The document outlines a methodology for the Back Office Cooperative (BOC) aimed at developing a shared services model for member organizations. It details a multi-step process including analysis, business case development, planning, execution, and ongoing management while recognizing the current lack of a shared services infrastructure. The approach emphasizes collaboration among members to identify needs and optimize resource utilization while also considering financial implications and governance structures.

1. BOC Strategy Approach
OVERVIEW METHODOLOGY
Meeting Discussion The Tatum Shared Services Methodology is focused on bringing the best solution to the Back
• Our Understanding Office Cooperative. The first stage of the methodology is an Analysis leading to the business
• Shared Services Methodology case for Shared Servics. As shown in Exhibit 3, our approach is based on a Shared Services
Methodology that has been tailored to meet the needs of the BOC and the institutions that
☞ Step I – Determine Back Office Cooperative Service Strategy
it supports.
☞ Step II – Develop Business Case
☞ Step III – Create Detailed Implementation Plan BOC requires skilled and experienced people in non-profit, program management, shared
☞ Step IV – Execute Plan and Manage Risk services, business workflow, change management, and facilities to implement a new SSC. This
• Case Studies step is for the first stage in this initiative.
• Next Steps Consisting of five key stages, our approach starts by analyzing the current state and then
progresses through the design, construction and implementation of the future, shared services
Appendix state. The approach ends with an operate stage that provides for ongoing management of the
• A – Sample Workproducts and Deliverables shared services environment.
• B – Sample Tatum Staff Profiles
For the BOC, we recognize that no shared services infrastructure exists today. Our analysis step
will be focused on the current member organizations’ support and how to craft a strategy to
meet the needs of the different groups.
OUR UNDERSTANDING Analysis: During the Phase, data is gathered and analyzed to gain an understanding of the
current state. Data needed during this stage.
• Financial
• Operational Statistics
• The Back Office Cooperative was formed by eight local not- • People and Labor
for-profits to defray costs of commonly purchase services • Policies and Procedures
• The cooperative governed by an oversight board and recently • The primary outcome of this component will be the strategy, organization structure, delivery
installed CEO and is organized as a self-funded cooperative to model and business case for developing a shared service approach.
share benefits among member firms
Analysis
• A shared purchased function has been established and is
functioning for the benefits of members
Program Management
• Additional services are planned including health insurance
and risk management Back Office Cooperative
Service Strategy
• The BOC is contemplating a shared services organization to
support members and affiliates with HR, legal, IT and Analysis Design Construct Implement
administrative support functions Operate
Develop Business Case
Organizational Change Management
Create Detailed
Implementation Plan
Quality Assurance
Execute Plan and
Manage Risk

2. Develop Back Office Cooperative Strategy - Step I Develop Business Case - Step II Create Detailed Implementation Plan - Step III
Organizational Model Examples Members and Affiliates negotiate the services they need Implementation Planning
Step I - Objectives and Key Questions Step 2 - Objectives and Key Questions Step 3 - Objectives and Key Questions
Objectives: Objectives: Objectives:
• Define the organization and structure of the BOC • Identify cost baseline and savings opportunities • Prioritize improvement opportunities
• Define operating relationship among BOC, members, and affiliates • Develop comprehensive implementation plan
• Set cost and service targets for members and affiliates
• Determine investments and cost of service delivery • Design change management program
• Determine required core service offerings
• Identify anticipated employee issues
• BOC Board directives
Questions:
Questions:
Questions: • What is the one-time cost of implementation?
• Can members reduce their current cost structure?
• What is the role of the BOC to the members and affiliates? • How quickly can BOC implement the proposed changes?
• What do the members need from BOC?
• What are the financial targets, funding strategy and return on the services • How do we manage the transition while Members migrate services
investment? • What services will the members choose to provide for themselves? and people?
• How will the longer term member organizations’ strategic direction • How ready are members and affiliates to take on this change? • How do we build flexibility to pursue other opportunities for BOC services
influence the role of the corporate center? • What are the benchmarks to measure BOC against to determine succes? and new affiliates?
• What policy changes are required at each of the members to incent the • How will BOC maintain financial control with greater member autonomy? • Have we created a communications plan that addresses all stakeholder
members to use the BOC services? audiences and their issues/concerns?
• How will shared services demonstrate and report their value to the members
• What is the message to the member organizations and public at large? and affiliates?
• What will be the long and short term impacts of the venture to • What employee issues or concerns do we anticipate and how do we leverage
member organizations? communications to address them?
• Are organizations required to participate and how will you incent IMPLEMENTATION QUICK CHANGE BOC
those entities? PLANNING WINS MANAGEMENT BOARD
Governance Control
(Not Optional) USERS OF BOC
FUNCTION Implementation Quick with Organizational Board
Intergrated Organization Activist Cooperative Consultative Group SERVICES
• Management cost Issues Opportunities Structure Charter
not allocated
BOC vision and strategy BOC Vision and Strategy Corporate Vision
Set detailed operational/financial Challenge plans, direction and Monitor financial results IT Optional Services Members Weekly Status Technology Status
Team Charter
targets and close monitoring with
Members.
decisions by members Manage Corporate Portfolio
• Service Catalog Reports Tools Reports
Active resource allocation Limited — identify obvious areas for
• SLAs
Integrated planning with members
Corporate policy setting
“arms - length” synergies.
Finance Services Redesign Risk
Establish shared organization and
Build leadership talent Only basic “governance” funtion • Market Pricing Detailed Process Management
resources between members
Provide common, shared services Split functions—strong bias towards • Financial Reporting • Metric and Measures Implementation
• Audit Work Plan
•
•
HR
Accounting
BU but maintain some scale-
• Procurement Sourcing Required Services Performance Project
• Legal
intensive activities in center, e.g.
• HR decision making Metrics Investment
• Major Transactions
• Finance Transactional (AP, Benefits Admin) All other functions to members and
• IT affiliates • Competitive Issues &
• Procurement Legal Litigations
• Cash Management
Balance Sheet
Other (Insurance, Risk, Management
Energy, etc.) • Compensation Strategy