Shared Services Overview


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A brief overview of the journey to successfully establishing a Shared Services operating model.

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Shared Services Overview

  1. 1. The Effective Development and Deployment of a Shared Services Organization<br />Mark Hopton<br />
  2. 2. The key features of a Shared Services Operation are:<br />Consolidation of administrative functions into a stand-alone organizational entity<br />Only mission is to provide administrative functions efficiently and effectively<br />Requires a dramatic redesign or transformation of the organizational structure and culture<br />Elevating the importance of administrative tasks to the highest management levels with a senior-level perspective<br />High performance culture with a strong focus on customer service<br />Clearly defined roles and responsibilities<br />
  3. 3. What Are Shared Services and What Are the Benefits?<br />Shared Services is a customer-focused organizational structure andservice modelthat provides back-office support primarily to internal customers and eliminates redundant processes, systems, and organizations.<br />Shared Services Enables<br />Key Shared Services Attributes<br /><ul><li>Standardization of processes and systems
  4. 4. Increased levels of automation
  5. 5. Reduction or containment of costs
  6. 6. Improved controls
  7. 7. Enhanced service levels
  8. 8. Access to new technologies
  9. 9. Optimization of skills/capabilities
  10. 10. Built upon standard processes, policies, and systems
  11. 11. Focuses on delivering excellent customer service
  12. 12. Strives for continuous improvement
  13. 13. Run as a separate organization
  14. 14. Enabled by emerging technologies</li></li></ul><li>The Case for SSC<br />Focus on processes and leverage technology <br />Productivity increases<br />Responsible, accountable, accessible<br />Dramatic re-engineering of processes<br />Business professionals focus on strategic initiatives<br />
  15. 15. Typical Shared Services Road Map <br />Typically Shared Services Projects have 4 Phases: <br />3-5 Months<br />6-12+ Months<br />2-16 months<br />10-14 Weeks<br />Assess<br />Design<br />Build<br />Deploy<br /><ul><li>Design the Business Processes
  16. 16. Design the Organization
  17. 17. Design the Enabling Technology
  18. 18. Select Location and Real Estate
  19. 19. Develop Hiring Plan and Recruit Shared Services Leaders
  20. 20. Refine Communications Plan
  21. 21. Create Workforce Transition Plan
  22. 22. Develop Training Plan and Management Development Program
  23. 23. Design Facilities
  24. 24. Design Service Management Approach Details
  25. 25. Develop Service Management Processes
  26. 26. Build Performance Support and Training Materials
  27. 27. Build-out Facility
  28. 28. Recruit Shared Services Personnel
  29. 29. Create Service Level Agreements
  30. 30. Develop Key Performance Indicators
  31. 31. Develop / Deliver Build Communications
  32. 32. Build the Organization
  33. 33. Conduct Deployment Planning
  34. 34. Execute Deployment Plan
  35. 35. Confirm Service Level Agreements
  36. 36. Conduct Training and Work Shadowing
  37. 37. Develop / Deliver Deployment Communications
  38. 38. Test Shared Service Center Readiness
  39. 39. Execute Workforce Transition Plan
  40. 40. Shared Services Vision
  41. 41. Scope of Shared Services
  42. 42. Current State Analysis
  43. 43. High Level Operating Model
  44. 44. Process Definition
  45. 45. Change Management Strategy
  46. 46. Business Case
  47. 47. Implementation Roadmap</li></ul>Program-, migration- and change management (ongoing)<br />
  48. 48. Ideal processes for Shared Services have low strategic impact and significant economies of scale<br />6<br />Payroll Processing<br />Compensation<br />Records<br />Hire to Retire<br />Benefits Administration<br />Training & Education<br />Travel & Expense<br />Self Service<br />Human<br />Resources<br />General Ledger<br />Accounts Payable<br />T&E Processing<br />Accounts Receivable<br />Planning & Budgeting<br />Purchasing<br />Cash Management<br />Internal Audit<br />Finance<br />Standards<br />Technology/ Development <br />Desktop Support<br />Applications Development<br />Data Center Operations<br />Application Maintenance<br />Telecommunications<br />Hardware & Software Acquisition<br />Information<br />Services<br />Logistics/<br />Materials<br />Management<br />Strategic Sourcing<br />Asset Management<br />Warehousing<br />Inventory Management<br />Transportation<br />Call Centers<br />Non-Emergency Service Calls<br />Credit & Collections<br />Order Management<br />Customer<br />Service<br />Legal<br />Affairs<br />Litigation Support and Coordination<br />Communication Svcs<br />Risk Management <br />Insurance<br />Regulatory Compliance<br />Media Relations<br />
  49. 49. Implementation Challenges<br />Experience<br />Planning for resistance<br />Shared services struggle to deliver services through delivery channels rather than functions<br />Driving services from an internal perspective, not a customer perspective<br />Reluctance to radically challenge the status quo so that work is viewed and performed differently<br />Spending too much time planning and implementing the transition<br />Failing to standardize policies, procedures, programs, and services, across operating units<br />Incumbents often do not possess skills required for the new service delivery framework<br /><ul><li>Strong, sustained leadership and sponsorship
  50. 50. Stretch goals and aggressive timing
  51. 51. Effective measurement
  52. 52. Rewards and punishments
  53. 53. Leveraging leading practices
  54. 54. Customer participation
  55. 55. Work-focused, not functional teams
  56. 56. Early discussion of service expectations
  57. 57. Cascading, frequent communication</li></li></ul><li>Lessons Learned<br />Critical elements of a shared service implementations, but frequently are forgotten or ignored<br />Proper executive-level sponsorship from support organizations and operating units<br />Well-articulated drivers for implementing shared services<br />A comprehensive, integrated, phased implementation plan<br />Customer and support service input and buy-in<br />Scope agreement<br />Service levels<br />Staffing levels<br />Governance<br />Change management<br />A detailed current state assessment that documents current costs, volumes, and service levels from which improvement can be measured and communicated<br />Detailed business case that specifies qualitative and quantitative benefits<br />Matching positions and skill sets<br />Focus on continuous improvement opportunities<br />Leveraging internal resources to design and build the new shared services operations<br />Over communicate the value and efforts of the initiative<br />
  58. 58. Summary<br />Strong sponsorship is required<br />Plan the work and work the plan<br />Involve stakeholders<br />Include those functions that support the entire organization and can benefit from standardization and consolidation<br />Dedicated effort to business process re-engineering<br />