Business Case & Roadmap to Shared Services


ROBERT TOWLEManaging DirectorNorth America (East)Tel: (862) [email protected]

Robert has over 20 years of experience in Finance, SharedServices and Technology implementations. He hasmanaged multiple shared services transformation projectsand has held multiple roles managing shared servicesoperations in the U.S., U.K. and in multiple locations inIndia. Prior to his recent assignments, he was the VicePresident of Finance for Pinkerton Consulting.

Prior to Pinkerton, Robert was the Vice President ofGlobal Operations Finance for Travelport Limited, withresponsibilities including the management of company’sIndian Shared Service Center, global corporate travel andNorth American payroll operations.

He is well suited to developing transformation activities,but is comfortable focusing on daily operational issues,managing staff at all levels and ensuring a high level ofcustomer service.

Robert holds an MBA with dual concentrations in Financeand Information Technology from Auburn University.

CHAS MOOREManaging DirectorNorth America (West)Tel: (250) [email protected]

Chas has 19 years of experience in business leadership,management and Shared Services implementations. Heleverages his extensive experience in healthcare andindustry to help teams innovate effective and realisticsolutions for complex industries. Prior to his recentassignments he was the Interior Health Business SupportDirector for Corporate Initiatives leading Shared Servicesimplementations involving the Canadian healthcaresector. Prior to the formation of Interior Health, Chas wasthe CFO of one of the 18 predecessor organizations.

In addition to his Canadian assignments, Chas providessubject matter and technical expertise to American clientsand holds a US work visa. He has extensive experience inproject management, business case development,mentoring & coaching, and public speaking, includingfacilitation at several international Shared Services events.

Chas is a Chartered Professional Accountant, CharteredAccountant, and has a BSc Degree in Microbiology fromthe University of British Columbia.

mailto:[email protected]

mailto:[email protected]


What is a Shared Services Business Case,

and why is it so essential?

Key steps to building a successful Business

Case for Shared Services in the Public

Sector

Developing a multi-phase roadmap for

your Shared Services

Failure to launch?How to avoid costly

mistakes!

Lessons learned from highly effective

examples of Shared Services in the Public

Sector


Chazey Partners Profile

Shared Services Concepts

Roadmap & Activity 1

Business Case

Lessons Learned & Activity 2


Strategic advice

Project management

Business case development

Support from concept to realization

For new, existing and mature organizations

The big four:

• Finance

• Human Resources

• Information Technology

• Procurement

Other back office:

• Facilities

• Office Administration

• Communications

Over 20 Years Experience

Offices in North & Latin America,

Ireland, United Kingdom, Europe & Singapore

Practitioner led

Over 50 active full-time staff and over 70 specialized

resources

Knowledge transfer

Client-focused approach

Who We Are What We Do Where We Focus

Chazey Profile


Who We Have Worked With

OUR CLIENTS

WHERE HAVE WE COME FROM


“Chazey’s team all have a strong background as CFOs or Finance or HR leads in

global organizations, and understand the ins and outs of a Shared Services

environment. They are familiar with all phases, whether a new launch or a mature

operation. That’s the kind of knowledge that even a good consulting team cannot

give you. It’s based on real-life experience. In addition, Chazey has access to a

wealth of benchmark data based on their own experience across different

industries. These best practices proved valuable when analyzing processes to

incorporate into our own model.”

Manolis FafaliosShared Services(Transition) Director Coca-Cola Hellenic

“Critical to our success was the great partnership that we formed with the Chazey

team. By embedding Chazey staff into our GNB work groups we were able to

create a collaborative and interactive relationship that was very different from a

traditional vendor client arrangement. Phil, Grant and John (and others) brought

a depth of shared service knowledge, along with tactical expertise from multiple

previous implementations that enhanced the approach developed by our GNB

core team. This integration of teams allowed us to produce a dynamic GNB

specific service strategy, based on best practices and world class implementation

techniques.”

“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.”

Andrea Seymour Former Chief Operating Officer, New Brunswick Internal Services Agency

Les GillSenior Director, HR Shared ServicesGilead Sciences, Inc.

Testimonials


Shared Services Concepts


•Treats its internal client with the same level of respect and service that external clients expect

Elevator Speech

•Provides non-core services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal client. This involves a philosophy and approach totally unlike traditional “corporate-driven” centralization.

Definition

•Has the goal of providing 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.

Goal

•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.

How-To


Centralization/Decentralization Cycle

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


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


Corporatization/Centralization:

• Users of service must accept corporate direction

• Cost containment is prioritized over performance

Transformed Shared Services:

• If consumers of service are unhappy, they’ll leave

• Performance is prioritized over cost containment

Scenario: “Management decides to reduce the hours of their help desk for their information technology services.” What are the key drivers behind the decision?

If your organization is not focused on the client, you either:

Do not have Will nottransformed or have transformation

Shared Services for long (it will fail)


Without CIF

• Lack clarity on who does what

• “Perception versus reality”

• Focus is on negative aspects of service delivery

• One-way traffic without traction

• Strained client relationships

• Not proactive; takes effort to maintain morale

• Takes emphasis away from customer service

With CIF

• Outward looking and proactive

• Client-orientated

• Deliver to pre-defined standards of service to meet agreed client needs

• Accountable and measured, using metrics and KPIs

• Drive cost of service towards a world-class standard

• Active management of client relationships

Through a formal framework: The Client Interaction Framework (CIF) distinguishes a leading practices Shared Services from a simple act of centralization and drives a spirit of partnership between the SSO, its clients, and all key stakeholders


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


OutputProces

s

InputKPIs

Operational & Individual KPIs

OutputKPIs

Measure effectiveness and efficiency of SSO

“The engine room”

Achieving targets?

Working as a team?

Measures the success, quality and effectiveness

of service delivery

Downstream part of process

Aka “lagging” indicators

Measure client input to process

Timely, standardized and in the prescribed format?

Upstream part of process

Aka “leading” or “reverse” indicators

Input


Roadmap & Activity 1


Business Case•Provides framework to achieve executive buy-in & sign-off; Acts as essential control mechanism

•Key activities: stakeholder interviews, Activity Based Analysis, Leading Practices Diagnostics

Design•Provides all templates, plans and frameworks to support actual deployment

•Key activities: Design processes & technology, plans for training, hiring & employee transition

Build•Building processes & technology, training staff, and set-up of end-state location

•Key Activities: Configure processes, build technology, recruitment & training

Deploy•Full operationalization of new end-state across organization with new processes and systems

•Key activities: Detailed deployment plan, testing, Service Partnership Agreements

Stabilize•All functions fully integrated, process-orientated, client-focused, culture of continuous improvement

•Key Activities: Optimize work allocation, continuous training, comprehensive feedback review


• Trade cards with other tables to get a set of seven activities that are aligned with your designated phase

Purpose

• Each table has an envelope containing 8 cards

• One card designates your table’s phase

• Seven cards describe activities

Set Up

• Open up envelope and note your table’s designated phase

• Discuss at your tables which of the seven activity cards:

• Are aligned with your phase

• Need to be traded with another table

• Trade cards with other tables: you may only trade one card at a time and you must accept another card in return; your table will always have 7 activity cards

Instructions


Business Case• Complete Activity

Based Analysis

• Confirm Baseline Performance

• Complete Stakeholder Analysis

• Leading Practices Diagnostics

• Create Opportunity Matrix

• Finalize technology assessment

• Develop Financial Business Case

Design• To-Be Process

Design

• Define Required Competencies & Identify Gaps

• Develop Initial Technology Specifications

• Select Location, Design Facility Confirm Costs

• Adapt/Write Job Descriptions

• Develop Technology Roadmap

• Complete Job Impact Analysis

Build• Validate/Test

Processes in Conference Room Pilots

• Build Technology Enabled Processes

• Develop Detailed Deployment & Cutover Plan

• Recruitment & Training

• Build Service Partnership Agreements (SPAs)

• Develop KPIs & Metric tools

• Build/Adapt End State Facility

Deploy• Resource

Deployment Team

• Deliver Detailed Deployment Plan.

• Test Readiness for Go-Live & Execute

• Implement & Sign Off Service Partnership Agreements (SPAs)

• Work Shadowing & Knowledge Transfer

• Implement Employee Transition Plan

• Roll Out Technology with Training

Stabilize• Stabilize

Operations

• Optimize Work Allocation

• Assess Client Interaction Framework

• Implement Continuous Improvement

• Assess Technology Tools

• Implement Continuous Training

• Conduct Comprehensive Feedback Review


Was this harder or easier than you expected? Did anything surprise you?

Were you able to get a set of activities that aligned to your phase?

• From the original set aligned with your phase

• To accept in trade from other tables

• Made it into your final set of activities

Was your table able to achieve consensus on which activities:

Did any activities fit into more than one phase?

Did you discern clear tollgates and logic between the phases?

Do you see any benefits or constraints by organizing the activities in this way?


Business Case


Financial Business Case

Organizational Structure

Operating Model

Governance & Policy

Frameworks

Change Management &

Comms Plan

Implementation Plan

Report & PresentationBaseline Opportunity

MatrixProject

Initiation

Baseline Reports & Data

Stakeholder Interviews

As-Is/Client Interaction Workshops

Activity Based Analysis

Technology Landscape

High-Level Benchmarking

As-Is Leading Practices

Diagnostics

To-Be Leading Practices

Diagnostics

Technology Assessment

Location Analysis

To-Be Design Principles

Stakeholder Analysis


Lessons Learned & Activity 2

FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD

MILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FE

0

24

20

17

14

11

7

5

2

Achieve Efficiency

Savings

Improve Quality &

Leading Practices

Compliance, Visibility,

Control

Scalability

Innovation &

Culture Change

Critical Mass for

Technology Enablement

Free Up Capacity and

Enable the Business

Enable Alternative

Service Delivery Models

Cheer SilenceLoseWin Boo

Round 1

0

35

28

20

12

5ERP

Document Management

& Workflow

Case Management &

Performance Measurement

Cloud

Social Media


Round 2

0

24

20

17

14

11

7

5

2

Shadow Operations

Low Customer

Satisfaction Scores

Complaints about

Paying Chargebacks

Losing Clients/

Market Share

Lack of Standardized

Processes

High Employee Turnover,

Center is “too quiet”

Minimal use of

Automation Tools

High Cost of

Operation


Round 3

0

31

25

18

14

9

3

Lack of senior level

sponsorship

No Business Case/

Weak Project Management

Taking on Too Much/

Too Soon

Technology Issues

Roles & Responsibilities

Poorly Defined

Weak processes


Round 4

0

24

20

17

14

11

7

5

2

Executive sponsorship

Is key

Develop clear

Business case

Do not Underestimate

Change Management

Leverage Formal Client

Interaction Framework

Innovate &

Continuously improve

Global Standards &

Process Ownership

Standardize &

Integrate Technology

Transformation

Takes a Team


Round 5


Got CIF?

Go to www.chazeypartners.com/cif and complete the Client Interaction Framework (CIF) Self-Assessment

Obtain your free report and access to resources

Remember that without client engagement, there is no Shared Services


1. Without client engagement, there is no Shared Services

2. You need a structured, proactive approach to manage the client relationship

3. A robust business case helps achieve executive buy-in & acts as an essential control mechanism Leverage our Experience

for Your Success

Business Case & Roadmap to Shared Services

Business

Transcript of Business Case & Roadmap to Shared Services