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Successful Change Mangement in Shared Services
 

Successful Change Mangement in Shared Services

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    Successful Change Mangement in Shared Services Successful Change Mangement in Shared Services Presentation Transcript

    • The Journey to World-ClassHow to Successfully Run a Change Management CampaignSuccessful Change Management in Shared ServicesPresented to:Shared Services for the Public SectorPenny Weller, PhD, CMASenior DirectorThe Hackett GroupMay 5, 2008
    • Statement of Confidentiality and Usage RestrictionsThis document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disclosure of which wouldprovide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the contents contained herein,in whole or in part, for any purpose is strictly prohibited without the prior written consent of The Hackett Group.Copyright © 2008 The Hackett Group, Inc. All rights reserved. World-Class Defined and Enabled.Page 2Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Agenda The Hackett Group defines world-class What is shared services and why are so many organizations implementing? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How to effectively manage change regardless of your decision – Everyone knows the value but how do you get business unit commitment and internal respect – Getting over the ‘tipping point’ from resistance to a shared vision – The power of metrics Page 3 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section One The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 4 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • The Hackett Group defines and enables world-class performance The use of our intellectual capital enables our clients to implement change to affect their ability to attain and sustain world-class performance ld l f – We provide strategic advice and implementation assistance based on 4,000 benchmarks with leading global companies – Our implementation tools allow our clients to achieve results from proven best practices of world class companies world-class Our recommendations address both efficiency and effectiveness of world-class performance Our efforts have delivered over $90 billion in sustainable cost savings and $25 billion of improved cash flow improvement through REL, our working capital group for clients across the globe Operating in the Americas, Europe and Asia, we have served Americas Asia clients in 66 countries Our unique intellectual capital is unparalleled in driving successful performance improvement Page 5 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Hackett insights are based on work with 2,700 of the world’s leadingcompanies 97% of the Dow Jones Industrials 73% of the Fortune 100 88% of the Dow Jones Global Titans 73% of the DAX 30 45% of the FTSE 100 Page 6 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Hackett Value Grid™ − the foundation for how Hackett definesworld classworld-class performance Hackett Value Grid™ (Finance Example) EFFECTIVENESS EFFICIENCY Days sales outstanding Overall function cost as a % Days payables outstanding of revenue Accounts payable rework rate Process cost as a % of revenue Customer billing rework rate Technology cost per function FTE Accuracy of forecasts and Staffing levels by process analysis Cycle times and iterations Functional role in strategic Unit cost of transactions decision making Utilization of self-service for Percent of time analytic focus in inquiry on proactive decision making Application complexity Percent of time spent collecting Automation of transactions and compiling data for analysis Reliance on spreadsheets Percent of analysts with Percent of business reports acumen to function as business distributed electronically partners Page 7 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • The cost gap between world-class and average performance hasincreased by 48% over the last 3 years G&A Cost Gap (in millions) World-class companies are widening their $128.0 $128 0 cost advantage th t d t through: h – Process simplification and standardization – Global process sourcing $86.2 Offshoring $64.0 Shared Service Centers Outsourcing $43.1 – Leveraging “emerging” technologies… $32.0 Imaging and workflow $21.5 Decision support Wireless technologies$5 billion company $10 billion company $20 billion company …while also reducing platform & application revenues revenues revenues complexity through standardization 2005 2007 What actions have you taken? Page 8 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Does being world-class matter? $6.3 million $1.7 million $1.9 million in savings p $1 billion g per in savings p 10,000 g per in cost savings p g per World-class are of revenue employees $1 billion of spend investing more in IT 1.24% 51% 1,995 9% 0.82% 23% 5% $9,198 1,822 $8,701 0.63% 0 63% 0.61% Median WC Median WC Median WC Median WC Overall Finance cost Overall HR cost Overall Procurement Overall IT cost as a % of revenue per employee cost as a % of spend per end user What are your performance improvement opportunities?Hackett 2007 Functional Performance Data - Select SG&A Functions Page 9 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class Finance organizations continue to differentiatethemselves from the peer group Finance cost as a percent of revenue • ERP implementation • Refinement of shared services • Maturing shared services • Beginnings of shared services • Advent of web and self-service • Globalization • Shift from mainframe to client • Data warehousing increasing • Focus on planning and analysis 1.90% server • Sarbanes-Oxley 1.50% 1.40% 1.24% 1.08% 1.00% 0.74% 0.61% 1992 1994 1996 1998 2000 2002 2004 2005 2006 2007 Peer Group World-Class 2007 Finance Benchmark Page 10 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • While world-class firms utilize less labor overall, they minimizerelative spending in transactional processes 1.24% 0.61% Labor element l Labor element 0.90% 0.47% 2007 Finance Benchmark Page 11 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class FinanceHow do they do it - Simplification Number of databases, 2007 38% fewer bank accounts 22.4 37% fewer total tax returns 53% fewer legal entities 57% fewer business performance reports p p 61% % produced routinely 10.0 Significantly fewer databases of key 8.7 information 83% 1.7 Customer Supplier Peer Group World-Class 2007 Finance Benchmark Page 12 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class FinanceHow do they do it - Standardization Percent of business performance reports generated from a central Business supported by a single ERP data repository, 2007 62.1% 80% 50.0% 69% Peer Group World-Class Peer Group World-Class2007 BOOK OF NUMBERS™ Research Series: Performance Metrics and Practices of World-Class Finance Organizations 2007 Finance Benchmark Page 13 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class FinanceHow do they do it – Technology Leverage Transactions performed electronically – Purchase to Pay Transactions performed 83% electronically – Order to Cash 76% 52% 45% 34% 33% 25% 16% Orders received Invoices sent Purchase orders Payments made Peer Group World-Class Peer Group World-Class 2007 Finance Benchmark Page 14 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class FinanceHow do they do it – Technology Leverage extending to self service Percent of companies with a high degree of self-service 70% 71% 72% 126% 122% 260% 31% 32% 20% Payroll Time and attendance Expense reports Peer Group World-Class 2007 Finance Benchmark Page 15 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Finance is being transformed….. Traditional Finance Emerging Finance Analytical services Analytical Process & Technology services Enablers Transactional Transactional services Shared Services Transactional services Focus – Managing The Numbers Focus – Managing The Business Page 16 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • “The secret of world-class companies’ success—basically,their ability to do more with less lies in getting the mix right: less—liesstreamlining processes, embedding controls within theprocesses, eliminating or reducing manual handoffs, andlleveraging th f ti lit of t h l i the functionality f technology are essentiall t d i i ti to driving higher quality and lower overall costs.” Profile of World-Class Finance World Class Page 17 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section Two The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 18 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • What is Shared Services? (Definition) Shared Services is an approach (operating model) used by organizations around the globe to organize and deliver internal support services more efficiently and effectively. It generally involves removing work activities from business units, and standardizing standardi ing & consolidating the way in which those services are deli ered to a hich ser ices delivered provide value to the business units in the form of reduced overall G&A costs and increased service performance. The actual operating model is so much more…. Page 19 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Accounts PayableExample…Example Separate Location Separate Location Separate Location Shared Services Economies of scale Improve overall cost and efficiency Improve controls Improve reporting Enhance staff skills and knowledge Leverage technology (imaging, workflow, electronic invoicing) Page 20 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-Class Finance Shared Services Strategic Alignment/ Business Partnering Customers Employees Suppliers Units People/Organization Shared Services Operations Customer Hire Account Procure Process P to to to t To Cash Retire Report Pay Technology Technology Leverage Page 21 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Finance Shared Services – Operating Principles People and Process Strategy, Partnering, and Technology Competency development with growth Comprehensive enterprise-wide strategy and opportunities and skill development plan with expected business demands, Streamlined organization with increased spans geographies, geographies and process scope of control Formal governance supports strategic Managed as an ‘independent business’ initiatives including roles, responsibilities and issue resolution process End-to-end workflows designed for efficiency and high team integration Metrics program to inspire staff and report as well as market value to key stakeholders Continuous improvement culture Common database architecture Embraced change and process management Leveraged technology; enhanced self-service, Se ce e e g ee e ts a d te a billing Service Level Agreements and internal b g to automated parallel processes, embedded processes drive desired behaviors controls and exception reporting Mandated or phased in within three years Page 22 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Shared Services - so much more than “centralization”… Business Unit – Corporate Shared Services Centralized Processing Staff Supplier/Partner pp Cost Center Business Controls Value Functional Specialist Service Provider Allegiance to Departments Allegiance to Customers All i t C t Functional Organization Pooled Resources Bureaucracy Economies of Scale “My Job Performance My Performance” Measures and Rewards “Not My Job” “How Can I Help?” Entitlement Accountability Up the Ladder Two-way Responsibility One-way Feedback Metric-Centric Passion for Process ‘Corporate with a Heart’ - ‘Strong Business Partner’ – ‘Pride of Ownership and Delivery’ Page 23 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class organizations use shared services to a greater extent inmany processes Shared service utilization 92.9% 95.0% 95 0% 89.7% 90.0% 73.5% 71.2% 67.4% 63.8% 63 8% 58.4% 51.8% 40.0% 28.0% 28 0% 25.5% 15.6% AP T&E Billing Credit General Tax mgmt Technology accounting portfolio Peer Group World-classSource: Hackett SG&A Benchmark Population 2007 Page 24 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Critical success factors for setting up a shared services 92% Top management support 100% Recruiting appropriate employees for 92% the SSC 66% Embedding a culture of "Continuous 83% Improvement Improvement" 67% Governance of SSO / SSO-Customer 75% relationship 53% Communicating the project goals to 58% employees early and often 53% Emphasizing a mentality of "Change 50% g Management" 59% 50% Quick wins in order to build momentum 41% Peer Gro p Group World-Class World Class 2007 Finance Shared Services Performance Study Page 25 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Greatest risks when setting up a shared services 100% Lack of business unit support 70% 67% Poor service quality 59% 58% IT problems 41% 50% Failure to transition work effectively 65% Lack of decision-making authority on g y 50% the service-delivery platform 30% Business activities are interrupted 25% during implementation 30% 25% Lack of employee support 43% Peer Group World-Class 2007 Finance Shared Services Performance Study Page 26 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Tools with the highest optimization effect Continuous improvement / quality 83% program 44% 83% Single integrated ERP platform 65% 75% End-to-end process design 46% 58% Standard chart of accounts 31% 42%Measurement intensive KPI reporting 28% World-Class 33% Extensive staff training 13% Peer Group 2007 Finance Shared Services Performance Study Page 27 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Shared Services enables world-class performance 63% Fewer Errors in Billing 60% Less Transactional 38% More Training Processing Staff Error Rates Transaction Processing Staff Hours of Training Finance 5% More Technology Investment 100% More Mature Balanced Scorecard Programs Peer group World-class Technology Spend T h l S d Balanced Scorecard B l dS d Page 28 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Shared services decisions “Functional Analysis” “F ti l A l i ” How am I performing compared to peers? Develop the business case well enough to achieve executive and business unit support “Location Assessment” What location best meets my organization today and into the future? “Insource or Outsource” Insource Outsource Should I implement a shared services strategy with my internal team or partner with an outside organization? “Size of the Prize”How big is the Opportunity from Shared Services? “Process Transformation” How do I design my processes to take advantage of best p g practices? How to measure success? KPIs, Scorecards Page 29 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Reasons for selecting the SSC location 20% 20% 20% 18% 15% 15% 15% 12% 10% 10% 10% 10% 5% 1% Labor arbitrage Employee skills / Low risks Exceptional Culturally acceptable Time zone availability Existing facility languages infrastructure Peer Group World-Class 2007 Finance Shared Services Performance Study Page 30 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • World-class shared services1. Leadership support and execution2. Passion around process3. Customer respect4.4 Sourcing and technology5. People-driven culture Page 31 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • 1. Leadership support and execution Project plan accepted at the top Walk the talk – don’t “back down” – acknowledge as a key initiative Build “tension” – stretch goals tension – Performance gaps – Make the “tough” decisions – Sense of urgency Assign “stars” – transformation team, global process owners Page 32 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • 2. Passion around process Metric-centric: (scorecards, strategy maps) – Quality, Cost, Delivery y y Benchmark End-to-end process design Value Val e ideas and creati it creativity – Quick wins! Continuous improvement – 6 Sigma, LEAN Quality – Activity based management Time Page 33 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • A5 Finance Shared Services – Savings without a formal continuous improvement process and culture in place i t d lt i l Planned Achieved 6% 6% 9% 6% 11% 9% 14% 25% 31% 52% 31% 69% of SSOs plan to save 20% or more costs 46% of SSOs have saved 20% or more costs >60% 41 to 60% 21 to 40% 11 to 20% 1 to 10% No Change 2007 Finance Shared Services Performance Study Page 34 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • A6 Finance Shared Services – Savings with formal continuous improvement process and culture in place i t d lt i l Planned Achieved 5% 5% 2% 7% 16% 16% 19% 30% 55% 45% 77% of SSOs plan to save 20% or more costs 81% of SSOs have saved 20% or more costs >60% 41 to 60% 21 to 40% 11 to 20% 1 to 10% No Change 2007 Finance Shared Services Performance Study Page 35 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • With Quality Program - Lower Accounts Payable Cost Accounts Payable Process Cost per invoice $4.30 38% $2.68 Without Quality With Quality Program Program Source Hackett Process Benchmark Research Page 36 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • End-to-end process design Organization appoints global end-to-end process owners within shared services who h i h have responsibility f process standardization and process ibilit for t d di ti d direction on a global basis – develop targets – accountable for process p – measure success Page 37 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • End-to-end: Key Reasons to Implement50 Leverage technology45 Align with business strategy40 COMPLIANCE ISSUES35 Optimizing talent30 ENTERPRISE TRANSFORMATION25 REDUCE COST & FTE20 Reduce infrastructure costs15 Working capital10 QUICK WINS 5 0 Standardize services First Reason Second Reason Scalability 2008 Finance Shared Services End-to-End Study Page 38 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • End-to-end: Key Challenges 70 60 Business case support 50 COMPANY CULTURE 40 Decentralized processes p Non-standard processes 30 Top leadership support Multiple operating systems p p g y 20 Sense of urgency 10 Strategic direction 0 First Reason Second Reason Not a Reason 2008 Finance Shared Services End-to-End Study Page 39 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • 3. Customer respect – internal partnerships Service Level Agreements – two way relationship Market the center – clear messaging - ‘VALUE MARKETING” VALUE MARKETING Connections – integrate with other initiatives and teams, customer councils, governance Invite self and promote contributions Alignment of functional priorities with business Customer surveys – leader involvement Complaints are gift Page 40 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations utilizing Service Level Agreements (SLAs) have lowercosts per transaction Accounts Payable Travel Expense Cost per invoice p Cost per record (1st Quartile) pe eco d ( Qua t e) (1 st Quartile) $6.03 $1.56 72% $1.68 44% $.87 <20% SLA Utilization <20% SLA Utilization >60% SLA >60% SLA Utilization Utilization Source Hackett Process Benchmark Research Page 41 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Definition: Service Level Agreement A Service Level Agreements (“SLA”) is a management tool primarily to manage expectations for service delivery It is a delivery. partnership agreement between an internal service provider (Shared Service) and its customers (Business Unit). Page 42 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Objectives of Service Level Agreements Describe service offerings – scope of work Clarify roles and responsibilities – Shared Service – Customers Set mutual expectations p – Establish “partnership” – Definition of service quality Reaffirm the commitment to service Establish metrics and performance standards Define billing process “Stake in the ground” for cost reduction or improved effectiveness Stake ground Governance and issue resolution Page 43 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Common Characteristics of SLAs Tied to organization’s strategy and customer needs “Two way” street – roles and accountabilities Two-way Measurable with defined process boundaries SLA and costs typically reviewed annually Flexible Catalyst for change and improvements Page 44 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Typical Components of a Service Level Agreement Services Provided Customer Commitment – A comprehensive description of the services – A comprehensive outline of customer provided requirements that will enable the provider to meet specified performance level commitments Customer Service – An outline of how the provider organization will Process Improvement service the customer, specifically detailing the – A description of process improvement initiatives contacts for services, and hours of availability , y to be undertaken by the p y provider, customer or , jointly, for the term of the agreement, and the Cost Information expected benefits associated with these – A description of the proposed charges for improvements services provided. This should increase transparency, clearly specify cost drivers and Issue Resolution / Escalation Process break down charges on a service-by-service b kd h i b i – A outline of h iissues and di An tli f how d disagreements will t ill basis be resolved between the provider and the customer External Benchmarks – Specify the escalation process within the – A comparison of current performance services Shared Service Center and through the levels and cost against external benchmarks governance structure Performance-Level Commitments Terms – Commitments by the provider based on Key – The length of time over which the agreement is Performance Indicators (KPI) enforced Page 45 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • 4. Sourcing and technology Focus on reducing business complexity Alignment of functional priorities with business Leveraging ROI on t h l L i technology for both transaction processing as f b th t ti i well as information access Page 46 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • 5. People-driven culture Clear purpose and mission – Engagement Create the culture – Encourage risk taking – Celebrate success Formal change management g g Formal process management Metrics that focus on desired behaviors – performance f Commitment to invest in people Page 47 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Degreed and Certified Shared Services’ Employees 100% 100% 100% 80% 60% 50% 48% 50% 50% 40% 30% 25% 20% 20% Management Degreed Management Management Professional Degreed Professional Advanced Professional Clerical Degreed Advanced Degreed Certification Degreed Certification Peer Group World-Class 2007 Finance Shared Services Performance Study Page 48 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Finance Shared Services – Level of Success in Targeted Benefits Corporate Strategy Improve Service, Quality, Accuracy Group Similar Tasks and Expertise and Timeliness for a Critical Mass 2% 1% 7% 3% 27% 51% 52% 45% 40% 72% High Medium Low None World-Class Reduce Redundant Tasks Reduce Administration Costs Reduce Headcount and Salary/Wages y g 5% 7% 13% 12% 40% 37% 49% 53% 38% 46% 2007 Finance Shared Services Performance Study Page 49 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Result of SSO Implementation Productivity Quality Customer Service 1% 4% 1% 3% 10% 9% 9% 7% 11% 13% 16% 13%21% 25% 17% 25% 23% 35% 23% 34% 89% of companies saw more 79% of companies saw more 82% of companies saw more than 10% of productivity than 10% of customer service than 10% of quality improvement improvement improvement >60% 41 to 60% 21 to 40% 11 to 20% 1 to 10% No Change g Negative Impact g p World-Class 2007 Finance Shared Services Performance Study Page 50 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Accounts Payable process cost as a percent of revenueProcess cost = labor and outsourcing costs 0.394% Accounts Payable – Process Cost 0.055% 0.048% 0.055% 0.035% 0.022% Accounts Payable 1st Quartile Median 100% Shared Services > 75% 0 - 25% None Process cost with various levels of shared services 2007 Finance Hackett Functional Benchmark Page 51 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Travel Expense Reporting process cost as a percent of revenueProcess cost = labor and outsourcing costs 0.180% Travel Expense Reporting – Process Cost 0.009% 0.010% 0.004% 0.001% 0.003% Accounts Payable 1st Quartile Median 100% Shared Services > 75% 0 - 25% None Process cost with various levels of shared services 2007 Finance Hackett Functional Benchmark Page 52 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section Three The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 53 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Four stages in the development of Shared Services1 Consolidation 2 Standardization 3 Optimization 4 Virtualization• Focused on bringing processes and • Focused on standardization of • Integration of optimized processes, • Leverage advanced technologies systems under one roof policies, procedures and technology technology and organization • Physical location(s) less important• Located near Corporate or major • O Outsourcing of non-core activities i f i ii • Hi h d High degree of process improvement f i • Contact Centers established to customer • Informal Governance Board • Continuous improvement embedded support stakeholder inquiries• Viewed as part of Corporate • Multiple systems in use by customers • Move to optimal location(s) • Continuous re-invention• Centralization rather than true shared • Customer relationship managers • Selective outsourcing • Expansion of services / scope services identified including expertise services • Standardized enterprise system• Disparate IT systems • Contact embedded in functions, some • Open for competition with external use of Contact Centers in selected • Use of imaging; workflow & other providers; outsource where not best-• Relationship with Customers functions enabling IT tools in-class; external profit center characterized by anger and conflict • Customer focused; self-directed approach • Team based organization around process, sub-functions, or teams • Balanced scorecards integrated with• Silo based organization applications • Contact Center customer strategy• Cost focused - clerical skills and processing efficiency • Functional experts • Balanced Scorecards • Menu pricing • Some performance reporting • Detailed SLA • SLA / strong customer focus• Scope restricted to transactional processes • Service offerings defined; charge • Variable pricing • Governance Board stresses backs established expansion of SSC model• Funded by Corporate • Formal Governance Board • Growth oriented business model to • End to end process design p g leverage scale • Marketing & Business Development team • R&D: new service offering development • Optimal organizational structure Page 54 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Many have achieved initial success - what’s next ? Expanding scope of services Expanding geographies and sourcing solutions Outsourcing / Offshoring World-Class World Class Global hubs / Regional centers Competency centers Virtualization Vi t li ti Process Offshoring ‘location neutral’ Management & Outsourcing gy Technology Standardize Leverage Consolidate |-----Optimization -----| Page 55 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section Four The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 56 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Finance Shared Services – Moving Up The Value Chain Strategy Decision Support Transactions Eliminate . . . Automate . . . OffshoreShared Service Organizations are eliminating work as they deliver benefits, and are taking on additional responsibility for decision support activities Page 57 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • With decision support processes being added to the mix, a new chapter is being written in the history of shared services Historically, the shared services story has essentially been the consolidation of transactional processes That story is changing; increasing numbers of companies are moving higher- value finance processes, such as performance reporting and business analysis, iinto shared services organizations t h d i i ti Moving activities performed in shared services further up the value chain is a core element of the emerging finance delivery model2007 BOOK OF NUMBERS™ Research Series: Performance Metrics and Practices of World-Class Finance Organizations Page 58 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Scope of Finance Shared Services – Decision Support Today Future Business 50% Business 75% Performance Performance Reporting 20% Analysis 26% Outlook / Interim 30% 75% Cost Analysis Forecasting 0% 41% Business 25% 63% Performance Cost Accounting Analysis 0% 41% 20% Business 50% Cost Analysis Performance 0% Reporting 41% 20% 38% Budgeting Budgeting 0% 25% 10% Outlook / Interim 25% Cost Accounting Forecasting 3% 22% Peer Group World-Class World Class Peer Group World-Class 2007 Finance Shared Services Performance Study Page 59 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section Five The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 60 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services have lower cost pertransaction in AP and Fixed Assets Accounts Payable Fixed Assets Total Cost per invoice p Cost per asset record (median) pe eco d ( ed a ) (median) $10.64 $35.88 58% $4.47 80% $7.03 Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 61 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services have higher utilization ofSLAs and conduct customer satisfaction surveys more often Service Level Agreements Conduct customer in place p y satisfaction surveys 72.7% 61.6% 39% 37.5% 16.7% 77% 67% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 62 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services support highertechnology standardization and an independent mindset Adopted common database across Manage center like an applications pp independent business p 40.0% 80.0% 84% 12.5% 0.0% 100% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 63 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services met planned savingsmore frequently and support a distinct culture Having shared services has met Support a separate and p planned savings g distinct culture 92.3% 83.3% 66.7% 20% 66.7% 28% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 64 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services evaluate outsourcing lessoften and perform external benchmarks more frequently Shared services periodically Performs process benchmarking evaluates outsourcingg on a regular basis 69.2% 57.1% 37.5% 46% 46% 30.8% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 65 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services met planned savingsmore frequently and support a distinct culture Shared services publish performance Major changes are agreed upon with metrics to customers p customers before implementation 92.9% 61.5% 19% 75.0% 59% 25.0% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 66 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services met planned savingsmore frequently and support a distinct culture Having shared services has met Support a separate and p planned savings g distinct culture 92.3% 83.3% 66.7% 20% 66.7% 28% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 67 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services support highertechnology standardization and an independent mindset Adopted common database across Manage center like an applications pp independent business p 40.0% 80.0% 84% 12.5% 0.0% 100% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 68 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Organizations with mandated shared services have higher utilization ofSLAs and conduct customer satisfaction surveys more often Service Level Agreements Conduct customer in place p y satisfaction surveys 72.7% 61.6% 39% 37.5% 16.7% 77% 67% Not Mandated Mandated Not Mandated Mandated Source Hackett Process Benchmark Research Page 69 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Section Six The Hackett Group defines world-class What is shared services and why are so many organizations iimplementing? i ti l ti ? How have shared service organizations matured? What are the key trends in shared services? Should shared services be mandated? How t ff ti l H to effectively manage change regardless h dl of your decision Page 70 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change management Travel Expense Reports per FTE Span of Control (1st Quartile) Accounts Payable (Median) 26,667 26 667 12.0 12 0 8.83 26% 79% 5,461 Without Change With Change Without Change With Change Management Management Management Management Program Program Program Program Source Hackett Process Benchmark Research Page 71 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Process Assessment Classify each business change (new modified retired) (new, modified, Identify effect of each change (workload, skills, level of responsibility) Identify action for managing change (communications, job alignment, training, end- user support) Based on assessment develop plans – – Communications – Job Alignment – Training – End-user Support Note: Support from change must come from the highest levels of the organization to be effective Governance must transcend politics, administrations, and you… Page 72 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Implementing the change – developed a viable plan – high-level plan, detailed p j plan, project p , new org charts, considered salary impacts g , y p Involved staff in developing the plan – Reception to ideas from lower-level managers – Team meetings to keep all staff involved and to listen to their suggestions – Foster an environment where even the lowest classification of staff feel empowers to make suggestions Sell the plan to upper management p pp g Ensure all staff are aware of the organization’s objectives through routine communications Admit that change can create other problems – it may not be smooth sailing for a while Promote opportunities for managers to meet with executive leadership Page 73 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management When necessary, remove managers that create roadblocks to change Provide as much training as possible Give staff opportunity to work on new projects – Combined seasoned veterans with less experienced innovative staff Prepare with the project team – Assess the change – Assess the culture Manage the strategy – Develop and manage the plan – Track / report readiness – Develop the training strategy Page 74 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Reinforce / Support – Celebrate success – Analyze feedback and prepare to manage resistance End User Assessment -- End user inventory assessment – End-user identification End user – Skills Gap analysis Page 75 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Senior Executive’s Role The change and impact on the organization Why is this system / change necessary – present the benefits Align the change with the vision / mission and strategic direction of the organization Identify business risks of not changing Offer a broad overview of how the organization will transform – what & when Make sure the organization knows this will happen – not an option Page 76 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Management’s Role Provide the ‘what’s in it for me’ information -- how will roles change? How will I get the training to do my new job (will I be able to do the job)? Ask for employee’s ideas / suggestions for implementing the change Provide timely and accurate status Page 77 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Additional Content Change Management in Shared Services: Introduction What Changes with Shared Services Transition Vs Transformation Challenges for Change Management – Typical Issues that Arise in Change Project Lifecycle – Implications of Challenges: Managing Shared Service C t I li ti f Ch ll M i Sh d S i Center – Change Management Within The Business Cycle – Change Management Strategy: Process Page 78 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Additional Content - Continued Framework for Change Management in Shared Services – A Generic Business Unit Transition Plan – Change Management Activities Across the Shared Services Lifecycle – Shared Services Initiative Project Structure – Client-Side Business Change: Team Structure and Activities – Phases Involved in Planning The Change – Planning For Change – High Level Transition and Transformation Scheduling Key Success Factors Performance Measurement P f M Page 79 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management in Shared Services: Introduction Change management is a critical part of a project that leads, manages and enables people to accept new processes, technologies, systems, structures and values The focus of change management is to address the people and organizational factors that will both drive and obstruct change throughout the organization – Over 80 percent of projects fail when Organization Transition Issues are not addressed The lti t Th ultimate goall of any change iinitiative iis t ensure everyone iin th organization iis f h iti ti to the i ti ready, willing, and able to appropriately perform their role in the new environment In the context of a Shared Services program, the g p g goals of change management include: g g – Minimizing disruption to the organization during transition – Guiding the people directly impacted by the movement to the Shared Services model through the change – Establishing the right kind of leadership and structure to support the Shared Services organizations objectives – Creating the demand for Shared Services – Services among its internal customersSource: http://www.accenture.com/NR/rdonlyres/43AE308C-1904-453D-8C3B-43B50CD04F6B/0/120168_ManagingShared_v9.pdf Page 80 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management in Shared Services - Cont’d..Shared Services change management programs encompass many elements, including – Communication & Sponsorship – Ownership and Accountability p y – Workforce transition and Training – Change readiness & Implementation – Rollout and StabilizationTwo main things change in a Shared Services program – The delivery of in-scope services from a Shared Services operation, working with a customer/supplier orientated culture, based on common best p , practices often with employee and manager, self service and p y g , automated reporting. This involves setting up a new operation to deliver the services; often in a new location with new systems and a customer service orientation. This aspect is referred to as the Transition to Shared Services – A new ffocus for ‘‘retained organization’’ on value added activity iin support of th f tli Thi iinvolves f t i d i ti l dd d ti it t f the frontline. This l working with the business to reposition the role of Finance, HR, etc. and the associated changes to organization structures and skills within the retained functions. This aspect is referred to as the Transformation of the retained function Source: http://www.outsourcingleadership.com/VolumeThree.pdf Page 81 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Page 82Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Transition Vs Transformation Transition is defined as the program of work required to finalize the design, manage the procurement; build and implement the agreed multifunctional shared service Transformation is d fi d as th activities required t align and iimprove th work of th T f ti i defined the ti iti i d to li d the k f the retained HR and Finance functions in each department and also to provide a program office support to manage both the transition and transformation activities The key activities are shown in the table on the next slide Page 83 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Page 84Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Challenges for Change Management The t Th nature of the change, coupled with th complexity of th Sh d S i f th h l d ith the l it f the Shared Services implementation, gives rise to a range of change management challenges, including: – Lack of visible sponsorship: The change is not perceived to be important or even happening – U l Unclear, ineffective decision-making process: R d d pace of iimplementation; additionall cost: time & i ff i d i i ki Reduced f l i ddi i i rework; Lack of vision, direction and focus. Lack of buy-in; other priorities to be made – The right people arent involved: Delayed decision making; no sense of urgency; rework required by additional resources. Failure to remove organisational barriers. Project delays and could ultimately fail – Not anticipating and pro-actively managing people issues: Increased resistance; attrition; employee relations issues – Skills for new/changed jobs or roles are assumed and not tested/assessed: Training effort insufficient – additional effort required/reduced service level; unmanaged staff expectations – Planned organisational rationalization is not achieved: Staff are retained without a real need – Finance/HR resistant to letting go of certain current responsibilities which may in future be no longer theirs – Reluctance to change behavior: Temporary double effort; benefits arent reached (as quickly). Underestimating the time and effort required to make the change stick – Lack of baseline/ metrics/ system to measure progress Page 85 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Typical Issues to Arise in Change Project Lifecycle Page 86 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Typical Issues to Arise in Change Project Lifecycle – Cont’d.. Page 87 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Typical Issues to Arise in Change Project Lifecycle – Cont’d.. Page 88 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Implications of Challenges: Managing Shared Service Center Managing the effective planning of the potential redeployment, relocation and release of staff Scheduling change to minimize the impact on the business units to enable maintenance of business as usual Ensuring effective transition of individual business units to a new structure Building involvement in the development and delivery of SSC to create the understanding of the need for change Engaging with impacted staff to involve them in the process of transition Managing e ect e t o ay communication with a sta e o de s du g t e p oject a ag g effective two-way co u cat o t all stakeholders during the project Embedding the cultural change and ways of working associated with a shift to a more customer focused support service Page 89 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Within The Business Cycle Source: http://www.sharedservices.qld.gov.au/Publications/Documents/ssi_changemanagementframeworkjun07.pdf Page 90 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Within The Business Cycle: Implications The Shared Service Initiative involves significant reforms to establish Shared Services, standard processes and systems that will help achieve the vision of high-quality cost- effective corporate services To do this, change management objectives and strategies must be embedded within the bus ess cycle of Shared Service providers business cyc e o S a ed Se ce p o de s The improvement cycle is critical due to the dynamic nature of change. – Change activities should be continually assessed through results and stakeholder feedback. This information is used to evaluate and improve change activities, and reassess objectives and approaches Strong relationships with key Stakeholders are needed to identify and address unforeseen and emerging issues Page 91 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Strategy: Process Page 92 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Strategy The SSI Change Management Framework provides strategic directions and approaches that guide operational change management planning for the SSI, and for specific SSI projects and business units Operational change management planning is highly tailored to different stakeholders’ specific needs and interests and specific organisational contexts Successful change management methods and information about stakeholders’ needs can then inform regular revisions of the SSI Change Management Framework This provides a process for knowledge management, innovation and continuous improvement of SSI change management p g g Page 93 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Framework for Change Management in Shared Services Page 94 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management FrameworkThe extent of the change (both actual and perceived) and the implications are significantThe purpose of Change Management Framework is to outline an approach andmethodology to manage all the complex work-streams and the numerous stakeholdersinvolved in successfully moving to a Shared Service operation – The diagram in the previous slide describes a framework for Change Management – The segments in the wheel describe the various components that fit together in order to support and deliver the end result (i.e. the SSC vision and the transformed function) – It is important that all segments are addressed in order to ensure the success of the Shared Service initiativeCulture – This includes confirming the case for change and how the Shared Service initiative will contribute to realizing the organizations strategic goals, and assessing the capacity and readiness of both individuals and the organization s goals organisation to assimilate change – It is important to identify and articulate potential blockers and to agree strategies and plans to deal with these so that they do not derail the initiativeOrganisation – This covers design of the new world, including the operating model, organizational structures, role definitions, competency frameworks, and governance and decision making frameworks – C should be taken to design realistic and effective iinterfaces b t Care h ld b t k t d i li ti d ff ti t f between th Sh d S i capability and the Shared Service bilit d the retained organisation Page 95 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Framework- Cont’d.. Leadership – This activity aims to clarify how the organisation will be led, and to equip the leaders to carry out their leadership roles – Specific activities include defining the role of the leadership team, how the leadership team will work p g p , p together both during implementation of Shared Services and subsequently, and the roles and responsibilities of individual leaders – This activity may identify the need for training and coaching of leaders and potential leaders People Capability – This activity aims to establish new skills and competencies required for the changed enterprise, and how to meet those requirements, including skills audits, g p analysis, jjob and role definitions and career p q , g , gap y , planning g – Involvement of those who will lead the new organization is key to the success of this activity Execution – Thi activity ensures d li This ti it delivery of th new model. It includes both hard deliverables in the f f the d l i l d b th h d d li bl i th form of project f j t plans, milestones, progress reports and budget analysis, and soft deliverables in the form of communications and stakeholder management Page 96 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Framework- Cont’d.. Continuous Improvement – This covers post change activities and includes frameworks and processes (e.g. performance management, balanced score cards and reward alignment) to measure the effectiveness of the changes, and mechanisms to ensure that opportunities for further improvement are identified and actions are taken in a timely manner – It is important to manage the expectations of all those impacted by the Shared Service initiative, so that they become accustomed to the idea that change will be a constant feature of the new model Implementation map for the Change Management Framework – These various elements can be put together in a program change plan as shown in the next slide – This transition plan is an example of how the various dimensions of the change wheel fit together – A Process and Technology stream is included as an example for completeness, although this is not always included in a change management plan Page 97 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • A Generic Business Unit Transition Plan Page 98 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Activities Across the Shared Services Lifecycle Page 99 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Activities Across the Shared Services Lifecycle Page 100 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Activities Across the Shared Services Lifecycle Page 101 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management Activities Across the Shared Services Lifecycle Page 102 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Shared Service Initiative Project Structure Delivery side/Client side model: – The model that is gaining acceptance within many organisations to construct a project or programme to deliver Shared Services is the “Delivery Side: Client Side” model. This model utilizes the Transition/Transformation work streams – The Delivery Side team will be responsible for the Transition activities. Where the Shared Services are to be outsourced, the outsourcer is likely to take responsibility for the majority of the activities. For in-house Shared Services, often a Shared Services director will be appointed early in the program and that person S S f S S will take responsibility for the transition activities – The Client Side team will take responsibility for the Transformation activities. In some instances there will be several customers for the new Shared Services operations. In this case there may be a central Client operations Side team, with business unit teams – Overall programme management is usually undertaken by the Client Side team, with input from the Delivery Team – A sample Client Side business change team structure is shown in the next slide The structure is for a typical large-scale Change Program and shows how the activities outlined in Change Management Framework can be organized g g Page 103 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Client-Side Business Change: Team Structure and Activities Page 104 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Client-Side Business Change: Team Structure and Activities- Cont’d.. The Communication work-stream iis responsible f stakeholder management and Th C i ti k t ibl for t k h ld t d communications at all levels within the organisation, and for liaising with external communications as appropriate – This work-stream starts at the very beginning of the initiative and continues through its life and is typically supported by one FTE The Business Change work stream is responsible for implementing the agreed work-stream changes across a range of disciplines – The work-stream kicks off with early-stage activities such as change readiness assessment, and continues through the main implementation activities. It is typically supported by a small team of 2-6 FTEs depending on the size of the initiative The Training and User Support work-stream is responsible for delivering the one-off g pp p g and ongoing education and support necessitated by the changes – It starts at the beginning of the initiative with planning and training needs/skills gap analysis, and continues through to post-Implementation support. It is typically supported by one FTE support Page 105 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Phases Involved in Planning The ChangePage 106Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For ChangeThe journey to Shared Services/BPO usually starts with a series of evaluations of theoptions, starting at a high level, with successive drill-downs into more detail as theopportunity and understanding develops – The Planning snapshot on the previous slide has three Evaluation iterations (Research, Feasibility and Strategy) St t )The Research stage is often undertaken to understand the potential that SharedServices/BPO has to offer; usually this is done by analyzing what other organisations haveexperienced, and applying th t llearning t th current situation i d d l i that i to the t it ti – If this research gives a convincing argument that Shared Services may be beneficial, then usually a feasibility study is undertakenA feasibility study is a relatively high level exercise which enables the organisation to high-level exercise,understand the options, and the likely order of magnitude costs, benefits and businesscase – It will usually focus more on the strategic drivers and options, rather than on the detail of the Shared Services options solution. Assuming that the feasibility study is positive, and the organisation wants to proceed, then a more detailed strategy will be developed – The Shared Services strategy articulates the end goal (operating model, process scope and outline design, sourcing, sourcing financing) Page 107 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. Evaluation Phase: The work on Change Management is done in the Evaluate phase as follows: – General Change Management Activities: When the project is first established, a change management work stream will need to be created to handle the stakeholder management and communications activity – Research: The research phase of any Shared Services programme is usually the first point at which the possible implications are first understood (for example, other companies may have experienced redundancies or other major change issues) This is when the Change Management issues of stakeholder management and communication first need to be addressed, because although research work is often just exploratory in nature, people can still experience concern over the uncertainty and potential impact of the outcomes – Feasibility Study: The feasibility study is a strategic stage – with the primary focus on understanding the business need, the high-level options, the likely shape of the operation (its scope, how it will work), the potential sourcing options, the likely risks, implementation options and timescales – This stage is about the principles of Shared Services and the strategic fit – it is not about agreeing absolute detail (e.g. discussing the detailed scope of Shared Services, or which processes are in/out etc) – The change management work will focus primarily on obtaining the buy-in of the executive team. This stage is about a strategic decision, so it is important to articulate the need for the change and the potential solution, as well as the potential impact of the solution solution Page 108 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. – Strategy: This stage is about developing a clear strategy for Shared Services. This Shared Services strategy will articulate the future model and timing (including sourcing options in house or BPO), based on a detailed in-house BPO) understanding of the current metrics and a robust assessment of the available options for improvement At the end of this phase the organisation will have a high-level blueprint of the processes, systems, commercial and operating models, plus a business case and an implementation approach It is at the strategy stage that the real implications of Shared Services will become apparent. There will be clarity on the scope of services, organisation changes, changes to systems and processes, and the people impact such as possible redeployments and redundancies Change management will focus on obtaining buy-in and managing expectations at all levelsThe Implement phase: – The implementation activity in the Lifecycle usually takes one of two routes. Either ‘build and operate in- house’ (Shared Services) or ‘outsource’ (BPO) – In the in-house model, the organisation will design and build the Shared Services operation, and then transition and operate the service – With outsourcing, most of the build and design work is done by the outsourcer, and the organizations main responsibility is to design and operate the retained function, and to ensure successful transition of the services to the new (outsourced) service provider – In both cases, the change management activities are broadly similar, because they seek to reduce the risks associated with a shift to delivery of services by a different service provider (organisation or organisational entity) Page 109 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. Detailed Design and Build for Internal Shared Ser ices Detailed design for internal B ild Services: Shared Services includes processes, organisation, systems, location etc. This work also includes detailed planning of the build and transition activity. The change management work in this stage seeks to address the following risks: – Prior to transition Insufficient engagement with stakeholders leading to a lack of buy-in Insufficient skills to support the project leading to increased cost Reliance on contractor staff, leading to a potential loss of knowledge and skill Insufficient input from business unit leading to an insufficient solution Trade union/staff opposition and industrial action leading to disruption – During transition Loss of morale of staff leading to disruption of delivery of service Inadequate management of jjob reductions lleading t a lloss of skills and k I d t t f b d ti di to f kill d knowledge l d Reduction in the quality of service to end users leading to a disruption of frontline services – Post transition End-user End user dissatisfaction with the end solution Page 110 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d..Detailed Design for Outsourced Shared Services: Where BPO is the chosen option thedesign and build activity is shared between the outsourcer and the customer. Theoutsourcer will design the Shared Services operation (often they will have an existingfacility from which the services will be delivered). The customer will design the retainedfunction and will be responsible for ensuring that the services are effectively transitioned tothe outsourced service provider. The change management work in this stage seeks toaddress similar risks to those described for Internal Shared Services – Post transition End-user dissatisfaction with the end solution – Business unit transition planning: For each business unit there are a series of activities required to manage the transition to the new delivery model Change readiness assessment Business unit impact profile Establishing a change management network of resources Communication and employee relations management Selection, assessment and recruitment Retention and Release Training – technical and non-technical g Cultural change – behavior and new ways of working Page 111 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. The Evolve phase: The evolution of the Shared Services starts with ‘Go Live Day 1. Go Live’ 1 Usually the service will not operate at the target level immediately, and so ‘bedding in’ and improving work is needed. Usually this is an on-going activity that never ends. Also, p g y g g y , ongoing improvement work is required to meet changing customer needs, changing technology and the evolution of a customer service culture – Operation: This phase is the ongoing management of the new arrangement. It is essential to ensure that the operating model continues to meet the agreed objectives and changing business needs. For Shared Services, this will include monitoring customer relationships, service levels, benchmarking, and continuous , g p , , g, improvement Detailed Change Management plan: The high level scheduling of the transition and transformation activities is set out in the figure on the next slide. The transition and transformation journey begins with a common preparation stage Page 112 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. – Preparation: The key activities within this stage include: Baselining of current services to establish volume data and current service levels Baselining of the current technologies in scope to identify the interfaces required between any new technology in the shared service and the legacy systems. The baselining will also allow the technology and data migration paths to be mapped out. An audit of data will also be completed at this stage to verify any clean up and archiving requirements prior to migration A hi h levell role iimpact assessment, to confirm th changes th t are anticipated iin roles iin th high l l t t t fi the h that ti i t d l the retained organisation and to identify the high level training and communication needs for retained staff and customers (e.g. employees and line managers) ( g p y g ) Stakeholder communications and engagement (including formal consultation with staff and representatives impacted by the proposals) Page 113 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • High Level Transition and Transformation Scheduling Page 114 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. Transition: The transition work-stream will be managed principally by either the outsource supplier (if that option is selected) or by the in-house Shared Service management team. The transition team will focus on these core activities: – People Transition and Organisation Design: The Shared Service Centre management team will be responsible for completing any required formal or informal consultation and for finalizing the organisation design (team sizing and reporting relationships) on the back of agreed service levels and anticipated work volumes. They will also engage with in-scope staff on an individual by individual basis to handle any concerns or to explain options All final appointments or redeployment decisions will be options. managed during this period – Manage Business as Usual: A key requirement during the transition period is to maintain business as usual so that customers are not adversely impacted by the cut-over to the new shared service. This will require a dedicated team to focus on the day to day service delivery challenges and to manage those employees who have transferred to the virtual shared service – Build infrastructure and facilities: If the transition is to a new shared service facility (rather than a pre- existing site) then there will be a significant programme of activity to equip the agreed location with the physical infrastructure, technology and services to support the operations – Cut-over and launch: The period leading up to the formal go-live of the service centre is a period of intense activity. A detailed process of managing the cut-over to the service centre requires a carefully coordinated approach to gate criteria, stakeholder communications (including customers and third Page 115 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. – party briefings and training in any new ways of working with the shared service), the migration of data and documents to the new systems and the completion of all user acceptance testing of the service delivery processes and infrastructure (including all systems and knowledge management databases) All service centre staff need to be trained to work with the technology and processes and also to adopt the required standards of customer service behavior The precise nature of the go-live event whether it be a launch of all services on the same day or a phased launch by either process or customer location, will need to be agreed at the start of cut-over planning – Stabilisation and performance improvement: Post go-live there will be a period where the operational teams will seek to stabilise services and manage outputs against the agreed service levels. This period will require a significant focus on fine tuning processes and systems to meet day to day operational requirements and also to drive cross-functional training amongst staff to build appropriate multi-skilling experience and capability p p y After an initial period of operation the focus switches to driving out longer term performance improvement with prioritized initiatives to de-bottleneck activities or move to lower cost service delivery options (such as enhancing the manager or employee self service product range) Page 116 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. Transformation: The activities within the Transformation work-stream are focused on aligning and improving the operation of the retained function around the launch of the Shared Service. Key activities include: – Business readiness: The retained function will need to assess the impact (on their current organisational team and role design) of the transfer of transactional activity outside of their remit There is normally a significant need to clean up and realign work priorities post Shared Services. There is also a significant communication and engagement effort required t prepare k customers ahead of th cut-over of services i ifi t i ti d t ff t i d to key t h d f the t f i – Support to cut-over: During the complex cut-over of services to the shared service the retained function will need to play a key role in agreeing the sequence for transferring work and also the process whereby work in progress is managed thro gh to completion (either within the retained f nction or after transfer to Shared through ithin function Services) Whilst the training effort is usually greater in the transition team the retained function may well need to be trained in a number of new processes and in how to access and use any new technology. There is always a need to train the technology retained function in the contact points, account management activities, work hand-offs and issue escalation paths that will be needed to work effectively with the service centre Furthermore, as work is transitioned to the service centre there will be a need to manage any redeployment activity in a professional and sensitive manner Page 117 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Planning For Change- Cont’d.. – Manage business as usual: The transformation of the retained function may result in considerable internal g y reorganization and re-planning of work Whilst this needs to be managed there is an equally important requirement that services are maintained to customers and business disruption is minimized. In many cases this requires the retained function to allocate full time responsibilities across its leadership team to provide dedicated focus on maintaining service delivery whilst other senior team members focus on running the transformation work – Stabilisation and completion of realignment: The last two phases of activity during transformation are the stabilization of service within the retained function and also the completion of realignment of policies and procedures to reflect the benefits associated with the Shared Service model Consequently during the period after go-live it should be anticipated that dedicated resources will be required to work with t e s a ed se ce ce t e o p ocess improvement act t es (so t at t e voice o t e retained function has a t the shared service centre on process p o e e t activities that the o ce of the eta ed u ct o as an input into any redesigns or quick-fixes required) and also that the benefits are realised so that the Business Partners and Specialists are fully able to perform their new strategic and added-value roles effectively – Programme and stakeholder management: Underpinning the work of both the Transition and Transformation teams is a dedicated Programme Office who will manage the integrated planning, risks and issues tracking and resolution and be responsible for benefits realization tracking and reporting. The Programme Office team will also prepare stakeholder briefing packs to facilitate the regular progress update process with senior stakeholders ith i t k h ld Page 118 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management for Shared Services: Key Success Factors Successful Change Management solutions for Shared Services programs are generally punctuated by several key events These events are milestones for helping the team to understand the organizations ability to change, build sponsorship and buy-in, build the Shared Services organization and prepare employees both in the operating units and Shared Services organization Assess the organizations ability to change: The first key event is a change readiness assessment. assessment Before beginning the Shared Services work the team needs to understand the work, organizations willingness and capacity to change – Part of the assessment includes interviews and focus groups with key stakeholders. These sessions should explore past experiences with large scale change to develop the optimal change strategy Conduct Customer Values and Requirements workshops: Early in the program, Customer Values and Requirements workshops should be used to engage the future customers of the Shared Services organization Ser ices organi ation – These workshops have two primary intents To involve customers in formulating a Shared Services solution that they will respect and put stock in To educate them on the value of the solutionSource: http://www.accenture.com/NR/rdonlyres/43AE308C-1904-453D-8C3B-43B50CD04F6B/0/120168_ManagingShared_v9.pdf Page 119 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management for Shared Services: Key Success Factors – Cont’d.. – A highly interactive format facilitates discussion about Shared Services, areas that may be candidates for Shared Services, the realities of the current organization, the guiding principles for Shared Services and Services organization the constructs to adopt in the operating model (for example, governance) – The outcomes from the workshops feed into the design of the Shared Services organization and also embody the inclusive nature of Shared Services throughout the development effort Secure Shared Services Leaders early: The Shared Services Leaders need to participate in the Shared Service design work – Doing so, allows the organization to draw on their entrepreneurial spirit to establish a new culture of a "front office, high-performing organization.“ Therefore, th organization d i needs t b completed early ffi hi h f i i ti “ Th f the i ti design d to be l t d l enough to support recruiting the right talent for the leadership positions – Leadership ownership and involvement in and of itself is critical, but in addition, their hiring also signifies to employees that the program is moving ahead and will not be postponed or tabled Launch a sponsorship network: To build buy-in for the program, educate the operating units about Shared Services and obtain feedback that strengthens the overall Shared Services solution, organizations should form a network of operating unit representatives to advise the program – These networks typically include a cross section of leaders within the organization who ultimately will be yp y g y customers or stakeholders of the future Shared Services organization Page 120 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management for Shared Services: Key Success Factors – Cont’d.. – The launch of this network is a key event in the ongoing sponsorship activities needed throughout all phases of the program – The functional representatives can provide feedback on processes, software configuration, local legal and regulatory requirements, communications and training. They can also help transition the local operating units into the Shared Services organization during the go-live period – The network should meet monthly and have a clear set of agenda items to discuss – As there is an aspect of partnership between the Shared Services organization and the customers it serves, it iis iimportant th t th Sh d S i t t that the Shared Services project t j t team demonstrates t th sponsorship network h th i d t t to the hi t k how their feedback is incorporated into the Shared Services solution Agree on an end-to-end training strategy: In many cases, the Shared Services employees will be new to the organization. As a result, they will need t b ild a variety of skills and ill b t th i ti A lt th ill d to build i t f kill d experiences prior to go-live – A key event, therefore, is the development of a training strategy that provides a multi-faceted skill development program for all llevels of employees d l t f ll l f l – A good Shared Services training strategy will include orientation activities, such as visits to operating units, workshops on the unique qualities of Shared Services, process discussions to build end-to-end knowledge and systems training on any new hardware or software y g y Page 121 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Change Management for Shared Services: Key Success Factors – Cont’d.. – To achieve the highest possible level of readiness, participants should attend "Day-in-the-Life" training sessions. These sessions simulate a process from end-to-end using all of the relevant technology enablers. For example, a call center representative receives and logs a service request in a case management system, which is then routed to an Accounts Payable clerk – This training p g provides p practice and reinforcement within a realistic environment. Day-in-the-Life training can y g greatly increase employee self confidence, readiness and retention – While the development of the strategy is a key event, training itself will be an ongoing need in the Shared Services organization. To meet this need, the organizational structure should include an internal capacity to train and retrain employees – Plans for building the Training capacity should also be captured in the strategy – Lastly, it is important to provide training as necessary to the operating units – While Shared Services solutions generally move activities away from the operating units there are units, instances where tasks are changed or even added to their scope. These employees will need to be trained on how the processes have changed as well as how to interact with the Shared Services organization – Therefore, plans for accommodating training at the operating unit level must also figure into the development of th end-to end t i i strategy d l t f the d t d training t t Regardless of the individualized aspects of any Shared Services program, the above key events will be landmarks of all successful Change Management initiatives and accordingly, should b d fi d iin advance di l h ld be defined d Page 122 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Page 123Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Page 124Finance Shared Services© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Stakeholder CategoriesRelevant stakeholders from the categories below should be considered in ChangeManagement planning for SSI projects Page 125 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
    • Contact Information The Hackett Group Penny Weller, PhD, CMA World Headquarters Senior Business Advisor Suite N500 1117 P i t C t West Perimeter Center W t Phone: Ph +1 269 345 7240 345-7240 Atlanta, GA 30338 Mobile: +1 269 929-0344 Phone: +1 770 225 3600 pweller@thehackettgroup.com Aldermary House 10-15 Queen St t 10 15 Q Street www.thehackettgroup.com London EC4N 1ST Phone: +44 207 003 8150 +1 866 442 2538 Rathausplatz 12-14 65760 Eschborn/Frankf rt A.M. Eschborn/Frankfurt A M Research Studies: ( 10-20 minutes – no charge) Germany Phone: +49 6196 77726 0 www.thehackettgroup.com/research/studies Quality & Continuous Improvement 18 rue La Boetie Paris 75008 France End to End End-to-End Process Design Phone: +33 1 53 43 0400 Efficiency & Efficiency Business Process Sourcing Strawinskylaan 3051G, 1077 ZX Call Center Amsterdam, The Netherlands Phone: +31 20 301 2210 Talent Management Page 126 Finance Shared Services © 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.