Shared Services for the Public Sector · Proprietary and Confidential to North Highland - -13 • Ensures all employees receive consistent and correct answers to all questions (policy,

Shared Services

Proprietary and Confidential to North Highland

June 2011

Shared Services

for the Public Sector

Why Implement Shared Services?

• Reduce support costs that are too high and/ or

growing too fast

• Typical savings: 20%

• Attainable savings: 30 - 40%

• Transform “back office” culture and improve poor

service levels

• Remediate lack of standardized systems

Strategic Business Partnering

40%

Measuring & Controlling

Processing Risk20%

Business Partnering10%

- -Proprietary and Confidential to North Highland 2

• Improve access to relevant information

• Manage business growth without adding a

proportionate number of support/ administrative

staff

Transaction Processing

and Reporting35%

Assessing & Managing

Business Risk25%

Transaction Processing

and Reporting70%

Current State Future State

Shared Services Derivation of Benefits

35%� Reduce physical locations

� Consolidate organization and streamlineAdditional benefits include:

Savings from transforming support functions result from:

Agencies transforming their support functions typically achieve savings of over 20% with a

one to four year payback period.


35%Consolidation

35%Standardization

30%Re-engineering

� Standardize policies

� Implement Best Practices

� Minimize number of systems

� Consolidate organization and streamline

� Opportunistic standardization

� Organize around processes

� Innovative uses of technology

� “Strategically outsource” as appropriate

Additional benefits include:

� Better quality

� Reduced cycle time

� Greater focus on business imperatives

Potential Support Function Candidates for Transformation

• General Ledger

• Budget/Forecasting

• Financial Reporting

• Accounts Payable

• Billing/Invoicing

• Accounts Receivable

• Purchasing

• Internal Audit

• Tax

• Credit & Collections

• Cash Management and

Treasury

• Travel & Entertainment

• Fixed Assets/Asset Mgmt

• Cash Application

Finance

Human• Payroll Processing

• Compensation

• Benefits

Administration

• Relocation Services

• Recruiting

The following functions are candidates for a shared services model


HumanResources

InformationTechnology

Legal

Other

• Compensation

Administration

Administration

• Training & Education

• Recruiting

• Career Planning

• Technology

Development

• Applications

Development

• Application Maintenance

• Technology Hosting

• Data Center Operations

• Telecommunications

• Hardware & Software

Acquisition

• Network Support

• Litigation Support

and Coordination

• Environment, Health

and Safety

Consulting/Auditing

• Regulatory

Compliance

• Communication Svcs

• Travel Services

• Real Estate

Management Svcs

Procurement• Strategic Sourcing • Tactical Purchasing • Vendor Management

• Media Relations

Corporate Staff if:• Minimal direct support to Business Units

• Small, low cost

• Strategic Planning

Benefits of Shared Services:

• Cost Savings

• Customer Focused

• Separate Organization

• Streamlined Processes

• Effective Use of Technology

• Efficient Service Delivery

• ScalabilityCentralize if:• Standardization is

important

• Economies of scale

can be achieved

• Consistency is

important

Scope of Shared Services?

Functions / Services

Corporate Staff

Functions / Services

- -Proprietary and Confidential to North Highland

Decentralize if:• Strategic function of

business

•Legislature involvement

(e.g. policy oversight)

• Unique process to

individual region

important

5

Centralize or Decentralize?

Corporate Staff or Shared

Services?

Shared Services

Shared Services if:• Exists to serve Business Units

• Significant in size and cost

• Business unit input is important to

determine volumes and service levels

Shared services offers the benefits of centralized, decentralized, and standardized organizations.

Regions

HR Shared Services Delivery Model

HR Strategy, Programs, and

PoliciesEmployees HR Service Center

Example

• Tier 1• Tier 2 Centers of

• Tier 0


HQ HR• Call IVR (interactive

voice response)• Use web-based self

service

Region HR

• Transactions

• Policy information

• Administrative support

• Standard services

• Tier 2 Centers of Expertise (COE)

• Create HR policies

• Tier 3 support for service center

• Deliver services to regions

Recruiting and Staffing

HR Shared Services

Service CenterCenters of Excellence and HQ

Benefits and Leave Administration

• New hire transactional

processing

• New hire onboarding

fulfillment

• Termination processing

• Recruiting and staffing

process

• Workforce planning

• Develop job

descriptions

• Benefit questions

• HR policy questions

• Benefits enrollment

• LOA transactions

• Termination /

severance planning

• Create and distribute

reports

HR Shared Services

Enterprise HR System


Employee Relations and EEO

Administration

Payroll and Compensation

• LOA transactions

• Salary surveys

• Job pricing

• Payroll administration

• Direct deposit

enrollment

• W-2 processing

• Time reporting

• Employee address

and personal data

changes

• Distribute employee

communications

• Design and implement

affirmative action

policies

• Design and implement

labor relation policies

reports

• Vendor management

Call Center Infrastructure

Tool Vendor In DCF Inventory Description and Functionality

Automatic Call Distributor (ACD)

Cisco

Avaya

Yes

Abuse HotlineACCESS Call CentersACCESS Service CentersIT Helpdesk

DESCRIPTION A component of the phone system that routes calls

FUNCTIONALITYIn this installation, routes calls to the IVR

Interactive Voice Response (IVR) System

Cisco

Avaya

Yes

Abuse HotlineACCESS Call CentersACCESS Service Centers

DESCRIPTIONSoftware that connects the phone system to databases enabling retrieval of information, authentication, and routing based on caller’s data


IT Helpdesk FUNCTIONALITY• Identify the caller for routing• Route calls automatically to providers relevant to

the caller• Authenticate the caller through a PIN, as

required

ComputerTelephony Integration (CTI)

Cisco

Avaya

Case Management System

TBD• Additional module was not purchased by IT Helpdesk, but is available from Avaya

• Hotline may have capability of CTI integration

• Many Case Management systems provide a CTI integration component that can be purchased

DESCRIPTIONSoftware that enables sharing of data between phones and computers

FUNCTIONALITYEnable screen pops of call logging screen that contains contextual information on the caller from CHR

Call Center Infrastructure (cont’d)Tool Vendor In DCF Inventory Description and Functionality

Case Management System (aka Customer Relationship Management –CRM)

FrontRange HEAT

BMC Remedy

SalesForce.com

Not Identified DESCRIPTION• Software used to document, manage, and report on service provided to customers

FUNCTIONALITY• Provide pull-down documentation of issues• Capture, track, and report service• Use reporting categories to assist knowledge search

Knowledge Base Custom built internal web portal

Yes

Internal shared site built in Southeast region. Site is

DESCRIPTIONRepository of information that incorporates tools for intelligent retrieval


Southeast region. Site is open to all HR, Managers, and Employees and contains 1000s of HR policies, procedures, and training material

FUNCTIONALITYProvide the correct answer to a question based on groups to which the employee / retiree can belong (e.g., Regions, Institutions)

Document Management & Scanning

Custom built system Yes

In-house system identified in SunCoast region’s ACCESS benefit recovery center and service center

DESCRIPTIONElectronic file system that uses information about documents to automate filing and retrieval

FUNCTIONALITY• Collect and store employee files in electronic form• Facilitate multi-point retrieval• Make faxes immediately available to CSRs without sorting through paper

Call Center Infrastructure (cont’d)

Tool Vendor In DCF Inventory Description and Functionality

Workforce Administration and Quality Assurance

Verint Yes

Currently is use at AbuseHotline and ACCESS call centers

DESCRIPTIONScheduling application that also provides reporting

Audio and desktop recording

FUNCTIONALITYUsed to schedule and notify employees• Recording of audio and video• Ratings of calls• Reporting of performance

Leave Management TBD (typically an Not Identified DESCRIPTION


Leave Management TBD (typically an internally built system)

Not Identified DESCRIPTIONSystem to manage all leaves of absence within the Department

FUNCTIONALITY

10





• Validates caller to ensure privacy is maintained

• Reduces time caller is on phone

• Ensures accurate Knowledge Base articles are accessed by agent

• Escalates case to proper next-level escalation agent/COE

• Categorizes call for reporting

• Tracks all open, closed, and pending cases

Knowledge Base


• Ensures all employees receive consistent and correct

answers to all questions (policy, procedures,

transactions, etc.)

• Ensures operating procedures are kept up to date and

housed in one common location

• Provides self service access to employees

• Provides one portal for all HQ, COE, Service Center,

HR, and Manager inquiries

• Decreases caller wait time by having all answers in one

location for easy access by agents

Document Management System


HR Shared Services

HR Shared Services

HQ

HQ

Current State Future State




Employees Employees

Regions

HQ

Regions

Administrative Shared Services – Future State

Centers of Excellence

Enterprise

Finance/

Contract

Mgmt

Sys

Employee HR Shared ServicesSupport Shared Services

Centers of Excellence

Enterprise

HR

SystemStaffing & Rec

Training

Leave & Time Mgmt

Pay & Comp

Perf Mgmt

H & W Admin

EE Relations

HR Strategy & PlanningBudget Finance

Contracts General Svs

Training


Support Service Center Employee HR Service Center

IT Shared Services

ExampleEmployee HR Shared Services

HR Centers of Excellence

Staffing and Recruiting

Health & Welfare Administration

Employee Relations

Payroll and Compensation

Leave & Time Management

Training

Performance Management

HQ

HR Strategy and Planning


HR Employee Service Center

Transactions

Region 1

Fulfillment Policy Questions Escalations to COE

Region 2 Region 3 Business Unit 1

Business Unit 2

Business Unit 3

Business Unit 4

Business Unit 5

HQ

Local HR

Employee

People First

HR Shared Services Implementation

Example


Shared Services Implementation Process

DESIGNBUILD/

TESTASSESS & PLAN IMPLEMENT OPTIMIZE

1 2 3 4 5

DESIGN BUILD

PROCESS

Analyze shared service

opportunities, prioritizing

processes for inclusion. Identify

sourcing options.

Deploy processes and

transition. Track and report

metrics, identifying and

implementing process

improvements.

Design, build and pilot

processes for inclusion in

shared services. Define

reporting processes and

associated metrics.

Analyze existing organizations,

work allocation and staffing.

Identify key stakeholders.

Execute change plan,

transition organization and

support deployment. Conduct

training and identify additional

Design, build and pilot new

shared services organization.

Assess impact on existing org,

create change management ORGANIZATION

- -Proprietary and Confidential to North Highland19

Identify key stakeholders. training and identify additional

training needs.

create change management

plan and org transition plan.

Analyze current technology,

identifying opportunities and

challenges that impact new

shared processes.

Complete cutover and deploy

new technology. Identify

opportunities for performance

improvement.

Design, build and pilot new

technical architecture. Build

and test supporting processes,

data model and continuity

plan. Create cutover plan.

Define scope of service, business

case and cost model. Define

business requirements and

blueprint.

Make go/no go decision,

update cost model and

business case. Deploy

governance processes and

generate reports.

Define operating model,

governance framework and

processes. Create integrated

roadmap including SLA targets

and service catalog.

Identify site requirements, assess

current facilities and define

sourcing strategy.

Build out site and transition

employees to facility.

Initiate site selection, define

detailed site requirements,

review and select site. Create

site build out plan.

TECHNOLOGY

PROJECT

MANAGEMENT

SITE

HR Shared Services Implementation – Current Effort

ASSESS & PLAN

1

PROCESS

• Capture current HR processes at

HQ and the Regions

• Prioritize processes for the HR

Shared Services Organization

• Identify touch points for the HR

Service Center

• Analyze current HQ & Regional

HR structures

• Identify key stakeholders

• Document current state DCF HR

organizational structure

• Evaluate PeopleFirst functionality

ORGANIZATION

• In 8 weeks the following deliverables will be completed:

o HR Shared Services model (including the role of the Enterprise HR system)

o Cost analysis and ROIo Timeline and implementation plan for

the remaining phases (Design and Build, Implement and Optimize)


(current & proposed)

• Evaluate current DCF HR

technology

• Identify technology gaps

• Educate HQ/Regional Shared

Service 101

• Create DCF HR Shared Service

Vision

• Define scope of services for HR

Shared Services

• Evaluate Northgate capability

• Identify site requirements for HR

Shared Services Organization

• Identify site requirements for HR

Transactional Service Center

TECHNOLOGY

PROJECT

MANAGEMENT

SITE

Phase 1: Assess & Plan

Analyze Current

State Processes

Review Best

Practices

Identify

Opportunities for

Improvement

Prioritize

Processes for

Inclusion

Review Baseline

Service Levels

Analyze Current

State Organization

Analyze Current

Staffing Levels/

Work Allocation

Identify

Opportunities for

Improvement

Identify

Identify Key

Stakeholders

Analyze Current

Review Best

Practices

Review Best

PROCESS

ORGANIZATION


Identify Business

Requirements

21

Opportunities for

Improvement

Analyze Current

State Technology

Analyze Current

State Architecture

Develop Initial

Business CaseDevelop Initial

Cost Model

Define Scope of

Service

Define Strategic

Objectives

Create Shared

Service Charter

Create Shared

Service Blueprint

Assess Current

Facilities

Identify

requirements for

Site Selection

Review Best

Practices

Define Sourcing

Strategy

TECHNOLOGY

PROJECT

MANAGEMENT

SITE

Phase 2: Design Define Process

Development

Guidelines

Design Future

State Processes

Define Future

Organization

Guidelines

Identify

Integration Points

Identify Gap

(Current vs.

Future)

Create Business

Process Roadmap

Size and Cost

Organization

Identify Gap

(Current Vs.

Future)

Create Change

Management

Roadmap

Identify Impact on

Existing

Organization

PROCESS

ORGANIZATION

Define Future

Functional

Requirements

Define Future

Organization

Structure


Design Future

State Architecture

Define Operating

Model

Define Detailed

Site Requirements

Size/ Cost

Technology

Solution

Define Future

Technology

Requirements

Define Technology

Roadmap

Define

Governance

Framework

Define

Management

Processes

Update Business

Case

Create Risk

Assessment

Update Cost

Model

Create Integrated

Roadmap

Review Site

Options

Select Site Create Site Build

Out Roadmap

Engage Site

Selection Partner

Initiate

Preliminary Site

Search

TECHNOLOGY

SITE

PROJECT

MANAGEMENT

Identify Gap

(Current vs.

Future)

Phase 3: BuildDefine Detailed

Processes

Create Impact

Assessment

Define Technical

Processes

Finalize

Organization Sizing

Model

Define Policies and

Procedures

Build/ Run

Simulation Model

Pilot Processes

Amend Processes Define Metrics and

Reporting

Processes

Define Job

Descriptions

Define Resource

Plan

Create Change

Management Plan

Define HR/ Org

Processes

Build Training

Strategy

Create

Organization

Transition Plan

Build Technical

Infrastructure &

Test Technical

Infrastructure &

Build/ Test

Business

Create Cutover

Plan

PROCESS

ORGANIZATION


Build Product/

Services Catalog

Processes

Create Site Build

Out Plan

Infrastructure &

Applications

Infrastructure &

Applications

Business

Continuity Plan

Test Data

ConversionBuild Data Model/

Set

Plan

Create SLA &

Initial Targets

Define

Governance

Processes

Update Business

Case

Update Cost

Model

TECHNOLOGY

SITE

PROJECT

MANAGEMENT

Purchase

Necessary Systems

Phase 4: Implement

Deploy Processes

Implement

Business

Readiness Plan

Execute Change

Plan

Execute

Organization

Transition Plan

Execute Training

Plan

Support SS

Deployment

Solicit Feedback

on Training

Identify Additional

Training Needs

Complete

Transition

Track and Report

MetricsPROCESS

ORGANIZATION


Go/ No Go

Decision

Build Out Site

CutoverExecute Final

Testing

Deploy

Governance

Processes

Feedback on

Governance

Processes

Transition

Employees to Site

Update Business

Case

Create Chargeback

model

TECHNOLOGY

SITE

PROJECT

MANAGEMENT

Phase 5: Optimize

Generate Reports

Continuous

Process

Improvement

Implement

Process

Improvements

Continuous

Organization

Development

Implement

ImprovementsGather Feedback

from Employees

PROCESS

ORGANIZATION


Continuous

Technology

Improvement

Implement

Technology

Improvements

Generate Reports

Generate Reports Report Against SLAReview Product/

Service Catalog

Amend Product/

Service Catalog

Review SLA

Targets

Amend SLA

Targets

Maintain site

Report on

Business Case

Report on

Chargeback Model

TECHNOLOGY

SITE

PROJECT

MANAGEMENT

Support Shared Services – Future State

Support Centers of Excellence

Contract Services

Financial Services

Budget Services Training

General Services

HQ

Example


Support Service Center

Transactions Fulfillment Policy Questions Escalations to COE

Local Support Services

Employee/ Customer

MFMP ARTS FLAIR

Region 1 Region 2 Region 3 Business Unit 1

Business Unit 2

Business Unit 3

Business Unit 4

Business Unit 5

HQ

Documents

Shared Services for the Public Sector · Proprietary and Confidential to North Highland - -13 • Ensures all employees receive consistent and correct answers to all questions (policy,