The document discusses the key features and benefits of implementing a shared services organization. It outlines the typical phases of a shared services roadmap including assessing current processes, designing the new organization and processes, building out the shared services center, and deploying the new model. Some ideal processes for shared services are those with economies of scale like payroll, HR, finance, and customer service functions. The challenges of implementation include gaining buy-in, standardizing processes, and having strong leadership. Lessons learned emphasize the importance of executive sponsorship, a comprehensive plan, stakeholder input, change management, and continuous improvement.

1. The Effective Development and Deployment of a Shared Services OrganizationMark Hopton

2. The key features of a Shared Services Operation are:Consolidation of administrative functions into a stand-alone organizational entityOnly mission is to provide administrative functions efficiently and effectivelyRequires a dramatic redesign or transformation of the organizational structure and cultureElevating the importance of administrative tasks to the highest management levels with a senior-level perspectiveHigh performance culture with a strong focus on customer serviceClearly defined roles and responsibilities

3. What Are Shared Services and What Are the Benefits?Shared Services is a customer-focused organizational structure andservice modelthat provides back-office support primarily to internal customers and eliminates redundant processes, systems, and organizations.Shared Services EnablesKey Shared Services AttributesStandardization of processes and systems

4. Increased levels of automation

5. Reduction or containment of costs

6. Improved controls

7. Enhanced service levels

8. Access to new technologies

9. Optimization of skills/capabilities

10. Built upon standard processes, policies, and systems

11. Focuses on delivering excellent customer service

12. Strives for continuous improvement

13. Run as a separate organization

14. Enabled by emerging technologiesThe Case for SSCFocus on processes and leverage technology Productivity increasesResponsible, accountable, accessibleDramatic re-engineering of processesBusiness professionals focus on strategic initiatives

15. Typical Shared Services Road Map Typically Shared Services Projects have 4 Phases: 3-5 Months6-12+ Months2-16 months10-14 WeeksAssessDesignBuildDeployDesign the Business Processes

16. Design the Organization

17. Design the Enabling Technology

18. Select Location and Real Estate

19. Develop Hiring Plan and Recruit Shared Services Leaders

20. Refine Communications Plan

21. Create Workforce Transition Plan

22. Develop Training Plan and Management Development Program

23. Design Facilities

24. Design Service Management Approach Details

25. Develop Service Management Processes

26. Build Performance Support and Training Materials

27. Build-out Facility

28. Recruit Shared Services Personnel

29. Create Service Level Agreements

30. Develop Key Performance Indicators

31. Develop / Deliver Build Communications

32. Build the Organization

33. Conduct Deployment Planning

34. Execute Deployment Plan

35. Confirm Service Level Agreements

36. Conduct Training and Work Shadowing

37. Develop / Deliver Deployment Communications

38. Test Shared Service Center Readiness

39. Execute Workforce Transition Plan

40. Shared Services Vision

41. Scope of Shared Services

42. Current State Analysis

43. High Level Operating Model

44. Process Definition

45. Change Management Strategy

46. Business Case

47. Implementation RoadmapProgram-, migration- and change management (ongoing)

48. Ideal processes for Shared Services have low strategic impact and significant economies of scale6Payroll ProcessingCompensationRecordsHire to RetireBenefits AdministrationTraining & EducationTravel & ExpenseSelf ServiceHumanResourcesGeneral LedgerAccounts PayableT&E ProcessingAccounts ReceivablePlanning & BudgetingPurchasingCash ManagementInternal AuditFinanceStandardsTechnology/ Development Desktop SupportApplications DevelopmentData Center OperationsApplication MaintenanceTelecommunicationsHardware & Software AcquisitionInformationServicesLogistics/MaterialsManagementStrategic SourcingAsset ManagementWarehousingInventory ManagementTransportationCall CentersNon-Emergency Service CallsCredit & CollectionsOrder ManagementCustomerServiceLegalAffairsLitigation Support and CoordinationCommunication SvcsRisk Management InsuranceRegulatory ComplianceMedia Relations

49. Implementation ChallengesExperiencePlanning for resistanceShared services struggle to deliver services through delivery channels rather than functionsDriving services from an internal perspective, not a customer perspectiveReluctance to radically challenge the status quo so that work is viewed and performed differentlySpending too much time planning and implementing the transitionFailing to standardize policies, procedures, programs, and services, across operating unitsIncumbents often do not possess skills required for the new service delivery frameworkStrong, sustained leadership and sponsorship

50. Stretch goals and aggressive timing

51. Effective measurement

52. Rewards and punishments

53. Leveraging leading practices

54. Customer participation

55. Work-focused, not functional teams

56. Early discussion of service expectations

57. Cascading, frequent communicationLessons LearnedCritical elements of a shared service implementations, but frequently are forgotten or ignoredProper executive-level sponsorship from support organizations and operating unitsWell-articulated drivers for implementing shared servicesA comprehensive, integrated, phased implementation planCustomer and support service input and buy-inScope agreementService levelsStaffing levelsGovernanceChange managementA detailed current state assessment that documents current costs, volumes, and service levels from which improvement can be measured and communicatedDetailed business case that specifies qualitative and quantitative benefitsMatching positions and skill setsFocus on continuous improvement opportunitiesLeveraging internal resources to design and build the new shared services operationsOver communicate the value and efforts of the initiative

58. SummaryStrong sponsorship is requiredPlan the work and work the planInvolve stakeholdersInclude those functions that support the entire organization and can benefit from standardization and consolidationDedicated effort to business process re-engineering