When BPM is not the only option? Tarun Gauri Basys Australia Pty Ltd Total Operational Excellence 2012 Melbourne August 2012

After multiple continuous improvement cycles, subsequent optimisation initiatives can suffer from 'marginal utility of return'. At that stage, re-engineering the entire process cycle can be a viable alternative that can deliver quantum results.

In 2002 NSW State government decided to implement shared services with the view to: – Improve corporate and shared services – Enable departments to focus on delivering core services – Realise the benefit of technology – Reduce cost For this the departments of Housing, Community Services and Ageing, Disabilities and Home Care were chosen It was decided that ‘NSW Businesslink’ would be established in

On 1 July 2004, Businesslink was incorporated to provide shared services in the NSW State Government. The vision was to serve its clients and become a best practice model for shared services across the public sector With the mission Businesslink aims to achieve excellence in the provision of high quality, cost effective shared services, and to operate a financially sustainable business that is flexible and can readily expand to meet increased client demand for its services

Amalgamated all corporate service functions and staff. Standardised processes compliance framework. Commenced infrastructure consolidation. Initiated rigorous and robust audit program. Staff servicing existing client base Multiple cultures, processes, tools and vendors Understanding of volumes and cost base very hazy All business frameworks in early stages of maturity Service Delivery Financial Audit & Compliance Risk Management Uncertain environment Confusing organisational loyalties Unclear expectations New stakeholder relationships Successful transition of Business from NSW housing Restructure of the business Recruitment of Management Team

Obtained compliance certifications. Financial and Service Delivery framework Control and compliance framework. Fee for Service product model signaled the commencement of two-year consolidation phase where the business focus was on achieving commercial capabilities by employing standards of business systems, processes and procedures. The organisation was in the developing and learning phase Development of a comprehensive financial model and pricing framework Continuous improvement of the quality and cost effectiveness of services The negotiation of service level agreements. Realising the value of shared services Focus on achieving commercial capabilities Implementing Standards.

Better that expected financial results Risk management and Third Party audit assurance Opened second data centre. Achieved AUS/NZS 7799 certification Third year of consolidation The first full year of operation as a fee for service entity. Aligning People, processes and tools Building a best practise model for shared corporate services. Increased focus on workforce management and planning Developing targeted solutions Realignment of the IT services division. A number of core IT infrastructure and software projects Develop a comprehensive Business Continuity Management program for the company. Mitigating risks that arise due to shared service business People providing the value, Pricing the value, and Proving the value.

Unit price for services remains static. Improve customer satisfaction rating to 67.1%. Developed data centre risk mitigation strategy. Need to deliver greater value for our stakeholders, Meet the challenges of driving greater efficiency and innovation Delivery of a diverse and scalable product portfolio Responsiveness to meet client needs Tackling fractured approach to Project Management Seek opportunities to improve service delivery and capabilities Rigorous governance, compliance and quality control Realising benefits through financial performance transparency.

As the organisation matured, there was a need to review and re-write our purpose and vision The purpose Helping to create an effective and efficient public sector so that our NSW community receives the best possible care and attention. The vision To be the key link for shared services business to NSW government agencies

Unit price for services remains static for the third year. Customer satisfaction improves to ‘good’ rating of 70.6%. Commissioned new data centre. Continuous improvement Impact of GFC Delivering new IT infrastructure Government decision to reduce senior and middle management Strengthening management and leadership capabilities Continued consolidation and growth. Processes improvements to delivered more value to clients Expanded shared business services offering.

As a result of change in the political landscape, Businesslink had to rethink the overall strategy and with that the Mission and the Purpose Businesslink’s mission is to provide high quality, low cost services and to operate a financially sustainable business that is flexible and can readily expand to meet increased demand for its services.

Transitioning 3 additional clients – Juvenile Justice, Aboriginal Affairs and Aboriginal Housing Office Significant reduction in sick leaves and rec leave balances Benchmarking of services (80% below market price) Formation of Department of Human Services Change in Top level Management Shift in focus and direction Continued challenge of driving greater efficiency and innovation in business processes. Transition to a new government framework Growing the client base

At the commencement of next phase, the organisational Vision and Mission was, Mission To deliver high quality, secure business services to our clients at the lowest cost in the Australian market. Vision To be recognised as a centre of excellence for outsourced business services.

Fifth year in keeping prices same or lower For first time, delivering Seniors Card processing and information to the State’s older people As an experienced business services provider to the government sector, Businesslink demonstrated leadership in implementing whole of sector shared services reform. Restructure Changing political landscape External drivers shaping the organisation Qantas to Jetstar New products and services, eg, Printing as a service Restructuring the organisation New approach to service delivery

And the Journey continues……

Some numbers that tell a story..

Notes Change in vision/mission Change in thinking Change in organisation Good to great How organisation, process, people evolved Better leverage tools Expansion

Notes Set the scene What was the problem Approach chosen Tools, stakeholders, How did we go about How did we measure success Learning