Planning Expansion and Adding Scope to your Current Shared Services Operation
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Transcript of Planning Expansion and Adding Scope to your Current Shared Services Operation
2011
HR Shared Services Expansion
SSON Shared Services Learning Series
Copyright © 2011 by ScottMadden. All rights reserved. 1
Agenda
I. About ScottMadden
II. Expansion is Good
III. Service Expansion Strategies
IV. Executing the Service Expansion
I. About ScottMadden
Copyright © 2011 by ScottMadden. All rights reserved.
Improve Design Build Decide
About ScottMadden
3
Our Functional Expertise
• Strategy
development and
integration
• Benchmarking
• High-level
business case
• Change
management
• Process
improvement/cost
reduction
• Operations/
technology
assessment
• Benchmarking
• Customer and
employee surveys
• Change
management
• Service expansion
Finance &
Accounting
Human
Resources
Supply Chain
Management
Information
Technology
Real Estate &
Facilities
Multi-Function
Engineering
Services
Administrative
Services
Design
• Service delivery
model
• Detailed current
state, future state,
and business case
• Sourcing model
• Organization
design and staffing
• Change
management
Build
• Project planning
and management
• Service/transaction
center
• Process redesign
• Technology design,
selection, and
support
• Change
management
II. Expansion is Good
Copyright © 2011 by ScottMadden. All rights reserved.
Benefits of Shared Services
5
Reduce Cost (20% to 50%)
Companies can achieve all three, but can design for quicker results on any one.
• Aligns skill set with work type
• Eliminates redundant labor
• Tracks service usage/costs
• Economies of scale
• Automation of processes
• Data centralization
• Improved reporting & analytics
• Improved compliance
• Better decision making
• Focuses on demand mgt.
• Standard Processes
• Issue tracking & closure
• Performance Metrics
• Common model for expansion
Gain Control & Leverage Data
Control Cost
Improve Service & Enable Scalability
Copyright © 2011 by ScottMadden. All rights reserved.
Advantages and Disadvantages of Growth
Advantages of Growth
The shared services model works
— Improves service delivery
— Lowers total costs
Economies of scale
Synergies (e.g., on-boarding of new employees)
Standardization of processes and elimination of redundant processes
Shared technology
Shared management and administration
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
Disadvantages of Growth
Investment requirements—up-front costs to transition and centralize technology, staff, equipment, and facilities
Additional bureaucracy
Size can hamper responsiveness
Requires broader technical expertise at the top to manage additional functions
Perception of kingdom building
Potential impacts to employees currently performing the work
6
III. Service Expansion Strategies
Copyright © 2011 by ScottMadden. All rights reserved. 8
Expansion Strategies – Horizontal vs. Vertical Growth
Horizontal Growth
Additional customers
Additional business units within each company
New geographic areas
— New states, regions, countries, etc.
— Global shared services centers
Support to other companies (external sales)
Chemistry General
Supervisor
Shift Techs
Plant Chemistry
Supervisor
Chemistry Technical
Services Principal
Chemist
Chemical
Analysts
Nuclear Operations Manager
Waste Management
Supervisor
Rad Waste
Shipping
Environmental
Vertical Growth
Additional services
HR services
— Recruiting support
— Training and development
— Labor relations
— Vendor management
— Relocation support
— Travel & expense reimbursement
HR Information Technology support
— HR applications support
— HRIS report requests
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.
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
9
Copyright © 2011 by ScottMadden. All rights reserved. 10
Vertical Growth – Adding New Services (Cont’d)
The service is provided to more than one business unit
1 = More than one business unit
2 = Most of the business units in the company
3 = All of the business units in the company
The service is transactional in nature
1 = Work is non-transactional
2 = Some people doing similar, repetitive tasks
3 = Many people doing similar, repetitive tasks
It is not core to the business unit
1 = Function is considered a core operation
2 = Function is not a core operation
Service satisfaction level
1 = Business unit customers are fully satisfied with current service levels
2 = Business unit customers are somewhat satisfied with current service levels
3 = Business unit customers are dissatisfied with current service levels
EH&S
Training
Bonus
Admin
Vendor
Mgmt.
Change management impact
1 = Significant change management is required
2 = Some change management is required
3 = Minimum or no change management is required
Overall effort to implement
1 = Complex implementation (months to implement)
2 = Simple implementation (weeks to implement)
Copyright © 2011 by ScottMadden. All rights reserved. 11
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!
Service
reach?
Transactional
in nature?
Core to the
business?
Current
satisfaction
levels?
Change
management
impact?
Overall
effort?
Total
Score
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
HR Shared Services Expansion Tracking Tool (Example)
Candidate Services / Activities
IV. Executing the Service Expansion
Copyright © 2011 by ScottMadden. All rights reserved. 13
Key Steps to Executing 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. 14
Key Steps to Executing 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.
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!
15
Key Steps to Executing the Service Expansion (Cont’d)
Copyright © 2011 by ScottMadden. All rights reserved. 16
For more information on Shared Services Expansion, please contact us.
Contact Us
Benjamin Foster
Managing Associate ScottMadden, Inc.
3495 Piedmont Rd, Bldg 10
Suite 805
Atlanta, GA 30305
Phone: 404-814-0020