1. CAP Goal Update – Shared Services ACT-IAC May 10, 2016

2. Common Processes and Economies of Scale Mission-focused and data-driven resources Reduction of IT risk Shared Modernization costs Workforce Optimization Resource vacancies created as a result of standardization can be repurposed to mission work Reduced maintenance costs as a result of standard processes and economies of scale Fewer systems are easier and less costly to protect to minimize cyber-security risks Expensive upgrades and enhancement costs are shared across larger customer base Executives can strategically execute workforce planning to achieve efficiency in transaction processing versus policy/strategic resourcing Value Proposition of Shared Services The standardization and automation of common transactional activities can deliver greater value to the Government and taxpayers through process innovation, risk reduction, optimized workforce, and shared costs.

3. The Evolution of Federal Shared Services 3 2002 2004 2006 2010 2008 2014 2013 2015 2016

4. Current State: Shared Services Today 4 Core HR Systems HR FM Payroll IT Acquisition Federal Shared Services Providers CFO Act Agencies with 1 or More Bureaus in a Shared Service Environment Financial Management Systems

5. Customer Council Provider Council Industry Line of Business Owners CxO Councils Category Managers Vision: A stakeholder ecosystem that inspires high-quality, high-value shared services to improve performance and efficiency throughout government. 5 Governance: Strengthening Shared Services Initial Efforts All committees formally established and chartered. Playbook drafted in coordination with Councils and Community Office Hours. Satisfaction Survey developed in coordination w/Line of Business and Provider Community. ProviderStat data call released. SSGB agrees to OPM-Ownership of Payroll Policy. Initial vetting of USSM/SSGB role in implementations. Payroll Pilot begins with OPM, Payroll Providers, and 18F. Initial Engagement w/Providers External to Back-Office Systems (eg. Cybersecurity, Travel, Identity Management, Occupational Health, etc.) Objectives Identify, monitor, and support progression towards desired Shared Services outcomes. Establish requirements within managing partner functions. Develop Provider Performance Management Framework. Establish leading practices based on lessons-learned.

6. Vision for Shared Services 6 Human Resources Financial Management Acquisition Grants Travel 2013-2015 2016-2017 Private sector providers centralized via GSA contract No formally-designated SSPs Increased adoption as a result of tight integration with financial management (HUD, DHS, etc) Treasury and OMB designated four Federal Shared Service Providers HUD successfully implements financial management at Treasury ARC DHS TSA, Coastguard, and DNDO are transitioning to Interior IBC COFAR is the active cross-agency governance body HHS is the dominant provider for grants solutions Five Federal and four commercial core HR system providers named by OPM Completion of Business Reference Model to standardize Human Capital lifecycle Kick off payroll pilot Define common processes in alignment with other LOBs (process touch points) Develop a strategy to address demand for HR services (classification, hiring, etc) Identify upcoming system consolidation point Define common processes in alignment with other LOBs (process touch points) VA selects a shared service provider NSF and OPM leverage category management Identify upcoming system consolidation point (Common Core) Define common processes in alignment with other LOBs (process touch points) Leverage category management initiatives Define common processes in alignment with other LOBs (process touch points) Improve user experience No enterprise management of LOBsUSSM provides enterprise leadership Define common processes in alignment with other LOBs (process touch points) Assess existing solutions and agency interest in providing external services

7. Playbook: A Roadmap to Successful Implementations 7 Work streams Extends migration guidance, activities and customer/provider conversations beyond traditional Technology considerations. Guides objectives & key activities during migration lifecycle in phases: Includes Tollgate Review at end of each phase: opportunity for the agencies, USSM, OMB, LOB Managing Partners, and other stakeholders to assess readiness and critical risk areas before proceeding in the lifecycle. February through March: Office Hours Conducted with Provider and Customer Communities May 23 – May 26: Deep Dive with Provider and Customer Communities June 1: First version of Playbook to be released to community August 1: Launch of USSM Web Site with Integrated Playbook Modernization Framework Playbook What is it? Enables OMB and USSM to oversee progress and risk areas throughout the modernization lifecycle. Not a checklist. Enumerates activities, artifacts, and outcomes for every phase of a migration. Facilitates Tollgate-Based Review Discussion. Increases likelihood of success and reduces risks. Natural feedback loop for marketplace improvement. Agnostic of any specific service or solution. Milestones

8. ProviderStat – Improving Marketplace Performance 8 Cost Quality Efficiency Business Operations Objective and Rationale ProviderStat is an on-going data driven review process designed to: 1.Improve transparency in operations, pricing, and planning. 2.Assess maturity of providers’ capabilities (efficiency and quality) 3.Promote continuous improvement in customer satisfaction & issue resolution (quality, cost, business operations) 4.Increase shared services adoption (demonstrate value by integrating ProviderStat data with FedStat) 5. Develop incentives for high performance & continuous improvement (award on performance base) Technical Services Business Services Value FedStat ProviderStat On-Going Major Milestones and Activities  Data Call distributed 3/23 – due date 5/31  Office Hours held with over 11 service agencies to inform the Provider Community  Creation of a Services Catalog (via Acquisition Gateway) for all functions with 200+ sub-functions  Deep Dive Activities with Provider Communities - Summer 2016

9. 2016 Customer Satisfaction Survey What is it? 1.Voice of Customer 2. Unified Survey for Financial, HR, Payroll 3. Stratified by Role Type (Exec, Manager, End User) 4. Feeds into ProviderStat 5. Builds on Past Surveys by FM/HR LoB Focus Areas Service Delivery Customer Relationship Management Business and IT Systems Compliance Performance Management Schedule Value 1.ProviderStat (Quality) 2.Reported to Provider