Shared Service Models

The Gilfus Education Group  Serving the industry since 1997  Offers wide range of strategy, research and implementation services - independent management consulting - technical implementation - industry research services Education Technology  Clients include: Nexus - education institutions - educational companies that serve them Business - education industry investors “Providing capabilities at the nexus of education, business and technology.” © 2010 Gilfus Education Group, Inc. All Rights Reserved. 2

About Gilfus: Mission  Combine: - Industry Vision - Thought Leadership - Organizational Planning - and Technology Expertise The “Gartner” of Education. Driving vision through to implementation, and back to help reinvent and create sustainability. © 2010 Gilfus Education Group, Inc. All Rights Reserved. 3

About Gilfus: K12 Education Clients/Partners “Our team members have helped thousands of K12 education organizations implement enterprise technologies and plan for the future.” © 2010 Gilfus Education Group, Inc. All Rights Reserved. 4

About Gilfus: Higher Ed Clients/Partners “Our team members have helped thousands of higher education organizations implement enterprise Academic and Administrative technologies and plan for the future.” © 2010 Gilfus Education Group, Inc. All Rights Reserved. 5

Agenda  Introductions  History of Shared Service Models  Examples of Successful Shared Service Models  Opportunities To Lower Costs and Generate Revenue  Critical Success Factors  How to Get Started  Questions & Answers © 2010 Gilfus Education Group, Inc. All Rights Reserved. 6

Panel Member Introductions  Stephen Gilfus - President and CEO Gilfus Education Group  John Graham - Former Executive Director of the University System of Georgia and CIO Advisor for Peak Performance Technologies  Mick Pytlik - Executive Director of Connect ND (North Dakota University System)  Susan Rzyczycki - Assistant Vice President of Applications (University of Akron) © 2010 Gilfus Education Group, Inc. All Rights Reserved. 7

A Definition “The primary purpose for shared services is to reduce duplication of effort, share fixed costs, enable staff to focus on the highest-value work of the agency, and provide more services with the limited resources available. - Gartner Group © 2010 Gilfus Education Group, Inc. All Rights Reserved. 8

Characteristics  Four characteristics that distinguish a shared service are: - Collaborative service development - Partner participation in governance - Focus on continuous service improvement - Sharing of fixed costs associated with the services being delivered © 2010 Gilfus Education Group, Inc. All Rights Reserved. 9

History of Shared Service Models States and Local Governments Begin Consolidating Evolution of Shared Service Models Across the Globe Future Outsourcing Overseas Increases Significantly Colleges and Governments Begin Early Public Sector Budgets Consolidating 1990’s are Tight Late Operations in Western Europe and Canada 1990’s Asia and U.S Begin Expanding (1989) Federal and State Corporate Shared Service legislation to Models and Government consolidate operations Involvement Dissipates to share costs and University Systems save tax payer dollars Computers are creating new Early Begin Consolidating opportunities 1980’s Federal Agencies Late ?? Consolidate 1980’s Operations D.O.D Consolidates U.S and Russia Corporate America consolidated technology expands into larger and manufacturing as shared service Corporate America sees part of space race models U.S Manufacturing Consolidated mergers and acquisitions Operations that lead to innovative collaboration and shared During War (1970’s) service centers. Early models in Europe & Asia I/T innovations expanding models significantly (1950’s ) (1960’s) (1940’s) Our History PASTPAST FUTUREFUTURE © 2010 Gilfus Education Group, Inc. All Rights Reserved. 10

Popular Federal Models  HR Connect - Department of Treasury and all bureaus within it - 100,000+ employees - PeopleSoft HCM  EmpowerHR - Homeland Security and all agencies within it - Departments of Agriculture and Forest Services - Library of Congress and GAO - 100,000 + employees © 2010 Gilfus Education Group, Inc. All Rights Reserved. 12

Popular Federal Models  DIMHRS (Defense Integrated Military Human Resource System) - Army, Navy, Air force, Marines, Coast Guard and Potentially NATO - Single Data Center and Set of Policies, Procedures and Process Flows - 800,000 employees - 1.5 million positions managed  Multiple Others © 2010 Gilfus Education Group, Inc. All Rights Reserved. 13

Existing State Government Models  In the 1990’s States and/or specific departments or agencies within a state licensed PeopleSoft - In many situations these acquisitions were done independently of other departments or agencies - Multiple data centers, staff, policies, procedures and process flows - Situations where different agencies running the same applications under different licenses on the same floor of the same building!! - Scenarios where staff from one agency would split their time between another department or agency’s environment. © 2010 Gilfus Education Group, Inc. All Rights Reserved. 14

Existing State Government Models  Consolidation of I/T functions, data centers and key business processes - Networks, Email, Telephony, Disaster Recovery - Procurement, Fleet Management - Recruiting, Payroll, Asset Management - Imaging & Printing  Examples Include - State of Kansas, State of Oklahoma, State of Tennessee - State of Florida, State of New Mexico, State of Minnesota - State of Delaware and Others © 2010 Gilfus Education Group, Inc. All Rights Reserved. 15

Colleges and University Models  In the 1990’ and first decade of 2000 we saw a major shift towards state funded colleges and university systems consolidating operations  Purchasing Consortiums  Consolidating data centers, email systems, telephony contracts, networks, libraries, LMS and ERP Software © 2010 Gilfus Education Group, Inc. All Rights Reserved. 16

Other Higher Education Examples  City Universities of New York (23 centralized campuses)  Virginia Community College System (23 centralized colleges)  California State University System (20+ statewide campuses)  Kentucky Community College System (16 colleges)  University System of Wisconsin (26 two and four year universities)  Lonestar Community College System (11 campuses)  Houston Community College System (6 consolidated campuses) © 2010 Gilfus Education Group, Inc. All Rights Reserved. 18

Common Shared Services Shared Service Portfolio Business Industry Skilled Infrastructure Facilities Processes Specific Resources Networks Data Centers HR/Recruiting Emergency Services Project Managers Benefits Email Processing Centers Call Centers Business Analysts Administration Customer Relationship Telephony Disaster Recovery Natural Resources Technical Developers Management Servers & Disk Space Payroll Libraries & Bookstores Testing Resources Warehouses Databases Fleet Management Accounting ERP/LMS/BI Trainers Video Conferencing Legal Many Others Many Others Governance Model Program Management Change Management Financial Controls Technology Services Policy Council Customer Service © 2010 Gilfus Education Group, Inc. All Rights Reserved. 20

Collaboration of Diverse Public Sector Entities  State Governments collaborating with state funded colleges  County and City Governments collaborating  Counties and/or Cities collaborating with school districts  Public Sector Utilities and Transit Agencies Collaborating with State and/or County Governments  Neighboring States Collaborating  Grants for Bringing Jobs into Disadvantaged Locations © 2010 Gilfus Education Group, Inc. All Rights Reserved. 22

Examples of Creative Public Sector Models  North Dakota University System and The State of North Dakota - State Government and University System  Government of the District of Columbia and D.C City Schools - Combined I/T environments - Combined PeopleSoft environments - Combined policies, procedures and process flows to gain economies of scale and save considerable money  Decommissioned Military Bases Turned into Call Centers, Shared Service Centers and Data Centers © 2010 Gilfus Education Group, Inc. All Rights Reserved. 23

How to Share and Reduce Costs  Purchasing Consortiums  Consolidating Technological Areas - Data center space, telephony, email, networks, imaging and help desks - Centralized development and testing teams  Centralizing Business Process Functions - Human Resources and Payroll Processing - Financial Areas (Procurement, Asset Mgmt., AR/Billing, Fleet Mgmt., Inventory)  Business Process Outsourcing  Centralized Project & Change Management Resources © 2010 Gilfus Education Group, Inc. All Rights Reserved. 25

How to Share and Reduce Costs (continued)  Selling Services Your Organization Does Well  Turning internal staff into “consultants” to help other entities  Consolidating Multiple License Contracts - Enterprise Licenses  Using Your Platform as a Software as a Service Environment © 2010 Gilfus Education Group, Inc. All Rights Reserved. 26

Critical Success Factors Incremental Phased Approach Clear Effective Funding Program & Management Costing Model Governance Realistic Executive Expectations Sponsorship Service Change Level Management Agreement © 2010 Gilfus Education Group, Inc. All Rights Reserved. 28

Critical Success Factors Results Service Level Agreement Phased Approach Realistic Expectations Collaborative Change Management Clearly Defined Funding & Costing Model Effective Governance Model Executive Sponsorship and Continued Support © 2010 Gilfus Education Group, Inc. All Rights Reserved. 29

Ask Yourself if Shared Services Right?  Does your organization face budget constraints and need to divert funds from back- office to student or citizen-focused activities?  Does your organization face critical staffing shortages?  Does your organization suffer from a scarcity of specialized skills?  Are your “neighbors” in the same boat as you?  Does your organization have above average processing costs for transaction- processing capabilities?  Do your organization's administrative support functions process large volumes of transactions?  Are there increasing demands for services?  Is your organization facing significant investments to make necessary enhancements to systems? © 2010 Gilfus Education Group, Inc. All Rights Reserved. 31

How to Get Started Change Management Communication 5 6 Governance 4 Service Level Customers Agreement 3 7 Continuous Activity Based Refinement Transition Costing 2 8 1 9 Offerings Service Desk Assessment 32 © 2010 Gilfus Education Group, Inc. All Rights Reserved.

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Shared Service Models - Gilfus Education Group

by Gilfus Education Group on Jun 07, 2010

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Shared Service Models - Gilfus Education Group — Presentation Transcript