Agenda

• About ScottMadden
• Expansion is Good
• Service Expansion Strategies
• Executing the Service Expansion

 

About ScottMadden

• Decide
• Design
• Build
• Improve

Our Functional Expertise:

• Supply chain management
• Finance & accounting
• Real estate and facilities
• Engineering services
• Human resources
• Information technology
• Multi-function
• Administrative services

Benefits of Shared Services

Companies can achieve all three but can design for quicker results on any one.

• Cost Control
  • Aligns skill set with work type
  • Eliminates redundant labor
  • Tracks service usage/costs
  • Economies of scale
  • Automation of processes
• Improve Service & Enable Scalability
  • Standard Processes
  • Issue tracking & closure
  • Performance Metrics
  • Common model for expansion
• Gain Control & Leverage Data
  • Data centralization
  • Improved reporting & analytics
  • Improved compliance
  • Better decision making
  • Focuses on demand mgt.

 

Advantages and Disadvantages of Growth

Advantages of Growth

• The shared services model works
  • Improves service delivery
• Lowers total costs
• Economies of scale
• Synergies (e.g., on-boarding of new employees)
• Standardization of processes and elimination of redundant processes
• Shared technology
• Shared management and administration
• Cross training
• Additional advancement opportunities for shared services employees
• Improved customer service
  • Contact center
  • Key account management
• Allow business units to focus on core processes

Disadvantages of Growth

• Investment requirements—up-front costs to transition and centralize technology, staff, equipment, and facilities
• Additional bureaucracy
• Size can hamper responsiveness
• Requires broader technical expertise at the top to manage additional functions
• Perception of kingdom building
• Potential impacts to employees currently performing the work

 

Expansion Strategies – Horizontal vs. Vertical Growth

Horizontal Growth

• Additional customers
• Additional business units within each company
• New geographic areas
  • New states, regions, countries, etc.
  • Global shared services centers
• Support to other companies (external sales)

Vertical Growth

• Additional services
• HR services
  • Recruiting support
  • Training and development
  • Labor relations
  • Vendor management
  • Relocation support
  • Travel & expense reimbursement
• HR Information Technology support
  • HR applications support
  • HRIS report requests
• Cross-functional services
  • Litigation support and coordination
  • Communication services
  • Environmental, health and safety
  • Regulatory compliance
  • Real estate
  • Facilities

 

Vertical Growth – Adding New Services

• Use a standard process and tools to evaluate and justify the addition of future services
  • Analysis should include alignment with strategy, resource impact, impact on call quality (e.g., average speed to answer), ability to leverage the service among all customers
  • Set necessary sign-offs required to add a service
• Set standards to which candidate processes or services must adhere
  • Typically, the service center will want an incoming process “cleaned” to a certain level before it assumes responsibility
• The service requestor should include the following with each new service request:
  • Submitted by
  • Describe the proposed service or services to be transitioned and provide the appropriate process flows (current and proposed future state)
  • Current service owner (function, name, title)
  • Positions performing the work today (position titles, FTEs)
  • Customers of the service (who and number of customers)
  • Systems or technology used to perform the service today (list and describe how used)
  • Current performance measures used (list and note current performance)
  • Current work volumes
  • Describe nature of work volumes (steady, cyclical, peaks, etc.)
  • Proposed timing for transition of service to SSC

 

Vertical Growth – Adding New Services (Cont’d)

The service is provided to more than one business unit 1 = More than one business unit 2 = Most of the business units in the company 3 = All of the business units in the company The service is transactional in nature 1 = Work is non-transactional 2 = Some people doing similar, repetitive tasks 3 = Many people doing similar, repetitive tasks It is not core to the business unit 1 = Function is considered a core operation 2 = Function is not a core operation Service satisfaction level 1 = Business unit customers are fully satisfied with current service levels 2 = Business unit customers are somewhat satisfied with current service levels 3 = Business unit customers are dissatisfied with current service levels Change management impact 1 = Significant change management is required 2 = Some change management is required 3 = Minimum or no change management is required Overall effort to implement 1 = Complex implementation (months to implement) 2 = Simple implementation (weeks to implement)  

Vertical Growth – Adding New Services (Cont’d)

• Track the new service requests that have been submitted to the shared services center
• Assign scores for each of the evaluation criteria
• Sum the scores and prioritize the expansion opportunities
• Determine the services to include in the shared services expansion
• Execute the service expansion!

 

Key Steps to Executing the Service Expansion

Step 1: Establish a baseline – Current State

• Consolidate all current state processes included in the new service request submission
• Review the technology used to perform the service today
• Evaluate the current organization design / staffing levels
• Determine the costs required to perform the service today

Step 2: Identify improvement opportunities – Future State

• Document process improvements / improved use of technology
• Identify Service level improvements
• Demonstrate organizational streamlining where available
• Estimate cost savings for implementing the new service

Step 3: Develop the business case

• Identify stakeholder groups and design communications and change management strategies for each group
• Clearly document and communicate the assumptions underlying the business case
• Continue to update the business case as facts and assumptions change
• Include both quantitative and qualitative support

Step 4: Develop the service transition & training plan

• Determine what activities move, what activities stay and the timing of the transition (Stop / Start / Continue plan)
• Include training topics for future state
  • Operational process changes
  • Telephony / IVR training impacts
  • Case management impacts
  • HR portal or knowledgebase updates
• Identify training audiences
  • Service center Directors and Managers
  • Service center representatives
  • HR Business Partners
  • Centers of Expertise
  • Employees and managers
• Align training timeline with the service expansion timeline
  • Training preparation
  • Business simulation
• Hire and train new personnel
• Begin transitioning work

Step 5: Measure the results

• Perform on-going measurement of customer satisfaction
• Monitor stakeholder satisfaction
• Track and report metrics performance
• Update the business case
• Take corrective actions where performance falls short
• Celebrate successes!