Shared Services for Higher Education

North America | Latin America | Europe | Middle East & Africa | Asia-Pacific
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?

Who We Are
Agenda

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

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

Who We Have Worked With
OUR CLIENTS
WHERE HAVE WE COME FROM

Agenda
What is Shared Services?

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.

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

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

Achieve the Triple Benefits of Shared Services
Higher Quality
Lower Costs
Improved Control

Agenda
Trends in Shared Services

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)

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

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)

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.

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

Some Shared Services Examples in Public Sector

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

Shared Service Maturity: Country
0
1
2
3
4
5
6
7
8
9
10
MaturityIndex
Maturity of Shared Service Centers
Private
Public

Agenda
Higher Education Focus

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)

• 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”

“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.

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

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.

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

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.

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

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.

Agenda
Critical Success Factors & Best Practices

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

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

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”

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.

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!

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.

Public Sector Lessons Learned (Research Based)
Agenda

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)

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)

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)

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
“

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.
“

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.
“

Contact us
www.chazeypartners.com
enquiries@chazeypartners.com

Shared Services for Higher Education

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