Removing barriers to Shared Services A Surrey County Council

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Removing barriers to Shared ServicesA Surrey
County Council Alsbridge case study30/01/07
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Agenda

• Alsbridge
• Surrey County Council
• The Challenge
• Removing cultural barriers
• Managers Gateway
• Management Reporting
• KPI Reporting
• Self Service
• Conclusions
• Q A

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Alsbridge

• Alsbridge is the premier consulting firm
  providing unbiased advice on Outsourcing, Shared
  Services and Offshoring
• Unbiased evaluation of Outsourcing and Shared
  Services
• Collaborative methodology which builds consistent
  buy-in from both client and supplier, resulting
  in sustainable solutions
• Global coverage with in-depth knowledge of
  suppliers and offshore locations throughout the
  world
• Deep functional expertise in IT, Finance
  Accounting, HR, Procurement
• Extensive vertical experience in both Public
  Private Sector
• Alsbridges founders are former Accenture, EY
  and KPMG partners each with over 15 years Shared
  Services, Business Process Outsourcing (BPO) and
  Information Technology Outsourcing (ITO)
  experience
• Our consultants are all industry specialists with
  in-depth knowledge and a proven track record of
  delivering business critical improvements for
  clients in a diverse range of sectors

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What we specialise in
Alsbridge Implement

• Offshoring
• Feasibility/Strategy
• Location selection
• Solution design
• Implementation/Transition
• Performance improvement
• QA review/benchmarking
• Governance

• Outsourcing
• Market awareness
• Feasibility/Strategy
• Solution Design
• Supplier Sourcing
• Contract Negotiation
• Transition management
• QA review/benchmarking
• Governance

• Shared Services
• Feasibility/Strategy
• Solution Design
• Implementation/Transition
• Performance improvement
• QA review/benchmarking
• Governance

Client-Side Advice
Alsbridge Implement
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What we bring to the table
Focus
Neutrality
Pragmatism

• Weve done it for real we have hands-on
  experience of designing, setting up and running
  shared services and outsourced solutions
• We know what works and what can go wrong, and we
  know how to use that knowledge to increase your
  chances of success
• We can draw on our extensive associate network
  and relationships with the major law and
  accounting firms

• We are specialists outsourcing, shared
  services and offshoring are all we do
• We have deep knowledge of the market, current
  state and future trends
• We understand how the suppliers operate, their
  issues and drivers

• We are totally objective regarding the end
  solution
• We are independent of all suppliers
• We are never prescriptive we co-develop
  solutions to maximise the clients gain

Depth of knowledge, objectivity, and flexibility
of response
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Background to Surrey County Council

• One of the countys safest and healthiest places
  to live
• Most wooded county in England nearly one
  quarter of the county
• County Hall based in Kingston-upon-Thames
  outside of Surrey
• 5th Largest County council in England
• Employ more than 26,000 staff
• Annual budget of 1 billion
• Recently rated an excellent council
• Over 1 million customers
• who use council services every day

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Surrey County Council Shared Services

• Shared Services created as part of a major
  modernisation and efficiency program in Surrey
  County Council on the back of the Gershon review
  (SSC went live on14th Feb 2005)
• Seen as an opportunity to maximise the
  implementation of ERP system across Finance, HR
  and Property. Need for ERP had become critical
  due to
• Finance systems becoming obsolete
• HR systems being largely paper based
• Numerous fragmented systems
• Information often being inaccurate or conflicting
• Managers and councillors not having access to
  quality and timely information
• Shared Services seen as
• A more effective way to deliver the new processes
• Delivering consistently high quality
  administration services
• Improving accountability
• Freeing up staff to work on value-added front
  line services
• Realising the full benefit of ERP implementation
  and investment

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Shared Service Centre Scope

• Finance and Procurement
• Accounts Payable and Procurement (Procure to
  Pay)
• Accounts Receivable (Sales to Collect)
• Financial Accounting and Reporting (Record to
  Report)
• HR and Payroll
• Organisational Management
• Recruitment
• Work Life Events
• Training Administration
• Payroll and Employee Services
• Property
• Capital Projects
• Real Estate
• Data Management
• Management Reporting
• Continuous Improvement

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Shared Service Centre Challenges

• Local Government has complexities which are
  unique
• Complex and varied procurement
• From Goats to Gritters!
• Challenging customers
• Vulnerable members of the public
• Emergency requirements
• Multiple, small and relatively unsophisticated
  vendors
• E.g. Carers and taxi drivers
• Non standard employee base
• Social workers, library managers, part time
  volunteers etc
• Multiple Employment
• Foster Carers
• Challenging recruitment with high staff turnover
  often contractual
• CRB and reference checks built into legislation
• Large number of temporary staff
• Data security an added complexity due to
  sensitive nature

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A Major Re-structure

• As well as the challenges of completing the
  implementation of SAP and the bedding down of
  shared services, in 2006 Surrey was also in the
  midst of a major restructuring programme known as
  BDR

• Objectives
• Save 50m net in 2006/7 from expenditure in the
  2005/6 budget
• Front line service improvement for residents
  achieve CPA excellence
• Provide a fit-for-purpose design for the
  councils organisational structure
• Review
• An intense 10 week process in order not to
  prolong uncertainty in the organisation
• Large joint team to ensure a comprehensive
  review - 18 Consultants, 50 Surrey staff
• All areas of council in scope (excl schools)
  circa 720m of spend

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Alsbridges Challenge

• Help SCC complete implementation of SAP and
  Shared Services processes in the midst of a major
  re-structuring project
• Encourage Key Council Managers to adapt to the
  new ways of working that shared services brings
• Remove the barriers to change associated with the
  implementation of new technology, systems and
  processes associated with the Shared Services
  implementation
• Create simple ways to access accurate management
  information
• Recommend ways to improve existing systems and
  processes to help highlight efficiencies
• Encourage interaction between services and the
  SSC remove us and them culture
• Encourage Managers to accept, embrace and
  evangelise new ways of working brought about by
  shared services
• Introduce key concepts and methodology to assist
  council staff In continuous improvement

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Approach - Understanding the issues

• Meeting with key Managers it became apparent that
  although the implementation of SAP and the
  setting up of shared services had been largely
  successful, there were some key issues that
  needed to be addressed
• There was a perception that SAP was the cause of
  all issues
• New processes and ways of working had not been
  fully embraced
• There were multiple ways of bypassing processes
  and carrying on as before
• There was a lack of accurate management
  information to support decision making
• There was a feeling that shared services had
  removed the personal touch and added
  bureaucracy
• There was a feeling that shared services was the
  first step on a journey to outsourcing
• Too much emphasis on process and efficiency, not
  enough on front line delivery of services
• Shared services and SAP forced upon them against
  their will
• Our job was to come up with ways to address these
  issues, to help create a performing organisation,
  using standard processes and benefiting from the
  investment in the latest technology

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Examples of Change 1 Managers Gateway
The Challenge

• Remove the barriers preventing council managers
  from accessing key systems
• Remove the stigma associated with SAP and SAP
  Speak
• Make it simple for Managers to access key
  management information tools

The Solution

• A Managers Gateway providing central access to
  all necessary tools and systems in one place
• Opens upon login with single sign on regardless
  of system
• No technical terms simple English, obvious
  icons
• Training and support provided

The Result

• For the 4 key council Management layers access to
  SAP went from approx 60 to 100
• Managers found it simple to access the tools they
  needed to do their job
• Access to technology was no longer the barrier to
  shared services processes
• They were consulted, involved, trained and
  supported its now part of their daily working
  lives

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The Managers Gateway
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Examples of Change 2 Management Reporting
The Challenge

• Provide council managers with standard, accurate,
  management information
• Use SAP to create central management reports with
  meaningful information to enable budget
  management of both financial and headcount
  budgets

The Solution

• Use information extracted from SAP but structured
  in a simple format that Managers could understand
• Involve managers in the design start with their
  spreadsheets then recreate in SAP
• Design and deliver a training plan with Finance
  Managers, presented by Finance Managers
• Implement a budgeting and forecasting process
  making Managers 100 accountable

The Result

• Monthly management reports with accurate
  information on spend and remaining budget
• Clarity on use and cost of full time and
  temporary staff and vacancies
• A new culture of budgeting, forecasting,
  financial awareness and accountability
• Increased usage and benefits of the improved
  systems and processes associated with Shared
  Services

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Management Reporting
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Examples of Change 3 KPI Reporting
The Challenge

• Improve the culture of performance management and
  customer focus delivered through the SSC
• Take original baselined performance metrics and
  make them meaningful
• Promote the services delivered by each shared
  services team to their colleagues and customers

The Solution

• Promote Performance Mgmt and set realistic KPIs
  with each SSC Manager and the Management Team
• Assist with collation of initial KPIs and the
  tools and systems to follow
• Create event where colleagues and customers could
  interact, learn and understand about each team

The Result

• The first KPI report produced in December 06
  commencement of monthly process
• SSC marketplace and quiz for staff interactive,
  fun and educational
• Teams working together and adhering to KPIs
  monitoring their own and the teams overall
  performance
• Ability to act on statistics, be aware of
  performance issues and reward over performance
• Increased customer focus and interactivity
  better understanding of what the SSC actually
  does and the people who do it

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Shared Service Centre Balanced Scorecard- Example
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Key Performance Indicators - Example
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Examples of Change 4 Improved self service
The Challenge

• Provide a clear, simple, user friendly front end
  to shared services processes and systems for all
  staff
• Respond to staff issues with existing on-line
  system
• Provide end to end explanations for beginners but
  quick click access for others

The Solution

• A new home page and landing pages for the 6 key
  areas of process confusion and complexity
• Remove the existing system constraint and design
  simple solution to provide symbolic visual change
• User test with wide range of users to ensure
  solution meets each type of customer

The Result

• Improved access, improved user feedback,
  increased customer satisfaction
• Reduced calls to call centre for assistance and
  support
• Simpler access to processes and systems enabled
  through shared services

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Improved Self Service
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Conclusions - Summary

• Barriers can be removed through pragmatic, simple
  solutions
• Involve key staff from concept through to
  implementation. Continually update, manage and
  bring onboard
• Always set achievable deliverables, realistic
  timeframes
• KISS
• Communicate, communicate and communicate again
• Think of smarter ways of getting a message across
  staff quiz rather than standard presentation
• Dont be a tech or consulting geek speak
  English that everyone understands
• Shared Services need nurturing to make solutions
  accessible and usable Continually review and
  refine
• Improving solutions during a time of change is
  hard, it takes time but can be done
• Take away the barriers, provide sufficient
  support
• Dont under estimate the change in behaviours
  that shared services brings
• Keep the faith in 2006 Surrey County Council
  was awarded New Shared Service Centre of the Year

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Questions ?

• Barry Matthews
• barry.matthews_at_alsbridge.com
• 07881954710