Sample Shared Services Improvement Plan

1. Process Improvement Plan
Shared Services
Shared Services – prepared by Gregory Tong

2. Agenda
1. Approach
1. Accounts Receivable
2. Accounts Payable
3. Payroll
2. Timelines
3. Questions & Answers
Shared Services 2

3. Approach
Define the project
Measure the opportunity
Analyze the process options
Design the process
Verify the performance
Shared Services 3

4. Approach – Accounts Receivable
Define the project
Customers don’t pay invoices within agreed terms
Invoice billings have incorrect prices
Increasing # of manual invoices
Measure the opportunity
KPI’s: Days Sales Outstanding, Collection Effectiveness Index, Accounts
Receivable turnover ratio
Improvement in AR aging report
Reduction in invoice adjustments and manual price overrides
Reduction in # of manual invoices
Shared Services 4

5. Approach – Accounts Receivable
Analyze the process options
Collection process
Credit Management - Payment terms, credit history, debt recovery, litigation
Dispute resolution process
Review manual price overrides
Design the process
Automate collection process
Automate credit management payment terms
Automate dispute resolution
Shared Services 5

6. Approach – Accounts Payable
Define the project
Reducing # of manual purchase orders
Reducing time to approve invoices – automate approval process
Reducing cost to process invoice – automate invoice processing
Measure the opportunity
KPI’s: Days Payables Outstanding, cost to process invoice, % of invoices linked
to purchase order
Increase % vendor discounts from available discounts
Reduction in invoice exception rate (differences between PO & invoice)
Reduction in # of manual payments
Shared Services 6

7. Approach – Accounts Payable
Analyze the process options
Invoice payment process – automating electronic payment
Invoice approvals
Manual payment process – look for opportunities to automate ie tax
payments
Design the process
Automate electronic payments
Automate invoice approval
Automate dispute resolution
Vendor approval & setup process
Shared Services 7

8. Sample Dashboard - Payroll
Shared Services 8

9. Approach – Payroll
Define the project
Reducing # payments requiring manual intervention
Reducing cost of payroll per employee
Reducing payroll staff turnover
Measure the opportunity
KPI’s: # of manual payroll payments, cost of payroll per employee, payroll staff
turnover
Payroll staff satisfaction survey
Employee payroll satisfaction survey
Shared Services 9

10. Timeline – Accounts Receivable
Shared Services 10

11. Timeline – Accounts Payable
Shared Services 11

12. 2.Timeline – Payroll
Shared Services 12

13. Q&A
Shared Services 13