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Driving Operational Efficiency in Shared Services
The document discusses the importance and operational efficiency of shared services in organizations, emphasizing the need for centralization and effective change management. It covers the rationale behind transitioning to shared services, the integration of business process outsourcing, and best practices for managing personnel and processes. Additionally, it highlights ongoing evaluation and communication strategies as vital for successful implementation and continuous improvement.
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Driving Operational Efficiency in Shared Services
- 1. IQPC HR SharedServices 2009 – Driving Operational Efficiency, Engaging the Business and Managing Change Across Shared Services Mastering the Change Management Challenge for Stronger Talent and Consistent Performance Patrick Acheampong 26 August 2009, Sydney
- 2. Today's Presentation JourneyMaking the case for Shared Services Mission vision and values People management Change management in processes and technology Patrick Acheampong – August 2009
- 3. Making The CaseFor Shared Services – Fundamental Questions What is our business? Who is our customer? What does our customer value? What are our core competencies? Patrick Acheampong – August 2009
- 4. Making The CaseFor Shared Services – Reasons For Centralising Decentralizing support services is a luxury companies can ill afford. Centralisation will define the future of the organizational model. Companies must design and manage each support function according to an integrated and, when possible, standardized model. An SSC helps organisations achieve economies of scale and leverage employee expertise. An SSC is a means of ensuring the support function behaves as a professional, independent, internal organization. Patrick Acheampong – August 2009
- 5. Making The CaseFor Shared Services – What About Outsourcing? As service providers mature, outsourcing entire business processes will become commonplace. A specialist outsourcing provider has a far lower cost than an internal function. Progressive shared services organizations will integrate business process outsourcing into their business strategies . Patrick Acheampong – August 2009
- 6. Making The CaseFor Shared Services - Build The Business Case A business case is an analysis of the overall business benefits that justify the initial commitment of time, resources, and funding for an investment project or any on-going investment. It uses a set of methods and techniques to determine the economic potential and practicality of project applications HR Transactions can be measured and costed! Generating 2000 employee letters per annum could save $75,000 Renewing 150 temporary contracts a year could save $35,000 Processing the transactions for 300 international relocations a year could save $30,000 Managing 5,000 requests to update the employee database could save $90,000 Patrick Acheampong – August 2009 Strategic – New capabilities Technical – Benefits to the technology infrastructure Operational – Expected improvements to processes, staff morale and other intangibles Financial – costs and benefits Payback Period
- 7. Mission, Vision, andValues In order to create a unified sense of purpose, and focus towards the building of the SSC. Helps to create a strong culture once launched. Examples: Create a world class global shared services operation that will be a model for others. To provide a first class service every day. Continue to pursue new business opportunities that create value. Patrick Acheampong – August 2009
- 8. People Management –Starting Up Some Simple Truths If you begin with “who” rather than “what”, you can more easily adapt to a changing world. If you have the right people onboard, the problem of how to motivate and manage people largely goes away. If you have the wrong people, it doesn’t matter whether you discover the right direction; you still won’t have a great shared services organisation. Specific knowledge and skills are teachable traits. Traits such as character, work ethic, basic intelligence, dedication to fulfilling commitments, and values are more ingrained. The only way to deliver to the people who are achieving is to not burden them with the people who are not achieving. Avoid hiring selfish, negative, or egotistical people – don’t make exceptions to this. More than anything else, the right people want to be part of a winning team and contribute to producing visible tangible results. When the right people see a simple plan developed from understanding, not bravado – they are more likely to say “count me in. Patrick Acheampong – August 2009
- 9. People Management –Ongoing Operations Hiring Disciplines Discipline #1 – When in doubt, don’t hire. Keep looking Discipline #2 – When you know you need to make a people change, act Discipline # 3 – Put your best people on the biggest opportunities, not the biggest problems . Patrick Acheampong – August 2009
- 10. People Management –Ongoing Operations Creating a Climate Where Truth is Heard Lead with questions, not answers. Engage in dialogue and debate, not coercion. Conduct autopsies without blame Build “red flag” mechanisms Patrick Acheampong – August 2009
- 11. People Management –Ongoing Operations Creating a Culture of Achievement and Service Achievement Get used to asking why not instead of why Creating a momentum of achievement Commitment to excellence and quality Compensation - The concept of doing more than you are paid for Become solutions rather than problem focused. Become accustomed to ‘doing the impossible’ Achieve through the efficiency of each separate action rather than the number of actions. Service – Earning the RIGHT to serve Everyone should feel that they are contributing to something that will make a genuine difference to the clients. The key question – What am I doing today that will make a difference to my clients? Talk to your clients about what THEY want from HR Services. Change the mindset of seeing your clients as a captive client. Empower/Expand HR’s knowledge about the SSC. Become accepted as expert partners with your clients. Understand your the clients’ needs for the “best practice” Patrick Acheampong – August 2009
- 12. People Management –Managing Resistance Do change management right the first time - effective change management can eliminate many of causes of resistance before it occurs Expect it - do not be surprised by resistance, expect it and plan for it. These are some likely sources of resistance for most any project: Employees that are highly invested in the current way of doing work People who helped create the current way of doing work that will be replaced Employees who expect more work as a result of the change Those who advocated a particular alternative, say Option B, when Option A was ultimately selected People who have been very successful and rewarded in the current way of doing work Address it formally - incorporate resistance management planning in all phases of your change management strategy and plan development Identify the root causes - make sure that you aren't simply responding to the symptom, but really addressing what is causing the resistance. The ADKAR® Model and an ADKAR assessment also enables you to hone in on the root cause of resistance Engage the "right" resistance managers - senior leaders, managers and supervisors are the "right" people in the organization to manage resistance Patrick Acheampong – August 2009
- 13. Change Management -Startup Consider the following change management activities: Utilise a structured change management approach from the initiation of the project Active and visible participation by senior leaders Advocacy by management levels including middle managers and front-line supervisors Communications that describe the need for change, the impact on employees and the benefits to the employee (answering "What's in it for me?" or WIIFM) Patrick Acheampong – August 2009
- 14. Change Management -Processes Re-engineer to reduce the complexity of your processes. Customisation should only be entertained for regulatory and/or legal reasons. All new processes introduced to the system should first be properly mapped and documented. Patrick Acheampong – August 2009
- 15. Change Management –SLA’s Some companies abandon their SLAs because of their excessive and complex administrative r equirements. Leading companies do not over-structure or formalize the SLA process. Measure your performance. Top corporations track the performance of their shared services organizations. The distinguishing trait of progressive shared services organizations is that they use performance measures to ensure that the support function behaves as a professional, independent and internal organisation. In a recent survey only 38 percent of companies said their reporting measures are extremely or very integrated with IT. Patrick Acheampong – August 2009
- 16. Change Management –Technology Use technology to underpin re-engineered process, not to replicate badly engineered processes. Leverage existing technology, to keep technology costs down. Automate routine processes, to reduce the need for manual intervention, errors, and labour costs. Transition from independent systems & processes to integrated, seamless ones. Technology is an enabler, NOT a creator of good process. You cannot make good use of technology until you know which technologies are relevant. Systems, be they technology related or not save you time, energy, and money. If you don’t have systems in place for all your processes and procedures it’s almost impossible to succeed in becoming great. Shun technology fads AND pioneer the application of technology. In a great SSC operation, technology is subservient to core values, not the other way round. The right technologies accelerate momentum towards your goals Patrick Acheampong – August 2009
- 17. Change Management –Ongoing Operations Communication and Client Engagement It is important post go-live to maintain a constant dialogue with HR clients, the wider firm, and also your vendors to ensure they are comfortable with your service offering. The forms of communication should include Regular face to face or conference call meetings with key clients, vendors, key HR staff, and the business unit administrators. An open communication line for dealing with immediate operational issues. A regular e-newsletter with information on the SSC. A blog style forum to allow contributors to post their thoughts on how the SSC could be improved. Patrick Acheampong – August 2009
- 18. Change Management –Ongoing Operations Continuing Operations As part of an ongoing process, the SSC should look to overcome complexity and be constantly working to improve efficiency by streamlining processes and systems. The SSC also needs to continue to look to grow by taking on other areas where it can add value. Patrick Acheampong – August 2009
- 19. Change Management –Ongoing Operations Maintaining Robust Quality and Productivity Levels Regular surveys Internal HR. Firmwide client base. Vendors Process experts within the SSC providing employee and vendor issue escalation. Create a forum for regular SSC performance reviews with senior HR management. Create a forum for regular SSC performance reviews with the SSC staff. The use of KPI’s and SLA’s to monitor SSC performance. An SLA for each process and task within the SSC. Specific measurable targets. Tools to allow reporting on SLA’s. Review the SLA’s on a regular basis to ensure they are still relevant. Case management tools that allow for monitoring of transactions Use of technology to reduce the error rate by reducing manual data input, and double keying. Smart forms and workflow technology to ensure process consistency. Extensive front and back end auditing, through the use of embedded business rules and reporting. Comp and non-comp incentives to address staff morale and retention issues Regular, structured staff training. Primarily in the areas of: Process re-engineering Technology Client service Patrick Acheampong – August 2009
- 20. Conclusions You can’tchange everything at once – Prioritise. Don’t be afraid to change, but don’t just change for the sake of change. Continuous improvement. Don’t stop at the first change. You must add value to the way things are already being done otherwise there is no point. Introduce customer surveys to gather useful client feedback on whether your changes are having the desired effect. Change is a new way of working, make sure you know what the impact of the change is, before you try to sell it to your clients. Be creative – think outside the box! Patrick Acheampong – August 2009
- 21. Today's Presentation JourneyMaking the case for Shared Services Mission vision and values People management Change management in processes and technology Patrick Acheampong – August 2009
- 22. Contact Details Name: Patrick Acheampong Phone: 0407474007 Email: [email_address] Patrick Acheampong – August 2009