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Smoothly passing the baton from captive to outsourced service delivery in just a few monthsMichelle Adams – European Servi...
What you will get from this presentation                             1.   Introduction to AZ & Project Bridge             ...
AstraZeneca    Global Pharmaceutical Company    14 major R&D sites in 8 countries, 23 supply and manufacturing    sites in...
This is what we did over 3 yearsTransferred our services to be                                                        Esta...
Why did we do it?  AZ Finance Landscape – “Before” Transition Model                                                       ...
So how did we do it?• Overview of Project Bridge Methodology, Transition and  Work Stream approaches
Project Bridge Summary            Change                              Costs                       Compliance    • Transfer...
Global Transition Plan                 Q4         Q1        Q2     Q3     Q4     Q1     Q2     Q3     Q4                20...
How we organised ourselves.....Programme Structure                  Global Finance Services - Global Programme Director   ...
Transition Methodology - Planning Toll-gates      “Plan, Execute and Completion” phases used the Tollgate approach to alig...
Key challenges and howwe over come them
Preparation       Knowledge TransferInitiate    Sol ID                                                 Pilot   Production ...
Preparation       Knowledge TransferInitiate   Sol ID                                                Pilot   Production St...
Preparation       Knowledge TransferInitiate   Sol ID                                                Pilot   Production St...
How did we keep staffmotivated throughoutthe Transition?
How did we keep staff motivated?   Shared Service Centre            Bridge Programme Team•Open & honest communication     ...
Did we achieve what weset out to?
In 3 years we have.......Transferred our services to be                                                        Established...
What additional benefits did Bridge deliver.....           Change                                Costs                    ...
We have over delivered on original scope & taken on newscope.....                                                         ...
What did we learn?• What went well, what would we do differently?
It’s not what we do, it’s the way we do it...                  • Project run at regional/country levels                  •...
Questions
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Smoothly passing the baton from captive to outsourced service delivery in just a few months

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Leading the transition of your shared services activities to an outsourcer can be an exciting yet daunting project, but also a sad time as many of your SSC staff will be made redundant.
In this session, Michelle Adams will prepare you well for this journey by sharing how to:

• Attain business as usual in just a few months
• Handle the motivation of outgoing staff to transfer knowledge to your outsourcing partner
• Set up the right governance structures to ensure your business units’ needs are addressed and SLAs are being delivered

Published in: Education
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Smoothly passing the baton from captive to outsourced service delivery in just a few months

  1. 1. Smoothly passing the baton from captive to outsourced service delivery in just a few monthsMichelle Adams – European Service Delivery DirectorJudith Morris-King – Global Process Expert14th March 2012 1
  2. 2. What you will get from this presentation 1. Introduction to AZ & Project Bridge Journey 2. How did we do it? 3. Key Challenges and how we overcome them 4. How did we keep staff motivated? 5. Did we achieve what we set out to? 6. What did we learn?2
  3. 3. AstraZeneca Global Pharmaceutical Company 14 major R&D sites in 8 countries, 23 supply and manufacturing sites in 16 countries We employ over 61,000 people, 47% in Europe, 30% in the Americas, 23% in Asia, Africa and Australasia We invest over $4 billion in R&D each year and have over 15,500 people in our R&D organisation A 70-year track record of innovation that includes the introduction of many world-leading medicines. In 2010, our worldwide sales totalled $33.3 billion, with operating profit of $11.5 billion.
  4. 4. This is what we did over 3 yearsTransferred our services to be Established andelivered out of 6 locations in in-house SharedGenpact & 4 in AZ Service Centre in Asia Pac GFS EMEA & Central Genpact AZ, Lublin Genpact AZ, Cluj GFS NAM GFS LATAM Genpact AZ, Rabat Genpact AZ, Genpact AZ, Delhi GFS APBS Guatemala Realised our vision for Genpact AZ, one Global Sao Paulo Organisation Delivered the new transactional finance Operating Model 4
  5. 5. Why did we do it? AZ Finance Landscape – “Before” Transition Model Sweden 210 NA UK 530 Rest of Europe 400 330 Japan AsiaPac 45 MEA 30 210 LatAm 210 Business Partnering Specialist Finance Transactional Finance Administrative staff Other staff Objective of Bridge - to improve further the effectiveness ofArea totals are rounded and approximate AstraZeneca’s finance function in driving, measuring and reporting business performance, while simultaneously reducing the costs of the 5 finance function toward external best practice levels of efficiency
  6. 6. So how did we do it?• Overview of Project Bridge Methodology, Transition and Work Stream approaches
  7. 7. Project Bridge Summary Change Costs Compliance • Transfer of transactional • $55m project which involved • We are 80% complete in activities through a a global project team with standardising controls combination of Business regional experts based in across all regional areas Process Outsourcing and in- region GTF supports House Service Centre delivery • Significant improvements in • More efficient compliance cash allocation and manual reporting and senior • Reshaped how and where we invoicing on overdue credit leadership report outs deliver our services globally card spend • Clear control ownership • Transitioned services out of • More than 75% of cost saving and traceability of controls 53 Marketing Companies benefits realised to date with for audit purposes across EMEA the Americas the remainder being tracked and Asia Pacific to completion • Genpact enforcing and improving our compliance • Standardised KPI reporting models approach across all regions7
  8. 8. Global Transition Plan Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2010 2010 2010 2011 2011 2011 2011 UK Will finish in AZ Turkey Russia Greece & Turkey Sweden Started in Sweden CEE MEA LATAMNorth America Asia & 8 India
  9. 9. How we organised ourselves.....Programme Structure Global Finance Services - Global Programme Director Programme Mgmt Office Global Transition Director Sweden UK CEE/MEA LATAM NAM Transition Transition Transition Transition Transition Director Director Director Director Director SMEs SMEs SMEs SMEs SMEs Global Processes HR Communications Finance & Benefits IS 9
  10. 10. Transition Methodology - Planning Toll-gates “Plan, Execute and Completion” phases used the Tollgate approach to align to the major milestones & service transfer to Genpact. Preparation Knowledge TransferInitiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) UAT Planning and preparation for Service Delivery through existing Knowledge AZ roles and staff. Complete Transition. Contract completion Initiate Transfer Knowledge Transfer and quality and education. Team roles & responsibilities agreed assurance. Commence retained roles education and training. Tollgate 0 UAT Agree detailed solution for each Tollgate 3 Sol ID process. Finalise retained Service Delivery by Genpact starts. capabilities and organisation design AZ remain accountable. New AZ Pilot retained organisation known and Tollgate 1 educated. Complete Genpact team recruitment. Tollgate 4 Prepare Genpact and AZ teams for Service Delivery through new Knowledge Transfer. Complete service model Genpact & AZ. ProductionPreparation preparation for systems access and Service Governance operational. arrival on-site. Commence AZ Refine and improve AZ and retained recruitment. Define / refine Stabilisation Genpact ways of working. Benefit AZ retained ways of working delivery underway. Tollgate 2 10 Tollgate 5
  11. 11. Key challenges and howwe over come them
  12. 12. Preparation Knowledge TransferInitiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges Impact of late joiners to Genpact teams- knowledge and access Front Line Manager (FLM) capabilities during training FLM Presence, sponsorship and support Decisions about which team members were suitable for on the job training (OJT) Quality of pre OJT training plans Scoring of assessments – Genpact Vs AZ 12
  13. 13. Preparation Knowledge TransferInitiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges On the job (OJT) Plans - significant amount of work for subject matter experts (SME’s), particularly in relation to country specifics Length of OJT period, impact of 100% Vs portion of team (particularly Helpdesk) Impact & pressure of workload on Genpact teams Standard operating procedure submission & review Front Line Manager (FLM) Quality Assessments-teach backs Vs practical assessments Demands placed on AZ resources IS – Citrix Solution – use of AZ laptops 13
  14. 14. Preparation Knowledge TransferInitiate Sol ID Pilot Production Stabilisation (Hire - Train) (and On-the-Job Training) Challenges Not proactive in issue resolution More Market dependencies No root cause analysis on KPI misses Lack of Communication across Genpact sites & Working in silos Minimum sharing of best practice AZ driving Service Governance structure & process improvement initiatives Attrition & effective knowledge transfer in the teams Capability change for retained AZ teams 14
  15. 15. How did we keep staffmotivated throughoutthe Transition?
  16. 16. How did we keep staff motivated? Shared Service Centre Bridge Programme Team•Open & honest communication Judith to share her personal journey from being a Process•Retention Packages Manager within Cash & Bank and then moving into a Subject•Created excitement for change Matter Expert role (SME) on the project.•Embeded change in the culture– change workshops & coaching How did she get though it all with the uncertainty of having a•Used people from teams in key job at the end of the project?project roles•Celebrated & communicatedshort term wins•Recruitment plans with newshared service centre opening inarea
  17. 17. Did we achieve what weset out to?
  18. 18. In 3 years we have.......Transferred our services to be Established andelivered out of 6 locations in in-house SharedGenpact & 4 in AZ Service Centre in Asia Pac GFS EMEA & Central Genpact AZ, Lublin Genpact AZ, Cluj GFS NAM GFS LATAM Genpact AZ, Rabat Genpact AZ, Genpact AZ, Delhi GFS APBS Guatemala Realised our vision for Genpact AZ, one Global Sao Paulo Organisation Delivered the new transactional finance Operating Model 18
  19. 19. What additional benefits did Bridge deliver..... Change Costs Compliance • Project Bridge key enabler of • SOTC – backlogs recovered • Previously limited change through flexible resulting in $Ms cash back reporting of Fixed Assets approach to project into the system. across any AZ Region – management now in place across all • Un-allocated cash reduced by • Centralised and delivered 80% in Europe Region • Balance sheet efficiencies in additional reconciliation policies transactional finance scope • Significant increase in harmonized and payment-on-time across strengthened - improving • Delivered finance services to Western Europe by October the accuracy of the support new global 2011 balance sheet commercial business models • Cash & Banking CPI around • KPI reporting now in place number of open items on across all regions for all bank reconciliations processes improved from 1,700 pre transition to less than 97 at end of 201119
  20. 20. We have over delivered on original scope & taken on newscope..... We are here Genpact operating service in production for: UK, Sweden, GC Europe (most countries), CEE, India, NAM (P2P, T&E), MedImmune, CAMCAR, Venezuela, South Africa, Maghreb , Saudi, Gulf (P2P) and Brazil (except R2R) % of FTEs with Genpact Focus for Q4 and Q1 2012 • Transition remaining services in Production: Egypt, Gulf (R2R), Brazil (R2R), NAM (SOTC, Banking), Greece, Turkey, Russia, Columbia, Chile, Argentina, Peru • Complete Final Tollgates (TG5) We have transitioned more than 106% of original scope20
  21. 21. What did we learn?• What went well, what would we do differently?
  22. 22. It’s not what we do, it’s the way we do it... • Project run at regional/country levels • Visibility of senior team members, open & honest culture Engagement • Focus on personal journey • AZ team primarily in-house and specific contract resources • Balance risk & reward of early exits Resources • Clear approach and criteria applied to retention • Simple project methodology Project • Standardised risk & issue methodology across all regions Methodology • Significant volume of 1:1’s between AZ leaders and AZ & Genpact leaders • Clear succession plans for critical resources • Recruitment in GenpactWhat would we • KPI model do differently • Over invest in time for new delivery centres • Language Dependencies 22 • Develop AZ Retained Operating Model straight away
  23. 23. Questions

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