Shared Services Bootcamp 101 ACN

Shared Services
Bootcamp
What is Shared Services?

Shared Services is a way of organizing service delivery to optimize
the delivery of cost-effective, flexible, reliable services to all clients.
Centralized
Centralized control
Focus on
consolidation
Cost driven
Centralized
Model
Scale & Efficiency
Shared Services
Shared
Services
Model
Distributed
Model
Shared control
Balances responsiveness & efficiency
SLA driven
Distributed
Distributed control
Focus on responsiveness
Location driven
Service / Responsiveness
Copyright 2013 Accenture All Rights Reserved.
How is Shared Services different from other

organization structures?
Decentralized
Enterprise
Centralized
Shared Services
Depts.
Department
Departments
Department
Depts.
Depts.
Depts.
Department
Department
Processes run
autonomously by
departments
Different systems per
department
Unique departments
processes
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
Work originates in the
department
No service level agreements
Non-performance based
Department
Consolidation of functions
within a single department
One common system
platform (i.e., legacy or
ERP)
support common system
and central organization
Focus on control
Work originates from the
center
No service level agreements
Control driven targets (nonperformance based)
Department
Department
Department
Stand alone organization

One common system platform
(i.e., ERP)
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
3
What are the typical benefits from Shared

Services?
Financial
Benefits
Reduce
Risk/Improve
Compliance
Labor related savings from economies of scale

Non-labor Savings (e.g., procurement spend, real estate)
Clear accountability (e.g., service level agreements)

Simplified audits (e.g., through enabling technology)
Increased control & visibility (e.g., standard reporting)
Benefits
Customer
(Agency, Department,
Vendor, or Citizen)
Benefits
Faster transaction response time (e.g., shorter cycle-times)

Responsiveness (e.g., calls/email tracked & answered)
Fewer errors (e.g., standard processes)
Better career options (e.g., in new org and in the State)
Employee
Benefits
More autonomy (e.g., less supervisors per employee)

High-performance culture (i.e., metrics driven)
4
Shared Services Value Drivers

Depending on the function, current state, and future state, shared
services can achieve 20-45% in benefits while increasing service
Shared Services Value Drivers Examples
#
Value Driver Example
SS core capabilities (e.g., service management)
5%
15%
Economies of scale & skill (i.e., centralization)
2%
5%
Standard processes, policies, and procedures
3%
5%
Automation (e.g., document management)
5%
10%
Common core system (e.g., ERP)
5%
10%
20%
45%
TOTAL
Low
High
and enable an additional 2-3% annual Continuous Improvement benefit.

Shared Services Operating Model Example

Shared Services Organization
SSO Governance
Customers
SSO Management
SSO Customer Service

SSO Functional Towers
Finance
Procurement
Human
Resources
IT
SSO Support Infrastructure

SSO Enabling Technologies
Shared Services Core Capabilities
1. Service
Management
7. Management
2. Governance
Model
Processes
6. Enabling
Technologies &
Infrastructure
5. Process
Standardization
Strategy
and
Vision
3. Customer
Relationship
Management
4. Performance
Management
Service Management & Culture

Customer involvement and
shared responsibility
Professionalism and
transparency
Governance model with

involvement of the customer from
strategic level to day-to-day
operational level
SLAs
Transparent pricing
Two way SLAs including

expectations on the customer
Service and performance

reporting
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-toend with clear understanding
of whos doing what activities
and when
Professional arms length

relationship with
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 suboptimization
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?
Procure to Pay
Record to
Report
Revenue
Management
Hire to
Retire
Technology
Services
Customer Care
Inquiry Management
Sourcing Strategy
Accounting Policy,
Control & Audit
Revenue Planning
HR Strategic
Planning
IT Strategic
Planning
Manage Supplier
Relationships
Planning , Resource
Alloc. & Forecasting
Revenue Function
Management
Performance
Management
Business Leadership
& Governance
Procurement
Function Management
Finance Function
Management
Cash Management
Compensation
Administration
Emerging
Tech. Research
Perform Requisition &

Process PO
Accounts Payable
Travel & Expense
Compliance
Management
Document
Management
Perform Management
Reporting
Cost Accounting
Fixed Asset
Accounting
Intercompany
Accounting
Record
Transactions
Treasury
Employee Services
Credit & Collections
Learning
Administration
Tax
Staffing
Accounts Receivable
Cash Application
Benefits & Pension

Administration
Time
Administration
IT Function
Management
Program
Management
End User Support
Mainframe
Operations
Server
Operations
Reconcile
Accounts
Manage Sales Orders

& Invoice Customer
Payroll
Administration
Application
Maint./Development
Close Books &

Consolidate
Document
Management
Employee Data
Management
Technical
Support
Document
Management
Legend
Document
Management
Supply Chain
SCM Function
Management
Inventory
Management
Warehousing
& Distribution
Transportation
management
Other
Real Estate &
Facilities
Legal
High potential for shared services

High potential for retained organization
Communications
10
Shared Services
Implementation Approach
Functional Capabilities
Vendor Master
Accounts
Payable
Travel &
Expense
Enabling Capabilities
Contact
Center
Document
Management
Process
Technology
People
Project
Workstreams*
Program
Program
Management
Change
Management
Organization
Metrics
Infrastructure (Facilities)
*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.
11
Assessing the Change Key Questions

The first phase of the journey, the assessment must focus on
answering a few key questions.
1
2
Strategic
Intent and
Vision
Scope of Shared
Services
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?
Fit with Other

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

will the initiatives be aligned? Will plans for current initiatives need to
change?
Shared Services
Operating Model
4. Shared Services Operating Model: What process, technology, and

organization changes are required? How will services be sourced?
5
Change
Strategy
6
Implementation
Strategy
7
Business Case
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?
12
Key Success Factors

Shared Services leaders have voiced these common success factors
for their future evolution
Top 5 Success Factors
Key Implications
Just employing a Shared Services

model does not guarantee
success
3. Improving internal customer

satisfaction
People quality needs have become

the top driver of future success
4. Greater standardization of
processes
Continuous improvement is
expected and demanded now
5. Further reduction of operating

costs
Process standardization remains a

hallmark and a challenge
1. Retaining the best employees

2. Attracting the best employees
The Masters are more focused on talent management to bring benefits

of cost reductions, service and greater agility to the business overall
13
Questions
14

Shared Services Bootcamp 101 ACN

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Shared Services

What is Shared Services?

Scale & Efficiency

How is Shared Services different from other

Processes run autonomously

Copyright 2013 Accenture All Rights Reserved.

Stand alone organization

What are the typical benefits from Shared

Labor related savings from economies of scale

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

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

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

Copyright 2013 Accenture All Rights Reserved.

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

Shared Services Value Drivers

Value Driver Example

SS core capabilities (e.g., service management)

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

Standard processes, policies, and procedures

Automation (e.g., document management)

Common core system (e.g., ERP)

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

Shared Services Operating Model Example

SSO Customer Service

SSO Support Infrastructure

Shared Services Core Capabilities

Copyright 2013 Accenture All Rights Reserved.

Service Management & Culture

Governance model with

Two way SLAs including

Service and performance

Dedicated process development

Clarity for the users

Copyright 2013 Accenture All Rights Reserved.

Professional arms length

Clear scope of activities

Service culture and true

Shared Services vision and

Inclusive governance model

End-to-end focus to avoid suboptimization

Deliberate service culture built

What can be Shared?

What is the typical scope of Shared Services

Perform Requisition &

Credit & Collections

Benefits & Pension

Manage Sales Orders

Close Books &

High potential for shared services

Copyright 2013 Accenture All Rights Reserved.

Assessing the Change Key Questions

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

Fit with Other

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

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

Copyright 2013 Accenture All Rights Reserved.

Key Success Factors

Top 5 Success Factors

Just employing a Shared Services

3. Improving internal customer

People quality needs have become

5. Further reduction of operating

Process standardization remains a

1. Retaining the best employees