Shared Services – The Journey

Caroline Brown

3rd December 2013

Agenda

• Introduction

• No More ‘Lift and Shift’

• Future Target Operating Models

• Principles Underpinning the development of Shared Services

• Best Practice HR Operating Models

• Close

2

Introduction to Caroline Brown

• 20 years experience in shared services

• 25 years experience in Transformation (People/Process &

Technology)

• European Head Of Transition and Transformation for Accenture HR

Services

• Global Head of HR Outsourcing for TATA Consulting

• 5 years Senior Partner Baxter Neumann

• Recently led the bid and acted as the Solution Architect for the first

Government Integrated Shared Service Deal ISSC1 and having won

the deal Baxter Neumann are now leading the delivery

Gone are the days of ‘Lift and Shift’

• Lifting and Shifting of Tasks and Responsibilities – From

distributed to central delivery

• Performing the same tasks in the same way but cheaper

• It often led to Broken processes

• Delivered Little or no integration

• Little or no transparency and visibility for the frontline

services

Shared Service Operations

SHARED SERVICE

Location 1 Location 2

Locations 3 Location 4

SILOED OPERATING MODEL

FUTURE INTEGRATED OPERATING MODEL WITH ‘END TO END’ PROCESSES ENABLED BY TECHNOLOGY

CLIENT

SHARED SERVICE

3RD PARTY

Target operating model for shared service ‘back office’ solution

Vision / Strategy

Management

Reporting /MI KPI Reporting

General Transactional Processing

Reporting

Specialist activities

Value add activities

Shar

ed S

ervi

ce /

Ou

tso

urc

e

Co

E R

etai

n

Hig

her

Val

ue,

mo

re c

om

ple

x ac

tivi

ties

Decisions based on: data modelling, trend analysis and good judgement. Business partnering model

Direction and overall leadership

Leadership Team Transformation and functional leadership. Ongoing programme of process improvements., benchmarking and performance metrics.

SSC

Note – the above reflects where the majority of the activity for each process could be undertaken.

Ret

ain

Strategy

Development

Supplier

Management

Business Case

Development

SLA Reporting

Policies and Procedures

Special projects

Action planning

Case management

Payroll overpayment recovery

HR for volunteers

Workforce planning

Queries and Advice

Case mgt.

Recruitment & Selection

Health & Safety

Performance Mgt.

Org. structure mgt..

Health & Wellbeing

Low Value Procurement

Move to - Integrated service towers

Payroll Services

Pension admin.

Payroll

Purchasing

Procurement

Employee services

Learning & Development

Performance mgt.

Human Resources

Record to Report

Accounts Payable

Travel & Expenses

Order to Cash

Finance & Accounting

System support

Mobile working

Data Management, Security and Protection

Reporting, MI & Dashboards

Customer Support

DRAFT

Spend Analytics

GPC Process & Admin

Supplier Financial Assessments

Project Accounting

Debt Management & Recovery

Financial Support & Advice (e.g. Financial & Statutory reporting Planning, Budgeting & Forecasting and investment appraisal)

Internal Audit

Process credit & debit card payments

SELF SERVICE

TRANSACTIONAL

(HR, Payroll, Finance, Procurement)

SUBJECT MATTER EXPERTS – Centre of Expertise Advisory/Decision Support/Projects

LEVEL 0

LEVEL 1

LEVEL 2

LEVEL 3

MANAGERS EMPLOYEES 3RD Parties

GO

VE

RN

AN

CE

& S

ER

VIC

E M

AN

AG

EM

EN

T/

Com

munic

ation/S

takehold

er

Manag

em

ent

IT ENABLEMENT

CUSTOMER SERVICE - (First Point Of Contact)

Telephone – email – SMS – Fax – Paper

Electronic

Post-room Doc Management

Work

flow

/Case M

anag

em

ent/

Know

ledge

Manag

em

ent

/Work

Manag

em

ent

SENIOR

BUSINESS

MGT

PEOPLE

FACILITIES

Relationship

Manager

SSC – Operating Model

Customer Key:

Key Principles – Underpinning Shared Service Today

Service Approach Service Delivery Processes Information

Competent &

confident

Quality: right

first time, cycle

time

Commercial

mindset

Flexible, with

career

opportunities

Scale-able

Fit-for-purpose

practices

Customer

service focus

Flexible to meet

changing

demands

Standardised

Repeatable

Integrated

Controlled

IT enabled

Simple

Fit for purpose

Six Sigma

Reliable

Easy to access

Delivers insight

Transparent

Integrated service delivery and business management

End-to-end process and customer focus Initiate Successful

outcomes

Technology – agile, cost effective, value for money

Collaboration, seamless user experience

Continuous change and improvement

Target model for HR services based on best practice delivery of processes

HR Vision / Strategy

Learning &

Development

Compensation

& Benefits

Management

Reporting /MI KPI Reporting

General HR/Payroll Transactional Processing

Reporting

Specialist HR activities

Value add HR activities

Shar

ed S

ervi

ce /

Ou

tso

urc

e

Co

E R

etai

n

Hig

her

Val

ue,

mo

re c

om

ple

x ac

tivi

ties

Decisions based on: data modelling, trend analysis and good judgement. Business partnering model

Direction and overall leadership

HR Leadership Team HR transformation and functional leadership. Ongoing programme of process improvements., benchmarking and performance metrics.

SSC

Ret

ain

Strategy

Development

Supplier

Management

Business Case

Development

Payroll

Employee

Data Admin

Workforce

Management

Recruitment

& Selection

Compensation

& Benefits

Grievance &

Discipline

Employee

Relations

SLA Reporting

Learning &

Development

Health &

Safety

Talent

Management

Leave &

Absence

Time &

Attendance

Pensions

Admin

Performance

Management

Training

Admin

Recruitment

& Selection

Workforce

Management

Policies and Procedures

Special projects

Action planning

Case management

Shared Service Centre – HR service lines H

R V

isio

n /

Str

ate

gy

Lea

rnin

g a

nd

Dev

elo

pm

ent

Compensat’n

& B

enef

its

Wo

rkfo

rce

Ma

na

gem

ent

Em

plo

yee

Rel

ati

on

s

VFM Core Service

Manage

Disciplinary /

Grievance

/Appeals

Manage Long

Term Sickness

Planning and

Policy

Gross to Net

Develop /

manage Trg

Catalogue /

Courses

Procurement

Strategy for

HR Services

Organisation

Design

Strategy

Change

Management

Strategy

Business Case

& Feasibility

Strategy

Employee

Communicat’

ns Strategy

Compliance

Strategy &

Legal Advice

Supplier

management

Learning and

Development

Admin

Business Case

and Feasibility

Competency

Management

Absence

Management

Health and

Safety

Workforce

Planning

Contractor

Management

Sourcing

Screening

Selection

Hiring

On-boarding

Strategy

Development

Qualifications

/ Skills

Management

Performance

Management

Manage ER &

TU

Negotiations

Contractual

and Non

Contractual

Changes

Employee

Data Admin

Strategy

Development

Retained HR

Query

Handling &

HR Advice

Activity

Based Costing

Time and

Attendance

Organisation

Structure

Management

Strategy

Development

Health and

Welfare

policy and

development

Flexible

Benefits /

Other

Reward

Planning

Build to Gross

Employee

Comms

Benefits

Policy and

development

Salary survey

and analysis

Compensat’n

Admin

Payroll

Delivery

Strategy

Development

Succession

Planning

Training

Needs

Analysis

Absence

policy and

management

Exit /

Retirement

Strategy

Development

Time and

Attendance

policy and

planning

One-off

Payments

Reconciliat’n

Expenses

Management

Rec

ruit

men

t

an

d S

elec

tio

n

Pa

yro

ll

To Finish…Something to think about!

If your Doctors can perform key hole surgery and be

supported by virtual doctors...

…why are your staff still filling in manual forms

for their HR processes?

If Google, Amazon, Facebook, Apple, or any one of their competitors, were

redesigning the way government works, do you think you'd still be wading

through paper forms to get your passport renewed?

Or hanging on the phone for hours trying to book a hospital appointment?

Or sticking a paper tax disc in your windscreen?

Chris Yiu – Head of Digital Government