Presentation on theme: "What It Is, What It Isn’t, And What It Can Be"— Presentation transcript:
1 What It Is, What It Isn’t, And What It Can Be First UC-CSU Shared Services Conference Thursday, July 11, UC Irvine CampusShared 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 USHow 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 frameworkKey Competencies of Shared Services TeamsQ&A
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.
8 Why Shared Services? The Best of Both Worlds! Centralized DecentralizedSharedDisparate processesMultiple standardsDuplicationDifferent control environmentsHigh cost and costs unclearNot scaleableResponsive to Business and Operational needsBusiness/ Operations control decisionsCustomized solutions to meet Business/ Operational requirementsHighly client focusedCommercially drivenService Partnership AgreementsClear unit costsFlexible deliveryClear drivers and activitiesCommon systems and supportConsistent standards and controlsTight control environmentEconomies of scaleRemote from businessUnresponsive and inflexibleNo Business/ Operational control over costsViewed as central overheadPrevalence of shadow operationsThe Best of Both Worlds!
9 Why is Shared Services different to Centralization?
10 The Potential Scope of Shared Services FinanceAccounts PayableBilling/Accounts ReceivableGeneral LedgerConsolidationsExternal ReportingPlanning and BudgetingTreasury/Cash ManagementInternal AuditTaxForeign ExchangeBusiness Support AnalysisFinancial ReportingProject AccountingCost AccountingLockbox ServicesRecords ManagementInternational AccountingSupply Chain ManagementProcurementTransportation & LogisticsStrategic SourcingWarehousingInventory ManagementVendor ManagementHuman ResourcesPayrollTravel & ExpenseCompensation AdministrationBenefits AdministrationRecords ManagementTraining & DevelopmentRelocation ServicesEvaluation Planning/ReviewPolicies & ProceduresLabor RelationsRecruiting/New Hire On-boardingHeadcount ReportingSuccession PlanningEmployee Recognition SystemsInformation ServicesDesktop SupportApplication MaintenanceTelecommunicationsHardware & SoftwareApplication DevelopmentData Center OperationsStandardsTechnology Planning & DevelopmentAcquisition SupportIT SecurityCustomer ServiceCall CentersCredit & CollectionsOrder ManagementReturns ProcessingLegal/Corporate Affairs/ Administrative Services/OtherTravel ServicesReal EstateFacilities/Site ServicesFleet ManagementSecurityCommunication ServicesEnvironment, Health & SafetyRegulatory CompliancePublic Affairs/Media RelationsLitigation Support & CoordinationInsuranceMailroomGrants ManagementHealth Clinics/Day Care CentersCorporate Brand ComplianceEngineeringSubsidiary ManagementEmergency ManagementSource: Scott Madden & Associates
21 Critical Success Factors for any Shared Services Delivery Model
22 Critical Success Factors Processes documentedStandardized, controlled & repeatable activityRecharging methodologyBenchmarking capability – internal/externalMetrics:(i) Control Based(ii) Efficiency & EffectivenessService orientation in placeStructured way of dealing with internal customersCustomer satisfaction levels understoodSPAs in placeReality versus perceptionAccount managementCustomersCriticalSuccessFactorsTechnologyProcessesERP implementedDocument Scanning SolutionWorkflowAutomated PaymentsElimination of Side SystemsSelf services toolsAutomated Score CardsPeopleSkilled Leadership in place – do not compromise on competenciesTeam shape & stability – process shaped/spans of control/staff – perm v tempsTeam members – culture, values & behavioral competencies assessedTeam morale, reward & retentionWorking 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 ManagementCustomer/Client Contact ManagementService Partnership Agreements (SPA)Client FeedbackContinuous ImprovementProcess Control DatabasePerformance MeasurementPerformance ReportingService Pricing
27 Operating with no “CRM” Framework Challenging experienceLack of clarity on who does whatDealing in “perception versus reality”Focus is on negative aspects of service deliveryone way trafficblame cultureStrained customer relationshipsFocus on “fire fighting” and maintaining morale takes the emphasis away from customer serviceBenefits 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 measureCustomer 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.
29 Key Competencies of Shared Services Teams All SSO staffStrong focus on providing the highest level of client service to both internal and external customersCommitted to the organizationEstablish and maintain relationships across the organizationConfident, self motivated and enthusiasticHighly proactive and seeks continuous improvement in self and othersGoal and results orientatedHighly organized, with attention to detailKnowledgeable in services/processes supportedExcellent communication and interpersonal skillsTeam playerTakes ownership and is willing to be held accountableSSO Team and Process LeadershipExperience in customer service provisionExperience in managing multiple stakeholders/relationshipsProduce resultsBuild a diverse, high performance teamPeople development29