balancing collaboration & program delivery

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New Brunswick Internal Services Agency Balancing Collaboration and Balancing Collaboration and Program Delivery Program Delivery Implementing a multi Implementing a multi - - functional Shared Services functional Shared Services Organization Organization Presentation to SSON March 3, 2011

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Implementing a multi functional Shared Services Organization

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Page 1: Balancing Collaboration & Program Delivery

New Brunswick Internal Services Agency

Balancing Collaboration and Balancing Collaboration and

Program DeliveryProgram DeliveryImplementing a multiImplementing a multi--functional Shared Services functional Shared Services

OrganizationOrganization

Presentation to SSONMarch 3, 2011

Page 2: Balancing Collaboration & Program Delivery

Mandated, in 2008, to create a shared services model that would allow the Government of New Brunswick to provide services to:

• respond to increasing demographic challenges

• improve management of internal resources

• streamline processes and procedures

New Brunswick Internal Services AgencyNew Brunswick Internal Services Agency

BackgroundBackground

Page 3: Balancing Collaboration & Program Delivery

New Brunswick Internal Services Agency New Brunswick Internal Services Agency

2121 FunctionsFunctionsInformation Management• IT Contract & Relationship Management

• IT Information Management

• Communications and Networks

• Corporate Systems Support

• IT Client/Desktop/Local Area Network Support Services

• Database Administration

• IT Infrastructure Management

Human Resources• Common Recruitment

• Payroll Processing

• Position Evaluation/Classification

Finance & Administration

• Translation

• Facilities Management

• Printing/Copying

• Purchasing

• Registries

• Accounts Payable

• Accounts Receivable

• Financial Reporting

• Fixed Asset Accounting

• Revenue Management

• General Accounting

Page 4: Balancing Collaboration & Program Delivery

New Brunswick Internal Services Agency New Brunswick Internal Services Agency

Key DriversKey Drivers

● Facing a significant reduction in the workforce through demographics in the next five years.

● 25% inefficiency rate (conservatively) e.g. Accounts Payable and Payroll.

● Imperative to cut costs and increase efficiency and value of services implicit in mandate

Page 5: Balancing Collaboration & Program Delivery

Shared ServicesShared Services--

Canadian jurisdictions Canadian jurisdictions (Deloitte, November 2008)(Deloitte, November 2008)

E

IP

IP

IP

IPIP

IP

E

IP

IP

E

E

$

$

$

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$

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����

$

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$

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$

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$

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$

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Integrated shared services model

Functional shared services model

Decentralized model / No shared

services

Established shared services

model

In progress of establishing

shared services

Primary Business Drivers

$

����

Cost savings

Efficiency

Resources

Improving

services

Predominant Structure

E

IP

Status of Shared Service Model

Page 6: Balancing Collaboration & Program Delivery

New Brunswick Internal Services AgencyNew Brunswick Internal Services Agency

NBISA ChallengesNBISA Challenges

• Traditional public sector organization

• Scope and complexity

• Transformation versus operations

• Technology foundation

• IT asset management and ownership

• Budget transfer process

• Resourcing

• Tracking and capturing the savings

Page 7: Balancing Collaboration & Program Delivery

Internal Services Alignment Internal Services Alignment

ApproachApproach

Page 8: Balancing Collaboration & Program Delivery

Internal Services Alignment Internal Services Alignment

What is CollaborationWhat is Collaboration??

� Working in partnership

� Finding win-win

� Committing to principles of transparency and communication

� Developing and implementing solutions that meet core business needs of clients AND mandate of organization

Page 9: Balancing Collaboration & Program Delivery

New Brunswick Internal Services AgencyNew Brunswick Internal Services Agency

Collaborative ApproachCollaborative Approach• Stakeholder Forums

• Steering Committee ~ 12 Deputy Ministers

• Advisory Council ~ 16 Assistant Deputy Ministers

• HR, IT, F&A, ADM Corporate Committees ~ 60

• Workshops• Transformation workshop (2)

• Collaborative workshop (5)

• Departmental presentations ~ 100

• Strategic planning sessions ~ 6

• Vendor meetings ~ 40 +++

• Deployment and orientation workshops ~50

• Integrated Teams• Core staff ~ 8, Project Leads ~ 9, BPIs ~ 9, SMEs ~ 50

• Change agents ~ 40

• External experts as required

Page 10: Balancing Collaboration & Program Delivery

New Brunswick Internal Services AgencyNew Brunswick Internal Services Agency

Program Management ApproachProgram Management Approach

Page 11: Balancing Collaboration & Program Delivery

New Brunswick Internal Services Agency New Brunswick Internal Services Agency

The ChallengeThe Challenge� Develop and Deploy first Shared Services across all government departments

� Implement technology solutions as necessary to support the shared service Deployment

� Oracle Image Processing & Workflow – 2800 users� Invoice Management System

� Remedy � IT Service Desk

� Establish NBISA as an entity � Legislation� Location & Organization Design� Implement Service Delivery Framework (ITIL Based) for all services

� For good measure deliver on “low hanging fruit”� Print Optimization� GNB ID Cards� Telecoms Billing Review

Page 12: Balancing Collaboration & Program Delivery

Mandated to implement new model of service delivery with initial operating capability for the following five services by April 1, 2010:

• Payroll and Benefits

• IT Service Desk

• Accounts Payable

• Computing Facilities

• Print Optimization

New Brunswick Internal Services Agency New Brunswick Internal Services Agency

First Shared ServicesFirst Shared Services

Page 13: Balancing Collaboration & Program Delivery

On April 1, 2010, reporting lines of

302 employees moved to the

New Brunswick Internal Services Agency.

Total employees: 335

New processes are being implemented through a rolling-wave deployment plan.

Corresponding physical move of employees began in June 2010 and will be complete June 20, 2011.

Page 14: Balancing Collaboration & Program Delivery

Who Goes First?Who Goes First?

Governance

CollaborationProject Management Deployment Plan

Deployment CriteriaProject Team initial assessment

Page 15: Balancing Collaboration & Program Delivery

� Agency Doors Open June 21, 2010

� Payroll and Benefits April 22, 2010 to February 14, 2011

� IT Service Desk June 21, 2010 to March

14, 2011

• Accounts Payable June 21, 2010 to June 20, 2011

� Computing Facilities September 20, 2010 to March

• Print Optimization September 1, 2010 to June 17, 2011

New Brunswick Internal Services Agency New Brunswick Internal Services Agency

First Shared ServicesFirst Shared Services

Page 16: Balancing Collaboration & Program Delivery

Best PracticeBest Practice

Shared Services CSFsShared Services CSFs

Customers

Technology Processes

People

Critical Success Factors

�� Act independentlyAct independently

�� Service orientation in placeService orientation in place

�� Rule driven but flexible way of Rule driven but flexible way of

dealing with customersdealing with customers

�� Customer satisfaction understoodCustomer satisfaction understood

�� SLAs in placeSLAs in place

�� Reality versus perceptionReality versus perception

�� Account managementAccount management

�� Processes documentedProcesses documented

�� Standardized, controlled & Standardized, controlled &

repeatable activityrepeatable activity

�� Recharging methodologyRecharging methodology

�� Benchmarking capability Benchmarking capability ––

internal/externalinternal/external

�� Metrics: (Control and efficiency)Metrics: (Control and efficiency)

�� Skilled Leadership in placeSkilled Leadership in place

��Team shapeTeam shape & stability & stability –– process process

shaped/spans of control/staff shaped/spans of control/staff –– perm versus perm versus

tempstemps

��Team members Team members –– culture, values & culture, values &

behavioral competencies assessed behavioral competencies assessed

��Team morale, reward & retentionTeam morale, reward & retention

��Collaborative team environmentCollaborative team environment

�� ERPERP

�� Document Scanning SolutionDocument Scanning Solution

�� WorkflowWorkflow

�� Automated PaymentsAutomated Payments

�� Elimination of Side SystemsElimination of Side Systems

�� Self services toolsSelf services tools

�� Automated Score CardsAutomated Score Cards

Page 17: Balancing Collaboration & Program Delivery

NBISANBISA

Critical Success FactorsCritical Success Factors

� Leadership

� Collaboration

� Customer first focus

� Measurement• Baseline survey 2005/2008

• Activity Based Analysis

• Business Case development

• Service Partnership agreements

• Key Performance Indicators

Page 18: Balancing Collaboration & Program Delivery

Estimated Savings Estimated Savings -- First 3 Years of Operation First 3 Years of Operation (in millions $)(in millions $)

• Note: Total employees reported by Part I and Part II are included in calculations of savings for Accounts Payable, Payroll and Benefits and IT Service Desk.

• AP and PB savings calculated based on 25% of target benchmark 2011, 50% of target 2012, and 75% of target 2013.

• ITSD savings based on repatriation of outsourced contracts

2011-2012 2012-2013 2013-2014 3 yr total

Accounts Payable 0.3 0.6 0.9 1.8

Payroll 0.4 0.8 1.2 2.4

IT Service Desk 0.2 0.6 1.0 1.8

Computing Facilities/

IT Assets

0.6 0.6 6.5 7.7

Printing (Part I) 1.9 2.2 2.2 6.3

Printing (Part II) TBD TBD TBD TBD

Telephone Billing 0.4 0.8 0.8 2.0

Total 3.8 5.6 12.6 22.0

Page 19: Balancing Collaboration & Program Delivery
Page 20: Balancing Collaboration & Program Delivery

Contact InformationContact Information

[email protected]

VP Operations and Chief Operating Officer

E-mail the ISA [email protected]