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Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia
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Winning application for "Excellence inculture creation 2012" - SSOWEEK Australasia

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Getting a supportive, can-do culture instilled can make or break your service. Interesting that such an “old-world” industry as “steel” managed to beat others to the Culture prize. …

Getting a supportive, can-do culture instilled can make or break your service. Interesting that such an “old-world” industry as “steel” managed to beat others to the Culture prize.
Winner of Australasian Culture Creation Award 2012: BlueScope Steel
Read the winning application here watch Coretta Bessi’s interview in
http://bit.ly/KJfX2P

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  • 1. SHARED SERVICES & OUTSOURCING NETWORKShared Services & Outsourcing Excellence Awards 2012 “Excellence In Culture Creation 2012” BlueScope Steel
  • 2. The winning application for “Excellence In Culture Creation 2012”General InformationYour Contact DetailsCompany Name BlueScope SteelYour Name Coretta BessiYour Title Manager Shared ServicesYour E-mail Address coretta.bessi@bluescopesteel.comTelephone +61 408 979 373Select the Industry which best describes your business:(Please select one by double clicking on the grey box) Fast Moving Consumer Goods Retail Foods and Beverages Financial Services Public Sector (Government & Non Profit) Pharmaceuticals & Health Care Manufacturing Technology, Media & Telecommunications Other, please specify:Your Shared Services Organisation (SSO) Port Kembla, NSW, AustraliaHead Office of SSO - City, Country 20 (internal), 140+ (Outsourced)Number of Staff (Full Time Equivalents) Internal Shared Services – 1/7/2010Date Shared Services Operations Began (dd/mm/yy) Outsourced – 1/9/2002 Nil – first applicationAwards Previously Won for Shared Services &Related AwardsShared Service Centres - Geographic LocationThis application represents Shared Service Centres (SSC) located in the following geographic area: Asia/Pacific Europe Latin/South America Middle-East/Africa North America/Canada Australia (Port Kembla, Melbourne,Specific Country/Countries Adelaide) and China (Nanhai)***Entries will be accepted for any regional award programme on the proviso the either your SSand/or majority of recipients of your services are based in that region***http://ssonetwork.com/awards.aspx 1
  • 3. The winning application for “Excellence In Culture Creation 2012”Customer Information - Scope of SSC/BPOFor All the Business Units Served by the SSC Applying for this Award: 6 business units, covering 200+ sitesNumber of Business Units Served 8,000+Number of Employees 2 (Australia, New Zealand and PacificNumber of Countries you are Servicing Islands) with limited services for the remainder of the world Currently incorporating all Australia andWhat is the Strategic Growth or Transition Plan of yourSSC for the Future? E.g. Expansion of Services to more New Zealand strategic procurement intolocations/introduction of new services/outsourcing Shared Services, outsourcing further tacticalexisting services etc activities and business processes, offshoring more transactional activities, future initiative is to become a global shared services corporate team (endorsed by CFO)What Services Do You Provide In Your SSC Today? 1 - Centralised Service 2 - Is this process 3 - Fully Offering (Y) Outsourced? Automated (F)Accounts Payable Yes YesAccounts Receivable Yes YesAuditingBenefits and Rewards Administration Yes YesBudgetingBusiness Performance Analysis Yes YesBusiness Performance Reporting Yes In processCall Centres: Employees, Suppliers, CustomersCall Centres: IT Help Desk Yes YesCollections Yes YesCost Accounting In process In processCredit Yes In processCustomer Billing Yes In processEmployee Data Management Yes YesExternal Reporting Yes YesFacilities & Real Estate In processFixed Assets Yes YesForecasting Yes YesGeneral Accounting (G/L, I/Co, Inventory) Yes YesManagement Reporting Yes YesPayroll Yes YesPlanningPurchase Order Processing Yes YesStaffing Services Yes YesSupplier Services Yes YesSupplier Management Yes In processTax Services Yes YesTime & Attendance Yes YesTravel Expense Yes YesTreasuryWorkforce Development Yeshttp://ssonetwork.com/awards.aspx 2
  • 4. The winning application for “Excellence In Culture Creation 2012”Other:Other:Other:AffidavitDo You Grant IQPC the Right to Publish Key Metrics and Promote Winners of Awards? Yes, we grant IQPC the right to publish key metrics if we become finalists Yes, should we win, we grant IQPC the right to promote us as award winners No, we do not grant IQPC permission to publish key metricsDo You Agree to Participate in a Presentation/Discussion Outlining Your SSOs Achievements Should You Win? Yes, we will participate No, we will not participatehttp://ssonetwork.com/awards.aspx 3
  • 5. The winning application for “Excellence In Culture Creation 2012” Excellence In Culture Creation Your Story The Alignment of Cultures – the Story of the BlueScope Steel / Capgemini JourneyPreambleBlueScope Steel Shared Services has a unique delivery model – a core internal team that manages integrated businessprocesses across the organisation in conjunction with our outsourced business process partner Capgemini to deliverservices and commercial benefit to BlueScope Steel. This new business operating model was launched in 2010, howeverthe alignment of cultures journey started prior to this, during contractual redesign in 2009.StrategyDescribe the background on why you wanted or needed to make this change or improvement in culture of yourorganisation or for creating a new culture What culture did you start with? - Please describe what you were trying to change or create - what was your vision? What was the business objective and/or the reason for changing or creating a culture? Were you creating or changing culture within your Shared Services organisation or within the wider business or both? Please specifically describe and quantify the benefit you were trying to achieve through this culture creation, whether cost savings, efficiency improvement, increase in Customer or Employee satisfaction etc? (Maximum 400 Words – Actual 396 Words)Historical CultureThe BlueScope Steel/Capgemini relationship culture started as one of master–servant, a culture that was encouraged bythe open book model. When internal customers requested changes to services and/or scope, Capgemini abided byseeking BlueScope approval to changes in FTE numbers and charged BlueScope Steel for it accordingly. There was noauthority provided to Capgemini to push back to stakeholders to challenge them on specialised requests, and no internalprocess owners driving standardisation and change improvement. As a captive isolated SSO office, there was limitedglobal capability innovation offerings and when improvements were suggested the culture resisted change.The relationship was founded on openness and strong governance, however more was required. We had to move fromthis buyer-vendor culture and needed innovation and collaboration for real mutual financial benefit.http://ssonetwork.com/awards.aspx 4
  • 6. The winning application for “Excellence In Culture Creation 2012”Business ObjectivesAs a result of the steel industry downturn post the global financial crisis, BlueScope Steel was under significant financialpressure and had a sense of urgency for major structural cost reductions ($500 million off the April 2009 baseline) andflexibility to address changing business demand. The contract for BPO services was due to expire in 2010, and wasflagged for review. It was quickly identified that for transformational change we needed to change the commercialarrangement and the culture by establishing a model of collaboration for mutual benefit.BlueScope Steel and Capgemini commenced a joint project to review the commercial contract and relationship, andcombined each of our organisation’s business objectives to a combined vision of success (shown below).http://ssonetwork.com/awards.aspx 5
  • 7. The winning application for “Excellence In Culture Creation 2012”Scope of Culture ChangeA new culture was created by developing a new internal Shared Services team within BlueScope Steel, appointing highperforming team members with strong change management skills to take ownership of the integrated business processesand work with both the internal business and Capgemini to institutionalise the culture. Capgemini changed to being moreagile, focusing on continuous improvement and leveraging their global capabilities. The BlueScope wider businessstakeholders were held accountable for their obligations.Aim of ChangeThere were several aims of the cultural change, primarily focused on cost reduction and scalable growth as follows: Centralising additional business support functions beyond the current footprint to further reduce operating costs; Reduce end-to-end service delivery costs; Improve quality; flexibility and customer focused service delivery (‘fit for purpose’); and Position for longer term regional / global shared business services capabilityhttp://ssonetwork.com/awards.aspx 6
  • 8. The winning application for “Excellence In Culture Creation 2012”Change Methodology(Tell us how you created the new culture)o What were the specific steps that you took to create or change the culture?o How long did it take? - What was the timeframe and stages?o Who worked on the culture change - were consultants or specialists used?o Were Customers involved in changing or creating the new culture? - What was their role?o Did you use your own branding? - What was its impact? - What other tools did you use?o Please provide some examples of what you did to foster and build a sense of culture across your SS functionsand within the wider business? (Maximum 1000 Words – Actual 997)http://ssonetwork.com/awards.aspx 7
  • 9. The winning application for “Excellence In Culture Creation 2012”Creating a CatalystThe culture change started in early 2009 with the BlueScope Steel sponsor creating a sense of urgency around the needfor change; given the financial situation of the steel industry post the global financial crisis and the upcoming contractexpiry at the end of 2010.BlueScope customers and stakeholders were engaged to provide their views as to what was positive and negative aboutthe current contractual arrangement and services provided. There was an overriding theme that there was a master-servant relationship and we needed to challenge this for transformational change.After a review of the market, it was determined that the best financial and business outcome would be to renegotiate acommercial based model with Capgemini if there was capability to have dramatic cultural change both within BlueScopeand the relationship between BlueScope and Capgemini.Building a CoalitionA joint project team was established comprising operational and commercial leads in BlueScope and Capgemini fostering apartnership approach. This group was tasked with reviewing and challenging the current contract model. The broadercoalition included change management advocates within both businesses to drive the cultural change. The sponsor wasan organisational development specialist executive with strong support from the CFO.Creating the Vision for ChangeAn initial workshop using an accelerated solutions environment was facilitated by Capgemini consultancy specialists.Representatives included BlueScope subject matter experts, process owners and customers, who worked collaborativelywith Capgemini management, consulting and operations service delivery managers. The vision was focused aroundcultural differences, and that tomorrow we must look different (both commercially and culturally). The scene setting isshown below:Facilitated sessions allowed all participants to understand the current state. These Capgemini consultant led workshopsallowed a joint understanding of both parties organisations and cultures, and had the realisation that we needed torecognise collaboration as a critical enabler to deliver better, faster, smarter results at a lower cost.http://ssonetwork.com/awards.aspx 8
  • 10. The winning application for “Excellence In Culture Creation 2012”There was additional service focused workshops led by Capgemini global capability representatives explainingtransformational change possibilities, including Rightshore ©. These breakout sessions allowed innovative thinking withoutboundaries to determine all possibilities and focus on achievable wins.Communicating the Change – Engaging Stakeholders and CustomersCustomers and stakeholders were engaged in the development and assessment of options, engaging them in the visionand reinforcing the collaborative approach and role modelling of behaviours. These opportunity workshops allowed jointdevelopment of the future state model able to then be negotiated from a commercial perspective.At the time of the contractual negotiations, key stakeholders and users were actively engaged in formulating the scope,quality and delivery of services. It was seen that to be successful, we needed to conduct this change with the business,not to the business.The newly formed internal Shared Services Team was established to be accountable for implementing the changes andmanaging the integrated business processes strategically required within the organisation. They branded themselves witha simple consistent logo (shown below) and delivered “road shows” across the business to launch Shared Services andexplain the new contract obligations. This branding differentiated the internal Shared Services team from the external BPOprovider whilst reinforcing we were both working closely together.http://ssonetwork.com/awards.aspx 9
  • 11. The winning application for “Excellence In Culture Creation 2012”Reinforcing Beliefs and Removing ObstaclesThere was continuous reinforcement of collaboration through transition to new model, with joint communication sessionsheld with the business. Business sign-off was embedded as part of transition to revised model ensuring total engagementand buy-in of customers to the changes and continuous involvement in project development.As a governance committee (which includes executives from both organisations and the managers of each of the servicetowers), it was recognised we needed to move from the old culture to the new culture by aligning our values andbehaviours. These were jointly developed over a few professionally facilitated sessions, and are on every monthly agendafor us to be held accountable to them.http://ssonetwork.com/awards.aspx 10
  • 12. The winning application for “Excellence In Culture Creation 2012”Culture is made by beliefs, which is enforced by behaviours. Having the governance committee commit to thesebehaviours was a critical point for the relationship to move forward in a combined culture.http://ssonetwork.com/awards.aspx 11
  • 13. The winning application for “Excellence In Culture Creation 2012”Marketing and Celebrating Short Term WinsRegular business updates via email and communication sessions were used to market the initial achievements. All regularbusiness update and announcement communication from Shared Services and Capgemini was based on joint “letterhead”branding, featuring company logos and sign off from both sides. The use of this banner showcasing our partnership hasbeen seen positively by our stakeholders who see this as working collaboratively.The initial offshoring activities had very broad updates and were seen as “seamless” to the organisation. Customers wereengaged in sign-off processes and acceptance certificates to agree the level of service was met. Capgemini andBlueScope regularly had meetings at each others sites working together for joint stakeholder engagement in order toembed the culture.Building on the Change – Institutionalising the CultureCapgemini have a bi-monthly newsletter for their internal employees. They have reserved a page for regular contributionsfrom BlueScope Steel. BlueScope newsletters retain an area to communicate Shared Services focus areas, co-brandedwith Capgemini to reinforce the collaborative relationship. These publications build on the cultural change and thetransformational changes within the processes, and ensure alignmentof both organisations employees to the vision.http://ssonetwork.com/awards.aspx 12
  • 14. The winning application for “Excellence In Culture Creation 2012”There has been several joint site visits, across Australia, New Zealand, China and Malaysia where both Capgemini andBlueScope have jointly visited and toured each others sites and offices. The below photo is of the Manager SharedServices Coretta Bessi and the Capgemini Australia Centre Director Trevor Patti with the Nanhai Capgemini team servicingBlueScope. The BlueScope CFO was later also hosted at the site.There is regular centre wide communication and question/answer sessions led by Shared Services Team at Capgeminioffices to reinforce openness, transparency and process ownership. These allow timely information and business insightsto ensure a high level of alignment, accountability and agility in the business processes.There were many people who contributed to this change in culture and transformation, all whom are proud of the legacythey have left.http://ssonetwork.com/awards.aspx 13
  • 15. The winning application for “Excellence In Culture Creation 2012”http://ssonetwork.com/awards.aspx 14
  • 16. The winning application for “Excellence In Culture Creation 2012”Complexity of Change(How complex was this culture change to make?)o Was there resistance to change? - which area(s) did it come from and how did you overcome it?o How wide a change did you have to make? How many Employees, business units, countries etc were affected?o Did you have a change management plan? - Did the change prove more complex and difficult than you had thought?Describe how hard or easy it was to create the new culture - What have been the main leadership challenges for youand the team? (Maximum 400 Words – Actual 399 Words)ResistanceThere was high resistance to change from within BlueScope as we had previously had a long standing relationship.Internal customers used to a supplier that would customise their service was now faced with a challenge to standardise, orpay extra costs.This was met with frustration, animosity and blaming Capgemini as not providing the services requested or stating thesewould be charged at a higher rate. Those resistant to the changes of a collaborative working relationship werestakeholders who had not been engaged in the process previously. To overcome individual’s resistance, Shared Servicesutilised the participants from the process who were vocal advocates for the culture change, and were able to influencecritics to become supporters.The Shared Services team were a highly perseverant conduit to educating the customer base of the new contractual realityincluding the obligations were of both parties, communicating the requirements and accountabilities of BlueScope andmarketing the dramatic cost reductions of the new contract. All costs were charged to the relevant businesses, with apromotional pack marketing the overall costs were a step-down due to the new contract.Broad ChangesThe cultural change impacted on: BlueScope Shared Services Team (approximately 20) set up as a conduit between Capgemini and BlueScope Steel BlueScope employees (approximately 8,000 across Australia, New Zealand and touching on the global footprint acrossAsia and North America) now required to use employee self service for leave entitlements, standardised requirements andoffshore processing Capgemini Adelaide (approximately 120) being restructured to allow offshoring of their tasks, undertaking China culturalworkshops to deal with their extended team and simultaneously having to deal with BlueScope and say no to manyrequests Capgemini China Nanhai (approximately 40) building a new team and new culture of dealing with an Australianenterprise, with Australian flags at their desks and BlueScope posters on the walls and promotional merchandise on theirdesks as visual signposts of being one teamChange Management PlanThere was a change management plan for the new contract and the transition of activities to offshore. The programmemanagement was highly effective.http://ssonetwork.com/awards.aspx 15
  • 17. The winning application for “Excellence In Culture Creation 2012”There was a stakeholder engagement plan which identified key people and groups / teams within the businesses thatrequired customised communications. The culture change within BlueScope proved harder than initially thought, mainlydue to several changes in leadership, although this was always backed with chief executive support for the vision.http://ssonetwork.com/awards.aspx 16
  • 18. The winning application for “Excellence In Culture Creation 2012”Benefits Achieved/Hard Improvements(How successful has the culture creation been)o What has been the hard improvement vs. the original objective or aim? Please quantify cost reductions, efficiencyimprovements etc with clear metrics. What is your measure of success?o What has been the Customer and Employee response to the cultural shift? Please demonstrate any changes inCustomer or Employee Satisfaction or other measure of feedback including impact of change on the widerorganisation.o Has the change had any unexpected benefits on other areas, Employees, processes?o What other benefits have arisen due to the new culture? (Maximum 400 Words – Actual 399)Hard Quantifiable BenefitsThere has been a visible reduction in costs to BlueScope Steel of providing the business processes from Capgemini,mainly due to offshoring processes, but also due to commercial arrangements, gain sharing initiatives and processimprovements. The below graph shows a continual decline, although over this time there has been additional outsourcingand services provided under the contract.Although setting up an internal Shared Services function was a new department within BlueScope, the total costs forBlueScope have reduced by 22% against a do nothing approach (ie continuing a cost plus approach with labouradjustments).These cost reductions have occurred without deterioration to service level adherence with on average 96.3% meeting orexceeding expectations – all within a year of turbulent change and closures of operations – as per the chart and sheetbelow.http://ssonetwork.com/awards.aspx 17
  • 19. The winning application for “Excellence In Culture Creation 2012”Responses to the Cultural ShiftThe Shared Services team completed a customer satisfaction survey post transition of activities offshore following theimplementation of the contract. Although expecting a high level of animosity and reaction to the changes, the aggregatedscores of all surveys were above stretch targets with customers overwhelming stating the changes had exceeded theirexpectations.Quotes from key people are:“I have labelled the transition “seamless” – it was conducted professionally, was well planned and executed” – StephannieJonovska – BlueScope Steel Manager Customer and Reporting“We work together to achieve success and the benefits of any success are shared equally – we enjoy a true win-win cultureand environment” – Trevor Patti Capgemini BPO Centre Director“Our successful partnership has enabled a strategic business transformation delivering both operational and financialvalue. Our shared values and willingness to collaborate has produced further benefits through the execution ofstandardisation, centralisation and outsourcing opportunities” – Peter Egan – BlueScope Steel Manager Supplier Serviceshttp://ssonetwork.com/awards.aspx 18
  • 20. The winning application for “Excellence In Culture Creation 2012”A strong indicator that the combined culture demonstrates value is the current activities expanding the scope of SharedServices, including an endorsement from the CFO to take the function and relationship global in the near future.Other / Unexpected BenefitsOther benefits that have been achieved not anticipated at the outset was agility in the recent closures and cash flowactivities required by BlueScope due to further financial pressures, by processing redundancies over 1,000 at the sametime as roster changes, all with streamlined processes allowing reduced effort by end customers.Additional benefits in progress are more strategic value activities such as spend analytics, managed spend andsustainability accounting.http://ssonetwork.com/awards.aspx 19
  • 21. The winning application for “Excellence In Culture Creation 2012”Differentiators(Why do you consider this culture creation to be Excellent)o What differentiates your achievement over other organisations? (Maximum 400 Words – Actual 396)Champagne and Boxing Gloves – simultaneously successfulTo have a contractual agreement for business processes outsourced substantially to an external provider for longer thanten years with three major changes shows a level of maturity on behalf of both organisations, let alone that thearrangement extends out until 2016. The fact that the culture has evolved from being a buyer-vendor or master-servantrelationship to being regarded as collaborative partners is excellent and is a key differentiator from culture change withinother organisations and across other outsourced contractual arrangements.The combined culture created is truly collaborative – not just in words, but in every action and every behaviour. Howeverthe culture is not just based on people wanting to be amenable and be friendly with others to avoid conflict or confrontation.There is a true commercial tension that incentivises both parties to work together for mutual benefit. A real win-win culture.The joint teams vehemently honour the governance committee behaviours, especially of being “Respectful” – we willalways be candid and challenge each other respectfully. We all take great pride in our own organisations, arecommitted to ensuring optimal sustainable value for our own business and determined to make the right commercialdecisions. However, we feel comfortable to be able to challenge each other respectfully. The contract is referred to on anongoing basis, however it is always for intent and clarity of what direction we should move in. We are then empowered todetermine the best actions for our joint organisations.But we also all honour the governance behaviour “Fun” – we will always reflect and celebrate our successes. And wedo. Often. And enjoy it!We work together collaboratively, have tough fact based negotiations, and celebrate our wins. This was publicly reinforcedby the joint Capgemini and BlueScope Steel candid presentation about “Champagne and Boxing Gloves Relationship” byTrevor Patti and Coretta Bessi at SSON 2011http://ssonetwork.com/awards.aspx 20
  • 22. The winning application for “Excellence In Culture Creation 2012”Having the right people in the leadership roles helps, but the culture is so institutionalised and ingrained after such as shortperiod of time that changes in leadership will not materially impact the underlying aligned culture between the twoorganisations. The combined teams are now looking at not only the immediate expansion of services, but also checkingthe horizon to see what we will do together beyond this contract – being optimistic the relationship and the value deliveredwill demonstrate the right to continue.http://ssonetwork.com/awards.aspx 21
  • 23. The winning application for “Excellence In Culture Creation 2012”Don’t forget to apply for an Award yourself

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