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Planning Expansion and Adding Scope to your Current Shared Services Operation
The document outlines best practices and strategies for expanding HR shared services, highlighting the benefits such as improved service delivery, cost reduction, and better decision-making. It discusses expansion strategies focusing on horizontal growth (adding customers and services) and vertical growth (adding new services), along with the necessary steps for successful execution and measuring results. It emphasizes the importance of establishing a baseline, identifying improvement opportunities, developing a business case, and training personnel for effective service transition.
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Planning Expansion and Adding Scope to your Current Shared Services Operation
- 1. HR Shared ServicesExpansion SSON Shared Services Learning Series 2011
- 2. Agenda I. About ScottMadden II. Expansion is Good III. Service Expansion Strategies IV. Executing the Service Expansion Copyright © 2011 by ScottMadden. All rights reserved. 1
- 3.
- 4. About ScottMadden Decide Design Build Improve • Strategy • Service delivery • Project planning • Process development and model and management improvement/cost integration • Detailed current • Service/transaction reduction • Benchmarking state, future state, center • Operations/ • High-level and business case • Process redesign technology business case • Sourcing model assessment • Technology design, • Change • Organization selection, and • Benchmarking management design and staffing support • Customer and • Change • Change employee surveys management management • Change management • Service expansion Our Functional Expertise Finance & Supply Chain Real Estate & Engineering Accounting Management Facilities Services Human Information Administrative Multi-Function Resources Technology Services Copyright © 2011 by ScottMadden. All rights reserved. 3
- 5. II. Expansion isGood
- 6. Benefits of SharedServices Improve Service & Enable Scalability • Standard Processes Reduce Cost • Issue tracking & closure (20% to 50%) • Performance Metrics • Common model for expansion Control Gain Control Cost & Leverage Data • Aligns skill set with work type • Data centralization • Eliminates redundant labor • Improved reporting & analytics • Tracks service usage/costs • Improved compliance • Economies of scale • Better decision making • Automation of processes • Focuses on demand mgt. Companies can achieve all three, but can design for quicker results on any one. Copyright © 2011 by ScottMadden. All rights reserved. 5
- 7. Advantages and Disadvantagesof Growth Advantages of Growth Disadvantages of Growth The shared services model works Investment requirements—up-front costs to — Improves service delivery transition and centralize technology, staff, equipment, and facilities — Lowers total costs Additional bureaucracy Economies of scale Size can hamper responsiveness Synergies (e.g., on-boarding of new employees) Requires broader technical expertise at the top Standardization of processes and elimination of to manage additional functions redundant processes Perception of kingdom building Shared technology Potential impacts to employees currently Shared management and administration performing the work Cross training Additional advancement opportunities for shared services employees Improved customer service — Contact center — Key account management Allow business units to focus on core processes Copyright © 2011 by ScottMadden. All rights reserved. 6
- 8. III. Service ExpansionStrategies
- 9. Expansion Strategies –Horizontal vs. Vertical Growth Horizontal Growth Vertical Growth Additional customers Additional services Additional business units within each company HR services New geographic areas — Recruiting support — New states, regions, countries, etc. — Training and development — Global shared services centers — Labor relations — Vendor management Support to other companies (external sales) — Relocation support — Travel & expense reimbursement Nuclear Operations Manager Chemistry General HR Information Technology support Supervisor — HR applications support Chemistry Technical Plant Chemistry Waste Management Supervisor Services Principal Chemist Supervisor — HRIS report requests Chemical Rad Waste Shift Techs Analysts Shipping Environmental Cross-functional services — Litigation support and coordination — Communication services — Environmental, health and safety — Regulatory compliance — Real estate — Facilities Copyright © 2011 by ScottMadden. All rights reserved. 8
- 10. Vertical Growth –Adding New Services Use a standard process and tools to evaluate and justify the addition of future services — Analysis should include alignment with strategy, resource impact, impact on call quality (e.g., average speed to answer), ability to leverage the service among all customers — Set necessary sign-offs required to add a service Set standards to which candidate processes or services must adhere — Typically, the service center will want an incoming process “cleaned” to a certain level before it assumes responsibility The service requestor should include the following with each new service request: — Submitted by — Describe the proposed service or services to be transitioned and provide the appropriate process flows (current and proposed future state) — Current service owner (function, name, title) — Positions performing the work today (position titles, FTEs) — Customers of the service (who and number of customers) — Systems or technology used to perform the service today (list and describe how used) — Current performance measures used (list and note current performance) — Current work volumes — Describe nature of work volumes (steady, cyclical, peaks, etc.) — Proposed timing for transition of service to SSC Copyright © 2011 by ScottMadden. All rights reserved. 9
- 11. Vertical Growth –Adding New Services (Cont’d) The service is provided to more than one Change management impact business unit 1 = Significant change management is 1 = More than one business unit required 2 = Most of the business units in the 2 = Some change management is required company 3 = Minimum or no change management is 3 = All of the business units in the company required The service is transactional in nature Overall effort to implement 1 = Work is non-transactional 1 = Complex implementation (months to 2 = Some people doing similar, repetitive implement) tasks 2 = Simple implementation (weeks to 3 = Many people doing similar, repetitive implement) tasks It is not core to the business unit Vendor Mgmt. 1 = Function is considered a core operation 2 = Function is not a core operation Bonus Service satisfaction level Admin 1 = Business unit customers are fully satisfied with current service levels Training 2 = Business unit customers are somewhat satisfied with current service levels 3 = Business unit customers are dissatisfied EH&S with current service levels Copyright © 2011 by ScottMadden. All rights reserved. 10
- 12. Vertical Growth –Adding New Services (Cont’d) Track the new service requests that have been submitted to the shared services center Assign scores for each of the evaluation criteria Sum the scores and prioritize the expansion opportunities Determine the services to include in the shared services expansion Execute the service expansion! HR Shared Services Expansion Tracking Tool (Example) Current Change Service Transactional Core to the Overall Total Candidate Services / Activities satisfaction management reach? in nature? business? effort? Score levels? impact? 1 Service award vendor administration 3 3 2 3 3 2 16 2 Severance / separation packet creation 3 3 2 2 1 2 13 3 Tuition reimbursement administration 3 2 2 2 1 2 12 4 Bonus administration 3 3 2 2 1 1 12 5 Leave of absence management support 3 2 2 3 1 1 12 6 New hire orientation tracking 3 1 2 3 2 1 12 7 Professional licensure / exam administration 3 1 1 3 1 2 11 8 Contingent worker (contractor) administration 2 3 1 3 1 1 11 9 Code of conduct training administration 3 1 2 1 2 1 10 10 Environmental health & safety reporting 1 1 2 3 1 1 9 Copyright © 2011 by ScottMadden. All rights reserved. 11
- 13. IV. Executing theService Expansion
- 14. Key Steps toExecuting the Service Expansion Step 1: Establish a baseline – Current State Consolidate all current state processes included in the new service request submission Review the technology used to perform the service today Evaluate the current organization design / staffing levels Determine the costs required to perform the service today Step 2: Identify improvement opportunities – Future State Document process improvements / improved use of technology Identify Service level improvements Demonstrate organizational streamlining where available Estimate cost savings for implementing the new service Step 3: Develop the business case Identify stakeholder groups and design communications and change management strategies for each group Clearly document and communicate the assumptions underlying the business case Continue to update the business case as facts and assumptions change Include both quantitative and qualitative support Copyright © 2011 by ScottMadden. All rights reserved. 13
- 15. Key Steps toExecuting the Service Expansion (Cont’d) Step 4: Develop the service transition & training plan Determine what activities move, what activities stay and the timing of the transition (Stop / Start / Continue plan) Include training topics for future state — Operational process changes — Telephony / IVR training impacts — Case management impacts — HR portal or knowledgebase updates Identify training audiences — Service center Directors and Managers — Service center representatives — HR Business Partners — Centers of Expertise — Employees and managers Align training timeline with the service expansion timeline — Training preparation — Business simulation Hire and train new personnel Begin transitioning work Copyright © 2011 by ScottMadden. All rights reserved. 14
- 16. Key Steps toExecuting the Service Expansion (Cont’d) Step 5: Measure the results Perform on-going measurement of customer satisfaction Monitor stakeholder satisfaction Track and report metrics performance Update the business case Take corrective actions where performance falls short Celebrate successes! Copyright © 2011 by ScottMadden. All rights reserved. 15
- 17. Contact Us For more information on Shared Services Expansion, please contact us. Benjamin Foster ScottMadden, Inc. Managing Associate 3495 Piedmont Rd, Bldg 10 Suite 805 Atlanta, GA 30305 Phone: 404-814-0020 benjaminfoster@scottmadden.com Copyright © 2011 by ScottMadden. All rights reserved. 16