the western australian shared services journey so far
DESCRIPTION
TRANSCRIPT
The Western Australian Shared Services Journey So Far
Australasian Shared Services & Outsourcing WeekApril 2011
Presentation Outline
Reform BackgroundBenefitsCurrent ProfileSuccessesChallengesIndependent ReviewFuture
2001 2002 2003 2004 2005 2006
Machinery of Government
Reform
Corporate Services Reform
recommended
Cabinet endorsed “Shared
Corporate Services”
FRIT team established
2007
Major contract awarded to
Oracle for whole of government
Business Solution
Education & Training SSC
Launched
Major contract awarded to ASG
for managed services
Health Corporate Network Launched
Office of Shared Services
Launched
Reform transferred
to DTF
Reform Background
Reform Background
Once in a ‘generational opportunity’ for WA Govt to leverage economies of scale through shared technology, information and processing.
Align with other Govt jurisdictions and private sector
Wide diversity of practices, processes and existing systems
21 Finance systems
12 Payroll systems in the biggest 49 agencies
Significant duplication of overheads, ICT infrastructure and system maintenance
Benefits
Financial Benefits
Value for Money / Efficiencies
$55 million per annum savings
Reduction of 770 FTEs
Non Financial Benefits
Greater ability to leverage investment in ICT
Improved information and knowledge management
Increased workforce mobility
Greater responsiveness to Machinery of Govt changes
Increased focus on core service delivery
Greater transparency of costs and performance
Shared Service Centre
Operating Budget $70 million
55 agencies (growing to 90)
$3.6 billion of transactions 2010/11
9,500 on payroll ($600 million per annum)
Program
Capital Investment $210 million
29 agencies to still transition
Major technology projects underway
Current Profile
Shared Services Centre
Finance Services Hire to Retire People Support & Development
Client AccountManagement Risk & Improvement Solutions &
Technology Support
Payroll
Pay RunCustomer Service Centre
(Customer Enquiries, Reception, Office Administration)
Information &Knowledge Management
Report Development and Support
Business Analysis &System Administration
Systems Security
Online Solutions
Client RelationshipManagement
Operations Analysis and Solutions
OSH &Workers Compensation
Training & Development
Equity, Performance Investigation & Deployment
HR Business Consulting & Development
Internal Controls& Quality Assurance
(Internal Controls, QA)
Procure to Pay(Accounts Payable,
Expense Management, P-Card)
Order to Cash(Accounts Receivable, Cash
Management)
Record to Report(GL & COA, Fixed Assets,
Enterprise Asset Management, Project Accounting, Financial Reporting)
Business Services(Training, Financial Policy,
Business Analysis & Reporting)
Financial Management(Budgeting & Forecasting,
Taxation)
Recruitment & Establishment
Classification
Procurement Business Solutions(Purchasing/Solution, Supplier Mgmt)
Electronic Document Management Team
Organisational Structure
Services
Financial ServicesFinancial Management Support ServicesInternal Control and Quality AssuranceOrder to CashPlanning, Policy and Finance ServicesProcure to PayRecord to ReportCash Management
Human Resource ServicesRecruitment and Establishment ServicesPayroll ServicesPerformance DevelopmentStaff DeploymentTraining and DevelopmentEquity and DiversityWorkers Compensation Management
Software as a ServiceProject AccountingEnterprise Asset ManagementProperty ManagementOccupational Health and SafetyIdentity Management
Successes
Whole of Govt Chart of AccountsPurchase Orders at 80%EFT Payments at 90%Launch of iExpenses Launch of iRecruitmentLaunch of iSupplierAward Build Complete
Challenges
Vanilla versus NeapolitanManage rapid growthDrive changeManage client expectations$ and time contingency limitedReplace problematic middleware applicationsTransition Program activities to ongoing operations
Independent Review into Office of Shared Services
In January 2011 the Treasurer announced the Economic Regulation Authority would undertake a full independent review into the Office of Shared Services
The review is to be completed by 10 June 2011
During the period of the review there is a pause of agency roll-ins
Independent Review into Office of Shared Services
Terms of Reference
The effectiveness and efficiency at current level of operations
How the effectiveness and efficiency is likely to vary with the number of agencies it services
The impact that ‘rolling-in’ has had on the operations of a selection of representative agencies
Whether the provision of shared corporate services as implemented so far, has provided a net benefit to the State
Whether rolling-in the remaining agencies would provide a net benefit to the State
Whether alternative options for the provision of shared services would provide a greater net benefit to the State.
Future
The findings of the Independent ERA review will inform the future direction of the shared service reform program
Questions?