customer relationship managment (crm) presentation for shared services in the public sector

68
North America | Latin America | Europe | Middle East | Africa | Asia ©Chazey Partners 2013 1 What is a “Customer Relationship Management (CRM) Framework ” for Shared Services and Outsourcing Solutions? SSON SHARED SERVICES & PROCESS IMPROVEMENT FOR HIGHER EDUCATION, HEALTHCARE AND GOVERNMENT Wednesday, November 13 th 2013 San Diego, California

Upload: chazey-partners-inc

Post on 16-Apr-2017

2.888 views

Category:

Business


0 download

TRANSCRIPT

Page 1: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 1

What is a “Customer Relationship Management (CRM) Framework ” for Shared Services and

Outsourcing Solutions?

SSON SHARED SERVICES & PROCESS IMPROVEMENT FOR HIGHER EDUCATION,HEALTHCARE AND GOVERNMENT

Wednesday, November 13th 2013San Diego, California

Page 2: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 2

Gain knowledge about CRM by understanding what a “CRM framework” in support of your service delivery solution actually means

Discuss and work through the 9 critical components of a robust CRM framework

Discuss how it can it be a benefit in Higher Education

Discuss why CRM is so critical to sustainable success

Work through some practical, real life examples

By the end of the session build capability to design a “best practice” Service Partnership Agreement

Key Topics

Page 3: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 3

About Chazey Partners

Page 4: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 4North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 4

Chazey Partners is a professional management advisory business, which brings together a unique wealth of expertise in implementing

and operating world class Business Support Services and Shared Services Organizations (SSOs) around the globe

We pride ourselves in having built, operated and turned around some of theworld’s most highly commended and ground-breaking Shared ServicesOrganizations

We have operationally delivered and consulted numerous programmes globally,over the last 20 years, in the US, Canada, Latin America, UK, Ireland, ContinentalEurope, India, Singapore, Australia, China, Middle East and Africa

We provide an end-to-end capability, advice, guidance, support andimplementation expertise, covering strategy setting, business case production,programme management, outsourcing assessment, implementation, processoptimization, technology enablement, training, and change management

Who We Are · Overview

Page 5: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 5

Who We Are · Specialties

FINANCE & ACCOUNTING●

HUMAN RESOURCES●

INFORMATIONTECHNOLOGY

●PROCUREMENT

●TRAVEL & EXPENSES

●GLOBAL BUSINESS

SERVICES

Expertise In Both Public Sector & Private Sector

PRACTITIONERS FIRST ●

ROBUST KNOWLEDGE TRANSFER

●EXCEPTIONAL PROJECT

PAYBACK ●

LIBERATING BUDGET●

EXPERTS IN DELIVERY

SHARED SERVICES AND OUTSOURCING

−BUSINESS

TRANSFORMATION−

TECHNOLOGY ENABLEMENT

Page 6: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 6

Who We Have Worked With

OUR CLIENTS …

WHERE HAVE WE COME FROM …

Page 7: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 7

Page 8: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 8

Shared Services is the organization that…

Providing services that are…

Achieve by leveraging…

Employs a specialist team

Geographically unconstrained

Client-focused

High quality Non-core Mission critical

Repetitive or professionalLower costHigh efficiency

Organizational realignment

Technology

Standardization

Best Practices

Page 9: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 9

Structures have Benefits & Challenges

Remote from business

Unresponsive and inflexible

No Business/ Operational control over costs

Viewed as central overhead

Prevalence of shadow operations

Centralized

Challenges

Disparate processes

Multiple standards

Duplication of effort

Different control environments

High cost and costs unclear across the business

Not scalable

Decentralized

Challenges

Responsive to Business and Operational needs

Business/ Operations control decisions

Customized solutions to meet Business/ Operational requirements

Benefits Shared

Highly client focused

Commercially driven

Service Partnership Agreements

Clear unit costs

Flexible delivery

Clear understanding of drivers and activities

Common systems and support

Consistent standards and controls

Tight control environment

Economies of scale

Benefits

Page 10: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 10

ATTRIBUTE SHARED SERVICES CENTRALIZATION

Accountability Business Unit Corporate

Key PerformanceTarget

Service excellence and continuousimprovement

Cost reduction and central control

Service Partnership Agreements

Widespread Rare

ClassificationAn independentunit

Another corporate function

Responsibility Partnership Demarcation

Shared Services vs. Centralization

Page 11: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 12

Strategic Alignment and Ambition

Benefit

Tim

e

More than cost reduction

Cost Reduction• Focus on

cost• Consolidate

and Standardize

• Reduce fixed cost base

Re-engineering and Productivity

Enhancement• Focus on process• Reduce/eliminate

none value-added activities

• Reduce errors and increase rework

• More timeliness and accuracy of information

Value Creation and Continuous

Improvement• Focus on Value• Leverage Shared

Services network and expertise

• Create new services that enable business transformation

Integrated Strategic Service Delivery

• Focus on strategic business drivers

• Create strategic partnerships

• Ensure seamless integration of outsourcing

• Enable a virtual organization

Page 12: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 13

Shared Services in Higher Education in US

Although shared services is not a new concept in the US much of it has been siloed within various Federal agencies rather than organized as a single shared service initiative across all or much of Federal Government

Higher Education on the other hand has made good inroads into adopting shared services although it is still early days

Examples of Shared Services can be seen at many Universities across the US, such as at Yale University, Harvard College, University of Michigan, University of Illinois, Cornell, Indiana University and Berkeley

Most examples are single function Shared Services at present

To date not a lot of progress has been made from a multi-functional perspective and many Universities have not started with anything yet

Page 13: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 14

Shared Services in Further Education in US

The recession has impacted both Public and Private Universities

The recession and the accompanying revenue decline at the state level has left less money to fund education

Increasing student fees alone has not been sufficient to close the budget at many Universities and Colleges

Many institutions are looking to shared services to help them close the budget gap, increase efficiencies and provide better service.

5 years ago shared services was not very developed in Higher Education in the US but that is changing fast.

Page 14: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 15

North American Universities by Maturity Source SSON September 2013 from research by the University of Kansas

Page 15: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 16

Higher Education Shared Services Examples in Canada - 2013

Toronto Catholic district School Board

Doing some strategic purchasing with other Catholic School boards, but no true shared back offices.

British Columbia Ministry of Education

Deloitte study to identify opportunities for cross-functional collaboration

Found “service delivery transformation” could generate recurring savings of “100-246 million”

Province of Ontario

Announced estimated savings of $10.5 million in “back-office” costs through merging schools, while preserving individual classrooms

NorQuest College

Joined University of Alberta, NAIT and Athabasca University in a major inter-institutional collaborative project using cloud computing to change the way schools deliver online services to students

Page 16: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 17

Challenges and sector specific considerations in implementing Shared Services in the public sector include:

A risk adverse landscape

Consensus driven decision making slowing down timelines

Fear of loss of autonomy

Competing priorities

Fewer levers to incentivise people

Longer payback period

Challenges to implementing Shared Services in the Public Sector

Page 17: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 18

Specific challenges in the education sector include:

Universities are independent, autonomous entities and operate in a competitive environment

A direct and clear mandate for shared services has to be established to drive the necessary cooperation

Cultural challenges have to be addressed to drive standardization

Gaining Stakeholder Support amongst a diverse array of stakeholders

Collaborating Across Boundaries

Challenges to implementing Shared Services in Higher Education

Page 18: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 19

Page 19: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 20

At your table……

Designate a note taker

Define what we mean by ‘customer’

Discuss what can and does go wrong in the customer relationship

Make a list of top 5

Note taker reports to larger group

Approach (15 Minutes)

Page 20: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 21

• Challenging experience

• Lack of clarity on who does what

• Dealing in “perception versus reality”

• Focus is on negative aspects of service delivery• one way traffic• what’s gone wrong?? – number of issues

• Strained customer relationships

• Focus on “fire fighting” and maintaining morale takes the emphasis away from customer service

Customer Relationship Management distinguishes a Shared Services organization from a simple act of centralization and drives a spirit of partnership between the SSC, its customers, and all key stakeholders.

Operating with no “CRM” Framework

Page 21: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 22

Page 22: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 23

Customer• Service orientation in place• Structured way of dealing with customers• Customer satisfaction levels understood• SPAs in place • Reality versus perception• Account management

Process• Processes documented• Standardized, controlled & repeatable activity• Recharging methodology• Benchmarking – internal/external• Metrics: Control Based; (ii) Efficiency &

Effectiveness

Technology• ERP implemented• Document Scanning Solution• Workflow• Automated Payments• Elimination of Side Systems• Self services tools• Automated Score Cards

People• Skilled Leadership in place – do not compromise on

competencies• Team shape & stability – process shaped/spans of

control/staff – perm v temps• Team members – culture, values & behavioral competencies

assessed • Team morale, reward & retention• Working environment conducive to team working

Page 23: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 24

Page 24: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 25

Who is our “customer”, both internal and external?What is the difference between a “customer” and a “consumer”?How do we define customer satisfaction?How do we measure customer satisfaction today?What are the potential key benefits to our customers of transformed Common Services:

Higher levels of service (faster/better)Lower cost of service (cheaper)Tighter control environment (control)

Do we understand customer requirements?How do we interact with the customer today?Can we secure and strengthen faculty, staff and student buy-in?How are the Service Partnership Agreements (SPAs) in place working today?What are the key constraints/hurdles that we need to overcome in operating a customer-focused Common Services Organization?

Critical Importance of the Customer

Page 25: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 26

Page 26: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 27

Scenario: “Management decides to reduce the hours of their help desk for their information technology services.” What are the key drivers behind the decision?

Corporatization/Centralization:

Users of service must accept corporate direction

Cost containment is prioritized over performance

Transformed Common Services:

If consumers of service are unhappy, they’ll leave

Performance is prioritized over cost containment

If your organization is not focused on the customer, you either:Do not have transformed Common Services

Will not have transformation for long (it will fail)

No Customer, No Transformation

Page 27: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 28

Customer Relationship Management Framework

Account Management

• CSO to client; via reporting, interaction, escalation & communication

Client Contact Management

• Client to CSO; to manage and resolve queries and drive learning/improvement

Service Partnership Agreements

• SPAs are 2-way agreements clarifying both CSO services and client inputs

Client Feedback

• Client satisfaction continuously monitored both informally and formally

Continuous Improvement

• Mechanisms to identify the areas for improvement and to develop solutions

Process Control Database

• Documents end-to-end CSO processes; highlights activity of both CSO & client

Performance Measurement

• Comprehensive KPIs, measures and metrics framework, CSO & client

Performance Reporting

• Process performance will be reviewed monthly by CSO and client

Recharging Methodology

• Define basis for charging for CSO services to turn consumers into clients

Page 28: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 29

Page 29: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 30

At your table…..

Designate a note taker

Discuss the 9 component components and the relative importance of each and why?

Feedback to group

Approach (20 Mins)

Page 30: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 31

Customer Relationship Management Framework

Account Management

• CSO to client; via reporting, interaction, escalation & communication

Client Contact Management

• Client to CSO; to manage and resolve queries and drive learning/improvement

Service Partnership Agreements

• SPAs are 2-way agreements clarifying both CSO services and client inputs

Client Feedback

• Client satisfaction continuously monitored both informally and formally

Continuous Improvement

• Mechanisms to identify the areas for improvement and to develop solutions

Process Control Database

• Documents end-to-end CSO processes; highlights activity of both CSO & client

Performance Measurement

• Comprehensive KPIs, measures and metrics framework, CSO & client

Performance Reporting

• Process performance will be reviewed monthly by CSO and client

Recharging Methodology

• Define basis for charging for CSO services to turn consumers into clients

Page 31: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 32

Challenging experience Lack of clarity on who does whatDealing in “perception versus reality”Focus is on negative aspects of service delivery

One way trafficWhat’s gone wrong?? – number of issues

Strained customer relationshipsFocus on “fire fighting” and maintaining morale takes the emphasis away from customer serviceThe Customer Interaction Framework distinguishes a transformed Common Services organization from a simple act of centralization and drives a spirit of partnership between the CSO, its customers, and all key stakeholders

Operating with no CRM Framework

Page 32: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 34

Why do we need a CRM Framework?

To be able to manage the impacts on both the Upstream and downstream processes that are not directly managed by the SSO

Receive

Goods or

Services

Approve

Purchase

Requisition

Raise

Purchase

Requisition

Receive

Purchase

Invoice

Post

Purchase

Invoice

Approve

Purchase

Invoice

Pay

Purchase

Invoice

Raise &

Send

PO

Upstream

Downstream

Page 33: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 35

CRM FrameworkAccount Management

Page 34: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 36

KEY RESPONSIBILITIES

1. Responsible for facilitating successful client relationships

2. Client Account Manager has “internal clients” 3. Key interface and internal escalation point

between Portfolios/Branches/Programs (Customer) and CSO

4. Acts as the “Account Manager” and “voice of the Customer”

5. Helps establish and manage Customer Interaction Framework in P/B/P

SPA definition and agreementInteraction structure implementation Governance and reporting framework

6. Plays a key role in helping define service delivery expectations on behalf of the Customer

7. Engages with Customer to improve upstream process performance

8. Fosters dialogue with fact based analysis and reporting with Customer to collaborate and drive process improvement

9. Supports process and service harmonization consistent with agreed process standard

ACTIVITIES AND INTERACTIONS

1. For normal day-to-day interactions a client will contact CSO directly – in the event of much more complex issues or service dissatisfaction then they can “internally escalate” to the Client Account Manager

2. The Service expectations discussions will not just be about what CSO has to deliver but also about what needs to happen in the Portfolios/Branches/Programs to support service delivery

3. A key issue with process performance is the need to effectively manage transparency and process compliance

4. In addition to informal and ad-hoc dialogue, the Client Account Manager will hold a regular meetings with the Customers to review process performance, issues and resolution

Account Management

Responsibilities, Activities & Interactions

Page 35: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 37

Competencies Beliefs BehavioursCustomer

Focus

“Byunderstandingtheneeds

ofmycustomers,Icanimprove

theserviceIofferthem’’

· Knowwhoourcustomersareandwhattheyneed

· Seethingsthroughourcustomerseyes

· Gooutofourwaytodeliverwhatourcustomerswant

Accountability “Myactionsandperformance

directlyimpactthe

performanceofothers”

· Givesandreceivesfeedbackopenly

· Performstaskseffectively,evenundertimepressure

· Understands&actstosupport,widerbusinessobjectives

Team

Commitment

“Everyoneintheteamhas

somethingvaluableto

contribute”

· Takescollectiveresponsibilityratherthanattributes

individualblame

· Supportsthosewhosurfaceproblems

Innovation

“Everythingwedoisopento

challengeandimprovement”

· Demonstratesabilitytoidentifyopportunitiesfor

processimprovements

· Providessolutions,notjustissues

Flexible ‘’Mywayisnottheonlyway’’ · Seeschangeasanopportunityandnotathreat

· Opentoalternativeapproachesandworkingstyles

· Openlysharesknowledgewithinthegroup

Organized “PrioritizationensuresthatI

delivermyworkloadandstill

getinvolvedinotheractivities”

· Seeseachjobthroughtocompletion

· Completesprocessinginanefficientandeffective

manner· Recognizesthecostimplicationsofallactions

Learning “MyproficiencydirectlyimpactstheabilityoftheSStodeliver"

· Ismotivatedtotakeonnewchallengesanddevelopnewskills

· Sharesskillsandexperiencetobuildteamcapacity

Account Management

Competencies, Beliefs, Behaviours

Page 36: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 38

Executive Management

Customer Forums

BusinessConsumers

ExecutivesManagersEmployees

Self-Service Front Line

SupportCentre

ExceptionHandling

PolicyPayroll

Other Services

Recruitment

SSC: Delivering Transactional Support Services

CRM Framework

Page 37: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 39

Governance

Governance is the means of operationalizing a successful

shared services and / or outsourcing relationship.

A Governance and Customer Relationship Framework that clearly defines between SSC and the Business who does what, and to what target and/or standard (SPAs, etc.)

The SPA is the agreement between the SSO and business about “who does what in the process and to what standard”.

Joint ownership of efficiency targets, etc. through clearly defined responsibilities and standards between SSC and the Business

Relationship Management framework

This will only work through clearly defined SPAs, relevant metrics, escalation, transparency, clear accountability and collaboration

Page 38: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 40

Below is a poignant quote from Jan Carlson, president and CEO of Scandinavian Airline Systems (SAS)

“Nothing is more fragile than the fleeting contact between a customer in the marketplace and an employee on the front lines. When you establish contact, that’s when you establish SAS.”

Page 39: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 41

Transaction Processing

Call Centre

OnlineQuery

Function

OnlineShopping

Cart

Purchase Cards

ElectronicData

Interchange

ElectronicAuthorizations

Online PortalsDirect DeliveryOf Mail

Customer Contact Management defines how regular/daily interactions with Customers are managed, how they contact the CSO to request service, and also how requests are managed to completion

Customer Contact Management

Funnel Approach

Page 40: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 42

Customer Contact Management

1) An employee has a problem or needs information

2) The employee calls Front Line Support

explaining her problem or submits email request

3) Front Line Support receives therequest and

resolves the issue,

OR

4) Front Line Support registers the request and informs the customer with:- the deadline for conclusion - number of her request- If Request passed toException Handling

5) Problem resolved andnotification made to the

customer

Communication to Closure

Page 41: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 43

Requests may be Transactional, Informational, or Query

Process must be flexible enough to accommodate each request type and each contact channel type (eg. phone, email, through a meeting or conversation, etc.)

Each request must be captured, routed, acted upon, monitored, and resolved

This should be enabled through Case Management software if possible

A structured Telephony solution is preferred

Customer Contact Management

Key Requirements

Page 42: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 44

Customer Contact Management

Key Requirements:

• The organization structure will be process based but will serve ALL Divisions

• In each Process Stream, team shape will be structured around 3 key activities:

• Customer interaction• Processing• Exception handling

• High levels of process standardization required to help facilitate this

A “Customer Interaction” and “Transaction” structure to facilitate higher levels of service response and process efficiency

H2R Manager

Payroll

Supervisor

HR Generalist

Supervisor

L&D Supervisor

Payroll Exception

Handling

Payroll

Administrators

Payroll Front Line

Support

HR Exception

Handling

HR Administrators HR Front Line

Support L&D Exception

Handling

L&D Assistants L&D Front Line

Support

ManagerProcess Role

Front Line SupportException Handling

H2R Team

Organizational Structure

Page 43: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 45

Page 44: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 46

DEFINITION

The Service Partnership Agreement is an agreement between the CSO and the Customer that:

Is a “two-way” agreement, recognizing that this is a partnership

Identifies the services to be provided by the CSO to its customers

Identifies the inputs that are required from the Customer to allow the CSO to provide its services

Allocates responsibilities for service delivery between the CSO and the Division

Defines the appropriate level of service to meet customer needs

Defines the major service management processes

RATIONALE

• Clarifies the relationship and expectationsbetween the CSO and its customers

• Provides a framework for performance measurement and process improvement

• Increases the CSO and customer’s understanding and response to customer needs

Service Partnership Agreement

Page 45: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 47

Spirit of cooperationOwnership of:- Process- Systems - Data

Parties to AgreementSummary Service ProvisionCommunication Interaction Channels

Availability - Operational HoursAD Hoc RequestsDuration of the SPA

Performance Measurement & ReportingNon-conformance ManagementProcess ImprovementTarget SettingCharging Mechanism

Daily TransactionsService TransactionsBusiness Critical Transactions

List of service items - what Shared Services does- what the Business Unit does

1. Overview

2. Operating Principles

3. Scope of the SPA

4. Performance Measurement

5. Issue Resolution

6. Service Items

7. Signatures

Structure of an SPA

Page 46: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 48

Identify activities & processes, services & products provided, and output #’s and costs

Quantifies activities & costs Identifies non-value added

Performance Metrics, Benchmarks, & Bal Scorecard Data

Determines which activities/costs support specific Business Units (e.g., SPAs/Chargebacks) Outsourcing Comparisons Best Practices

Activities

Resources

Services

Cost Drivers

Process improvement initiatives

Outputs & Performance

Measures

costing

process

Creating Service Partnership Agreements

Page 47: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 49

Page 48: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 50

Customer Feedback

BalancedScorecard

Creation of SPAs

Delineation of roles and responsibilities

between SSC and other functions/ local regions / businesses

Standardised processes and sub-processes across all functions

Page 49: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 51

Example Customer Communication and Feedback Mechanism

Communication

Mechanism

External Customer /

Supplier Survey

(Annual)

Regional/

Customer

Forum

(Monthly)

Internal Customer

Survey

(Bi-Annual)

StrategicReview Forum

(Quarterly)

Regular

Customer

Calls

(Weekly)

Page 50: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 52

The ‘intangibles are as important as the ‘tangibles’

….initial perceptions must not become realities

What’s Potentially Better What’s Potentially Worse

Cost savings Slow response and recovery

Standardized Processes Inflexibility

Controllership Risk of business unit “working for shared services”

Common System Lost decision rights

Consistent process metrics Additional bureaucracy

Accessibility and Quality of information

Disconnection from the business

Customer service Management Lack of local personal support

Quality in the process Local desire to “touch everything”

Defining Customer Satisfaction

Page 51: Customer Relationship Managment (CRM) presentation for shared services in the public sector
Page 52: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 54

Cu

sto

me

rs

SIPOC Cycle : Supplier, Inputs, Processes, Outputs, Customers

Value Added Activities

Sup

plie

rs

Inputs Outputs

Process

Right First Time(No InternalDefects)

No ExternalDefects

High Efficiency & Productivity Levels

No BacklogsHigh Process Accuracy &Timeliness

Low Unit Cost per Transaction

Continuous Improvement

Operating Metrics: Focus of Rework Analysis & Dashboard

Page 53: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 55

Continuous Improvement (CI)

Governance & Strategy

Eliminate Waste& Retain Critical

elements

Establish Order

Instil DisciplineStandardization

• Leverage global methodologies like LEAN 6-sigma a proven method of improving business efficiency and effectivenessthrough the framework of DMAIC

• Define• Measure• Analyse• Improve• Control

• Create a dedicated team for CI

• Senior Leader sponsorship

• Develop skill-set

• Integrated and not stand-alone

Page 54: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 56

CRM FRAMEWORKProcess Control Database

Page 55: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 57

Main Input to SSC delivered by Business

SERVICE ITEMDepartment responsibility

(included in the SPA)

Intermediate output for internal use. This output may be shown to the client but is

not critical

Not included in the SPA

Main Output of a process performed by SSC

SERVICE ITEMSSC responsibility

(included in the SPA)

Sample process flow

Shar

ed

Serv

ice

sD

ivis

ion

Clie

nt

Input Task

System Task

DecisionPoint Manual Task

Manual Task Output Task

No

Yes

How the Process will Operate

Page 56: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 58

Main Input to SSCdelivered by Business

SERVICE ITEMDivision responsibility

Intermediate output for internal use. This output may be shown to the customer

but is not critical

Not included in the SPA

Main Output of a process performed by SSC

SERVICE ITEM - SSCresponsibility

Customer PerformanceIndicators

INPUT KPIs

Service PerformanceIndicators

OUTPUT KPIs

How the Process will be Managed

Page 57: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 59

Function of the Service Offerings Item List:

• Identify respective responsibilities of SSC and the customer• Identify Divisional deviations from standard services

Detailed Service Offerings

Responsibility

ID ServiceActivities

PerformedSSO

á

Complete special leave form

á Agree special leave to be granted

á Tick relevant payment box and send form to SSOá Form logged by SSOá Form actioned for payment or deduction

b

b

á

Complete holiday request form á

Authorise holiday and log request á Send form to SSOá Log request and scan to COINS HR

b

Manager

H2R12.1 Holiday Request (Staff)

This service covers the booking and payment of annual leave

Emplloyee

Manager

Moves and Changes

Brief Description Division

H2R11.0 Special Leave Request

This service covers the granting of paid or unpaid leave outside of the annual leave process

Emplloyee

Manager

Page 58: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 60

Page 59: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 61

Performance Measurement Approach

Internal PerformanceIndicators

Service PerformanceIndicators

Customer PerformanceIndicators

How well does the SS Unit deliver the agreed services ?

How good is the quality of the input delivered by the internal

customer ?

How effectively and efficiently is the process organised ?

How well is the process doing overall?

Shar

ed

Serv

ice

sC

ust

om

er

Input Task

System Task

DecisionPoint

Manual Task

Manual Task

Output Task

No

Yes

Page 60: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 62

CRM FRAMEWORK PERFORMANCE REPORTING

Page 61: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 63

1 Performance Commentary

2 Key Performance Indicators

3 Appendices

Service Performance Report

SSC

Monthly

Performance Commentary

- Achievements past period- Initiatives next period- Other commentary (e.g. main risks and issues, Process

Improvement activities, high level summary of Key Performance Indicators,…)

Key Performance Indicators

- Service Performance Indicators- Customer Performance Indicators- Selection of Internal Performance Measures- Root Cause and Effect Analysis- Customer Specific KPIs

Appendix Topics

- Process Improvement Overview- Ad-Hoc Services Delivered- Risks and Issues- Service Incidents- Backlogs

Contents of the service performance reporting

Page 62: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 64

Italy October November December January Difference

AP 98.87% 97.79% 96.22% 96.18% -0.04%

FA 100.00% 98.46% 98.57% 100.00% 1.43%

GL 99.63% 100.00% 100.00% 99.59% -0.41%

HR 100.00% 100.00% 100.00% 100.00% 0.00%

Switzerland October November December January

AP 98.01% 98.58% 89.92% 88.71% -1.21%

FA 100.00% 100.00% 100.00% 100.00% 0.00%

GL 99.00% 99.00% 97.96% 96.89% -1.07%

HR 100.00% 100.00% 100.00% 100.00% 0.00%

Slovenia October November December January

AP 100.00% 100.00% 92.86% 81.82% -11.04%

FA 100.00% 100.00% 100.00% 100.00% 0.00%

GL 100.00% 100.00% 100.00% 96.77% -3.23%

HR 100.00% 100.00% 96.15% 100.00% 3.85%

Austria October November December January

AP 94.04% 94.13% 93.42% 91.54% -1.88%

FA 93.48% 100.00% 98.25% 100.00% 1.75%

GL 99.37% 100.00% 99.27% 98.19% -1.08%

HR 100.00% 97.62% 100.00% 99.56% -0.44%

HO Vienna October November December January

AP 88.46% 91.67% 80.85% 72.73% -8.12%

FA 100.00% 100.00% 100.00% 94.12% -5.88%

GL 100.00% 100.00% 99.53% 99.19% -0.34%

HR n/a n/a n/a n/a n/a

Baltics

FYROM

Monthly Performance Overview

Region 1

SLA Adherence on Service Requests

Dashboard Example

Page 63: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 65

Page 64: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 66

In your groups discuss the differences between an SLA and an SPA in the following areas:

Direction

Owner of the process

Performance Measures

Principles & Values

Problem Resolution

Approach (10 minutes)

Page 65: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 67

Customer Relationship Management Framework

Account Management

• CSO to client; via reporting, interaction, escalation & communication

Client Contact Management

• Client to CSO; to manage and resolve queries and drive learning/improvement

Service Partnership Agreements

• SPAs are 2-way agreements clarifying both CSO services and client inputs

Client Feedback

• Client satisfaction continuously monitored both informally and formally

Continuous Improvement

• Mechanisms to identify the areas for improvement and to develop solutions

Process Control Database

• Documents end-to-end CSO processes; highlights activity of both CSO & client

Performance Measurement

• Comprehensive KPIs, measures and metrics framework, CSO & client

Performance Reporting

• Process performance will be reviewed monthly by CSO and client

Recharging Methodology

• Define basis for charging for CSO services to turn consumers into clients

Page 66: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 68

Page 67: Customer Relationship Managment (CRM) presentation for shared services in the public sector

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2013 69

Phil SearleFounder and CEOChazey PartnersOffice: +1 408 402 3008Mobile: +1 408 460 [email protected]

Chas MooreManaging DirectorChazey Partners, CanadaOffice: +1 855 692 629 ext 201Mobile: +1 250 469 [email protected]

Grant FarrellManaging Director Chazey Partners, USOffice: +1 866 337 4699 Mobile: +1 408 767 [email protected]

Robert TowleDirector - East CoastChazey Partners, US Office: +1 866 337 4699 Mobile: +1 862 812 [email protected]

Thank You