Erfarenheter av att implementera en koncerngemensam SLA process inom Nordea. Andreas Norén Processägare SLA Group Planning & Control, Nordea AB

Transcription

1 Erfarenheter av att implementera en koncerngemensam SLA process inom Nordea Andreas Norén Processägare SLA Group Planning & Control, Nordea AB 1

2 Table of content 1. Introduction 2. Purpose and scope 3. Roles and responsibilties in the SLA process 4. Experiences of implementing the SLA process Overall SLA timetable Service Catalogue Pricing and Cost of Services and Applications Service Based organisation SLA structure and negotiation process Group IT SLA system solution 2

3 1. Introduction: Planning and Performance Management Model (PPMM) - Core elements Balanced Scorecard (BSC) - being the core management tool to drive strategy into business targets and actions Rolling Financial Forecasts (RFF) - to provide a more simple and more regularly updated view of performance Will in combination with the Balanced Scorecard gradually replace P/L budgets Service Level Agreements (SLA) - to clarify and manage internal services delivery between Service Provider and Service Receiver Strengths customer relationships with focus on quality and costs Management process aligned to the new PPMM Annual process of strategic direction and target setting Quarterly reviews and updates of BSC and RFF Continuous tactical performance monitoring Incentive Model 3

4 2. Purpose Service Providers and Service Receivers within the Nordea Group shall use Service Level Agreements (SLAs) to govern their internal exchange of services when deemed to add value. The ultimate goal of SLAs is to upgrade service delivery performance and cut costs A clear receiver-provider relationship shall be established using SLAs, which will lead to: A better managing of expectations between provider and reciever The receiver being able to understand and affect the costs for service delivery The provider being more proactive and business oriented The provider being able to reduce and control costs through: increased receiver demands the standardisation and harmonisation work to implement a Nordic Service Catalogue The provider being able to improve quality by focus on receiver demands and needs 4

5 2. Scope - mandatory parties to sign SLAs for 2004 Nordic SLAs? SLA should be established on a Nordic level in order to reduce the number of SLAs and to unify service offerings. SLA? A business contract between a service provider and service receiver specifying the services that will be delivered according to agreed service levels and price Service Providers Group IT HR Administration Finance Shared Services (FSS) Production and Productivity (P&P) E-banking Global Operation Services (GOS) Service Receivers Retail, CIB, AM&L, GCC and GS Retail, CIB, AM&L, GCC and GPT Retail, CIB, AM&L, GS and GPT Retail and CIB Retail and CIB Retail, CIB, AM&L and GCC 5

6 3. Roles and responsibilities in the SLA process GEM: Ensure SLA process activities and agreement is reached within time table Group Planning & Control: Concept (governance) owner of the overall SLA processes within Nordea Group Service Provider Receiver Production and Support Service Owners: - Service ownership based on Service Catalogue - Responsible for delivering services to agreed quality level and at agreed costs - Responsible for the pricing and profitability of the service - Responsible for developing existing and new services Business Partners Team Business Partners: * Agreement with the receiver * Singe point of contact * Follow up according to SLA S L A SLA Coordinator, BA Controllers and Product owners SLA Coordinator: to drive, support and facilitate process acoording to timetable and activities within own BA / GF unit 6 Business Relation team: SLA QRM: Follow up service delivery according to SLA and develop long term partnership for reducing costs and improving quality

7 4. Experiences of implementing the SLA process 7

8 1.Planning 4. SLA process main activities Management support and commitment of timetable and activities Managed as a business-driven process with clearly defined: - goals - ambition levels - deliverables and expectations - responsibilites and ownership of services - business relationship using SLAs 4. Annual review 2.Implementing the process Nordic Service Catalogue including service levels BA volume and cost Indication Pricing and cost of services Service based organisation Common Application list and costs SLA negotiation and signing System support to charge and report on SLAs 3.Manage the on-going process Charge and report on SLAs, (monthly or quarterly) SLA Quarterly Review Meetings Review SLAs annually Review and evaluate SLA process 8

9 4. SLA process timetable 2003, SLA signing 2004 May July September Oktober December May 19 May 30 July 1 September 22 During Sep until beginning of October During Oct until end of November Dec 4 Service Catalogue including service levels BA volume and cost indication for 2004 First draft of prices and cost of Services for Application Cost estimates & ownership structure Cost target Indication & Cost on Main Services for 2004 SLA Signing for 2004 SLA Signing for 2004 Responsible: Service- Providers Responsible: BAs Responsible: Group IT Responsible: Group IT Responsible: Service & Product Providers Responsible: Service- Providers Responsible: Product- Providers 9

10 10 4. Service Catalogue Purpose and Prerequisites Define the service delivery on such a low level that the receivers are able to understand and affect their needed service level and cost To unify and harmonise service offerings across the Nordic countries to encourage standardisation and cost reduction. What was done A rough inventory of everything that was delivered to the receivers A common Service Structure were defined Main service were defined and divided into basic services and additional services One service catalogue for each provider (in total 6) was produced with descriptions of the different services Experiences Important to establish a common service structure with main services to recover the cost base to be charged to the receivers using SLAs Important to involve the receivers A constructive dialogue of the usage and responsibility of services starts A basis for standardisation, harmonisation and control of service delivery and costs The existing local IT and charging systems will set the ambition level

11 4. Example - Group IT Service Catalogue Main Services Development Services Main activities s Development Application Services Maintenance & Operation Maintenance and operation for each platform IT Service Catalogue IT Service Catalogue IT Service Catalogue Office Services Support Office Computing Communication Service & Support Infrastructure Communication Network Services ATM Services Business IT Support Services 11

12 4. Example HR Administration Service Catalogue Main Services Payroll and Benefits Administration Services Employment Services IT Service Catalogue IT Service Catalogue IT Service Catalogue Recruiment Services and Aministrative Support e-hr Services Country Specific Services 12

13 13 4. Pricing and Cost of Services and Applications Purpose and Prerequisites Full cost based pricing without any profit margins Each service shall cover its own cost The calculation and pricing of services must comply with the Group s Financial Control Principles The main principle is yearly fixed prices What needs to be done Transform the existing cost base and service structure to the new one Volumes needs to be estimated in order to set the prices on cost elements in main services Calculate and estimate the cost on main services and applications Take into consideration the planned cost savings and expectations of cost target given by the receiver Experiences Clear principles for service pricing and charging of costs is needed Important to investigate the needs of modifying local IT and Invoicing systems Volume and cost estimates are hard to make for the first year due to new structure and lack of historical information A greater understanding of own business and what generates costs (receiver and provider)

14 14 4. Service Based organisation Purpose and Prerequisites To establish an organisation with clear roles and responsibilities to supporte the service delivery & business relation using SLAs Each organisational area needs to have clear and full responsibility for their part of the business What needs to be done Establish a business project organisation for implementing the process during the first year The hand over to the line-organisation has to come continuously Establish clear roles and responsibilities based on Service Delivery (Service Catalogue) and business relation using SLAs Experiences Management commitment and understanding is absolutely crucial It takes time to communicate and understand the change (example the practical use of the Service Catalogue) The project will go from driving the change process to facilitating and support the line organisation with clear templates and guidelines Important that each service owner take active part of his/her resonsibility in the process (ex whats are part of the service and how are prices and costs calculated and estimated)

15 4. SLA structure and negotiation process Purpose and prerequisites In order to create the clear receiver-provider relationship, SLAs between the parties shall be agreed and signed What needs to be done The Heads of Business Areas and Group Functions need to appoint persons to sign SLAs or they shall sign all SLAs on behalf of their own units Organize a team to familiarize with SLA deliveries (service catalogue, SLA draft and pricelist e.g) Plan SLA structure and draft for each receiver Initiate SLA negotiations and present SLA draft to the receiver The provider and receiver shall agree on how to monitor, charge and report and review targets in SLAs as well as how to conduct quarterly SLA review meetings The provider and receiver have a joint responsibility to sign the SLAs Experiences: Common SLA templates, drafts and Instructions are needed It takes time to educate and to familairise with the SLA Plan as few SLAs as possible without losing managebility and follow up possibilities 15

16 4. - Group IT SLA System Solution New master data for SLA reporting.. NO Pricelist 1. Sub ledgers NO, DK, SE, FI Agreements Service Catalogue System Middleware (Datastage,*) Chart of accounts Organisation Currency rates etc. FICO BW * This is Mercator in Finland Part of Finance 2003 Master data server (FSS) 1. New prices will be implemented according to new prices and service components/cost elements defined in Service Catalogue. No modifications but modified master data FI DK SE Transformation layer Common Nordic SLA reporting SAS database 2. Service Catalogue structure will be added, system codes will be grouped according to application groupings. Agreement structure will be added. 3. Local acc. units will be transformed to group acc. units, local GL accounts will be transformed to group GL accounts. Budget/Planning rate will be used for reporting. This information will be the same as used in Finance 2003 transformation.