The development work we have been doing with universities eg Newcastle, Nottingham, Warwick and LUPC London University Procurement Consortia as well as culture sector, ie British Museum and National Gallery has helped us to understand some of the external pressures and challenges facing the Higher Education sector. Some of these challenges are shared with us and our customers– delivering more for less - and others are unique to the Higher Education sector – looking beyond the traditional funding streams to find external/commercial opportunities. Complex and competing agendas and regulations Deliver recommendations of Diamond and Wakeham reviews identified cross cutting goals, challenges and needs – ie estates, ICT, staff costs, procurement and support services. We continue to develop our service offering and commercial expertise to meet these challenges for our customers and for UK SBS. With a mature service offering with the majority of this expertise in place and serving customers, many public sector organisations are realising the benefits of ‘being a part’, rather than reinventing the wheel, including HEFCE and potentially DEFRA, Environment Agency etc Navigating the regulations and agendas of public sector procurement environment can be challenging and time consuming vs the potential benefits of collaboration is a dilemma facing public sector organisations with varying resources and expertise – our end to end procurement service is taking the hassle out of this minefield and allowing customers to focus on what they need and when and providing them with quality MI to manage their spend effectively. 17 recommendations within Diamond review – 30% spend to be collaborative; reduce costs of compliance with Student Immigration regulation – currently £66.8m, shared use of research equipment through widening network of collaboration – eg where research units, universities and NHS teaching hospitals co-located can use the same procurement route to take advantage of established manufacturer deals
I want to share our shared service journey with you today, provide a brief overview of where it started and how we have arrived at our shared business service portfolio, but focus on how our experience and learnings, evolving network of collaborations, service design have delivered outcomes that support our customers in achieving their goals. Improving data and benchmarking for Research Councils which will provide robust evidence base for decision making Enable your people to focus on what they do best – teaching and research Ensure that you achieve ‘more for less’ so more of the spend can be at frontline Evolve with customer needs – ie immigration service for research councils to support the flow of overseas researchers/students to support project work
To understand how our journey has evolved, it is important to understand the beginnings and the key milestones in our shared services journey: Our journey started in 2006 with a Research Council decision to develop shared services to support their core research activities – 2007 - 2009 saw the set up of RCUK Shared Service Centre Limited, owned by the seven Research Councils and developed around a business need to manage high volume, transactional processing and a specialist procurement service. 2010 involved the roll out of HR, Payroll, Finance and Procurement services complete across the Research Councils Analysis of market opportunity highlighted the potential of developing the service portfolio to deliver business services that add value to the wider public sector. 2011 selected as preferred partner for BIS. 2012 focused on evolving the customer ownership model and Board to reflect a changing customer base. BIS was now a part owner and upcoming demand (bringing the PO’s on board) provided the opportunity for expansion to multi-sites – Newport, Billingham and Swindon As our business service portfolio evolved beyond transactional services, a rebrand to UK Shared Business Services Ltd in 2013 consolidated the evolution: reflecting both our future vision and reconstruction of our ownership/governance model
Over the years, we have developed the service offering to meet the needs of our customers. The development of grants administration, immigration and procurement services that focus around supporting our Research Council customers with managing their resource needs: specialist and technical focused services, enabling ‘more for less’ to be delivered at the frontline of research and focus on delivering results through research to society. In responding to their niche requirements we have developed an expertise in supporting the field of scientific research and have developed these services to provide policy and regulation support. The UK SBS Procurement team have been working with RC customers to develop the sourcing offer to support researchers/scientists located in some of the larger universities such as Oxford, Manchester and UCL in the early years. More recently we have and continue to collaborate with the university procurement consortia and individual universities, such as Nottingham, Newcastle and Sheffield, to investigate and identify the value that UK SBS can bring to the table in helping them to meet their efficiency and quality targets.
We recognise and value the desire of our customers to retain their individual identity and niche and work hard to develop services that serve to add value to that ethos. Our RC customers in particular have very different objectives, drivers and needs but with the support of UK SBS use the leverage of their common needs – HR, Finance, ICT and Procurement – to fuel their frontline uniqueness Grown from 7 to 22 customers with turnover of £55.2M
Close working relationships with Cabinet Office and Crown Commercial Service (GPS) and have MOUs in place and in development covering key business service areas We are at the table in discussions about the Next Generation Shared Services strategy and part of the solution as a deferred customer for ISSC 2 now known as Shared Services Connected Ltd.
Our results to date demonstrate how UK SBS can support the higher education sector deliver against the objectives and recommendations of the UK Universities review ‘Working for a smarter, stronger sector – simplifying and standardisation of processes; exploring new business and service delivery models; collaborative working; improving procurement, data and benchmarking – to deliver efficiency savings for the frontline Streamlining and simplication of processes delivering savings UK SBS costs of service to the Research Councils reduced from £32M to ~£28M in 2013/14 Manage ~£1.3Bn Procurement spend, delivering £32M savings – greater buying power for our existing and future customers A new function for UK SBS this financial year, PAM is on track to deliver savings of £100M – with £47.1M delivered to date Serving 15,800 users from Swindon, Newport and Billingham
Bringing genetic research institutions together for a better deal The UK SBS procurement team work closely with MRC to support medical research projects. One such project the Genome Sequence saw UK SBS bring together the buying power of MRC, Cancer Research UK and the universities of Cambridge, Oxford, Liverpool and Edinburgh to secure savings on DNA sequencing equipment and consumables. Overall benefit of contracts is £1.2m savings per annum – ensuring research delivers ‘more for less’ Allowing life scientists to focus on what they do best Delivering long-term benefits to society is that the UK gains greater advances in the highly competitive global field of disease prevention and medical treatment resulting in helping to save lives In the words of Mark Blaxter from University of Edinburgh Sequencing Facility “The procurement team’s coordination and management of a complex sourcing exercise reduces pricing on reagents and equipment in the future discounts we would be hard-pushed to achieve in isolation.” Working collaboratively with shared goals is the added value of Collaborative Procurement and a benefit that all public sector organisations are uniquely placed to gain from Another example…. Ships Bunker fuel An innovative approach to buying ship bunker fuel. Negotiations by SSC procurement with MoD have resulted in Research Council vessels being able to take advantage of MoD pricing and supply arrangements around the world, leading to savings in excess of £1m per annum. On average, every time a ship “fills-up” at an MoD supply centre, over £80k is saved with no compromise to service or quality.
Benefits of collaboration Sometimes, doing the right thing is harder to measure. UK SBS provides tools and impetus for collaboration between researchers resulting in efficiencies. For example; Facilitating scientific equipment exchange Procureweb XChange is an online portal for research communities to exchange redundant equipment online. With taxpayers demanding better value, pressure to do more with less therefore has made Procureweb XChange a welcome tool for facilitating equipment re-use. Enabling efficiencies through sharing resources and knowledge A similar tool for sharing resource is the Antibody Database - a list of stocks of antibodies held by research institutions that are available to share with other institutions. This saves duplicate buying and reduces waste. This is an example of making the best use of public money in whatever ways possible, by sharing knowledge between the 13,000 scientists UK SBS serves. Creating opportunities for inward funding What is more, UK SBS acts as an outsourcing facility for expertise within the RCUK family. For example, the MRC is a wealth of knowledge and resources in the area of genetics. The SSC is working closely with this organisation on exploring commercial opportunities to promote and release potential commercial value that ultimately benefits the UK economy. Sharing benefits beyond research Recognising UK SBS expertise, in late 2010 the Department for Business Innovation and Skills (BIS) invited our procurement to review and potentially redesign the way it handles over £1bn annual expenditure. This work forms part of a wider Commercial Strategy programme with the objective of exploiting cross-organisational efficiencies. BIS and UK SBS are working to deliver savings through applying Category Management in several generic areas of expenditure, exactly in line with the objectives and ambitions of the Efficiency Reform Group.
Developing strategic partnerships with like-minded organisations delivers mutual benefits Commercial focus on savings doesn’t mean compromise on quality - our Payroll team reduced the cost and increased efficiency of service and were winners of Payroll World award in 2011)
What’s unique about UK SBS and how does that help us to deliver better outcomes for our customers? We understand the complex environment our public sector customers operate in and challenges they face, we operate in it too. UK SBS is an independent, public sector owned limited company, structured as a mutual service provider and owned and controlled principally by its customers Teckal position gives us exemption from the EU public procurement rules where public bodies co-operate with each other for the purposes of carrying out their public service tasks We have shared goals with our customers – delivering ‘more for less’ for the UK taxpayer Through our journey, we have built the right mix of people – bringing experience from private and public sector together: commercial drivers of efficiency and CI with the public sector ethos of governance and focus on outcomes for UK plc. Flexible service model that evolves with changing customer needs and openness to embrace a changing world - we still maintain a small company ethos: personal touch, adaptability and partnership working So in short, we are on the same journey as our customers – continuously looking for ways to cut costs without compromising on the quality of our core service and the very nature of ‘shared service’ means a focus on harnessing the power of collaboration with like-minded partners to identify and exploit opportunity to enable us ‘to do what we do better’.
Already invested in the infrastructure, people and processes – proven model that is delivering benefits to the public sector Mature procurement service – expertise and e-marketplaces that navigate through the complexities of procurement regulations and government policies and agendas Collaborative procurement bring greater buyer power - delivering significant savings for our customers You can have confidence in our ability to meet ‘niche’ needs – we have demonstrated this in supporting our Research Council customers with specialist technical sourcing needs Flexibility to support in developing ‘one off’ policy/strategy or developing the service offering to meet future need – reduce the need for consultancy fees or additional headcount e.g Immigration service was developed to support our Research Council customers in bringing the best resources together to support global collaboration projects Being part of a wider network provides collaboration opportunities Outcome focused - development of new Oracle platform – has reduced cost to serve on finance/HR, Procurement expertise delivered quality and significant savings to customers (as you will see on the next slide), PAM - £100m estate realisation to BIS Expertise in shared business services enabling our customers to concentrate more of their spend and effort on their frontline activities – teaching and research – enabling them to focus on being cutting edge in their field
-HR for EPSRC
‘encouraged’ to set up
a shared services
Selected by BIS as
The Company starts
to deliver strategic
to Research Councils
Roll out of Oracle
based HR, payroll,
Board reconstituted to reflect
new model and ownership.
The Company delivers service
to BIS and some Partners and
changes to reflect