Shared Services Best Practices

Transcription

1 Shared Services Best Practices Michael Cusick, Deloitte Greg Wass, Cook County DuPage County Shared Services Summit March 10, 2011

2 What services are shareable? Industry trends in shared services Government models State of Illinois experience Lessons learned

3 Potentially Sharable Services for Government Agencies Processes Supply Processes Supplier selection materials, products, and services Procurement contract and fulfillment management Inventory management distribution internal and external Corporate Processes Finance and accounting Accounts payable/receivable, general ledger, tax management, treasury and cash management, management accounting Human resources Payroll, benefits, education and training, recruitment, personnel administration Administrative services Facilities and real estate, asset management, document and archive management, research/library services Transactional Processes Domain Processes Social Services Justice and public safety Revenue Health Transport Constituent Interaction Processes Direct contact channels and portals Indirect contact channels Case management Documents/forms/applications processing, claims processing, billing and payments processing, bulk printing and mailing, data entry Enabling Capabilities Physical and IT Infrastructure Assets facilities, equipment, fleets, networks, etc. Resources broad and domain-specific expertise, systems, etc. Intellectual Property and Rights Architecture and standards Security, interoperability, etc. Reusable elements IP and components, software, etc. Information Directories internal and external (citizens and constituents). Databases and repositories Demographic, cadastral information, etc. Source: Gartner, 2004

4 Evaluating Processes for Shared Services There is no universal design for a Shared Services model. Organizations must evaluate each process to determine where activities should be performed. High Need for Control Low Strategic Value Corporate Service Center Center of Excellence Local Degree of Local Customization Required Low Need for Geographic Presence High Source: Deloitte Consulting/IDC Shared Services Market Survey

5 The Top HR Processes were: 1. Payroll/Time Administration 2. Call/service center Management 3. HR Reporting

6 The Top Financial Processes were: 1. Accounts Payable 2. General Accounting 3. Travel & Expense

7 The Top IT Processes were: 1. Internet and Web Services delivery 2. Security and Controls 3. Integration and Messaging Services

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9 Shared Services Models in Government Whole-of-Government or Enterprise Approach Large number of participants (can exceed 100) Common in state government jurisdictions Broad Scale/Scope Usually involves internal, transactional processes and broad infrastructure capabilities; initiatives typically involve major charges Joint Initiative Approach Moderate to large number of participants (typically 10 to 15 foundation members, can grow to include more than 70) Common in municipal/local government jurisdictions and geographic regions Can involve a wide variety of sharable processes and capabilities Mandatory Domain or Cluster Approach Modest number of participants (typically 5 to 10) Common in federal and state jurisdictions Can involve the full range of sharable services; increasingly being used as part of a whole-of-government approach. Limited-Partnership Approach Voluntary Small number of participants (typically 2 to 6) Common in municipal/local governments and between jurisdictions (e.g. multiple state governments) and geographic locales Can cover any sharable process and capability, often driven by a common pain point Limited Scale/Scope

10 Illinois' Shared Services Target Delivery Model A key component of this vision is delivery of shared services through clusters. Each cluster is composed of agencies with like-kind missions and services. The clustering approach allows the shared services organization to improve focus on customers, and enables agencies to focus on core programs and external customers, while allowing improved deployment of resources and knowledge sharing. Vision for Shared Services Delivery Citizen Outreach and Delivery Processes Social Services Cluster Environmental and Economic Development Cluster Agency Programs and Core Mission Processes Public Safety Cluster Health Care Cluster Clusters for Shared Services Delivery Regulatory and Admin Cluster Higher Education Cluster Common Utility and Infrastructure Shared Processes (e.g. System Maintenance, Network Provision) Support Center Transactional Processes (e.g. Invoice Processing, Payroll Data Entry) Specialized Processes (e.g. Labor Relations, Year End GAAP Reporting)

11 Illinois In-Scope Processes Fiscal HR Procurement General Ledger Timekeeping Sourcing Accounts Payable Benefits/Personnel Purchasing Accounts Receivable Fixed Assets Grant Reporting Inventory Accounting GAAP Reporting Travel Recruiting Labor Relations Payroll Hiring Grant & Contract Monitoring

12 Target Delivery Model Social Services Healthcare Environment / Rec., Culture, Econ. & Infrastructure Public Safety Regulatory / G&A Higher Education DCFS DHS DHFS DPH EPA DNR DCEO IDOT DOR DFPR CMS IBHE ICCB ISAC Support Center Support Center Support Center Support Center Support Center Support Center 17,608 FTEs 4,286 FTEs 9,731 FTEs 17,818 FTEs 7,128 FTEs 500 FTEs Deaf Hearing Violence Prevention Aging, Developmental Disabilities Guardianship Possibly a single cluster? Comp. Health Insurance Plan Bd. Illinois Medical District Commission Veterans Affairs Agriculture Arts Council Sports Facilities Authority Historic Preservation Agency Dry Cleaners Metro Pier Expo Authority CDB E River Valley Financial Admin E STL Financial Administration SW ILDev t Finance Authority Prisoner Review Bd. State Police Merit Bd. Fire Marshal IEMA Law Enforce t training std board Criminal justice Info n authority DOL ICC OMB Ethics Comm n WCC IDES Labor Relations Procurement Board Property tax appeal Dep t of Human Rights Human Rights Comm n State employee retire t Civic Service Inspector General Ed. Labour Relations

13 Original High Level Tasks and Timeline Shared Services FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 Define Governance Model Conduct Organizational Analysis Create and Organize Cluster W1 Create and Organize Cluster W2 Create and Organize Cluster W3 Co-locate Cluster Personnel Conduct Facility Analysis Design / Ready Facilities Identify Scope of Shared Processes Standardize & Design Processes Optimize Processes Define System Requirements Select Integrated System Conduct System Design and Implementation Facilitate System Stabilization

14 Actual High Level Tasks and Timeline Shared Services Remainder FY 06 FY 07 of 2006 FY 08 FY 09 FY 10 FY 11 Define Governance Model Conduct Organizational Analysis Create & Organize W1 SSC Co-locate AR SSC Personnel Co-locate PS SSC Personnel Create and Organize SSC 3 Create and Organize SSC 4 Create and Organize SSC 5 Conduct Facility Analysis Design/Ready Facilities - Identify Scope of Processes for Shared Services Standardize & Design Processes Create Interim Business Processes Define System Requirements erecruiting Select Timekeeping Implement Timekeeping Select ISIS Select SI Implement System

15 Critical Success Factors / Lessons Learned Require executive involvement (Chairman, Board, Mayor, etc.) for timely decision making; clarity of vision, direction, purpose; adequate investment of time and resources; governance Crawl, walk, run Determine what can be standardized (processes, technologies, commodities); start benchmarking current performance; develop and maintain business case and measure other drivers; remove obstacles (statutes, contracts, policies, rules) Add processes as centers mature, need arises, business cases made ( Big Four HR, fiscal, technology, procurement) Support change management Include customers/requirements; communicate; train; critical to identify the right people to move; implement creative project team incentives; make it top-down AND bottom-up