Governance -getting your ducks in a row for Shared Services Success


Published on

Presentation on Governance in Shared Services environment, developed for a Shared Services Conference

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Governance -getting your ducks in a row for Shared Services Success

  1. 1. Manning Charles& AssociatesGovernanceGetting all your ducks in a row forShared Service successPeter M SalmonManning Charles & Associates LimitedShared Services Environment Conference24 June 2013 - Wellington
  2. 2. Manning Charles& Associates19/06/2013 2Photo John Morgan
  3. 3. Manning Charles& AssociatesSession objectives• Understanding the role governance plays in ironing out major speed bumpsbefore they occur and providing a clear structure for what is beingaccomplished is important for setting off on the right foot.• Meshing the parties goals and strategies while ensuring accountability is assigned• Moving beyond SLAs for growth and success• Examining the managerial, tactical and executive level of governance structures19/06/2013 3
  4. 4. Manning Charles& Associates19/06/2013 4Adapted from "Shared Services – Adding Value to the Business Units” By Donniel S. Schulman, John R.Dunleavy, Martin J. Harmer and James S. Lusk.SHARED SERVICESCENTRALISEDDECENTRALISEDUnresponsiveRemoteInflexibleService CultureEfficient DeliveryBest PracticeAccountableResourcedAppropriatelyFlexibleEconomiesof ScaleStandardProcessesBusiness FocusResponsivePartnerRedundantInefficientReducedcommonalityShared Services
  5. 5. Manning Charles& AssociatesThe keys to the kingdom• Shared understanding of objectives and purpose• A framework for linking user satisfaction to servicedelivery costs• Service level agreements between users andproviders• Metrics• External benchmarks• A framework for raising and resolving issues• Optimized and consolidated business processes19/06/2013 5
  6. 6. Manning Charles& Associates Why Governance?6Manage Risk Benefits RealisationServicePerformanceProblemMgtChange &Project MgtCompliance CommercialsCommunication and Relationship ManagementMeet obligationsManage issuesOperational managementStrategic directionAchieve business caseOptimise utilisationContinuous improvementProcess standardisationEnable strategic leverage
  7. 7. Manning Charles& AssociatesGovernance• Stakeholder interests are considered•• Business needs recognised• Appropriate parties are held accountable• Measurable results in place• Necessary resources deployed19/06/2013 7You cannot escape theresponsibility oftomorrow by evading ittodayAbraham Lincoln
  8. 8. Manning Charles& AssociatesGovernance - clarifies• What the rules are• Who makes the rules and decisions• Who enforces the rules• What the consequences for not following the rules are19/06/2013 8
  9. 9. Manning Charles& AssociatesGovernance - embraces• Documented decision guidelines, roles, and responsibilities• Performance management and reporting• Structured collaboration and communication• Major resourcing and resource allocation decisions• Risk Management19/06/2013 9
  10. 10. Manning Charles& AssociatesOne size does not suit everyone19/06/2013 10• Models must reflect the participants• Align with ‘customer’ strategies• Meet current and future needs• Flexible, so that changes can be met
  11. 11. Manning Charles& AssociatesGovernance Questions to be addressed• Scope Management• Demand Management• Delivery Management• Problem Resolution• Performance/SLAs• Improvement identification19/06/2013 11
  12. 12. Manning Charles& AssociatesGovernance – constituent elements19/06/2013 12GovernanceValueMeasurementRiskManagementAccountabilityBased on ConferenceBoard material
  13. 13. Manning Charles& Associates19/06/2013 13OversightPrinciples& DecisionRightsBenefits(Value)PrinciplesinOperationPerformance(SLA etc.)Based on ConferenceBoard MaterialGovernance – Hierarchical Model
  14. 14. Manning Charles& AssociatesEffective Implementation• Effective Project Management (at inception and when required)• Executive Support (CEO preferable)• Effective Communication (ongoing)• Strong Change Management (ongoing)• Phased Approach (preferable)19/06/2013 14
  15. 15. Manning Charles& AssociatesEffective Governance• Overcomes resistance – provides clear accountability against definedcriteria• Differential Benefits• Loss of Control• Lack of Trust• Manages Expectations – clear accountability reduces service failures• Excessive haste to implement• Resource / Capacity issues• Customer needs variances19/06/2013 15
  16. 16. Manning Charles& AssociatesOrganisational• Governance is driven by business needs, it should provide a framework as we havediscussed – it should be the servant of the organisation not the master• Whilst specifics will vary is likely that the following layers of organisation will bepresent:-• Oversight – executive leadership and board• Implementation – leadership, management,• Operations – leadership, management• Organisational structure should integrate necessary governance needs into it whererequired – ie appropriate allowance for checks and balances19/06/2013 16
  17. 17. Manning Charles& AssociatesKey players in governanceCxO • Defines the expected result• Sets timeline• Arbitrates competing resource demandsExecutiveManagers• Develop approaches to meeting overall objectives• Recommend solution to CxOBU Managers • Typically fund the initiative• Want cost effective solutions in areas SSC services• May initiate request for services inc new opportunitiesSSC Mgt &Staff• Establish the SSC• Provide the services required and initiate newopportunities• Report performance• Deliver required outcomes (Value)19/06/2013 17
  18. 18. Manning Charles& AssociatesSSC focus current and future• Enhancing corporate value• Enabling strategic growth• Partner service and support• Enabling BU to focus on operational matters• Effective operation of secondary activities of BU within a consolidatedoperation using common approaches• Supporting BU with lower costs and improved service levels• Leveraging investment• Continuous improvement19/06/2013 18
  19. 19. Manning Charles& AssociatesLooking to the future19/06/2013 19Are we doing the rightthings?Are we getting thebenefits?Are we getting themdone well?Are we doing themthe right way?EnterpriseOperationsBusinessAdapted from the ‘Four Ares’ developed by John Thorp in The Information ParadoxStrategyOrganisation DeliveryValue
  20. 20. Manning Charles& AssociatesEssential pre-requisites for success• Trust• Shared focus• Robust governance• Accountability19/06/2013 20
  21. 21. Manning Charles& AssociatesIn Summary• Embed governance mind-set as base for success• Treat governance as an essential, critical strategic element in shared services not achecklist matter• Recognise governance as core to process improvement• Use governance in identifying value, fostering innovation and risk management• Adopt a governance model that takes account of customers, stakeholders andoperational needs• Reflect changing conditions and strategies through updating the governanceframework19/06/2013 21
  22. 22. Manning Charles& AssociatesNot a silver bulletGovernance is the framework within which we manageand determine• Information flows to support informed decision making• Decision Rights in respect of situations, in other wordsaccountability• Risk Management with regard to the impact ofcircumstances obtaining across the organisationsconcernedIt is not a substitute for executive action19/06/2013 22
  23. 23. Manning Charles& AssociatesThank You
  24. 24. Manning Charles& AssociatesImportant Notice to Readers• This notice applies to all materials and information available in this presentation.• All information and materials are provided on an as is basis and are not intended in anyway to be comprehensive.• Any reader making use of this material does so at his/her own risk and readers are advisedto take independent professional advice before acting on any information or materialsfound here.• Neither Peter Salmon nor Manning Charles & Associates Limited accepts any responsibilityfor, nor do they give any representations or warranties, express or implied, that any of theinformation and materials contained in this document and presentation are complete,accurate or free from errors or omissions.19/06/2013 24
  25. 25. Manning Charles& AssociatesSources, References and Further Reading• "Shared Services – Adding Value to the Business Units” By Donniel S.Schulman, John R. Dunleavy, Martin J. Harmer and James S. Lusk, ISBN 0470349743published by John Wiley & Son• Governance Models in Shared Services – Vipin Suri published by TheConference Board• John Thorp, author The Information Paradox,, formulator of theFour Ares• Success Factors in Implementing Shared Services in Government,IBM Center for the Business of Government• IT Governance: How Top Performers Manage IT Decision Rights forSuperior Results – Weill & Ross, Harvard Business School Publishing19/06/2013 25
  26. 26. Manning Charles& AssociatesPeter M Salmon• Peter is a senior executive and consultant with an extensive and successful business managementbackground. He combines this with significant organisational change, business assessment,professional services leadership and resource management experience. This is complemented byhaving worked in a number of countries and a varied range of business sectors.• Peters wide ranging consulting experience includes strategy, governance ,IT, programme and projectadvice ,financial investigations and litigation support. His other experience includes practicemanagement including service economics and profitability, quality assurance and resourcemanagement.• This knowledge and expertise is combined with a strong record of achievement. For many years Peterhas worked with CxO level executives, management and staff to provide business focused outcomesto issues.Should you wish to contact Peter on this or any other matter, where he might be able to assist then :-Email:- manning.charles.assoc@gmail.comPeter’s website Some Thoughts may be found here :- http://petermsalmon.wordpress.com19/06/2013 26