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Shared Services for Higher Education

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Though the Shared Services model has started to gain some momentum in Higher Education, it is still very much the early days of adoption. And yet Shared Services has been around for well over 20 years and has been delivering significant value in the Private Sector and, more recently, in the Public Sector. Many Higher Education institutions are still struggling to understand the potential value from Shared Services, and find the most effective way to implement this model successfully in the Higher Education sector. Chazey Partners co-hosted with UCOP (University of California Office of President) a breakfast meeting to share and discuss key learnings on the fundamentals of Shared Services and best practices, and how to best go about establishing and operating Shared Services in Higher Education. For more details, please visit www.chazeypartners.com/events

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Shared Services for Higher Education

  1. 1. North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 1North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 1 DELIVERING THE PROMISE … © Chazey Partners 2014 Shared Services for Higher Education UCOP, Oakland, California April 28th, 2014
  2. 2. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 2North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 2 Who We Are Trends in Shared Services Higher Education Focus Critical Success Factors and Best Practices Public Sector Lessons Learned (Research Based) Agenda What is Shared Services?
  3. 3. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 3North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 3 Who We Are Agenda
  4. 4. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 4North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 4 Chazey Partners is a practitioners-led global management advisory business. We bring together a unique wealth of experience, empowering our clients to strive for world class excellence through Business Transformation, Shared Services & Outsourcing and Technology Enablement We have operationally delivered and consulted on numerous programs globally, over the last 20 years, in the US, Canada, Latin America, UK, Ireland, Continental Europe, India, Singapore, Australia, China, Middle East and Africa Our end-to-end capability offers advice, guidance and implementation expertise, covering strategy setting and business case production, program management, implementation and process optimization Who We Are · Overview
  5. 5. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 5North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 5 Who We Are · Services Portfolio FINANCE & ACCOUNTING ● HUMAN RESOURCES ● INFORMATION TECHNOLOGY ● PROCUREMENT ● TRAVEL & EXPENSES ● CONTACT CENTRES Expertise In Public Sector & Private Sector INVENTORY & LOGISTICS ● STAT & TAX COMPLIANCE ● SUPPLY CHAIN ● LEGAL SERVICES ● FACILITIES MANAGEMENT ● MARKETING BACKOFFICE BUSINESS TRANSFORMATION − SHARED SERVICES & OUTSOURCING − TECHNOLOGY ENABLEMENT − BUSINESS CONTINUITY − CHANGE MANAGEMENT − LEAN SIX SIGMA Functional Breadth of Experience Other Supporting Services
  6. 6. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 6North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 6 Who We Have Worked With OUR CLIENTS WHERE HAVE WE COME FROM
  7. 7. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 7North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 7 Agenda What is Shared Services?
  8. 8. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 8North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 8 What Exactly is Shared Services? Shared Services …is the organization that provides non-core Services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal customer/client. This involves a philosophy and approach totally unlike traditional “corporate”-driven centralization. The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself. Shared Services achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, standardized end-to-end processes and best practice.
  9. 9. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 9North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 9 Structures have Benefits & Challenges  Remote from business  Unresponsive and inflexible  No Business/ Operational control over costs  Viewed as central overhead  Prevalence of shadow operations Centralized Challenges  Disparate processes  Multiple standards  Duplication of effort  Different control environments  High cost and costs unclear across the business  Not scalable Decentralized Challenges  Responsive to Business and Operational needs  Business/ Operations control decisions  Customized solutions to meet Business/ Operational requirements Benefits Shared  Highly client focused  Commercially driven  Service Partnership Agreements  Clear unit costs  Flexible delivery  Clear understanding of drivers and activities  Common systems and support  Consistent standards and controls  Tight control environment  Economies of scale Benefits
  10. 10. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 10North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 10 ATTRIBUTE SHARED SERVICES CENTRALIZATION Accountability Operating Unit “Corporate” Key Performance Target Service excellence and continuous improvement Cost reduction and central control Service Partnership Agreements Widespread Rare Classification An independent unit Another corporate function Responsibility Partnership Demarcation Shared Services vs. Centralization
  11. 11. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 11North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 11 Achieve the Triple Benefits of Shared Services Higher Quality Lower Costs Improved Control
  12. 12. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 12North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 12 Agenda Trends in Shared Services
  13. 13. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 13North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 13 General Trends in Shared Services (1/2) • Shared Services Concept started in mid 1980’s. Concept initially driven by private sector multinationals • Shared Services and Outsourcing initiatives typically result in "cost savings of 20%-50% on processes in scope” (Hfs-PWC report June 2012) • "In today's business environment, nine out of every ten enterprises have shared services". (Hfs-PWC report June 2012) • 100% of Hackett’s top quartile benchmarked enterprises leverage Shared Services (Hackett 2013) • New adopters are moving directly to multifunctional as part of their implementation strategy (Deloitte, 2013 Global Shared Services Survey, February 2013)
  14. 14. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 14North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 14 General Trends in Shared Services (2/2) • Higher quality, not just cost, important reason for business units to opt in to Shared Services (Deloitte, 2013 Global Shared Services Survey, February 2013) • Evolution to a Global Business Services model (The Hackett Group, 2012 survey of SSON members) • “Moving up the value chain” evolving away from a focus on transaction processing and data input toward more strategic activities • More prevalent today in midsized companies and businesses, not confined to larger multi-nationals • Captive v Outsource, On-shore v Near-shore v Off-shore • Significant focus and growth in the Public Sector globally
  15. 15. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 15North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 15 Why not? Has worked well in the Private Sector for 20+ years, and is also working in the Public Sector today. Significant funding issues today … everywhere. Shared Services can deliver potential “triple benefit” of efficiency/effectiveness/control Some of the same basic challenges and significant opportunities around implementing Shared Services in the Private Sector are also there in the Public Sector….but need to be adapted and applied differently. Cost savings from the “back office” can be used to fund core and front line services. In terms of the Public Sector (and it is just the same in the Private Sector) one needs to determine what needs to be physically close to the internal “customer” or “client” vs what can be done remotely. Why Shared Services in Public Sector? (1/2)
  16. 16. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 16North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 16 Why Shared Services in Public Sector? (2/2) Need to think about who your “client” is – internal and external. Also need to think about “students/residents/taxpayers” as key stakeholders. Although Public Sector adoption of shared services has grown, the results achieved do not yet approach those in the Private Sector (see next slide) While the Private Sector has embraced shared services over the past 20 years plus, the Public Sector has, until recently, been slower to do the same. Shared services increasingly seen as part of the solution to the new socio- economic challenges such as the impact of an ageing population, restricted funding, increased international competition, and a more difficult economic environment.
  17. 17. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 17 Outcomes of Shared Services & Outsourcing Programs in the Public Sector 0% 20% 40% 60% 80% 100% Finance operating costs Finance operating efficiency Overall business performance improvement Strong positive impact (greater that 20%) Modest positive impact (+6% to +20%) Minimal impact (-5% to +5%) Modest negative impact (-6% to -20%) Severe negative impact (greater than -20%) Source: HfS Research and ACCA Global, 2012; N = 14 public sector organizations
  18. 18. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 18North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 18 Some Shared Services Examples in Public Sector
  19. 19. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 19North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 19 Shared Service Maturity: Country/Regional 0 1 2 3 4 5 6 7 8 9 10 US Canada UK Europe Latin America MaturityIndex Maturity of Shared Service Centers Private Public
  20. 20. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 20North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 20 Shared Service Maturity: Country 0 1 2 3 4 5 6 7 8 9 10 MaturityIndex Maturity of Shared Service Centers Private Public
  21. 21. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 21North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 21 Agenda Higher Education Focus
  22. 22. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 22North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 22 Increasingly competitive marketplace for students (both local and international), research funding, infrastructure funding and various other scarce resources. With the escalating cost-containment pressures, higher education institutions” must start working together to attain academic and operational excellence”. (Accenture, September 2013) The private institutions, except for grants provided by the federal government for research, are to some extent less dependent on government funding. However, many private institutions saw their endowment values decrease as a direct result of the recession, and the private institutions also responded by increasing student fees. Increasing student fees alone has not been sufficient to close the budget at many Universities and Colleges, and these institutions are looking to shared services to help them close the budget gap, increase efficiencies and provide better service. Importance to Higher Education (1/3)
  23. 23. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 23North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 23 Importance to Higher Education (2/3) • Efficiency/effectiveness of “back office” operations is now really a pre-requisite, and not a “nice to have”, for any organization/enterprise, in Private or Public sectors. • According to a TIME magazine and Carnegie Corporation 2012 survey, 96% of the American public and senior administrators at US colleges and universities said “higher education is in crisis”. Some unique challenges namely managing “politics” and workforce, territorial and governance issues, different funding sources, and unique change management. Harvard 2013 Summit: “As shared services gains traction in higher education, more knowledge is needed on how to navigate the intricacies of introducing new governance models and technologies within institutional environments”
  24. 24. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 24North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 24 Importance to Higher Education (3/3) “I see shared services as something that is inevitable,” said Rowan Miranda, associate vice president for finance at the University of Michigan. “It’s the next logical influx of thinking in the business world brought into higher education.” Recent backlash from Faculty at the University of Michigan highlights the importance of engaging key stakeholders and internal customers at the beginning of the initiative and providing open communication channels throughout the entire process.
  25. 25. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 25North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 25 Shared Services Examples in Higher Education (1/6) Below is a list of Institutions showing where they are in their Shared Services journey. Source: University of Kansas Shared Service website
  26. 26. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 26North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 26 Shared services already underway pre recession at many Universities, e.g. Yale University, Harvard College, University of Michigan, University of Illinois & Cornell. UC Berkeley administration division began in 2008 to move to a shared services model for HR, and successfully opened its center on July 1, 2010. In 2012 the University approved a project to implement shared services for finance, research, information technology and human resources. As part of its Synergy Initiative, CSU’s Procure to Pay (P2P) Shared Services Initiative seeks to leverage the success of implementing CSU’s Common Financial System and improve the efficiency and effectiveness of processes to purchase and pay for goods and services. The Yale Finance shared service center was formed in January 2010, to take repeatable common work out of departments. The center was formed through the consolidation of three pre-existing service units. The center provides Financial Management and transaction processing for procurement, accounting, accounts payable and client accounts. Lawrence Berkeley National Laboratory has had an HR Service Center since 2011, and is looking to expand scope of services provided. Shared Services Examples in Higher Education (2/6)
  27. 27. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 27North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 27 The University of California has begun implementation of a University System Wide Shared Services center called UCPath for HR and Payroll. In 2009, the University of North Carolina (UNC) reviewed areas for potential cost reduction and increased efficiency across the university. The report identified a “top ten” list of initiatives that the University should consider to achieve those objectives As of January 2013, Chancellor Randy Woodson and the team implementing shared services at NC, announced that they would be moving forward to streamline business services. They will organize new Business Operations Centers (BOCs) around specific finance and human resource services, including: Travel Recruitment and Selection Time Reporting Purchase to Payment Position Administration Accounts Receivable Shared Services Examples in Higher Education (3/6)
  28. 28. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 28North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 28 Cornell University implemented the Administrative Streamlining Program, an initiative that included the creation of seven regional Financial Transaction Centers (FTCs) in 2010, replacing the thirty-plus Business Service Centers that previously existed. Work also included standardization of FTC transactions and processes. The FTCs process standard financial transactions such as travel reimbursement, accounts payable, procurement card transactions, cash management and vendor establishment. Below is a projected cost savings from the initiative for fiscal years 2010/11 through to 2014/15, with actual savings shown for fiscals 2011/12 and 2012/13. Shared Services Examples in Higher Education (4/6)
  29. 29. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 29North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 29 The University of Florida’s Institute of Food and Agricultural Services (IFAS) shared service centers work in partnership with IFAS academic departments by providing timely, professional business support thus allowing departments to focus on delivering teaching, research, and extension programs. The Shared Service Center consolidates and streamlines the administrative functions such as Human Resources, Finance and Accounting, and Grants Management. They have two shared service centers that service the following departments: Fifield Shared Service Center: Environmental Horticulture, Horticultural Sciences, Plant Pathology McCarty Shared Service Center: Agronomy, IFAS Statistics, Food and Resource Economics, Family Youth and Community Sciences, Soil and Water Science, Public Issues Education Center, IFAS IT, Senior VP Shared Services Examples in Higher Education (5/6)
  30. 30. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 30North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 30 The University of Kansas’ Campus Administration & Operations SSC was due to begin operations on Monday, April 7, 2014 and their Biobehavioral & Social Research SSC officially began operations on Monday, February 3, 2014. Their intent is to create another six SSCs before the end of fiscal 2016. Below is a diagram of the services that will be provided. Shared Services Examples in Higher Education (6/6)
  31. 31. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 31North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 31 Agenda Critical Success Factors & Best Practices
  32. 32. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 32North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 32 Client • Service orientation in place • Structured way of dealing with customers • Customer satisfaction levels understood • SPAs in place • Reality versus perception • Account management Process • Processes documented • Standardized, controlled & repeatable activity • Recharging methodology • Benchmarking – internal/external • Metrics: Control Based; (ii) Efficiency & Effectiveness Technology • ERP implemented • Document Scanning Solution • Workflow • Automated Payments • Elimination of Side Systems • Self services tools • Automated Score Cards People • Skilled Leadership in place – do not compromise on competencies • Team shape & stability – process shaped/spans of control/staff – perm v temps • Team members – culture, values & behavioral competencies assessed • Team morale, reward & retention • Working environment conducive to team working Typical Focus: Technology & Process, sometimes on the People …but Client-focus is often missing
  33. 33. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 33North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 33 Client Interaction Framework Account Management •SSO to client; via reporting, interaction, escalation & communication Client Contact Management •Client to SSO; to manage and resolve queries and drive learning/improvement Service Partnership Agreements •SPAs are 2-way agreements clarifying both SSO services and client inputs Client Feedback •Client satisfaction continuously monitored both informally and formally Continuous Improvement •Mechanisms to identify the areas for improvement and to develop solutions Process Control Database •Documents end-to-end SSO processes; highlights activity of both SSO & client Performance Measurement •Comprehensive KPIs, measures and metrics framework, SSO & client Performance Reporting •Process performance will be reviewed monthly by SSO and client Recharging Methodology •Define basis for charging for SSO services to turn consumers into clients
  34. 34. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 34North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 34 Other Best Practices (1/4) Project Approach and Scope • What to include in-scope needs to consider functions, processes, sub-processes, locations, regions, operating units and entities • It is really important to distinguish between “solutions” vs “quick fixes”. • Opportunity to “globalize” and expand scope across silos/borders • Multifunctional now often the chosen way to proceed, especially in the Public Sector • Consider how far up the value chain you want to go • Remember always that the project does not end with “go-live” Standardization • Can improve service levels and minimize costly exceptions • Enables scalability and automation • Tightens the internal control environment • Assign end-to-end process owners • Break down silos • Distinguish between “wants” vs “needs” • But remember there are always valid “exceptions”
  35. 35. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 35North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 35 Other Best Practices (2/4) Technology • Move to or at least towards a single ERP based platform • Incorporate workflow to allow seamless routing of requests, approvals and data across the organization • Imaging technology such as scanning allows efficient adaptation of paperwork flow and storage • Allowing user self-service (not “do-it-yourself”) permits the low risk, repetitive tasks to be completed by the customer without interaction from a service representative • Change management and training is vital • Make sure that new technology is implemented as a business solution (and not simply a technical) initiative Location • A Shared Service “center” can result in economies of scale, better leverage and reduced cost of labor • A number of location factors to consider: greenfield/brownfield, expertise of workers, language/cultural requirements, time zone, political/economic stability, facilities, local government incentives, customer requirements • Technology has enabled some degree of “virtual” working • But some things still need to remain local. Recognize this in design.
  36. 36. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 36North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 36 Other Best Practices (3/4) People/Organization • Senior level Executive sponsorship is key. Make sure that key executives understand and support the roll-out. • Offer end-to-end services by provisioning as many non-core services as possible under one organizational umbrella • Realignment can help remove silos and foster a strong shared service culture and team spirit • Enables succession planning, job rotation, new opportunities and targeted and consistent training programs • Do not underestimate the change management required • Consider a multi-faceted communication and advisory approach. • Assign your best resources and people to the project. • Make sure your team includes both academic and administrative resources and be prepared to travel to meet and work with users. • Generate a culture of service and continuous improvement • Do things differently – that’s the whole point!
  37. 37. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 37North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 37 Other Best Practices (4/4) Outsourcing • Outsourcing less prevalent today in Public Sector • Attitude to outsourcing can depend on culture, risk sensitivity, level of development and maturity of any existing shared service functions • Now more part of the “mix” with Global Business Services …And Finally • Keep working towards your goals and be relentless in pursuit of them. Shared Services initiatives are a significant commitment both in terms of resources and energy.
  38. 38. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 38North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 38 Public Sector Lessons Learned (Research Based) Agenda
  39. 39. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 39 Slide 39 1. STRATEGIC CONSIDERATIONS • Shared Services is no longer a radical idea in the public sector, as the concept has been operating and proven in the private sector for 20 years, and now in the Public Sector for last 10 years • Shared Services is moving from an opportunity to a necessity (US, Healthcare, Higher Education) • Make It mandatory (at least initially, and within approved scope) and high profile (Canada, UK) • Shared Services can work across operating units, functions, silos, countries and jurisdictions (US, Canada, Private, Latin America) • Core challenges unchanged (Private) • Not just transactional (Private) • End-to-End, not Functional (Private) Lessons Learned (1/3)
  40. 40. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 40 Slide 40 2. STRUCTURE • Independence is important (UK) • Governance matters (Canada, Private, UK) • Create durable structures (Canada) 2. BUSINESS CASE • Prepare Business Cases (Canada, UK) • Recognize need for funding/investment (Canada, US, UK) • Infrastructure can be enabler and barrier (Canada, Private, Latin America) • Taxes matter (UK) Lessons Learned (2/3)
  41. 41. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 41 Slide 41 4. IMPLEMENTATION • Prove the concept, achieve “quick wins”, do that which is foundational first (Canada, Private, UK) • Co-locate staff where possible (Canada) • Operate as a business (Canada and Global) • Benchmark relentlessly (US, Canada, UK) • Adapt rather than adopt (Canada, UK) • Changing culture is challenging (US, Private, Europe) • Multifunctional enabled by new technologies (Private) • Outsourcing and off-shoring opportunity and risks (UK, Private) • Delivery of Shared Services is not a core Government skill (UK) Lessons Learned (3/3)
  42. 42. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 42North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 42 DELIVERING THE PROMISE … © Chazey Partners 2014 Example Chazey Partners Testimonials
  43. 43. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 43North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 43
  44. 44. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 44North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 44
  45. 45. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 45North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 45 The Chazey methodology and knowledge has been very valuable to Bimbo. The team's approach, experience, passion and commitment to adding value has been fantastic and the partnership approach working with a range of key internal stakeholders within our organization was very important during the project. I would highly recommend the Chazey team for any Shared Services Transformation assignment. Gabriela Lopez Juarez Global Business Services Director Grupo Bimbo “
  46. 46. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 46North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 46 The value Chazey Partners brought to the project was extremely important in the early, design and building stages. CCE had neither the resources nor the internal expertise to help us fully sell the concept internally. So Chazey’s expertise, know-how, and methodology were very valuable in guiding CCE. They also acted as a useful sounding board for any challenges faced. Fraser Kirk Global HR Transformation Programme Director Coca-Cola Enterprises Inc. “
  47. 47. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 47North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 47 We were impressed by the Chazey team’s responsiveness and professionalism in reacting and managing this assignment at very short notice and with highly restricted timelines. The Study Report we received clearly reflected their depth of first-hand experience and knowledge. In addition, the quality of insight they brought to the assignment resulted in a Study Report which was clear, comprehensive and put us in a position to make a decision on a very sound base. Les Gill Senior Director, HR Shared Services Gilead Sciences, Inc. “
  48. 48. North America | Latin America | Europe | Middle East & Africa | Asia-Pacific North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 48North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 48 Contact us www.chazeypartners.com enquiries@chazeypartners.com

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