NHS Shared Business Services      Align Finance and Procurement to     Achieve Shared Services excellenceJames Minards    ...
Size and Scale   107 Customer Organisations <25% of NHS   Over 43,000 trained users on the Oracle system   >4 million AP &...
Service Portfolio                                               Purchase        SLR / PLC                                 ...
Drivers  Multiple Sources of the Truth     Suppliers     Users & Approvals     Coding / Categories  No Clear Vision of Fin...
Challenges Code Mapping – Commodity, VAT, Subjectives Different Users – Code Combinations System Integration – Frequency, ...
Performance + Reports =Knowledge = Benefits    Full visibility and Audit trail of all Orders Payments and Approvals    Com...
Solution  Integrated Finance & Procurement     Users        Deliver to Location = Cost Centre        Approval Limits, Budg...
Implementation Baseline – Benefit / ROI prediction Project planning – Standard Prince 2 Methodology Process project worksh...
Stages & Concurrent Activity   Initiation                Impact         Process Design & Data                             ...
Benefits of SBS IntegratedFinance/Purchasing platform Supplier and Trust Dept level analysis both PO and non PO spend Spen...
Categories & Code Combinations 1,428 Three Alpha Codes Split across 53 key Financial Groupings linked to 420 Subjective co...
Chart of Accounts Structure  SEGMENT         STRUCTURE                                               CODES  Entity Code   ...
The Reporting Hierarchy                                                               Highest Organisation Level = ORGTOT ...
The Subjective Hierarchy                                          TOTA                                  (Total Organisatio...
Reporting for Budget Holders    Web based reporting which provides users with the ability to access    summary Cost Centre...
5 - Subjective Analysis           Organisation Code and Name                                                              ...
9 - Top/Bottom Variances   Cost Centre Code and Description   Cost Centre Code and Description   Cost Centre Code and Desc...
Procurement Reports    Top 10 Revenue Suppliers by Trust in SHA, by   value and percent                  © NHS Shared Busi...
Lessons Learned Data Cleansing & Validation – Suppliers & Code Combinations IT Readiness – IP Addresses, networks and Band...
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Align Finance and Procurement to Achieve Shared Services Excellence - NHS SBS

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This session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com.

To find out more about forthcoming conferences check http://www.sharedserviceslink.comThis session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com.

To find out more about forthcoming conferences check http://www.sharedserviceslink.com

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Align Finance and Procurement to Achieve Shared Services Excellence - NHS SBS

  1. 1. NHS Shared Business Services Align Finance and Procurement to Achieve Shared Services excellenceJames Minards - Senior Operations Manager © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 1
  2. 2. Size and Scale 107 Customer Organisations <25% of NHS Over 43,000 trained users on the Oracle system >4 million AP & AR transactions per annum £28 billion payments processed per annum £6 billion spend through e-Procurement per annum 75% NHS ALBs, 7/10 SHAs and 29% of PCTs are clients Recovering £10 billion of NHS Debt per annum Largest provider of Payroll services to NHS – over 2 million payroll transactions per annum Successfully merged 67 NHS clients into 23 new organisations & De- merged 6 PCTs into Provider/Commissioner Organisations Consistently exceeding contractually SLAs (8 KPIs) © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 2
  3. 3. Service Portfolio Purchase SLR / PLC to pay Specialist Order to Procurement Cash advice Support Specialist Merger technology services Oracle 11i Management platformDe/Merger Fixed Accounting information services Assets to Reporting Support Development VAT/Tax Interfaces advice Training FHS © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 3
  4. 4. Drivers Multiple Sources of the Truth Suppliers Users & Approvals Coding / Categories No Clear Vision of Financial Position GRNI Accruals Budget Status No Strategic Picture OGC / PaSA Contract adherence © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 4
  5. 5. Challenges Code Mapping – Commodity, VAT, Subjectives Different Users – Code Combinations System Integration – Frequency, complexity, compatibility Power ….. Functionality – More / Less Change – People, ease of use, enforcement © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 5
  6. 6. Performance + Reports =Knowledge = Benefits Full visibility and Audit trail of all Orders Payments and Approvals Comprehensive Analysis of spend by Person, Supplier, Department and Cost Centre Full comparative analysis on Catalogue/Contract and non Contract spend Full visibility of Process – Notifications, Invoices, receipting i.e. what is with whom and for how long Visibility of total SBS Client spend and Contract comparisons to provide benchmark data for development Procurement Dashboard and other metrics to analyse and assist in achieving Best Practice © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 6
  7. 7. Solution Integrated Finance & Procurement Users Deliver to Location = Cost Centre Approval Limits, Budget access, approval hierarchy Subjective Codes Commodity / Categories = Subjectives VAT Specific Commodity / Categories = Subjectives/ Sub Analysis 1 Suppliers Pay & Purchasing – Single record Enforced PO process – driving down Non PO Spend Reports Automatic drill down across all activities © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 7
  8. 8. Implementation Baseline – Benefit / ROI prediction Project planning – Standard Prince 2 Methodology Process project workshops Data Templates – Vendors/Suppliers, Users, GL – Cost Centres, Subjectives, Deliver to Locations IT Preparation & Readiness Training PIMS © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 8
  9. 9. Stages & Concurrent Activity Initiation Impact Process Design & Data Transition Stabilisation Stage Assessment Capture Stage Stage IT Readiness IT Readiness Process Design Project Go No Initiation Kick Impact Application Process Go-Live Post Go Live Go and Set Off Assessment Clone Walkthrough & Cutover Support Decision Up Data Data Data Data Collection Validation Load Verification Training HR HR Communications Communications Wave Planning Project Management Project Management Operations © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 9
  10. 10. Benefits of SBS IntegratedFinance/Purchasing platform Supplier and Trust Dept level analysis both PO and non PO spend Spend analysis – Contract compliance Activity detail – PO commitments, Invoice payment analysis Reduction in non PO spend Non PO activity accounts for upward of 60% of procurement activity across the NHS and results in wasted time and resources: No Financial control over spend until after the event Invoice processing requires more manual intervention. Typical processing time 14-21 days vs. less than 24 hrs for a automatically matched PO Invoice PO generated Invoices more likely to result in on time payment to Suppliers and enable the NHS to benefit from payment discounts © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 10
  11. 11. Categories & Code Combinations 1,428 Three Alpha Codes Split across 53 key Financial Groupings linked to 420 Subjective codes AAA – Alcoholic Drinks – Provisions & Kitchens Subjective 7150 = 60 e-Class Codes © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 11
  12. 12. Chart of Accounts Structure SEGMENT STRUCTURE CODES Entity Code 4 digit alpha/numeric Based on national entity code with an N suffix Cost Centre 6 digit alpha/numeric Unique range per Organisation Subjective 4 digit numeric Shared Subjective code list Analysis 1 5 digit alpha/numeric Shared range, plus additional range per organisation for local reporting Analysis 2 5 digit alpha/numeric Shared range of all NHS Organisations and GP codes, plus additional range per organisation for local project reporting Spare 6 digit numeric Default value zeros – used only for Payroll Statistical postings © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 12
  13. 13. The Reporting Hierarchy Highest Organisation Level = ORGTOT Lowest Organisation Level = Cost CentreTypical Use: Budget Holder Reporting © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 13
  14. 14. The Subjective Hierarchy TOTA (Total Organisation) BALS INCE (Balance Sheet) (Inc & Exp)A099 - Sys Assets ClearingCAPI - Taxpayer Funds INCO EXPETAST - Total Assets (Gross Income) (Gross Expenditure)TLIA - Total Liabilities SINAC - Activity Inc eg I430 DoH Inc NCM2 NCOM NONP PAYX SIOPC - Other Inc eg I450 RTA Inc (Non Pay PCT (Non Pay Comm (Non Pay Exp) (Pay Expenditure) IOTH - Other Op Inc eg I463 Rental Inc Exp) Exp) APMS - Alt Prov Med Ser eg T835 GMS2 - Total GMS eg T801 PCMS - PCT Med Ser eg T830 PMS2 - Total Pers Med Ser eg T825 COMM - Commissioning eg M635 GMSD - GMS Discret eg D603 GMSN - GMS Non Discret eg G607 PMSE - Pers Med & Dent eg S633 CLIN- Clinical Serv&Supp eg N701 Dressings ESTB - Establishment Exp eg N722 Printing GENL - Gen Supp&Serv eg N720 Bedding Highest Subjective Level = TOTA SMSC - Misc Serv eg N767 Social Care OTRE Other Estab Costs eg N730 Training PREM - Prem & Fixed Plant eg N732 Utils Lowest Subjective Level = Subjective Code Subjective level- 7320 Electricity PAGY - Non NHS Staff eg P580 PBOA - Pay Board eg P502 Typical Use: FIMS Returns PMED - Med & Dent eg P504 PNUR - Nursing eg P522 PPAM - PAMS eg P530 PPTB - Prof & Tech eg P554 PSCI - Scientists & Prof eg P544 © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 PSEC - Staff on Sec’mnt eg P599 PSPL - Supp Pay P586 14 PSUP - Healthcare Assts eg P566
  15. 15. Reporting for Budget Holders Web based reporting which provides users with the ability to access summary Cost Centre level financial information and then drill down to ever more detailed information until source/ transactional level detail is displayed including Invoice image. Reporting Tool used by Budget Holders and is also used by Finance Teams Budget Holders have on-line access to: Divisional Reports (based upon Cost Centre Parent/Child relationship) Detailed Child Cost Centre Reports (with Drill down to Invoice Image) Detailed Payroll Reports Reports display information held in a Reporting Warehouse © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 15
  16. 16. 5 - Subjective Analysis Organisation Code and Name • Report by Subjective showing a standard budget/expenditure report format • Drill-down the subjective hierarchy from total income and expenditure to Analysis 1 codes • Subjective in Row • Funded & Actual WTE, Budget, Actual and Variance for Month and Year in Column © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 16
  17. 17. 9 - Top/Bottom Variances Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description • A ranking report showing the ten most overspent Cost Centre Code and Description and ten most underspent cost centres. Absolute Cost Centre Code and Description Values and not percentages Cost Centre Code and Description Cost Centre Code and Description • Used to identify the most significant variances Cost Centre Code and Description within a directorate Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description Cost Centre Code and Description © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 17
  18. 18. Procurement Reports Top 10 Revenue Suppliers by Trust in SHA, by value and percent © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 18
  19. 19. Lessons Learned Data Cleansing & Validation – Suppliers & Code Combinations IT Readiness – IP Addresses, networks and Bandwidths Communications – engagement Training – Scheduling & Facilities Catalogues / content procurement support Superusers / Help Desks / PIMS Structured Cut-Over process – Letters, Invoices, Balances Good Project Management & Governance © NHS Shared Business Services 2005 delivering valueto the NHS Delivering value to the NHS 16/03/2009 19
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