sharing services across government kieku finland state treasury

Sharing Services across Government to improve quality and reduce costs

Experience from Kieku-programme 13.10.2010

Mikko Kangaspunta

Contents

• State Treasury in Brief

• Kieku backround

• How we standardised processes

• Government service centres in Finland

• Common application (Kieku)

• What have we learned (until now)?

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Treasury in brief

• Developer and provider of internal corporate services for central government in partnership with government offices and agencies:

- financial and personnel administration processes and data systems, government shared IT services, fiscal administration

- pensions and accident compensations for government employees, support for activities to maintain work ability

• Services for private citizens and companies:

- compensation for military injury and criminal damage, guarantees and interest subsidies for home loans, exemption decisions, government yield bonds

• 600 employees

• operates under Ministry of Finance

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Drivers for moving to more efficient support services

Financial and personneladministration

Retiring population and competition for workforce

Economic framework and productivity expectations

Evolving management and emerging information

needs

Development of technologies

and service models

Impact of regionalisation

Expectations on Electronic Administration

and self-service

The foundation stones

• New integrated application technology

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• Creation of shared service centres

• Standardisation of processes and policies

Kieku-Schedule

2009 2010 2011 20122008 2013

Take care of data-conversions and interfaces

Ongoing services

Roll outs (other administrative sectors)

Arrange support and maintenance

2kk

Roll outs (Ministry of the

Interior)Build up global templete and pilots

Build up hosting services

Skills management roll outs

StateTreasury

Academy/Border Guard

Ministry ofInterior

Other Ministries

How we standardised processes

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How we standardised

Processes in Finance and

HR

Automation and IT-

systems

Customers and

Service centre

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Level of Standardisation

• First wave pioneers 1.1.2008 • Customers of service centres:

44% of bureaux when full time person years in bureaus is used as reference value

• Degree of process standardisation (phase 1):47% in personnel administration 57% in financial administration

• Today• 90% of total number bureaus as a customer• 13-30% improvement in productivity

• Target• 100% standardisation (phase 2) and 100 % customership• 40% improvement in productivity

Government service centres in Finland

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Cost/benefit analysis Customer and job satisfaction surveys Service contract templates Pricing modelsFollow-up of monitoring of productivity Acquisition of training services

Finnish states service centre (as one agency)was established in beginning of 2010- 800 employees in six cities

Service Centre create consistency in service quality and cost improvement

Service Centre Locations

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Turku

Hämeenlinna

Joensuu, Head Office

Kuopio

Mikkeli

Pori

Common Application (Kieku)

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Kieku – new system for government financial and HR administration

• standardized processes• shared data system• standardized data structures

New system for financial and HR administration

• 70 000 public servants• about 3000 professional users

Throughout central government

• supplier Logica• roll-outs 2010-2014

State Treasury’s Kieku IT Programme

What Kieku enables?•increase

efficiency of government financial and HR administration

•support service centre model

•create basis for division of functions between office and service centre

•introduce flexibility in resourcing

•enable consistent quality of service

Uniform and streamlined processes

•aids development as financial and HR administration professional

Based on globally used technology

•fewer errors

•emphasizes ownership of information

Enters information once and where it is

created

•self-service facility when required

•public servant and superior have direct access to required information

Kieku portal

Lessons Learned

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Lessons Learned - in general

• Start with the end in mind

• Senior Leadership is essential

• Take care of Communication

• Build up Partnerships

• Be prepared this is totally different from anything you have done before

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Lessons learned - in practise 1(2)

• Master data: pay enough attention

- Who owns structures, content, rights to update data?

- Kieku is master for personnel and vendor data

- Office/substance systems are masters for customer data

• Team of players involved: who ”drives”?

- Who is the ”solution provider”/integrator?

- What are responsibilities?

• Plan dependencies on other systems , projects and changes carefully

- Have ”plan B’s”

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Lessons learned - in practice 2(2)

• One technology (e.g. SAP) would have been easier to deal with

- Challenging integration between SAP and Logica components

- But SAP has no solution for Finnish government payroll

• Supporting different collective bargaining contracts

• One centralised system has its own challenges

- How to guarantee future performance and continuation?

- Organization structures, codes etc. are more than complex

• Civil servant may have contract with more than one office

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Meet the programme objectives

Commonality

Productivity

Skills Service andquality

The common Kieku IT-system enables increased productivity by simplifying and automating financial and HR administration processes

Common operating processes with clearly defined roles and responsibilities enable efficient knowledge sharing and ensure high-quality financial and HR administration processes and information.

The Kieku IT-system enables harmonized services provision and continuous improvement based on the shared services model as well as supports the agencies core operations and information needs.

Contact

www.kiekuhanke.fi

kieku@statetreasury.fi