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    Sourcing Lecture 6 Directing and Shared Services Sourcing Lecture 6 Directing and Shared Services Presentation Transcript

    • ITSM Specialization Sourcing 2012-2013 Prof. Frank WillemsLecture 6: Shared Service and Directing Sourcing
    • Agenda• Shared Services• What is directing• Processmodel for directing• Roles within the directing organisation• Learning Task 3• Questions and answers 2
    • Shared Services3
    • Definition and goal of a Shared ServiceCenter (SSC)• We speak about an SSC as supporting processes within an organization on an approximately similar way, are delivered in a new, semi-autonomous unit and on the basis of agreements it provides services to other units• The goal of an SSC is generally to improve the service quality while also cutting costs• SSC versus centralization is service-oriented versus task orientation 4
    • Shared Services plotted on the Kraljic model What is the extent to which the product / service adds value for the businessLarge added value Leverage Strategic th Shared Service 3 Generation sourcing Centers Routine BottleneckLess added value Purchasing Risk Is it a standard or a specialized product? Standard Specialized 5
    • Measures in perspective Saving potential Measures at a functional level:Concentration, integration, mergers, Full outsourcing Take-over or outsourcing Shared Services Centre Integration, mergers and concentration Measures at a process level: Outsourcing of parts of the organization Collaboration and joint investments Optimization and standardization of processes System optimazation Measures at task level: Collaboration regarding purchasing, support, etc. Stopping investments Orcutting down on current Stopping projects initiatives Cutting down on training and learning Cutting down on engaging external consultants Capitalizing Short term Medium term Long term effects (0,5-1 year (1-2 years (2-5 years) 6
    • Concentration leads to economies of scale Costs Economy of Scale Internal SSCEfficiency- effects Insourcing/ External Supplier Volume 7
    • Are the trends moving up anddown?Yes, to take maximum concentration and complexity there will be need for newsolutions. Costs Startingpoint Impact Scale Complexity Costs reached will increase Impact Scale reached Volume8
    • Potential services for a SSCFacility Management ICT Services- mailroom - Application Support- copying and printing service - Helpdesk- archive - Management and Operations- purchase control- catering - Training Real Estate ManagementCustomer Service - Building Management- sales service - Security Management- Telephone Service (call center) Sales and marketingAdministration - Ad coordination- financial administration - Direct mail- pensions administration - Sales- Payroll - Tele orderingPersonelmanagement (HRM) - Order administration- recruitment and selection- Personnel administration- Training
    • Variants of Shared Services Shared Business Process Management primairy functionsSharedback-offices supportfunctions Shared Support Process 10
    • The components of Shared Services What is the proper organization, which staff and how are we ready for the future? Opstellen van Business Cases The core of the service SSC 1 Governance Managen van projecten Inrichten SSC 2 Regie Architectuur van processen Processes SSC 3 SSC 4How to manage theenvironment, where theprocess is cut and Customerswho is responsible forwhat processes? Systems Organization ICT funct ionalit eit Kant oor Bedrijfs Technische informat ie informat ie Informat ie ICT infrast ruct uur syst emen syst emen syst emen ICT Funct ie/processen laag User Support en Funct ioneel Applicat ie Management Specifiek Syst em Management Generiek Fysiek Net werk Management How are technology, process and organization ICT infrast ruct uur component en knotted together?
    • Name the change components Response, context Target focus on and vision of SSCs service domains clear and design Ontwikkelen Ontwikkelen SSC 1 maatwerk direction activities maatwerk Beheer & Beheer & ICT - Governance draaien 2 SSC draaien governance pakketten pakketten Regie Architectuur Beheer Beheer Support/ Support/ Regie Architectuur SSC 4 SSC 3 infrastructuur Helpdesk infrastructuur Helpdesk Make Governance Professionalize agreements demand Opstellen Opstellen van Business van Business Cases Cases Governance ICT - M anagen M anagen governance van van projecten projecten Regie Architectuur Inrichten Inrichten Regie Architectuur van van processen processen Opstellen van Business Cases Transform Managen demand management SSC 1 Governance van projecten Inrichten SSC 2 Regie Architectuur van - ICT - processen Governance governance SSC 3 SSC 4 Regie Regie Architectuur Architectuur
    • An Change approach for SharedServices Intervention-oriented communication about plan and implementation Support by Change help desk Change analysis + Culture scan Aligning structure and processes Characteristics of products, pro- Organizing control and and prepairing SSC implementation cesses & structure Clients, Change idea Culture change and competence development Governance & suppliers Characteristics Characteristics Contracting and realizing SLA’s of interaction of employees Learning to collaborate …. Measuring Measuring progress progress Inter- Inter- Reconsider- Reconsider- ventions ventions ing Ing and (re) And (re) planning goals planning goals Change goals Kick off Plateau 1 Plateau 2 DD MM YYYY Assessment by Change board Consultation with Sounding board group Client … CIO 13
    • Example of a Target Efforts Network for the SSC Change Programme Mission Develop a Shared Service Center that is a knowledge-and information-engine around pension products,Mission by sharing forces to deliver better innovation and deliver at lower cost high quality products and services to Better quality More innovative power Higher efficiencyGoals ICT services and and sharing knowledge pension processes products 20% Faster 75% Reuse 95% ReliableMeasurable pension processes market 30% Cheaper 20% Less 60% Knowledge service in introduction implementation pension products and systems duplication accordance goals (FO & BO) pension processes more accessible SLA products Projectsand activities 14
    • Directing15
    • What is directing Directing is about linking demand and supply. You must know what the customer (commissioner and the user) wants, then translate it into a solution with the necessary resources (sources) to achieve and then arrange that the services is provided. And to be able tot do that to you really need the right competences. The director will lead 16
    • Use the three columns of the 9-gridfor setting up the directing area Management Directing Service Aligning Bepalen strategie Bepalen strategie Bepalen strategie bedrijfsvoering informatie ICT service voorziening en Supplier organization regie Business Directing Organizing Ontwerpen en Ontwerpen en Ontwerpen en plannen plannen informatie plannen ICT bedrijfsvoering voorziening en service regie Ontwerpen en exploiteren Beheren en gebruiken Beheren en exploiteren Implementing bedrijfsvoering informatievoozieningen ICT services
    • Use the three rows of the 9-gridmodel to design the chain Management Directing Service Aligning Bepalen strategie Bepalen strategie Bepalen strategie bedrijfsvoering informatie ICT service voorziening en View and governance regie Oganizing Ontwerpen en Ontwerpen en Ontwerpen en plannen plannen informatie plannen ICT bedrijfsvoering voorziening en service Planning, organization and regie projects Ontwerpen en exploiteren Beheren en gebruiken Beheren en exploiteren Implementing bedrijfsvoering informatievoozieningen ICT services Implementation and operational service delivery
    • Then a complete framework formanaging sourcing is designed Management Directing Service Aligning Specify strategy Specify strategy Specify IT and FM facilities and services information supply and control Organizing Design and Design and Design, build and implementation implementation implement IT and facilities and FM services information supply and control Implementing Use and Management and Management and exploitation use facilities exploitation IT and FM services 19
    • Then match the directing activitieswith CMMi acquisition at the 9-grid Management Directing Service Aligning specify strategy and Governance specify strategy specify IT and FM management services Strategy & and facilities Collaboration information supply Service Portfolio and control management Account Mgt. Architecture Management Organizing Design and Project Monit. Design and Design, build and implemantation & Control implement IT and FM Management implementation Performance mgt services management facilities and and analysis Account & Monitoring information supply Demand mgt. quality and controlSupplier mgt. Purchase & Contract & tenders Supplier mgt. Demand Use and exploitationManagement Implementing management Management Change and Management and management use facilities exploitation IT and FM services Demand & failure settlement 20
    • Processmodel for directing21
    • Process chains for the directingorganisation• There are three primary process chains in the directing organisation: – Innovation Management, develop new services – Change management, implementation of changes to existing services (doing projects, etc.) – Service management, performance and direction on the existing services• The processes are derived from the CMMi-ACQ model. By process chain KPIs (Key Performance Indicators) set. 22
    • The chain shows three dominantlines Management Directing Service Aligning specify strategy and Governance specify strategy specify IT and FM management facilities and services Strategy & Collaboration information supply and control Innovation Account Mgt. Architecture Management Organizing Design and Project Monit. & Design and Design, build and implemantation Control implementation implement IT and management Performan facilities and FM services ce mgt an Managing changes information supply and control Supplier mgt. Purchase & tenders Demand Implementing Use and exploitation Management management Management and Management and Service continuity exploitation IT and use facilities FM services Demand & failure settlement 23
    • Explanation process model for demand/supply• Directing organization is focussed on matching present and future customer IT service needs and demands with (contracted) services from supplier(s).• The total organization should be seen as a logistic process (coordination between supply and demand). Each activity in this logistic process must be indicated either as a coordination of daily business or as a change in services rendered or as an innovation in services being supplied• The activity is then attended to by the appropriate person/office in the logistic process and brought to a good result 24
    • The process model more detailed Customer/ Directing Supply S t Demand Stra - r Proposal for renewal tegical a meeting t Architecture mgt e g Service portfolio mgt Strategy & coorporation i Governance Request for Procurement & tender c Proposal for renewal New product supplier or service Innovation Proposal for renewal Proposal for improvement T Monitoring KPI’s a Project monitoring reports Tactical meeting c Request for Monitoring KPI’s t change of Proposal for impovement i Product or c service Change process supplier Structural Proposal for improvement problems O Results customer satisfactionsurvey Measurement & analysis Reports Opera - tional p meeting e r complaints complaints Monitoring within SLA outside SLA KPI’s Improvement a complaints services t / solve i o Service & incidents Incident management Management of complaints incidents n a l Delivery of services
    • Bounderies of soucing andIT supply Customer/ Directing Supply S Demand t Stra - r Proposal for renewal tegical a meeting t Architecture mgt e g Service portfolio mgt Strategy & coorporation i Governance Request for Procurement & tender c Proposal for renewal New product supplier or service Innovation Proposal for renewal Proposal for improvement T Monitoring KPI’s a Project monitoring reports Tactical meeting c Monitoring KPI’s Request for t change of Proposal for impovement i Product or supplier c service Change process Structural Proposal for improvement problems O Results customer satisfactionsurvey Measurement & analysis Reports Opera - tional p meeting e r complaints complaints Monitoring within SLA outside SLA KPI’s Improvement a services t complaints / solve i o Service & incidents Incident management Management of complaints incidents n a l Delivery of services
    • The Innovation process (1/2)Initiation Global Analysis Detail Analysis Input Input Input Input Governance Output Output Strategy & Procurement and Service portfolio tenderprocess Functional Design colaboration management Architecture Contract management Output Business case with P.I.D go go go 1a Develop 1b Develop 1c Analyse 2a Estimate 2b Develop 2c Get 3 Agree terms and customer Product and validate planning and projectplan commitment for contract with supplyStart requirements requirements requirements forecast the project No go No go No go Inventarisation of customer requirements Prepare Project Contracting Demandmanager Contractmanager Demandmanager Suplly mgt Projectmanager 27
    • The Innovation process (2/2) The innovation process Development Preparation & test Implementation Mana geme nt Input Input Input Developed products Testresults Contract & Functioneel Design Decision making about testgroup Output & test environment Acceptation products 4a Select 4b Develop 4c Implement the 5a Prepare 5b 5c Check selected 6a Prepare 6b Ensure interface- product- the design product design verification Testing products productintegration ompatibility and deliver component the productDevelop technical solutions Verification Productintegration DemandmanagerProjectmanager Demandmanager Contractmanager Suplly mgtSupply mgt Contractmanager 28
    • The Change process The change process Analysation Development Implementation Initiation Manag ement go go 4 Track and 5 Prepare 6 Ensure interface- 1 control 2 Evaluate alternative 3 Develop manage product- comptability and produce requirements solutions projectplan integrationStart changes solution Alternative analysation and choice of Req. management solution No go Projectplanning No go Configuration mgt Product integration Demandmanagement Demandmanagement Demandmanager Supply Contractmanagement Contractmanagement 29
    • The Incident processThe incident management process ICT Management stage 1st line support 2nd line support No Start Incident Administration Classification Solution or Deeper Design and Distribution and entry escalation investigation specifications of administration of incident the solution activities and solution Yes Supply Front Office Supply Back Office Incident solved 7 Assign Incident nd 2 line support 6 Analysest 8 Solve 4 Take 9 Manage Incident 1 line Incident 1st line Care progress support support self Measure exceeding Nee 3 Inform Supply mgt 5 Escalation coördinator ja Intake 1 Registration existing 10 Decline 11 Decline 2 Relationship Frontoffice Classification incident call user call call ja 30
    • Roles within the directing organisation31
    • The areas of responsibility plottedon the 9-grid mgt framework Management Directing Service Aligning Specify strategy Specify strategy facilities SpecifyIT and FM and information supply services Governance and and control architecture Project mgt and Account and collaboration Portfolio mgt Organizing Design and Design and mgt Design, build and implementation implementation facilities implement IT and FM and information supply services Information Sourcing and control management management Sourcing Contract mgt Services and performance monitoring Implementing Use and exploitation Management and use Management and facilities exploitation IT and FM Functional services Application mgt 32
    • Directing roles in Governance andArchitecture area• The Director (CIO) will carry the ultimate responsibility for overall information and ICT chain and is sparring partner for the management of ICT- related issues• The information architect designs and implements organisation-wide information architecture (applications, hardware, networking, datacom)• The business architect designs the business processes and frameworks and enter the correct application of the process frameworks. Together with the ICT architect, a risk analysis in case of changes in processes or applications will be made 33
    • The information management area• The Information Manager advises on solutions in the field of ICT for business to better support in achieving their objectives. It is a long term vision and planning and should develop a framework for planning and assessment of renewal and modification of information systems. 34
    • Account and Portfolio mgt areas• The ICT consultant advises organisation-wide, sought and unsolicited, on solutions in the field of ICT business in order to better support their goals using ICT solutions• The Information Analyst focuses on analyzing and advising on how the information flows within the customer organisation can be supported by the current system landscape 35
    • Project mgt and collaboration mgt• The Project manager executes projects in the field of ICT (from the initiation tot the transfer to the existing organization) 36
    • Contract mgt and performancemonitoring• The Contract Coordinator focuses on the creation and implementation of the supplier strategy, mapping product / vendor combinations and building and maintaining existing relationships• The Purchaser focuses on the procurement of services, and if products and people at the right price, performance levels, and compliance are buyed with contractual agreements is that can be monitored• The Demand Manager focuses on developing and maintaining relationships with external ICT suppliers and on the steering / leading the team in - and outside staff responsible for the daily operation (including Service Desk and Field Services) 37
    • Sourcing management area• The Service Level Coordinator is responsible for monitoring and managing the delivery of agreed ICT products and services by external parties as defined in Service Level Agreements on quality, availability and cost.• The Project & Change Coordinator, will direct on all new and ongoing projects and (big) changes regarding the ICT systems (internal and external capacity, content, planning, budget, priority) 38
    • Sourcing Services area• The keyuser provides the functional management of one or more applications tailored to the specific business processes. The key point of the users are from a group of users to use a specific application and the application of this application within a sector or management.• The process specialists support the key user for the translation of the process of sector specific management or automated applications. They are experts in the field of process and work within the framework of the business architect suggests. 39
    • The Functional application mgt area• The Functional Application Manager provides the functional management of one or more applications tailored to the specific business and focuses on analyzing and advising on how the information flows within the organisation can be supported by ICT applications. He/She will also support in testing and implementation of changes.• The Technical Application Manager is responsible for the availability and performance of the ICT systems 40
    • The roles plotted on directing model Customer/ Directing Supply S Demand t r Proposal for renewal Director(CIO) Stra - tegical a meeting t Architecture mgt e g Service portfolio mgt Strategy & coorporation i Request for Governance Procurement & tender Proposal for renewal c New product or service Informationmanager supplier Business Innovation architect Proposal for renewal Proposal for improvement T Project and change ICT consultant Information Monitoring KPI’s a coordinator reports Tactical c architect Request for Project monitoring & control Monitoring KPI’s meeting t change of Proposal for impovement i Product or Projectmanager supplier c service Change process Contract Structural Proposal for improvement Demand manager problems Information manager analist Opera - Results customer satisfactionsurvey O p Measurement & analysis Reports tional meeting e r complaints complaints Monitoring Improvement a Functional application complaints within SLA outside SLA KPI’s services t mgt Service & incidents Purchaser / solve i o Incident management Management of complaints incidents n a Application Superuser l Delivery of services mgr
    • Roles and ideal change colorsBased on change management apporach of Prof. De Caluwé Customer/ CIO Supply S Demand t r Proposal for renewal Director(CIO) Stra - tegical a meeting t Architecture mgt e g Service portfolio mgt Strategy & coorporation i Request for Governance Procurement & tender Proposal for renewal c New product or service Informationmanager supplier Business Innovation architect Proposal for renewal Proposal for improvement T Information Project and change Monitoring KPI’s ICT consultant a architect coordinator reports Tactical meeting c Request for Monitoring KPI’s t change of Proposal for impovement i Product or service Projectmanager supplier c Change process Contract Information Proposal for improvement Demand manager Structural problems analist manager Results customer satisfactionsurvey Opera - O Reports p Measurement & analysis tional meeting e r complaints complaints Monitoring a Functional application within SLA outside SLA KPI’s Improvement services complaints t mgt Service & incidents Purchaser / solve i o Incident management Management of complaints incidents n a Application mgr Superuser l Delivery of services
    • Some principles for directingcompetences• 1st generation sourcing and directing asks for CMMI level 2• 2nd generation asks for CMMI level 3• 3th generarion asks for new competences in managing colaboration and CMMI level 4• 4th generation asks for personal leaderschip and at least CMMI level 4 e e 2 generation sourcing 4 generation sourcing Crowd sourcing Leverage Strategic Business Proces Outsourcing Business e development 3 generation sourcing Backoffice outsourcing Shared Service Routine Centers Bottleneck DataCenter Facilities outsourcing outsourcing Outsourcing e workplace mgt Workinnovation e 1 generation sourcing 2 generation sourcing Operations outsourcing• Directing competences are professional projectmanagement, managing change management, account management and supplier management all at the desired CMMI level 43
    • At the end…• Setting up a directing organisation (the new ICT organisation) is a radical change….use the change colours• Filling in the roles is changing competences and changing people• A clear process model will help to implement the directing activities• Always use the three models to find a language of communication during the Change Operation; 9 grid, Kraljic and CMMI 44
    • Sourcing definition The dynamic planning and organizing of the supporting processes, people, resources and capabilities, needed to obtain the business goals 45
    • Which sourcing models should beknown? 46
    • Decision tree for the sourcing solutions Capacity required High/average Impact on Low Strategisch? business Yes Risks to be managed? No No Mature service? No Cost reduction Stabiel? important? Yes Yes Yes Cooperation advantageous? No No Under control? Yes Start Improve first and Improve together Outsource Zelf purchase capacity Uitbesteden cooperation outsource if necessary from external source(s)3rd generation and strategic or 2nd generation and strategic or 2nd/3rdgeneration and bottleneck 1st/2nd generation and leverage Kraljic segment bottleneck Kraljic segment or routine Kraljic segment routine Kraljic segment 4
    • The sourcing solutions plotted on the Kraljic model What is the extent to which the product / service adds value for nd thLarge added value 2 generation sourcing 4 generation sourcing Crowd sourcing Leverage Strategic Business Proces Outsourcing Business development Backoffice outsourcing nd Shared Service 3 generation sourcing Centers DataCenter Facilities outsourcing outsourcing Routine BottleneckLess added value Outsourcing workplace mgt Workinnovation the business st Operations nd 1 generation sourcing outsourcing 2 generation sourcing Purchasing Risk Is it a standard or a specialized product? Standard Specialized 48
    • Five ways of thinking about change Something changes when you . . . Bring the interests of the most important players together by means of Yellow print a process of negotiation enabling consensus or a win-win solution Formulate clear goals and results, then design rationally a systematic approach and then implement the approach according to plan Blue print Motivate and stimulate people to perform best they can, contracting Red print and rewarding desired behavior with the help of HRM-systems Create settings for learning by using Organisation Development interventions, allowing people to become more aware and more Green print competent on their job Understand what underlying patterns drive and block an White print organization’s evolution, focusing interventions to create space for people’s energy ‒ Change is in the eye of the beholder ‒ Each viewpoint has its ++ en --, ideals and pitfalls 49
    • The five colors at a glance Yellow-print Blue-print Red-print Green-print White-printSomething bring common think first and then act stimulate people in create settings for create space forchanges interests together according to a plan the right way collective learning spontaneouswhen you evolutionin a/an power game rational process exchange exercise learning process dynamic processand create a feasible solution, a the best solution, a a motivating solution, a solution that people a solution that win-win situation brave new world the best ´fit´ develop themselves releases energyThe result forming coalitions, project management assessment & reward, training and coaching, open space meetingsis... changing strategic analysis social gatherings open systems self-steering teams topstructures planning someone who usesby a/an... facilitator who uses expert in the field HRM expert facilitator who his being as his own power base supports people instrument patterns andaimed at... positions and context knowledge and results procedures and the setting and meanings working climate communicationResult is… partly unknown and described and outlined but not envisaged but not unpredictable shifting guaranteed guaranteed guaranteedSafeguarded decision documents benchmarking and iso HRM systems a learning self-managementby… and power balances systems organisationThe pit-falls dreaming and lose- ignoring external and ignoring power and excluding no-one and superficial under-lie in… lose irrational aspects smothering brilliance lack of action standing and laissez faire 50
    • 12-2-2013