Shared Services Bootcamp 101 ACN

Shared Services

Bootcamp

What is Shared Services?

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Shared Services is a way of organizing service delivery to optimize

the delivery of cost-effective, flexible, reliable services to all clients.

Shared

Services

Model

Centralized

Model

Distributed

Model

Service / Responsiveness

Sc

ale

& E

ffic

ien

cy

Distributed Distributed control Focus on responsiveness Location driven

Shared Services Shared control Balances responsiveness & efficiency SLA driven

Centralized Centralized control Focus on

consolidation

Cost driven

How is Shared Services different from other

organization structures?


Decentralized

Processes run autonomously by

departments

Different systems per department

Unique departments processes

Focus on responsiveness

Work originates in the department

No service level agreements

Non-performance based

Processes run autonomously by departments

One common system platform (i.e., ERP)

Processes standardized to support common system

Focus on responsiveness

Work originates in the department

No service level agreements

Non-performance based

Enterprise

Stand alone organization One common system platform

(i.e., ERP)

Processes standardized to support common system,

efficiency and customer

service

Focus on customer service Work originates from the

customer

Managed service delivery through clear Service Level

Agreements Performance driven culture

Shared Services

Consolidation of functions within a single department

One common system platform (i.e., legacy or

ERP)

Processes standardized to support common system

and central organization

Focus on control Work originates from the

center

No service level agreements Control driven targets (non-

performance based)

Centralized

Department

Department

Depts.

Departments

Department Depts.

Depts.

Depts.

Department Department Department Department

Department

What are the typical benefits from Shared

Services?

Benefits

Financial

Benefits

Employee

Benefits

Customer (Agency, Department,

Vendor, or Citizen)

Benefits

Labor related savings from economies of scale

Non-labor Savings (e.g., procurement spend, real estate)

Better career options (e.g., in new org and in the State)

More autonomy (e.g., less supervisors per employee)

High-performance culture (i.e., metrics driven)

Faster transaction response time (e.g., shorter cycle-times)

Responsiveness (e.g., calls/email tracked & answered)

Fewer errors (e.g., standard processes)

Reduce

Risk/Improve

Compliance

Clear accountability (e.g., service level agreements)

Simplified audits (e.g., through enabling technology)

Increased control & visibility (e.g., standard reporting)


Shared Services Value Drivers

5

and enable an additional 2-3% annual Continuous Improvement benefit.

Shared Services Value Drivers Examples

Depending on the function, current state, and future state, shared

services can achieve 20-45% in benefits while increasing service

Copyright 2013 Accenture All Rights Reserved.

# Value Driver Example Low High

1 SS core capabilities (e.g., service management) 5% 15%

2 Economies of scale & skill (i.e., centralization) 2% 5%

3 Standard processes, policies, and procedures 3% 5%

4 Automation (e.g., document management) 5% 10%

5 Common core system (e.g., ERP) 5% 10%

TOTAL 20% 45%

Shared Services Operating Model Example


Shared Services Organization

SSO Functional Towers

SSO Enabling Technologies

SSO Customer Service

Cu

sto

mers

SSO Management

Human

Resources IT

SSO Support Infrastructure

SSO Governance

Finance Procurement

Shared Services Core Capabilities

Strategy

and

Vision 3. Customer Relationship Management

1. Service Management

7. Management

Processes

6. Enabling Technologies & Infrastructure

4. Performance Management

5. Process Standardization

2. Governance Model


Service Management & Culture

8

Customer involvement and

shared responsibility

Governance model with involvement of the customer from

strategic level to day-to-day

operational level

Two way SLAs including expectations on the customer

Dedicated process development teams involving representatives

from the customer

Clarity for the users

Single point of contact within Shared Services through web,

mail and phone. Its clear how to contact the SSC and

issues will be tracked

Processes well defined end-to-end with clear understanding

of whos doing what activities and when

Professionalism and

transparency

Professional arms length relationship with

SLAs

Transparent pricing

Service and performance reporting

Clear scope of activities

Service culture and true

partner to the business

Shared Services vision and strategy coordinated with the

group strategy

Inclusive governance model

End-to-end focus to avoid sub-optimization

Deliberate service culture built into the performance

management framework


What can be Shared?

1. Remote Can the process be completed without in-person contact or by providing remote access to the data/information?

2. Repeatable & Rules-based Can a standardized, rules-based policy framework be implemented to handle the transaction?

3. A. High Volume transactions Is there sufficient volume that would drive economies of scale in the shared services organization (e.g.,

high volume Accounts Payable)?

B. Low Volume transactions Even if transaction volume is low is there an advantage to sharing that would drive economies of skill

(e.g., low volume Accounts Receivable in distributed locations

requires front office staff to process transactions infrequently)


What is the typical scope of Shared Services

activities?


Record to

Report Revenue

Management Procure to Pay Customer Care

Procurement Function Management

Sourcing Strategy

High potential for shared services

Legend

High potential for retained organization

Manage Supplier Relationships

Perform Requisition & Process PO

Accounts Payable

Travel & Expense

Document Management

Compliance Management

Inquiry Management

Finance Function Management

Planning , Resource Alloc. & Forecasting

Fixed Asset Accounting

Intercompany Accounting

Reconcile Accounts

Close Books & Consolidate

Cost Accounting

Document Management

Revenue Planning

Manage Sales Orders & Invoice Customer

Credit & Collections

Cash Application

Cash Management

Treasury

Tax

Document Management

Accounting Policy,

Control & Audit

Accounts Receivable

Hire to

Retire

HR Strategic

Planning

Employee Services

Compensation Administration

Performance Management

Staffing

Benefits & Pension

Administration

Time Administration

Payroll Administration

Employee Data Management

Document Management

Learning Administration

Technology

Services

IT Function Management

Business Leadership & Governance

End User Support

Mainframe Operations

Application

Maint./Development

Server Operations

Technical Support

IT Strategic

Planning

Program Management

Emerging Tech. Research

Supply Chain

SCM Function Management

Inventory

Management

Warehousing & Distribution

Perform Management Reporting

Record Transactions

Transportation management

Revenue Function Management

Other

Real Estate &

Facilities

Legal

Communications

Contact

Center

Document

Management

Vendor Master

Accounts

Payable

Travel &

Expense

Enabling Capabilities Functional Capabilities

Project

Workstreams*

Process

Technology

People

Program Program Management

*Note: The seven workstreams above are not intended to be interpreted as a project organization chart.

Project leadership must select the team composition appropriate for the implementation.

Change

Management

Organization

Metrics

Infrastructure (Facilities)

Shared Services

Implementation Approach


Assessing the Change Key Questions

12

Strategic

Intent and

Vision

Fit with Other

Change Initiatives

Shared Services

Operating Model

Scope of Shared

Services

Change

Strategy

Business Case

Implementation

Strategy

1. Strategic Intent and Vision: What is the strategic intent of

establishing shared services cost reduction or more? Why change?

2. Scope of Shared Services: What is the appropriate scope of Shared

Services ? Which processes / sub-processes / activities?

3. Fit with Other Change Initiatives: Where do overlaps exist? How

will the initiatives be aligned? Will plans for current initiatives need to

change?

4. Shared Services Operating Model: What process, technology, and

organization changes are required? How will services be sourced?

5. Change Strategy: What should be communicated? How to engage -

when and to whom? How will the organization adopt new ways of

working?

6. Implementation Strategy: What initiatives are required? How should

the initiatives be sequenced? How is the program organized for

success?

7. Business Case: What are the service and economic benefits? What

level of investment will be required? What risks must be managed?

The first phase of the journey, the assessment must focus on

answering a few key questions.

1

2

3

4

5

6

7


Key Success Factors Shared Services leaders have voiced these common success factors

for their future evolution

Top 5 Success Factors Key Implications

The Masters are more focused on talent management to bring benefits

of cost reductions, service and greater agility to the business overall

1. Retaining the best employees

2. Attracting the best employees

3. Improving internal customer

satisfaction

4. Greater standardization of

processes

5. Further reduction of operating

costs

Just employing a Shared Services model does not guarantee

success

People quality needs have become the top driver of future success

Continuous improvement is expected and demanded now

Process standardization remains a hallmark and a challenge


Questions


Shared Services Bootcamp 101 ACN

Documents

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