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Programme Athena Nathan Elvery, Deputy Chief Executive – L.B. Croydon Programme Sponsor Tracie Evans, Programme Sponsor – L.B. Barking & Dagenham Programme.

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Presentation on theme: "Programme Athena Nathan Elvery, Deputy Chief Executive – L.B. Croydon Programme Sponsor Tracie Evans, Programme Sponsor – L.B. Barking & Dagenham Programme."— Presentation transcript:

1 Programme Athena Nathan Elvery, Deputy Chief Executive – L.B. Croydon Programme Sponsor Tracie Evans, Programme Sponsor – L.B. Barking & Dagenham Programme Sponsor Rita Greenwood – Programme Director 1 1

2 Purpose About Athena Approach on the projects in detail Learning

3 About Athena Overall

4 Our Aim “Programme Athena is about creating shared solutions for London public sector organisations to gain the opportunity and ability to deliver significant efficiencies and service improvements for ICT-enabled support service functions such as Finance, Procurement and HR.”

5 Why? Savings Cash savings, e.g. through reduced systems
Efficiency gains, e.g. through reduced procurement Cost avoidance, e.g. by joint development and upgrades Capacity building, e.g. by sharing processes Performance improvement, e.g. by having best practice Strengthening our resilience Transforming our service offering Providing a catalyst for partnering Establishing a regional model …………….doing something that makes sense

6 Overall Athena outcomes:
Reduction in the number of systems and suppliers meaning reduced annual running costs and one-off costs Solutions that are accessible to all London boroughs providing flexibility for the state of readiness Boroughs enabled to share back office staff, so as to reduce costs, provide resilience and improve skills London sharing back office systems in the same way as other organisations across the country 6

7 Our Starting Position Organisations have common suppliers and systems
4 suppliers providing 28 finance systems in London 4 suppliers providing 23 of the procurement systems in London 4 suppliers providing 29 of the payroll/HR systems in London Procuring and managing systems and suppliers as individual boroughs Significant cost variations between boroughs

8 Our Starting Position – cont’d
Organisations are not fully utilising all the modules available to them to service these core needs Organisations are utilising the modules differently Organisations are not getting the benefits and efficiencies from a fully integrated solution Organisations set processes around the systems which are not consistently applied and which may or may not be efficient Organisations are using different processes yet deliver exactly the same services ICT is one of the main barriers preventing organisations connecting

9 Our Journey Standardise Consolidate Share services Cut cost Use market
Managed services Share services Transformation of resources management

10 How we are making the journey
By radically reducing the existing systems and costs through sharing so that boroughs are able to share back office functions By increasing commonality of processes to reduce the number of separate systems and the different ways of using these systems The two key themes running through a number of work streams: Enabling through commonality Value through shared solutions Cost of ownership and processes are seen as fundamental for understanding the benefits

11 The History Original concept Launch Initial reactions
Market involvement How the approach changed Resources in the past

12 Where we are now Three mobilised projects:
Oracle (6 boroughs, plus 10 possible) SAP (2 boroughs) Neutral (3 boroughs, plus 16 possible) Other SAP and Oracle boroughs working together Agresso and Cedar evaluating options and preparing business cases Common metrics drafted Cost of ownership on back office systems being gathered Groups being created for Midland Trent and Northgate Information on procurement systems being gathered and strategy developed

13 Resourced Team Programme Director (part time) Programme Manager
Programme Support Finance work stream HR work stream Procurement work stream Cost of ownership, metrics and benefits Communications (part time)

14 Our Governance Lead Chief Executive Programme Sponsors Project Leads
Professional leads

15

16 More information about the projects being mobilised

17 One Cedar

18 One Cedar Led by a Director of Finance Boroughs involved: Camden
Islington Hackney Senior Officer group overseeing and guiding Project Manager Supplier providing support and advice

19 The journey being considered
Can systems support & development teams be shared? Can contracts be converged or there be joint procurement going forward? Can processes be agreed to help future sharing? Can boroughs agree the configuration of a new solution based on best practice across all three boroughs Can the upgrade to e5.3 provide the opportunity?

20 Factors being considered
Is it Greenfield or Brownfield? Is it multi-entity or multi-company? Can it be scalable and how? Are there quick wins?

21 How it’s being undertaken
Workshops of various staff on: General ledger Accounts receivable Accounts Payable Business intelligence Gathering core information e.g. interfaces, modules Sharing “as is” and developing “to be” processes Scoping the options and discussing the features Gathering metrics Agreeing Golden Rules Identifying quick wins

22 Challenges Catalogues and Procurement Strategies
Differences organisationally Where images are held Assessing the implications Different levels of benefits Existing contractual arrangements

23 Some of our Golden Rules
Where possible GL codes are not held in interfaces There should be standard subjective and sub-nominal listing with the same descriptors The production of the returns should be produced from E5 at the push of a button with 95% accuracy Modules should have standard interface The approval and coding should be at the point of initial procurement Coding should be auto-generated

24 One Agresso

25 One Agresso Led by a Director of Finance Boroughs involved:
Ealing Hounslow Kingston Sutton Redbridge (withdrawn) Operational group overseeing and guiding Supplier involved

26 Where we are Outline business case drafted This involved:
Gathering core information, e.g. interfaces, modules Scoping the options and discussing the features Gathering metrics Supplier requested to provide alternative options and models Business case still not compelling

27 Challenges Getting a reasonable return on investment
Unbundling hosting arrangements Implementation costs Understanding the implications Different levels of benefits for each borough

28 How we are moving forward
Approach is to look to align boroughs to reduce implications Sharing “as is” and considering “to be” processes using work of Cedar to maximise alignment Consider systems support opportunities Further work on hosting Confirm Golden Rules Continue with quick wins DoFs discussing strategic direction

29 Information about the approach on mobilised projects

30 One Oracle

31 One Oracle Project involving 6 boroughs:
Lambeth, Brent, Barking & Dagenham, Croydon, Havering and Lewisham  Memorandum of understanding Working together towards establishing a shared service for finance and procurement transactional processing and HR transactional processing services; all delivered using Oracle E-Business Suite Release 12

32 Background Driver was the need to upgrade to Release 12
Procurement has taken place and is now completed Ten other London boroughs have been named along with Kent CC on the OJEU, so as to have the option to access at a future point Using the other boroughs as critical friends to assist as well as help maintain engagement Framework governance agreement developed for each stage

33 How we are undertaking it
Various work packages set out scope and concepts agreed by Governance Board Strong Leadership and Governance Gathering core information e.g. interfaces, modules Sharing “as is” and developing “to be” processes Scoping the options and discussing the features Gathering metrics Agreeing principles Identifying quick wins

34 Current Position CapGemini awarded systems integrator and systems hosting Mobilisation and implementation phases commenced Licensing and support being finalised Work packages continuing with boroughs leading different aspects Assessing benefits achieved to date

35 One SAP

36 One SAP Project involving 2 boroughs: Haringey and Waltham Forest
Memorandum of understanding Working together towards establishing a shared service for finance and procurement transactional processing and HR transactional processing services; all delivered using Oracle E-Business Suite Release 12

37 Some of our guiding principles
Collaborate and work towards developing a common solution based on best practices Maximise use if functionality and sharing potential Minimise workarounds the system Maximise opportunity to innovate Minimise transition effort and cost where possible

38 How we are undertaking it
Procurement requesting options, which includes a single instance Competitive dialogue Developing a local government solution SAP providing support Reviewed “as is” Focused on an outcomes perspective Strong Leadership and Governance

39 Current Position and Next Steps
Evaluation of the Invitation to Participate completed Successful bidders to discuss and propose solutions through competitive dialogue Visits to reference sites Evaluation of final proposed solutions Award January 2013

40 Neutral Managed Shared Service

41 Tri-Borough Project Procurement Project involving 3 boroughs:
Hammersmith & Fulham, Westminster and Kensington & Chelsea Number of other boroughs named on the OJEU Scope includes HR, Finance, e-Sourcing, Business Intelligence and Property Asset Data Management across 4 lots Framework via competitive dialogue

42 Drivers Supports the Tri-borough programme including front office change Contracts expiring Financial Savings Benefits of a managed service

43 How we are undertaking it
Various programme work streams and activities Strong Leadership and Governance Preparing the business for change Can procure a set of managed services including software as a service Framework is for 4 years, enabling call-offs of up to 5 years, plus a 3-year extension possibility Clear unit pricing with volume discounts

44 Current Position and Next Steps
Competitive dialogue commencing Other preparation work taking place within boroughs, including: business changes transition arrangements client arrangements Contract award December 2012

45 Learning

46 Issues being faced Investment in current systems
Understanding cost of ownership Transition costs Modules; legacy systems and interfaces Existing or new; Tier 1 or Tier 2; multi-company or multi-entity

47 Issues being faced (cont.)
Loss of identity and control The need for compromise Communications and engagement within the boroughs is important and must be promoted Working across boroughs and through peer groups requires relationships and trust to be built The slowest holding others up An honest broker is a key role and needs to be considered as part of resourcing arrangements Detail is required, however too much detail then means that the end is never in sight. Clear leadership is required to strike a balance.

48 Issues being faced (cont.)
Several flavours of vanilla best practise processes Different interpretations when collating information Procurement rules cause complexities along with differing views on the rules Lack of consistency in the legal advice The market does have something to contribute, and it is worth listening to suppliers Convergence, and ensuring the ability to continue to do this, is fundamental It is complicated Strong governance is essential

49 Our advice when starting a project
Agree outcomes wanted and end vision Gather information, including: Software versions and modules Services that are using the systems Related contract arrangements including end date, annual cost Interfaces in and out What environments exist How system is supported, maintained and hosted Costs against key areas Levels of investment and when Development plans, e.g. mobile working and upgrades Any critical paths, e.g. procurements or upgrades.

50 Our advice when starting a project (cont.)
Understand who is best to lead what Agree some core metrics for performance aspects Agree tactical strategy, including: Which boroughs are up for what; can support be shared now “As is” process workshop with aim to understand what each other do; learn some quick wins that could happen (e.g. joint development) as well as devise some golden rules Have “to be” process workshops Consider options and evaluate Complete the specification of what is wanted Understand boroughs gap analysis and implications Justification approach.

51 Finally, why the name “Athena”…
Goddess of Wisdom A War Goddess focusing on strategy rather than bloodshed Provided resources that delivered many things


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