Customer Relationship Managment (CRM) presentation for shared services in the public sector
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Shared Services and Business Process Outsourcing are proven delivery models for providing “non-core” services to the business, and can deliver the “triple benefit” of reduced costs, improved ...

Shared Services and Business Process Outsourcing are proven delivery models for providing “non-core” services to the business, and can deliver the “triple benefit” of reduced costs, improved service levels and a more effective control environment. Success requires a robust approach, focusing on the critical success factors, and then adapting all this to your own organization’s unique situation, culture and requirements. Having a comprehensive and robust Customer Relationship Management (CRM) framework is fundamental to this success. In this presentation, Grant Farrell and Chas Moore of Chazey Partners, share their hands on experience on “nine key components” of a robust CRM framework, and how to design a “best practice” service partnership agreement (SPA) as part of this framework.

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Customer Relationship Managment (CRM) presentation for shared services in the public sector Presentation Transcript

  • 1. What is a “Customer Relationship Management (CRM) Framework ” for Shared Services and Outsourcing Solutions? SSON SHARED SERVICES & PROCESS IMPROVEMENT FOR HIGHER EDUCATION, HEALTHCARE AND GOVERNMENT Wednesday, November 13th 2013 San Diego, California ©Chazey Partners 2013 North America | Latin America | Europe | Middle East | Africa | Asia 1
  • 2. Key Topics Gain knowledge about CRM by understanding what a “CRM framework” in support of your service delivery solution actually means Discuss and work through the 9 critical components of a robust CRM framework Discuss how it can it be a benefit in Higher Education Discuss why CRM is so critical to sustainable success Work through some practical, real life examples By the end of the session build capability to design a “best practice” Service Partnership Agreement North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 2
  • 3. About Chazey Partners ©Chazey Partners 2013 North America | Latin America | Europe | Middle East | Africa | Asia 3
  • 4. Who We Are · Overview Chazey Partners is a professional management advisory business, which brings together a unique wealth of expertise in implementing and operating world class Business Support Services and Shared Services Organizations (SSOs) around the globe We pride ourselves in having built, operated and turned around some of the world’s most Organizations highly commended and ground-breaking Shared Services We have operationally delivered and consulted numerous programmes globally, over the last 20 years, in the US, Canada, Latin America, UK, Ireland, Continental Europe, India, Singapore, Australia, China, Middle East and Africa We provide an end-to-end capability, advice, guidance, support and implementation expertise, covering strategy setting, business case production, programme management, outsourcing assessment, implementation, process optimization, technology enablement, training, and change management North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 4
  • 5. Who We Are · Specialties FINANCE & ACCOUNTING ● HUMAN RESOURCES ● INFORMATION TECHNOLOGY ● PROCUREMENT ● TRAVEL & EXPENSES ● GLOBAL BUSINESS SERVICES SHARED SERVICES AND OUTSOURCING − BUSINESS TRANSFORMATION − TECHNOLOGY ENABLEMENT PRACTITIONERS FIRST ● ROBUST KNOWLEDGE TRANSFER ● EXCEPTIONAL PROJECT PAYBACK ● LIBERATING BUDGET ● EXPERTS IN DELIVERY Expertise In Both Public Sector & Private Sector ©Chazey Partners 2013 North America | Latin America | Europe | Middle East | Africa | Asia 5
  • 6. Who We Have Worked With OUR CLIENTS … WHERE HAVE WE COME FROM … ©Chazey Partners 2013 North America | Latin America | Europe | Middle East | Africa | Asia 6
  • 7. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 7
  • 8. Shared Services is the organization that… Employs a specialist team Clientfocused Geographically unconstrained 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 8
  • 9. Structures have Benefits & Challenges 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 9
  • 10. Shared Services vs. Centralization 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 10
  • 11. Strategic Alignment and Ambition Time More than cost reduction • • Cost Reduction • Focus on cost • Consolidate and Standardize • Reduce fixed cost base • • Re-engineering and Productivity Enhancement Focus on process Reduce/eliminate none value-added activities Reduce errors and increase rework More timeliness and accuracy of information Value Creation and Continuous Improvement • Focus on Value • Leverage Shared Services network and expertise • Create new services that enable business transformation Integrated Strategic Service Delivery • Focus on strategic business drivers • Create strategic partnerships • Ensure seamless integration of outsourcing • Enable a virtual organization Benefit North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 12
  • 12. Shared Services in Higher Education in US Although shared services is not a new concept in the US much of it has been siloed within various Federal agencies rather than organized as a single shared service initiative across all or much of Federal Government Higher Education on the other hand has made good inroads into adopting shared services although it is still early days Examples of Shared Services can be seen at many Universities across the US, such as at Yale University, Harvard College, University of Michigan, University of Illinois, Cornell, Indiana University and Berkeley Most examples are single function Shared Services at present To date not a lot of progress has been made from a multi-functional perspective and many Universities have not started with anything yet North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 13
  • 13. Shared Services in Further Education in US The recession has impacted both Public and Private Universities The recession and the accompanying revenue decline at the state level has left less money to fund education Increasing student fees alone has not been sufficient to close the budget at many Universities and Colleges Many institutions are looking to shared services to help them close the budget gap, increase efficiencies and provide better service. 5 years ago shared services was not very developed in Higher Education in the US but that is changing fast. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 14
  • 14. North American Universities by Maturity Source SSON September 2013 from research by the University of Kansas North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 15
  • 15. Higher Education Shared Services Examples in Canada - 2013 British Columbia Ministry of Education Province of Ontario Deloitte study to identify opportunities for cross-functional collaboration Announced estimated savings of $10.5 million in “back-office” costs through merging schools, while preserving individual classrooms Found “service delivery transformation” could generate recurring savings of “100246 million” NorQuest College Toronto Catholic district School Board Joined University of Alberta, NAIT and Athabasca University in a major interinstitutional collaborative project using cloud computing to change the way schools deliver online services to students Doing some strategic purchasing with other Catholic School boards, but no true shared back offices. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 16
  • 16. Challenges to implementing Shared Services in the Public Sector Challenges and sector specific considerations in implementing Shared Services in the public sector include: A risk adverse landscape Consensus driven decision making slowing down timelines Fear of loss of autonomy Competing priorities Fewer levers to incentivise people Longer payback period North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 17
  • 17. Challenges to implementing Shared Services in Higher Education Specific challenges in the education sector include: Universities are independent, autonomous entities and operate in a competitive environment A direct and clear mandate for shared services has to be established to drive the necessary cooperation Cultural challenges have to be addressed to drive standardization Gaining Stakeholder Support amongst a diverse array of stakeholders Collaborating Across Boundaries North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 18
  • 18. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 19
  • 19. Approach (15 Minutes) At your table…… Designate a note taker Define what we mean by ‘customer’ Discuss what can and does go wrong in the customer relationship Make a list of top 5 Note taker reports to larger group North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 20
  • 20. Operating with no “CRM” Framework • 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 • what’s gone wrong?? – number of issues • 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. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 21
  • 21. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 22
  • 22. • • • • • • • • • • • • • Customer • • • • • Service orientation in place Structured way of dealing with customers Customer satisfaction levels understood SPAs in place Reality versus perception Account management Technology ERP implemented Document Scanning Solution Workflow Automated Payments Elimination of Side Systems Self services tools Automated Score Cards • • • • • Process Processes documented Standardized, controlled & repeatable activity Recharging methodology Benchmarking – internal/external Metrics: Control Based; (ii) Efficiency & Effectiveness People 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 23
  • 23. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 24
  • 24. Critical Importance of the Customer Who is our “customer”, both internal and external? What is the difference between a “customer” and a “consumer”? How do we define customer satisfaction? How do we measure customer satisfaction today? What are the potential key benefits to our customers of transformed Common Services: Higher levels of service (faster/better) Lower cost of service (cheaper) Tighter control environment (control) Do we understand customer requirements? How do we interact with the customer today? Can we secure and strengthen faculty, staff and student buy-in? How are the Service Partnership Agreements (SPAs) in place working today? What are the key constraints/hurdles that we need to overcome in operating a customer-focused Common Services Organization? North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 25
  • 25. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 26
  • 26. No Customer, No Transformation Scenario: “Management decides to reduce the hours of their help desk for their information technology services.” What are the key drivers behind the decision? Corporatization/Centralization: Users of service must accept corporate direction Cost containment is prioritized over performance Transformed Common Services: If consumers of service are unhappy, they’ll leave Performance is prioritized over cost containment If your organization is not focused on the customer, you either: Do not have transformed Common Services Will not have transformation for long (it will fail) North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 27
  • 27. Customer Relationship Management Framework 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 28
  • 28. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 29
  • 29. Approach (20 Mins) At your table….. Designate a note taker Discuss the 9 component components and the relative importance of each and why? Feedback to group North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 30
  • 30. Customer Relationship Management Framework 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 31
  • 31. Operating with no CRM Framework 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 What’s gone wrong?? – number of issues Strained customer relationships Focus on “fire fighting” and maintaining morale takes the emphasis away from customer service The Customer Interaction Framework distinguishes a transformed Common Services organization from a simple act of centralization and drives a spirit of partnership between the CSO, its customers, and all key stakeholders North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 32
  • 32. Why do we need a CRM Framework? To be able to manage the impacts on both the Upstream and downstream processes that are not directly managed by the SSO Upstream Raise Purchase Requisition Approve Purchase Requisition Raise & Send PO Receive Goods or Services Downstream Receive Purchase Invoice Post Purchase Invoice Approve Purchase Invoice Pay Purchase Invoice North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 34
  • 33. CRM Framework Account Management North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 35
  • 34. Account Management Responsibilities, Activities & Interactions KEY RESPONSIBILITIES 1. Responsible for facilitating successful client relationships 2. Client Account Manager has “internal clients” 3. Key interface and internal escalation point between Portfolios/Branches/Programs (Customer) and CSO 4. Acts as the “Account Manager” and “voice of the Customer” 5. Helps establish and manage Customer Interaction Framework in P/B/P SPA definition and agreement Interaction structure implementation Governance and reporting framework 6. Plays a key role in helping define service delivery expectations on behalf of the Customer 7. Engages with Customer to improve upstream process performance 8. Fosters dialogue with fact based analysis and reporting with Customer to collaborate and drive process improvement 9. Supports process and service harmonization consistent with agreed process standard ACTIVITIES AND INTERACTIONS 1. For normal day-to-day interactions a client will contact CSO directly – in the event of much more complex issues or service dissatisfaction then they can “internally escalate” to the Client Account Manager 2. The Service expectations discussions will not just be about what CSO has to deliver but also about what needs to happen in the Portfolios/Branches/Programs to support service delivery 3. A key issue with process performance is the need to effectively manage transparency and process compliance 4. In addition to informal and ad-hoc dialogue, the Client Account Manager will hold a regular meetings with the Customers to review process performance, issues and resolution North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 36
  • 35. Account Management Competencies, Beliefs, Behaviours Competencies Beliefs Behaviours Customer Focus “By understanding the needs of my customers, I can improve the service I offer them’’ · · · Know who our customers are and what they need See things through our customers eyes Go out of our way to deliver what our customers want Accountability “My actions and performance directly impact the performance of others” “Everyone in the team has something valuable to contribute” “Everything we do is open to challenge and improvement” · · · · Gives and receives feedback openly Performs tasks effectively, even under time pressure Understands & acts to support, wider business objectives Takes collective responsibility rather than attributes individual blame Supports those who surface problems Demonstrates ability to identify opportunities for process improvements Provides solutions, not just issues Sees change as an opportunity and not a threat Open to alternative approaches and working styles Openly shares knowledge within the group Sees each job through to completion Completes processing in an efficient and effective manner Recognizes the cost implications of all actions Is motivated to take on new challenges and develop new skills Shares skills and experience to build team capacity Team Commitment Innovation Flexible ‘’My way is not the only way’’ Organized “Prioritization ensures that I deliver my workload and still get involved in other activities” Learning “My proficiency directly impacts the ability of the SS to deliver" · · · · · · · · · · · North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 37
  • 36. CRM Framework Executive Management Customer Forums SSC: Delivering Transactional Support Services Business Consumers Executives Managers Employees Recruitment Payroll Self-Service Front Line Support Centre Exception Handling Policy Other Services North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 38
  • 37. Governance Governance is the means of operationalizing a successful shared services and / or outsourcing relationship.  A Governance and Customer Relationship Framework that clearly defines between SSC and the Business who does what, and to what target and/or standard (SPAs, etc.)  The SPA is the agreement between the SSO and business about “who does what in the process and to what standard”.  Joint ownership of efficiency targets, etc. through clearly defined responsibilities and standards between SSC and the Business  Relationship Management framework This will only work through clearly defined SPAs, relevant metrics, escalation, transparency, clear accountability and collaboration North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 39
  • 38. Below is a poignant quote from Jan Carlson, president and CEO of Scandinavian Airline Systems (SAS) “Nothing is more fragile than the fleeting contact between a customer in the marketplace and an employee on the front lines. When you establish contact, that’s when you establish SAS.” North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 40
  • 39. Customer Contact Management Funnel Approach Electronic Online Data Shopping Interchange Cart Electronic Authorizations Direct Delivery Of Mail Purchase Cards Customer Contact Management defines how regular/daily interactions with Customers are managed, how they contact the CSO to request service, and also how requests are managed to completion Call Centre Online Query Function Online Portals Transaction Processing North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 41
  • 40. Customer Contact Management Communication to Closure 1) An employee has a problem or needs information 2) The employee calls Front Line Support explaining her problem or submits email request 3) Front Line Support receives the request and resolves the issue, OR 5) Problem resolved and notification made to the customer 4) Front Line Support registers the request and informs the customer with: - the deadline for conclusion - number of her request - If Request passed to Exception Handling North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 42
  • 41. Customer Contact Management Key Requirements Requests may be Transactional, Informational, or Query Process must be flexible enough to accommodate each request type and each contact channel type (eg. phone, email, through a meeting or conversation, etc.) Each request must be captured, routed, acted upon, monitored, and resolved This should be enabled through Case Management software if possible A structured Telephony solution is preferred North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 43
  • 42. Customer Contact Management Organizational Structure A “Customer Interaction” and “Transaction” structure to facilitate higher levels of service response and process efficiency H2R Team Key Requirements: H2R Manager • The organization structure will be process based but will serve ALL Divisions • In each Process Stream, team shape will be structured around 3 key activities: • Customer interaction • Processing • Exception handling Payroll Supervisor Payroll Exception Handling Payroll Administrators HR Generalist Supervisor Payroll Front Line Support HR Exception Handling HR Administrators L&D Supervisor HR Front Line Support L&D Exception Handling L&D Assistants L&D Front Line Support Manager Process Role Front Line Support Exception Handling • High levels of process standardization required to help facilitate this North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 44
  • 43. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 45
  • 44. Service Partnership Agreement DEFINITION The Service Partnership Agreement is an agreement between the CSO and the Customer that: Is a “two-way” agreement, recognizing that this is a partnership Identifies the services to be provided by the CSO to its customers Identifies the inputs that are required from the Customer to allow the CSO to provide its services Allocates responsibilities for service delivery between the CSO and the Division Defines the appropriate level of service to meet customer needs Defines the major service management processes RATIONALE • Clarifies the relationship and expectations between the CSO and its customers • Provides a framework for performance measurement and process improvement • Increases the CSO and customer’s understanding and response to customer needs North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 46
  • 45. Structure of an SPA Parties to Agreement Summary Service Provision Communication Interaction Channels 1. Overview 2. Operating Principles 3. Scope of the SPA 4. Performance Measurement 5. Issue Resolution 6. Service Items Spirit of cooperation Ownership of: - Process - Systems - Data Availability - Operational Hours AD Hoc Requests Duration of the SPA Performance Measurement & Reporting Non-conformance Management Process Improvement Target Setting Charging Mechanism 7. Signatures Daily Transactions Service Transactions Business Critical Transactions List of service items - what Shared Services does - what the Business Unit does North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 47
  • 46. Creating Service Partnership Agreements Identify activities & processes, services & products provided, and output #’s and costs costing Quantifies activities & costs Identifies non-value added Resources process Cost Drivers Activities Services Process improvement initiatives Outputs & Performance Measures Performance Metrics, Benchmarks, & Bal Scorecard Data Determines which activities/costs support specific Business Units (e.g., SPAs/Chargebacks) Outsourcing Comparisons Best Practices North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 48
  • 47. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 49
  • 48. Customer Feedback Balanced Scorecard Creation of SPAs Delineation of roles and responsibilities between SSC and other functions / local regions / businesses Standardised processes and sub-processes across all functions North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 50
  • 49. Example Customer Communication and Feedback Mechanism Regular Customer Calls (Weekly) Regional/ Customer Forum (Monthly) Strategic Review Forum (Quarterly) Communication Mechanism External Customer / Supplier Survey (Annual) Internal Customer Survey (Bi-Annual) North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 51
  • 50. Defining Customer Satisfaction The ‘intangibles are as important as the ‘tangibles’ What’s Potentially Better What’s Potentially Worse Cost savings Slow response and recovery Standardized Processes Inflexibility Controllership Risk of business unit “working for shared services” Common System Lost decision rights Consistent process metrics Additional bureaucracy Accessibility and Quality of information Disconnection from the business Customer service Management Lack of local personal support Quality in the process Local desire to “touch everything” ….initial perceptions must not become realities North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 52
  • 51. Continuous Improvement Operating Metrics: Focus of Rework Analysis & Dashboard Process Inputs No External Defects No Backlogs Value Added Activities Right First Time (No Internal Defects) High Efficiency & Productivity Levels Outputs Low Unit Cost per Transaction North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 Customers Suppliers SIPOC Cycle : Supplier, Inputs, Processes, Outputs, Customers High Process Accuracy & Timeliness 54
  • 52. Continuous Improvement (CI) Eliminate Waste & Retain Critical elements Establish Order Governance & Strategy Standardization Instil Discipline • Leverage global methodologies like LEAN 6-sigma a proven method of improving business efficiency and effectiveness through the framework of DMAIC • Define • Measure • Analyse • Improve • Control • Create a dedicated team for CI • Senior Leader sponsorship • Develop skill-set • Integrated and not stand-alone North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 55
  • 53. CRM FRAMEWORK Process Control Database North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 56
  • 54. How the Process will Operate Division Client Sample process flow Input Task Shared Services Yes Main Input to SSC delivered by Business SERVICE ITEM Department responsibility (included in the SPA) System Task Decision Point Manual Task No Intermediate output for internal use. This output may be shown to the client but is not critical Not included in the SPA Output Task Manual Task Main Output of a process performed by SSC SERVICE ITEM SSC responsibility (included in the SPA) North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 57
  • 55. How the Process will be Managed Main Input to SSC delivered by Business SERVICE ITEM Division responsibility Customer Performance Indicators INPUT KPIs Intermediate output for internal use. This output may be shown to the customer but is not critical Not included in the SPA Main Output of a process performed by SSC SERVICE ITEM - SSC responsibility Service Performance Indicators OUTPUT KPIs North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 58
  • 56. Detailed Service Offerings Function of the Service Offerings Item List: • Identify respective responsibilities of SSC and the customer • Identify Divisional deviations from standard services Moves and Changes ID Service Brief Description Responsibility Activities Performed SSO Division á Complete special leave form á Agree special leave to be granted H2R11.0 Special Leave Request This service covers the granting of paid or unpaid leave outside of the annual leave process Emplloyee Manager á Tick relevant payment box and send form to SSO á Form logged by SSO á Form actioned for payment or deduction b b H2R12.1 Holiday Request (Staff) This service covers the booking and payment of annual leave á Complete holiday request form á Authorise holiday and log request á Send form to SSO á Log request and scan to COINS HR Emplloyee Manager Manager b North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 59
  • 57. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 60
  • 58. Input Task Shared Services Customer Performance Measurement Approach Manual Task Yes System Task Decision Point No Output Task Manual Task How good is the quality of the input delivered by the internal customer ? How effectively and efficiently is the process organised ? How well does the SS Unit deliver the agreed services ? Customer Performance Indicators Internal Performance Indicators Service Performance Indicators How well is the process doing overall? North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 61
  • 59. CRM FRAMEWORK PERFORMANCE REPORTING North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 62
  • 60. Contents of the service performance reporting Performance Commentary - Achievements past period Service Performance Report SSC 1 Performance Commentary 2 Key Performance Indicators 3 Appendices - Initiatives next period - Other commentary (e.g. main risks and issues, Process Improvement activities, high level summary of Key Performance Indicators,…) Key Performance Indicators - Service Performance Indicators Customer Performance Indicators Selection of Internal Performance Measures Root Cause and Effect Analysis Customer Specific KPIs Appendix Topics Monthly - Process Improvement Overview Ad-Hoc Services Delivered Risks and Issues Service Incidents Backlogs North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 63
  • 61. Dashboard Example Monthly Performance Overview Region 1 Italy AP FA GL HR Switzerland AP FA GL HR Slovenia AP FA GL HR Austria AP FA GL HR HO Vienna AP FA GL HR Baltics FYROM SLA Adherence on Service Requests October November December 98.87% 97.79% 96.22% 100.00% 98.46% 98.57% 99.63% 100.00% 100.00% 100.00% 100.00% 100.00% October November December 98.01% 98.58% 89.92% 100.00% 100.00% 100.00% 99.00% 99.00% 97.96% 100.00% 100.00% 100.00% October November December 100.00% 100.00% 92.86% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 96.15% October November December 94.04% 94.13% 93.42% 93.48% 100.00% 98.25% 99.37% 100.00% 99.27% 100.00% 97.62% 100.00% October November December 88.46% 91.67% 80.85% 100.00% 100.00% 100.00% 100.00% 100.00% 99.53% n/a n/a n/a January 96.18% 100.00% 99.59% 100.00% January 88.71% 100.00% 96.89% 100.00% January 81.82% 100.00% 96.77% 100.00% January 91.54% 100.00% 98.19% 99.56% January 72.73% 94.12% 99.19% n/a Difference -0.04% 1.43% -0.41% 0.00% -1.21% 0.00% -1.07% 0.00% -11.04% 0.00% -3.23% 3.85% -1.88% 1.75% -1.08% -0.44% -8.12% -5.88% -0.34% n/a North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 64
  • 62. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 65
  • 63. Approach (10 minutes) In your groups discuss the differences between an SLA and an SPA in the following areas: Direction Owner of the process Performance Measures Principles & Values Problem Resolution North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 66
  • 64. Customer Relationship Management Framework 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 North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 67
  • 65. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 68
  • 66. Thank You Phil Searle Founder and CEO Chazey Partners Office: +1 408 402 3008 Mobile: +1 408 460 0785 philsearle@chazeypartners.com Grant Farrell Managing Director Chazey Partners, US Office: +1 866 337 4699 Mobile: +1 408 767 1285 grantfarrell@chazeypartners.com Chas Moore Managing Director Chazey Partners, Canada Office: +1 855 692 629 ext 201 Mobile: +1 250 469 4168 chasmoore@chazeypartners.com Robert Towle Director - East Coast Chazey Partners, US Office: +1 866 337 4699 Mobile: +1 862 812 7851 roberttowle@chazeypartners.com North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 69
  • 67. Contact Us www.ChazeyPartners.com North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 70