boc strategy approach proposal
DESCRIPTION
11 x 17 double-sided placement to be used for a presentation proposal for Tatum, LLC - Chicago client.TRANSCRIPT
Program Management
Organizational Change Management
Quality Assurance
Analysis Design Construct Implement
Operate
BOC Strategy Approach
Back Office Cooperative Service Strategy
Develop Business Case
Create Detailed Implementation Plan
Execute Plan and Manage Risk
Analysis
Meeting Discussion• Our Understanding
• Shared Services Methodology
☞ Step I – Determine Back Office Cooperative Service Strategy
☞ Step II – Develop Business Case
☞ Step III – Create Detailed Implementation Plan
☞ Step IV – Execute Plan and Manage Risk
• Case Studies
• Next Steps
Appendix • A – Sample Workproducts and Deliverables• B – Sample Tatum Staff Profiles
The Tatum Shared Services Methodology is focused on bringing the best solution to the Back Office Cooperative. The first stage of the methodology is an Analysis leading to the business case for Shared Servics. As shown in Exhibit 3, our approach is based on a Shared Services Methodology that has been tailored to meet the needs of the BOC and the institutions that it supports.
BOC requires skilled and experienced people in non-profit, program management, shared services, business workflow, change management, and facilities to implement a new SSC. This step is for the first stage in this initiative.
Consisting of five key stages, our approach starts by analyzing the current state and then progresses through the design, construction and implementation of the future, shared services state. The approach ends with an operate stage that provides for ongoing management of the shared services environment.
For the BOC, we recognize that no shared services infrastructure exists today. Our analysis step will be focused on the current member organizations’ support and how to craft a strategy to meet the needs of the different groups.
Analysis: During the Phase, data is gathered and analyzed to gain an understanding of the current state. Data needed during this stage.
• Financial • Operational Statistics • People and Labor • Policies and Procedures
• The primary outcome of this component will be the strategy, organization structure, delivery model and business case for developing a shared service approach.
• The Back Office Cooperative was formed by eight local not- for-profits to defray costs of commonly purchase services
• The cooperative governed by an oversight board and recently installed CEO and is organized as a self-funded cooperative to share benefits among member firms
• A shared purchased function has been established and is functioning for the benefits of members
• Additional services are planned including health insurance and risk management
• The BOC is contemplating a shared services organization to support members and affiliates with HR, legal, IT and administrative support functions
OVERVIEW METHODOLOGY
OUR UNDERSTANDING
Organizational Model ExamplesStep I - Objectives and Key Questions
Objectives:
• Define the organization and structure of the BOC• Set cost and service targets for members and affiliates• Determine required core service offerings• BOC Board directives
Questions:
• What is the role of the BOC to the members and affiliates?
• What are the financial targets, funding strategy and return on the services investment?
• How will the longer term member organizations’ strategic direction influence the role of the corporate center?
• What policy changes are required at each of the members to incent the members to use the BOC services?
• What is the message to the member organizations and public at large?
• What will be the long and short term impacts of the venture to member organizations?
• Are organizations required to participate and how will you incent those entities?
Implementation PlanningStep 3 - Objectives and Key Questions
Objectives:
• Prioritize improvement opportunities • Develop comprehensive implementation plan• Design change management program
Questions:
• What is the one-time cost of implementation?
• How quickly can BOC implement the proposed changes?
• How do we manage the transition while Members migrate services and people?
• How do we build flexibility to pursue other opportunities for BOC services and new affiliates?
• Have we created a communications plan that addresses all stakeholder audiences and their issues/concerns?
Members and Affiliates negotiate the services they needStep 2 - Objectives and Key Questions
Objectives:• Identify cost baseline and savings opportunities• Define operating relationship among BOC, members, and affiliates• Determine investments and cost of service delivery• Identify anticipated employee issues
Questions:
• Can members reduce their current cost structure?
• What do the members need from BOC?
• What services will the members choose to provide for themselves?
• How ready are members and affiliates to take on this change?
• What are the benchmarks to measure BOC against to determine succes?
• How will BOC maintain financial control with greater member autonomy?
• How will shared services demonstrate and report their value to the members and affiliates?
• What employee issues or concerns do we anticipate and how do we leverage communications to address them?
Develop Back Office Cooperative Strategy - Step I Develop Business Case - Step II Create Detailed Implementation Plan - Step III
Intergrated Organization Activist Cooperative Consultative Group
BOC Vision and Strategy
Challenge plans, direction and decisions by members
Active resource allocation
Corporate policy setting
Build leadership talent
Split functions—strong bias towards
BU but maintain some scale-
intensive activities in center, e.g.
Transactional (AP, Benefits Admin)
Corporate Vision
Monitor financial resultsManage Corporate Portfolio
Limited — identify obvious areas for “arms - length” synergies.
Only basic “governance” funtion
• Financial Reporting• Audit• Procurement• HR decision making
All other functions to members and affiliates
BOC vision and strategy
Set detailed operational/financial targets and close monitoring with Members.
Integrated planning with membersEstablish shared organization and resources between members
Provide common, shared services
• HR• Accounting• Legal• Finance• IT• Procurement
Finance
Sourcing
Legal
Other (Insurance, Risk, Energy, etc.)
FUNCTION
Services
MembersIT
IMPLEMENTATIONPLANNING
ImplementationIssues
Team Charter
DetailedImplementation
Work Plan
QUICK WINS
Quick withOpportunities
Weekly StatusReports
CHANGEMANAGEMENT
OrganizationalStructure
TechnologyTools
RedesignProcess
PerformanceMetrics
BOCBOARD
USERS OF BOCSERVICES
Governance Control(Not Optional)
• Management cost not allocated
Optional Services
• Service Catalog
• SLAs
• Market Pricing
• Metric and Measures
Required Services
• Major Transactions
• Competitive Issues & Litigations
• Cash Management Balance Sheet Management
• Compensation Strategy
BoardCharter
StatusReports
RiskManagement
ProjectInvestment