Jan Duffy - UK/Canada: L'esperienza degli Shared Services Centers in UK e in Canada

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Jan Duffy's Speech during Innovation Forum 2009 in Milan

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  • It’s generally agreed that governments will have to spend to get out of this recession, but they must be seen to be spending wisely.
  • There have definitely been some success stories:Electronic invoicing in Denmark saves taxpayers €150 million and businesses €50 million a year. The EU Commission estimates that if introduced all over the EU, annual savings could add up to over €50 billionDisabled people in Belgium can now obtain benefits over the Internet in seconds, whereas previously this took 3 or 4 weeksThe Netherlands introduced electronic declarations for the control of import and export of agricultural products: from April 2003 when the EU Internal Market requirement on cut flowers inspection came into force, the take up of electronic declarations rose to over 90% of the number of shipments, and the average processing time of a declaration was reduced from 24 to 12 hoursBut more still needs to be done to improve internal and external efficiencies, particularly since there is a pervasiveness nervousness about the economy in most countries in Europe IDC firmly believes there must be more emphasis on collaboration with a focus on combining improved internal productivity with better service – the two are not mutually exclusive!
  • In the context of electronic service delivery or egovernment there are at least three types of collaboration that government executives need to consider:First of all sharing processes, which means both joining up the front-end and sharing corporate services, as we mentioned during the last quarterly discussion that we hadSecondly sharing information – this speaks for itself, but as we all know comes with some constraintsThirdly, sharing and re-using IT solutions –These three areas of focus don’t exist in isolation, to support collaborative processes there’s a need for common information and shared IT. The re-use of solution is also a sub-set of technology sharing, as it fosters lower costs (no need to re-invent the wheel) and opportunity to work on existing standards. Constantly reinventing processes, applications, etc. is costly and time consuming and doesn’t make senseAlso, it is recognized that all of this needs to comply with transparency and privacy regulations.
  • Jan Duffy - UK/Canada: L'esperienza degli Shared Services Centers in UK e in Canada

    1. 1. The Shared Services Experience – The UK and Canada Jan Duffy Research Director Government Insights EMEA
    2. 2. Agenda  Four driving forces  Understanding shared services  Major shared services trends  Shared services enablers and inhibitors  Some interesting shared services examples  Essential Guidance 2
    3. 3. Four Driving Forces in 2009 Investment optimization Government modernization – reduce IT costs while – improve overall efficiency improving IT capability and effectiveness of financially and capacity challenged governments Demonstration of Contribution to long-term leadership – economic well-being – demonstrate leadership stimulate economic expected by citizens in improvement through various this difficult period programs and new priorities 3
    4. 4. Transformation’s Value Proposition  Improved service: Citizens want simplicity  Improved efficiency: Governments must drive down costs  The barriers: – Fragmented processes – Disjointed organizational structures – Lack of technological interoperability  Considerations: – Shared processes – Shared information – Shared IT solutions Shared Services 4
    5. 5. Agenda  Current driving forces  Understanding shared services  Major shared services trends  Shared services enablers and inhibitors  Some interesting shared services examples  Essential guidance 5
    6. 6. What is a shared service?  Combines a set of common services and functions  To serve multiple business units  Under a single governance structure  Using standard business processes and supporting technologies 6
    7. 7. Shared services framework Shared Services Shared Services Lifecycle Delivery Models Strategy/Feasibility Detailed Design Implementation Joint Venture Optimization Outsource In-house Client Facing (Front Office) Services/Functions Corporate/Enterprise (Back Office) Information Services Technology and Infrastructure Services 7
    8. 8. Shared Services is about…  Innovation in operating models – governance, economic and business  Transformation of ICT to a culture of service and performance  Optimization of technology and business investments  Standardization of business processes and technology  Collaboration -- combining internal productivity with better services 8
    9. 9. Collaboration -- combining internal productivity with better services Creating centers of excellence (i.e. shared services center) that deliver services on behalf of multiple Sharing processes government agencies Joining up information flows and basis of data across levels of government, front and back office, Sharing information siloes of activities Leveraging consolidation, and virtualization to Sharing IT solutions free-up resources for innovation and SOA to re-use services across application siloes 9
    10. 10. Shared services lifecycle  Strategy and feasibility – getting this right increases Shared Services Shared Services the chances of a Lifecycle Delivery Models successful implementation Strategy/Feasibility Detailed Design Implementation Joint Venture Optimization Outsource In-house  Detailed design and implementation – these two stages represent the greatest time and Client Facing (Front Office) investment – good project Services/Functions management is essential Corporate/Enterprise (Back Office)  Optimization – an Information Services increasing area of concern Technology and Infrastructure Services and interest 10
    11. 11. Shared services delivery models  In-house – the most favoured business model Shared Services Shared Services Lifecycle Delivery Models  Joint venture – still Strategy/Feasibility relatively immature, Detailed Design Implementation Joint Venture Optimization Outsource In-house increasing consideration as an alternative to outsourcing  Outsource – very popular Client Facing (Front Office) Services/Functions alternative Corporate/Enterprise (Back Office) Information Services Technology and Infrastructure Services 11
    12. 12. Shared services – services and functions  Client Facing (Front Office) – Contact services, Shared Services Shared Services Lifecycle Delivery Models  Corporate Services (Back Strategy/Feasibility Office) – Finance, HR, Detailed Design Implementation Joint Venture Optimization Procurement, Asset Outsource In-house Management, Payroll  Information Services – Common repositories, federated databases, Client Facing (Front Office) Services/Functions performance reporting Corporate/Enterprise (Back Office)  Technology and Information Services Infrastructure Services – IT infrastructure, IT Technology and Infrastructure Services operations, application development 12
    13. 13. Agenda  Current driving forces  Understanding shared services  Major shared services trends  Shared services enablers and inhibitors  Some interesting shared services examples  Essential guidance 13
    14. 14. Major shared services trends  Strong growth is expected to continue, but interest, appetite and urgency varies  Drivers are achieving economies of scale, aligning IT at the enterprise level, specialized centres of competence excellence  Increasing interest in client-facing shared services – bigger potential return  Consideration of innovative sourcing models is growing  Success/failure record is uneven 14
    15. 15. Agenda  Current driving forces  Understanding shared services  Major shared services trends  Shared services lessons learned  Some interesting shared services examples  Essential guidance 15
    16. 16. Shared services lessons learned  Shared services are difficult to implement  Sustained leadership/commitment is equally as important as good management  Working horizontally does not come naturally  Confidence in the system leads to increased use and optimization  Focus must balance improved service with cost reduction  People issues must be dealt with 16
    17. 17. A few examples of UK Government Shared Services Organization Background Comments  Large scale back office services Department for In-house centralized Shared Transport (UK Central Service Centre to provide the  Original plan proved to be unrealistic and Government) Department its executive agencies overly optimistic with HR, payroll and finance services  Efforts to capitalize on the shared services investment continue  Poor service record historically Department for Shared Services organization Environment Food and created to support a number of  Challenges experienced in the early stages Rural Affairs (UK Central divisions and related agencies in Government) finance, procurement and IT  Janet’s success was recognised by winning UK Further and Higher JANET is the network that Education Funding connects the UK's education and the shared services category of the e- Councils (JISC) research organisations to each Government National Awards 2007 – the other, as well as to the rest of the award recognizes proven shared services world through links to the global that have delivered effective services and Internet. In addition, JANET efficiency gains includes a separate network that is available to the community for experimental activities in network development. 17
    18. 18. A few examples of Canadian Government Shared Services Organization Background Comments  Large scale citizen services Service Canada/Service Canadian federal and provincial BC examples of a “whole of  Mature, but continuing to evolve government” citizen service delivery organizations  Voluntary participation  Includes finance, procurement, IT, HR, Government of Alberta, Objective: to transform the way it Canada delivers financial services and payroll services human capital management  Achieved predicted cost/benefit returns and services to its 24,000 employees in a high level of satisfaction the more than 22 ministries and a number of boards and agencies  Focus on Supply Chain Management Southeastern Hospitals, 3SO was created by six healthcare Ontario organizations in SE Ontario as a  Underpinned with a common ERP platform shared services initiative to develop a regional integrated  Goal is to reduce costs, leverage best supply chain management model practices, and maximize resources – in order to optimize the use of ultimately to help lower healthcare costs funds for medical supplies, and improve patient care services and capital equipment and drive continuous adoption of best practices in supply chain management among the area hospitals 18
    19. 19. Agenda  Current driving forces  Understanding shared services  Major shared services trends  Shared services lessons learned  Some interesting shared services examples  Essential guidance 19
    20. 20. Essential Guidance  Demonstrate to all staff how shared services will benefit the organization as a whole and employees as individuals and customers/citizens  Be realistic when planning the implementation schedule and anticipating returns  Gather baseline performance data prior to implementing the shared services model  Engage closely with prospective shared services users prior to implementation  Transfer individual businesses and processes to shared services incrementally  Remember that some of the biggest returns may be in customer- facing processes 20
    21. 21. Questions... Jan Duffy Research Director, EMEA Government Insights jduffy@government-insights.com 21

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