%

1%9%9%

Negative Impact © The Hackett Group 2009

Immediate priorities

• Establish “as is” SSO on 01 January 2010 • No disruption to customers – “business as usual”• Resolve residual implementation issues• Move quickly from project to service mode• Build confidence and manage expectations• Deliver quick wins by 01 January 2010• Implement new governance arrangements • Develop communications strategy• Begin the strategic planning process for SSO 2.0

Thank-you!