1. What It Is, What It Isn’t, And What It Can Be
First UC-CSU Shared Services Conference Thursday, July 11, UC Irvine Campus
Shared Services:
What It Is, What It Isn’t, And What It Can Be

2. Agenda Brief Background on Chazey Partners
Definition of Shared Services.  What it is and indeed what it is not.
Why Shared Services?
Why Shared Services in the “Public Sector”?
Shared Services in Higher Education in the US
How Can One Cut Costs Without Impacting Frontline Services?
Does Shared Services Mean Privatization?
Critical Success Factors for Implementation of any Shared Services Delivery Solution.
The “nine key components” of a robust Internal Customer/Client Relationship Management CRM framework
Key Competencies of Shared Services Teams
Q&A

3. 4/9/2017 5:13 PM
Who We Are
Chazey Partners is a specialist advisory/consulting business, that brings together a unique wealth of expertise in implementing and operating world class business support and Shared Services Organizations (SSOs) around the globe
We pride ourselves in having built, operated and turned around some of the world’s most highly commended and ground breaking Shared Service organizations
We have operationally and as consultants delivered numerous programmes globally, over the last 20 years, in both the Private and Public Sectors, in the US, Canada, Latin America, UK, Ireland, Continental Europe, India, Singapore, Australia and China, amongst others
We provide advice, guidance, support and implementation expertise, covering strategy setting, business case, programme management, implementation, process optimization, technology enablement, training and change management
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4. Who We Have Worked With
NUIG

5. What Exactly Is Shared Services?

6. Definition and Goal of Shared Services
…is the organization that provides non-core services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal customer. This involves a philosophy and approach totally unlike traditional “corporate”-driven centralization.
The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the “business” at lower cost and more efficiently than the business could otherwise provide for itself.
Shared Services achieves cost savings and higher quality of service by leveraging customer relationship management, organizational re-alignment, economies of scale, technology, standardized end-to-end processes, and best practice.

7. Why Shared Services?

8. Why Shared Services? The Best of Both Worlds! Centralized
Decentralized
Shared
Disparate processes
Multiple standards
Duplication
Different control environments
High cost and costs unclear
Not scaleable
Responsive to Business and Operational needs
Business/ Operations control decisions
Customized solutions to meet Business/ Operational requirements
Highly client focused
Commercially driven
Service Partnership Agreements
Clear unit costs
Flexible delivery
Clear drivers and activities
Common systems and support
Consistent standards and controls
Tight control environment
Economies of scale
Remote from business
Unresponsive and inflexible
No Business/ Operational control over costs
Viewed as central overhead
Prevalence of shadow operations
The Best of Both Worlds!

9. Why is Shared Services different to Centralization?

10. The Potential Scope of Shared Services
Finance
Accounts Payable
Billing/Accounts Receivable
General Ledger
Consolidations
External Reporting
Planning and Budgeting
Treasury/Cash Management
Internal Audit
Tax
Foreign Exchange
Business Support Analysis
Financial Reporting
Project Accounting
Cost Accounting
Lockbox Services
Records Management
International Accounting
Supply Chain Management
Procurement
Transportation & Logistics
Strategic Sourcing
Warehousing
Inventory Management
Vendor Management
Human Resources
Payroll
Travel & Expense
Compensation Administration
Benefits Administration
Records Management
Training & Development
Relocation Services
Evaluation Planning/Review
Policies & Procedures
Labor Relations
Recruiting/New Hire On-boarding
Headcount Reporting
Succession Planning
Employee Recognition Systems
Information Services
Desktop Support
Application Maintenance
Telecommunications
Hardware & Software
Application Development
Data Center Operations
Standards
Technology Planning & Development
Acquisition Support
IT Security
Customer Service
Call Centers
Credit & Collections
Order Management
Returns Processing
Legal/Corporate Affairs/ Administrative Services/Other
Travel Services
Real Estate
Facilities/Site Services
Fleet Management
Security
Communication Services
Environment, Health & Safety
Regulatory Compliance
Public Affairs/Media Relations
Litigation Support & Coordination
Insurance
Mailroom
Grants Management
Health Clinics/Day Care Centers
Corporate Brand Compliance
Engineering
Subsidiary Management
Emergency Management
Source: Scott Madden & Associates

11. Why Shared Services In The “Public Sector”?

12. Why Shared Services in the Public Sector?
4/9/2017 5:13 PM
Why Shared Services in the Public Sector?
“Public Sector” here includes Government, Higher Education, Healthcare and Not For Profit
Why not? Has worked well in the Private Sector for 25+ years, and is also working in the Public Sector today.
Significant funding issues today … everywhere. Shared Services can deliver potential “triple benefit” of efficiency/effectiveness/control
The same basic challenges and significant opportunities around implementing Shared Services in the Private Sector are also there in the Public Sector….but need to be adapted and applied differently.
Some unique challenges in the Public Sector (and in Higher Education), namely managing “politics” and workforce, territorial and governance issues, different funding sources, and unique change management.
Harvard 2009 Summit: “Harnessing new found capacity with a shared service enterprise and extending it enterprise wide increases the capacity for high performance and subsequently increases public value. Managing for efficiency and effectiveness is now a win-win proposition for public sector leaders.”
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

13. Shared Services In Higher Education in the US
4/9/2017 5:13 PM
Shared Services In Higher Education in the US
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

14. Shared Services In Higher Education in the US
4/9/2017 5:13 PM
Shared Services In Higher Education in the US
The recession/slowdown impacted both Public and Private Universities, but the impact has to an extent been different for the Public Universities. The recession/slowdown and the accompanying revenue decline at the state level has left less money to fund education
The private institutions, except for grants provided by the federal government for research, are to some extent less dependent on government funding. However, many private institutions saw their endowment values decrease as a direct result of the recession, and the private institutions also responded by increasing student fees.
Increasing student fees alone has not been sufficient to close the budget at many Universities and Colleges, and these institutions are looking to shared services to help them close the budget gap, increase efficiencies and provide better service.
Efficiency/effectiveness of “back office” operations is now really a pre-requisite, and not a “nice to have”, for any organization/enterprise, in Private or Public sectors.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

15. Shared Services In Higher Education in the US
4/9/2017 5:13 PM
Shared Services In Higher Education in the US
Shared services already underway pre recession at many Universities, e.g. Yale University, Harvard College, University of Michigan, University of Illinois & Cornell.
UC Berkeley administration division began in 2008 to move to a shared services model for HR, and successfully opened its center on July 1, In 2012 the University approved a project to implement shared services for finance, research, information technology and human resources.
As part of its Synergy Initiative, CSU’s Procure to Pay (P2P) Shared Services Initiative seeks to leverage the success of implementing CSU’s Common Financial System and improve the efficiency and effectiveness of processes to purchase and pay for goods and services.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

16. Shared Services In Higher Education in the US
4/9/2017 5:13 PM
Shared Services In Higher Education in the US
The University of California has begun implementation of a University System Wide Shared Services center called UCPath for HR and Payroll.   
The Yale Finance shared service center was formed in January 2010, to take repeatable common work out of departments. The center was formed through the consolidation of three pre-existing service units. The center provides Financial Management and transaction processing for procurement, accounting, accounts payable and client accounts.
Lawrence Berkeley National Laboratory has had an HR Service Center since 2011, and is looking to expand scope of services provided.
Accenture predicts that the next wave of implementation in higher education will see a broadening of the functional areas that are in scope for shared services.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

17. How Can One Cut Costs Without Impacting Frontline Services?
4/9/2017 5:13 PM
How Can One Cut Costs Without Impacting Frontline Services?
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

18. How Can One Cut Costs Without Impacting Frontline Services?
4/9/2017 5:13 PM
How Can One Cut Costs Without Impacting Frontline Services?
Cost savings from the “back office” can be used to fund core and front line services.
When thinking about the possibilities for shared services in the public sector remember that the scope across the “back office” is very significant. This is just the same as in the private sector.
In terms of the public sector (and it is just the same in the private sector) one needs to determine what needs to be physically close to the internal “customer” or “client” vs what can be done remotely. Then one should ask the question that if something can be performed remotely will some level of service be lost?
Need to think about who your “customer/client” is – internal and external. Also need to think about residents and tax payers as key stakeholders.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

19. Does Shared Service Mean “Privatization” And If Not, Why Not?
4/9/2017 5:13 PM
Does Shared Service Mean “Privatization” And If Not, Why Not?
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

20. Does Shared Service Mean “Privatization” And If Not, Why Not?
4/9/2017 5:13 PM
Does Shared Service Mean “Privatization” And If Not, Why Not?
Straight up – NO
Outsourcing has been an option as a potential part of the solution mix, most notably in the Private Sector.
And while the private sector has used third party Business Process Outsourcing (BPO) to some extent, in-sourcing has been the most popular model chosen in the Public Sector.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

21. Critical Success Factors for any Shared Services Delivery Model

22. Critical Success Factors
Processes documented
Standardized, controlled & repeatable activity
Recharging methodology
Benchmarking capability – internal/external
Metrics:
(i) Control Based
(ii) Efficiency & Effectiveness
Service orientation in place
Structured way of dealing with internal customers
Customer satisfaction levels understood
SPAs in place
Reality versus perception
Account management
Customers
Critical
Success
Factors
Technology
Processes
ERP implemented
Document Scanning Solution
Workflow
Automated Payments
Elimination of Side Systems
Self services tools
Automated Score Cards
People
Skilled Leadership in place – do not compromise on competencies
Team shape & stability – process shaped/spans of control/staff – perm v temps
Team members – culture, values & behavioral competencies assessed
Team morale, reward & retention
Working environment conducive to team working

23. The Nine Key Components of a Robust Internal CRM Framework

24. Nine Key Components of an Internal CRM Framework
Customer/Client Relationship Management
Customer/Client Contact Management
Service Partnership Agreements (SPA)
Client Feedback
Continuous Improvement
Process Control Database
Performance Measurement
Performance Reporting
Service Pricing

25. Nine Key Components of a CRM Framework
4/9/2017 5:13 PM
Element
Description
1. Customer / Client Relationship Management
This covers the traditional outward facing “Account Management” from the SSO to its customers/clients. It is about making sure that the customer/client is happy and does not have any issues that go unaddressed
2. Customer / Client Contact Management
Defines mechanism to receive, manage, communicate and resolve customer queries, and drive learning and improvement
3. Service Partnership Agreements (SPA)
A two-way agreement clarifying both services provided by the SSO to its customers and key inputs received from customers
4. Customer Feedback
Customer satisfaction continuously monitored through informal channels (Relationship Management), and formal channels (customer survey)
5. Continuous Improvement
Defines the mechanisms to identify the areas for improvement and develop actual solutions
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

26. Nine Key Components of a CRM Framework
4/9/2017 5:13 PM
Element
Description
6. Process Control Database
Documents end-to-end processes managed by the SSO and highlights activity split between SSO and the Campuses/Departments/Divisions
7. Performance Measurement
The performance of each process to deliver on customer requirements is measured and distinguished between the SSO and the Campuses/Departments/Divisions performance
8. Performance reporting
On a periodic basis, process performance will be reviewed by the SSO and Campuses/Departments/Divisions
9. Service pricing
Defines the basis for charging of services by the SSO to its Campuses/Departments/Divisions customers
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

27. Operating with no “CRM” Framework
Challenging experience
Lack of clarity on who does what
Dealing in “perception versus reality”
Focus is on negative aspects of service delivery
one way traffic
blame culture
Strained customer relationships
Focus on “fire fighting” and maintaining morale takes the emphasis away from customer service
Benefits of working with a CRM Framework :
Service accountabilities (who does what)
Service deliverables (timeliness & accuracy)
Financial deliverables (value for money)
Process transformation (driving continual improvement)
Issues process (how to resolve disputes)
Helps define what we need to measure
Customer Relationship Management distinguishes a Shared Services organization from a simple act of centralization and drives a spirit of partnership between the SSC, its customers, and all key stakeholders.

28. Key Competencies of Shared Services Teams

29. Key Competencies of Shared Services Teams
All SSO staff
Strong focus on providing the highest level of client service to both internal and external customers
Committed to the organization
Establish and maintain relationships across the organization
Confident, self motivated and enthusiastic
Highly proactive and seeks continuous improvement in self and others
Goal and results orientated
Highly organized, with attention to detail
Knowledgeable in services/processes supported
Excellent communication and interpersonal skills
Team player
Takes ownership and is willing to be held accountable
SSO Team and Process Leadership
Experience in customer service provision
Experience in managing multiple stakeholders/relationships
Produce results
Build a diverse, high performance team
People development 29