a presentation from the governance academy -...

A Presentation from the

Governance Academy

Governance Academy Mike BealsFounder

www.sig.org/eval

How GBS, Regulatory Compliance,

and As-a-Service are Driving

Governance Maturity

© 2015 Governance Academy, LLC All Rights Reserved 2

Hybrid Delivery Environment

APAC

Europe

Americas

ProcurementIT F&A HR

IBM

Wo

rkd

ay

SSC

SSC

AC

N

AC

N

SSC

Internal

SSC

SSC

Internal

Internal

Dell

Internal

ACNInternal

Internal

InternalInternal

Internal


GBS Maturity

BUSINESS

SERVICES

MATURITY

* KPMG Survey of 100 SSC/GBS organizations

Level 05

Level 04

Level 03

Level 02

Level 01

FRAGMENTED

■ Decentralized service delivery model

■ Duplicative functions, processes, and technology

■ Little central control and governance over business support services

SUB-SCALED

■ Consolidated delivery model

■ Leverage economies of scale for highly transactional services

■ Shared services or outsourcing typically on a single-function, regional basis

SCALED

■ Multi-functional service delivery model that operates in siloes

■ Variation around the inclusion and level of processes, technology, and governance standardization

INTEGRATED

■ Enterprise wide multi-functional transactional and specialist business service model

■ Coordinated processes, technology, governance, and multi-channel delivery for scale and adaptability

STRATEGIC

■ Multi-functional, multi-channel business service delivery synced end to end

■ Provides transactional, expert, and analytic services

■ Managed through integrated, outcome-oriented governance


Source: KPMG Survey of 100 SSC/GBS organizations

Regulatory Environment

The OCC is concerned that the quality of risk management over third-party relationships may not be keeping pace with the level of risk and complexity of these relationships.

– OCC Bulletin 2013-29


Regulatory Environment

“Management should consider the financial institution's ability and expertise to provide appropriate oversight and management of the relationship with the service provider.”

“Financial institutions should ensure that personnel with oversight and management responsibilities for service providers have the appropriate level of expertise and stature to manage the outsourcing arrangement.” -FRB’s Guidance on Managing Outsourcing

Risk dtd Dec 5, 2013


As-a-Service

Lack comprehensive business service functionalityCannot fully customize


Source: Microsoft

Do these challenges apply to you?

A. Yes, we are in a heavily regulated industry and need to figure out how to implement new guidance

B. Yes, we are trying to figure out how to mature governance, better integrate our providers, and better commercialize our services

C. Yes, my team spends way too much time doing our work manually and need to figure out how to automate

D. None of the above

59%

88%

76%

0%


There are multiple relationships to manage

Governance

Corporate Functions establish broad policies and guidelines

Represent varied requirements which must be separately addressed

Retain responsibility for strategy and functional policy

setting and interpretation

Each provider has their responsibilities, but they must

work together as a whole


Hybrid Delivery Environment

APAC

Europe

Americas

ProcurementIT F&A HR

IBM

Wo

rkd

ay

SSC

SSC

AC

N

AC

N

SSC

Internal

SSC

SSC

Internal

Internal

Dell

Internal

ACNInternal

Internal

InternalInternal

Internal


Organizational Models

FunctionWhich business servicefunctions are included?

GeographyWhich geographies

are included?

ProviderWhich providers are included?


Organizational Models

Single GeoSingle Function Multi-Provider

Governance

Inte

rnal

Del

l

IBM

Americas IT

Governance

Pro

vid

er 1

Europe

IT HR F&A Proc

Pro

vid

er 2

Pro

vid

er 3

Pro

vid

er 4

Pro

vid

er …

Pro

vid

er n

Single GeoMulti-Function Multi-Provider

Multi-GeoSingle function Multi-Provider

AM EU APAC

HR

Governance

Pro

vid

er 1

Pro

vid

er 2

Pro

vid

er 3

Pro

vid

er 4

Pro

vid

er …

Pro

vid

er n


Value Chain

Input Value Output

ProfitProfitability of the company's activities

Inbound Logistics

ProductionMarketing &

SalesOutbound

logisticsCustomer

service

Secondary activities

CompanyInfrastructure

Technology development

Human Resources Procurement

Primary activities

Source: Michael Porter


Climbing the Value Steps

Product

Service

Solution Development

Innovation

Partner Solution

Inter-changeable supplier Product

Transactional

Value Added

Specialized

Unique

Cost/Productivity

Capital/Asset Mgmt

Customer Satisfaction

Competitive Positioning

Revenue

Relationship Type Value Driver


Decentralized Governance

Role Comprehensive management

Responsibilities Determine functionality Develop and deliver all

governance processes Report for assigned scope Adopt tools, as required

Decentralized Groups


Governance COE

Role Standardization and training

Potential Responsibilities Collect Best Practices Provide methods, tools, and

templates Training and Certification Monitor Regulatory

Compliance Conduct Audits

Potential Responsibilities Implement standards Deliver configured

governance processes Provide reports Manage customer

relationships



Governance Shared Service

Role Centrally deliver services

Potential Responsibilities Multi-provider reporting Central processing (e.g.

invoicing, contract changes) Manage regulatory compliance Provide tool enablement and/or

services Sourcing Strategy Program Management to

include transition

Potential Responsibilities Manage provider

relationship Manage service levels Deliver non-centralized

processes Resolve issues



Governance Process GroupsMost outsourcing governance processes are common to shared services

Financial Issues/Risk PerformanceContract Relationship

Contract Administration

Contract Change Management

Deliverable Approval

Audit

Benchmarking

Issues Management

Risk Management &

Reporting

Statutory & Regulatory Compliance

Internal Standards

Compliance

Invoice Approval

Service Level Credits & Earnbacks

Financial Reporting/Charg

ebacks

Demand & Consumption Management

Service Level Management

Service Level Reporting

Root Cause Analysis

Project Initiation & Authorization

Program & Project

Management

Customer Satisfaction

Communication Management

Relationship Alignment

Joint Planning

Governance & Reporting


End-to-End Process

From

Server Applications Break FixHelp DeskNetwork

Network UptimeServer AvailabilityApplication Availability1st Call ResolutionResponse Time

Service Levels

To

Worker Productivity


On-Boarding Process

From

Accounting IT FacilitiesHR

HireSet up payrollNetwork accessAssign workspace

Responsibility

To

Worker Onboarding


Shortage of qualified resources

RoutineConsultative

Strategic50%

42%

8%

Enterprises see the need for talent to define business outcomes beyond cost as significantly increasing

67%

Source: HfS Research


Skills and AttributesIs the mix of skills and attributes appropriate given the intent of the deal?

Contract Management and Administration

Service Level Methods Contract Negotiation Project Management Financial Analysis Written Communication Presentation Relationship Management Facilitation Financial Modeling Conflict Management Business Acumen Business Development Business Negotiation

➯ Depending on the type of deal, some of these skills and attributes will be critical, and others, hardly needed at all.

➯ The governance team must have the right mix of skills and attributes in the right positions.


Skills Management

Talent Management & Development Framework

Matching capabilities and requirements of individuals and organization

Organizational activity to improve the performance of individuals and groups

Focus on performance of governance

employees and processes

Combination of structured planning and

active choice of one’s own professional

career

Formulation and implementation of strategies and policies to reward people fairly in accordance with

their value to the organization

COMPETENCY FRAME

Reward Management


Governance Solution Architecture

Governance ServiceDelivery Management Document

& FormsRepository

Business Intelligence & Analytics

Workflow

Calculations Automation

Operations Management Service Delivery Management

Co

llab

ora

tio

n

Pre

sen

tati

on

Serv

ice

C

atal

og

Staffing Tool Enablement


Governance Capability Model

Level 1 Level 2 Level 3 Level 4 Level 5

Purpose Manage environment as best you can

Focus on commercial mgmt to hold provider accountable

Establish comprehensivegovernance functionality

Use measurement model to track progress

Fully leverage provider’s capability to meet business needs

Processes Ad hoc; Not documented

Some documentation to enable repeating

Defined & confirmed as a standard process

Quantitativelymanaged using agreed metrics

Deliberateprocess optimization & improvement

Staffing Inexperienced/untrained in governance; Understaffed

Understaffed and/or lackingsome skills or experience

Appropriately staffed w/ mix of commercial, performance and Rel Mgmt

Fully staffed w/ skill gaps assessed and training plans in place

Fully staffed and enabled. Timespent on deciding and collaboration

Tools Random spreadsheets & presentations

Rely on a few “standard” reports

Structureddatabase & doc repository

Tools automate processes and reporting

Tools provide decision support & analysis


Recommendations

Level Actions

Organizational Adopt a common governance framework Aggregate governance to meet objectives

Process Drive process consistency across all delivery environments

Instill commercial disciplines

Job/Performer Assess existing skillset Hire/train/reassign to meet changing needs

Enabling Tools Develop a tools’ strategy

“Begin with the end in mind”


Commercial Orientation

Commercial disciplines

Service offerings

Service levels

Fees

BrandingRelationship ManagementSales & Marketing

Service Catalog


[email protected]


Evaluation How-to:

Your feedback drives

SIG Event content

By signing and

submitting your

evaluation, you are

automatically entered

into a prize drawing

Why?

Option 1: App

1. Select Schedule

2. Select Schedule by Day

3. Select Day4. Select Session

5. Scroll to Description

6. Click on the Evaluation link

Option 2: Browser

1. Go to www.sig.org/eval

2. Select Session (#47)

How?

COMPLETE &SUBMIT EVAL

Download the App: bit.ly/SIGCAappTweet: #SIGfall15

Session #47

A Presentation from the Governance Academy

www.sig.org/eval

Governance Academy

Mike BealsFounder

(404) 919-3560

[email protected]

a presentation from the governance academy -...

Documents