Shared Services Creation: Baby Steps or Big Leaps?
                        Or
               How Big is the Leap?




    ...
Harris Corporation Overview
    Harris is an international communications and information technology
    company founded i...
Global Shared Services Footprint


                                                                                       ...
Services Provided - Present & Future

GSS Vision: Expand and align the GSS offering to include comprehensive Corporate ser...
Global Shared Services, North
America (GSS, NA)

  Core Services
  Travel Reservations
  Payroll                      • 65...
Harris GSS North America Timeline



                                                                                    I...
The GSS, NA Journey

                                                                               Start
                ...
Initial Creation - Structure

      Item          Harris Approach                Advantages              Challenges
Top do...
Initial Creation - Structure

      Item         Harris Approach                Advantages            Challenges
Cost allo...
Initial Creation – Customer Relationships

      Item           Harris Approach                 Advantages             Cha...
Initial Creation - Approach

      Item            Harris Approach                Advantages              Challenges

Func...
Initial Creation – People

       Item          Harris Approach               Advantages            Challenges
Initial sta...
Lessons Learned - People


•    You can never invest in too much training and education even if you think
     you are. Th...
Change Behavior

                               The Change Management Curve
Productivity

               State of Mind
   ...
Change And Resistance




When dealing with change, people               Or, people may:
may:
                            ...
The Present and the Future!

      Item        Harris Approach                  Advantages              Challenges
Continu...
The Present and the Future!

      Item      Harris Approach                   Advantages             Challenges
Global re...
Contact Information


Rochelle Hood, PMP
rhood02@harris.com
321.724.3161



Jane Higgins, PMP, CPA, CMA, MBA
jhiggins@harr...
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Jane Higgins & Rochelle Hood, Harris - SS Creation

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Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010

To find out more about the 2011 event go to:
www.sharedservicesweek.com

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Jane Higgins & Rochelle Hood, Harris - SS Creation

  1. 1. Shared Services Creation: Baby Steps or Big Leaps? Or How Big is the Leap? Presented by Jane Higgins and Rochelle Hood Harris Global Shared Services, North America Melbourne, Florida March, 2010 assuredcommunications™
  2. 2. Harris Corporation Overview Harris is an international communications and information technology company founded in 1895, serving government and commercial markets in more than 150 countries. • Headquartered in Melbourne, Florida • Annual revenue of +$5.0 billion • 14,000 employees — including nearly 6,000 engineers and scientists Harris is dedicated to developing best-in-class assured communications® products, systems, and services. Customers Include: • US Department of Defense • Federal Aviation Administration • NOAA • All US Military Service Branches • Broadcast Television & Radio Stations assuredcommunications™ 2
  3. 3. Global Shared Services Footprint QUEEN ELIZABETH ISLANDS SWEDEN R U S S I A . UNITED ESTONIA CANADA KINGDOMI R ANDS TIA N ISL ( ALEU Island of IRELAND NETH. POLAND Newfoundland GERMANY AUSTRIA FRANCE ROMANIA M O NG OL IA HUNGARY I ITALY . UNITED STATES SPAIN M NORTH KOREA U NIT ED STATES SOUTH JAPAN KOREA CHINA rol Country Employees ALGERIA Country Employees Shared Svcs. 65 SAUDI PAKISTAN Shared Svc 16 MEXICO US & Canada 15,098 UAE INDIA ARABIA BURMA L AOS Australia 40 BELIZE ST . KIT T ANTIG U A AND BARBU DA THAI L AND VIETN AM China 67 HONDURAS ( U .S.) GUATEMALA Hong Kong 25 DOMINI CA S T . LUCIA CAMBODIA PHILIPPINES EL SALVADOR NIC ARAGUA B AR B ADOS COSTA TRINI D AD AND T O B A GO India 7 RIC A PA N AMA T SINGAPORE VENEZUE LA GUYA N A Fr ench Guiana SRI LANKA BRUNEI Japan 5 COLOMBIA SURIN AME (FRA N M A L A Y S I A Country Employees Singapore 13 ECUADOR KENYA Shared Svcs. 38 I N D O N E S I A Total 172 PAPUA NEW GUINEA SO LOMON Algeria 1 EAST TIMOR ISLANDS PERU BRAZIL Austria 5 SAMO Brunei 1 VAN U A TU FIJI Country Employees BOLIVIA Estonia 1 Shared Svcs. 4 PARAGUAY France 24 AUSTRALIA Argentina 4 Germany 6 Brazil 13 Hungary 19 CHILE Chile 1 U RUG UAY Ireland 17 NEW Colombia 2 ARGENTINA Italy 2 ZEALAND Honduras 50 Kenya 1 Mexico 6 Netherlands 1 USA 8 Pakistan 1 Total 88 Poland 2 Russia 1 Saudi Arabia 1 Sweden 1 UAE 9 UK 308 Total 401 assuredcommunications™ 3
  4. 4. Services Provided - Present & Future GSS Vision: Expand and align the GSS offering to include comprehensive Corporate services for all regions. Provide local knowledge and expertise to support the Harris Global growth strategy. GSS Mission: Perform as value-added business partner supporting the Divisions’ Global development and expansion – reporting, commonality, governance, collaboration, consistency, quality, and timeliness in the most cost effective manner. 2010 2012 NA EMEA CALA APAC Americas EMEA APAC Core Services Cash Outflow services Cash Inflow services Financial Reporting Contract Review and Trade Finance Customer / Interco Billing Capital Management Facilities Management Governance Services Income Taxation Statutory Accounting Company Secretarial Pension Plans Treasury / Cash Management We are continuing to seek additional services and will transform the new process once stabilization has occurred. assuredcommunications™ 4
  5. 5. Global Shared Services, North America (GSS, NA) Core Services Travel Reservations Payroll • 65 Employees Timekeeping • 6 Business Units/Divisions Travel Reimbursements • 3 Operating Systems Accounts Payable Asset Management • PeopleSoft – 3 Versions Financials P-card Administration - 1 Version HR T-card Administration • Oracle – 1 Version Bank Reconciliations • SAP – 1 Version Vendor Master Maintenance Business Analytics We are continuing to seek additional services and leverage process improvements to add value without adding costs assuredcommunications™ 5
  6. 6. Harris GSS North America Timeline Internal PIs >$1M All Global SSCs enabling new work report to 1 VP – to be absorbed!!! 1st time ever!! Summer July July July May July July Feb The Future 1999 2000 2004 2005 2007 2007 2008 2009 n Initiative to t at io Combine PI + Create FSS PM = Wow! GSS Name en • Spend 3 yrs Change!!! em Im X Announced SO pl reconciling Process accounts and Improvement Migration to stabilize (PI) Introduced Big Bang PeopleSoft – processes BigPS on Bang Harris is committed to PeopleSoft as acquisitions are integrated assuredcommunications™ 6
  7. 7. The GSS, NA Journey Start Customer business ‘lift and shift” Establish expertise Implement common systems Continually process improve and transform Acquisitions, Go Global! upgrades and Build bench other challenges! Continual strength employee Future development Global Process assuredcommunications™ Ownership Company Private 7
  8. 8. Initial Creation - Structure Item Harris Approach Advantages Challenges Top down • Original creation top • Got it done! • Somewhat contrary to mandate vs. down in 2000 • External firm of Harris culture internal sell • Addt’l large services consultants kept us • Does not win over will be difficult focused and acted as critics well so the next • Absorption since the convenient major shift is harder to creation minor ‘demon.’ sell • Learning together • Learning as we go • Plan to keep selling after the consultants leave Residing in CHQ • Residing in CHQ • Reporting to CFO is • We are now vs. stand alone since largest entity at important for outgrowing ‘Finance’ entity that time was 20 relationship with services minutes away division Controllers • Too much scrutiny with • Cheap Florida labor the CHQ expense pool and cost of living assuredcommunications™ Company Private 8
  9. 9. Initial Creation - Structure Item Harris Approach Advantages Challenges Cost allocation As a gov’t contractor, • The customers • A constant education for services must be 100% charged understand what they process out with an equitable need to do to lower model their cost • Started with charging • Great connection to on % relationship external metrics to • Now using CPT to show customer value motivate behavior assuredcommunications™ Company Private 9
  10. 10. Initial Creation – Customer Relationships Item Harris Approach Advantages Challenges Governance Used initially for We can get the Has perhaps limited Board implementation status attention we need our ability to make and as needed for when needed progress with problem resolution consistent focus Service Level • Initially used informal • Good approach for Creates more Agreements and SLA’s due to customer Harris as we move to a dialogue on customer surveys sensitivity ‘one company’ vision assumptions which is • Documented roles • Part of the learn as good for ‘learn as you and responsibilities you go approach go’ although • First survey done 5 • Provided up front sometimes takes yrs after initial go-live flexibility longer Customer visits Primarily focused on Lower cost Can’t do enough of training needs for new this, especially with services or groups needing strong integrations, and partnership such as problem resolution Procurement assuredcommunications™ Company Private 10
  11. 11. Initial Creation - Approach Item Harris Approach Advantages Challenges Functions to • Cash outflow Fairly generic for both Someone needs to track incorporate functions of payroll, AP, manufacturing and the overall savings to travel, assets software prove out the cost • General ledger benefit analysis Bringing the work Brought the work to the We understood Some divisions stayed into the center center before legacy research ‘attached’ to their conversion to learn the which was very headcount numbers division processes: ‘lift important for the and shift’ challenges we Same headcount, inherited same system, same processes Implementing a Big bang in separate 1 year of intense 1 year of intense recons common system: instances of PeopleSoft recons and you’re and you’re done! Big bang vs slow done! and steady assuredcommunications™ Company Private 11
  12. 12. Initial Creation – People Item Harris Approach Advantages Challenges Initial staffing • Brownfield approach We’re all in this • Employees need to using existing journey and learning understand working in a employees for half of together! shared service center is center creation different. • Inexperienced director • We should have interviewed to set expectations. • Expect attrition Staffing with Get it whenever you Moved us forward • Generally difficult to talent from other can with process find (SSCs) Shared improvements much • Don’t assume roles Service Centers faster and responsibilities are consistent across SSCs assuredcommunications™ Company Private 12
  13. 13. Lessons Learned - People • You can never invest in too much training and education even if you think you are. The challenge is expecting people to make the connection to the services they provide and apply the training. Examples: – Customer service training – Process improvement and project management training – Leadership training: a critical link to keeping the overall team positive and moving forward! • Change management and organizational development - Not initially available or utilized. Now ingrained in our culture. Get it asap!! • Expect attrition if you are a brownfield site as the SSC will act as an entry point for employees and their development. Figure out how to use this to your advantage! assuredcommunications™ Company Private 13
  14. 14. Change Behavior The Change Management Curve Productivity State of Mind Or Uninformed Optimism Informed Optimism Informed Valley of Pessimism Despair You can’t skip the dip! Time assuredcommunications™ Company Private 14
  15. 15. Change And Resistance When dealing with change, people Or, people may: may: • Be skeptical about new methods and •Be open to change and willing to try the reluctant to give up their old habits new method • Give lip-service to training and fail to •Seek to learn the new skills or behaviors learn the required skills required by the new method • Be fearful that they can’t learn or •Openly support the new methods and perform the new method encourage others to do the same • Use the new method only while the •Apply themselves to get the best technical experts are around but performance out of the new method quickly revert to old ways •Suggest ways to continue to improve the • Subvertly or overtly sabotage the new new methods method and encourage others to do so assuredcommunications™ Company Private 15
  16. 16. The Present and the Future! Item Harris Approach Advantages Challenges Continual Learn all you can from Plan to constantly drive Usually a ‘pull’ learning others and educate your process customers as an opportunity. They expect you to be the experts. Validation of Utilize someone strong Takes some of the Can be delayed approach in SSCs every 3 yrs to pressure off the ‘internal based on funding do a review sell’ constraints Process Grassroots effort at the • Huge payoff upstream! Takes longer and improvements SSC to invest in the • Cost benefit analysis tends to be political and project training externally (CBA) prioritization model management appeals to all! Metrics and Coming on strong in Provides great customer • Providing scorecards the last 3 years! insight to our story and customer goals understanding • Sooner would have been better assuredcommunications™ Company Private 16
  17. 17. The Present and the Future! Item Harris Approach Advantages Challenges Global reach • Global branding Good approach for Harris Another new started 2-3 yrs ago with small internat’l bottoms up concept • Good opp for Global centers to get this in place Process Ownership for future growth IT funding Divisions provide the Division ownership and Longer lead time funding to IT commitment of resources with constant shift when they are ready to the right based on division priorities assuredcommunications™ Company Private 17
  18. 18. Contact Information Rochelle Hood, PMP rhood02@harris.com 321.724.3161 Jane Higgins, PMP, CPA, CMA, MBA jhiggins@harris.com 321.674.4632 assuredcommunications™ Company Private 18
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