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www.treasury.sa.gov.au/ssro
Shared Services
in theSouth Australian
Government
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Message from the Minister
Message from the
Under Treasurer
Introducing Shared Services SA
Guiding vision and mission
Initial services
Service transition
Working in Shared Services SA
Reforming services in SharedServices SA
Working with Shared Services SA
Further information
Contents
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In September 2006 the South
Australian Government announced a
shared services initiative to streamline
and simplify internal corporate andbusiness support services to deliver
savings that can be redirected to
community facing services.
The use of shared services in all
sectors of government worldwide is
growing, delivering benefits of
efficiency and improved service
standards. The private sector has
been embracing shared services
since the early 1990s with impressive
results.
Cabinet has recently approved a shared
services model developed by theShared Services Reform Office in the
Department of Treasury and Finance.
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Message from
the Minister
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The success of this reform will
require the positive and active
participation of all agencies and their
staff. I encourage you to make themost of this opportunity to be part of
this initiative that will enable ongoing
business improvement in the South
Australian public sector.
Hon Michael Wright MP
Minister for Finance
The implementation of this model
will enable agencies to increase
focus on their core service priorities.
Staff transferring to shared serviceswill work in a customer focused,
team based culture that supports
continuous improvement and offers
enhanced career development and
progression opportunities.
The shared services reform initiative
supports South Australia's Strategic
Plan Objective Growing Prosperity,
and in particular Target 1.9
Administrative Efficiency in the
public sector. The reduced cost and
improved efficiency of delivering
corporate services to agencies will
enable government to pursue itspriorities.
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Reform.
Service.
Workplace.
Message from the
Under Treasurer
Since establishment in 2006
the Shared Services Reform Office
(SSRO) has undertaken many
activities to ensure we have a good
understanding of what is required tosuccessfully deliver shared services.
The SSRO has researched broadly,
gathering information from agencies
and building networks with other
jurisdictions that have implemented
shared services. This has helped to
develop a model to implement sharedservices across government.
The model will deliver a range of
services in the functional areas of
ICT, human resources, finance and
procurement.
It is recognised that this reform will
have significant implications for staff
currently delivering corporate services in
agencies. Staff transferring to shared
services will become part of a
dynamic team that will be instrumental
in shaping the direction of future
delivery and improvement of servicesto gain efficiencies. It will help
position the Government to more
effectively respond to changing demands.
This is an exciting time in the South
Australian public sector and I hope
that you will embrace the opportunities
this reform will offer.
Jim Wright
Under Treasurer
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On 15 October 2007 the
SA Government approved a
shared services model and reform
program to transition suitable
corporate and business servicesinto a new organisation called
Shared Services SA.
Shared Services SA will be part of
the Department of Treasury and
Finance and will initially be located
in Westpac House, 91 King William
Street, Adelaide.
Shared Services SA will be
organised along the functional
lines of ICT, HR, finance and
procurement. Three services -
payroll, accounts payable and
accounts receivable - will be thefirst to transition to Shared
Services SA commencing late
February 2008.
A common Client Services function
will manage the strategic service
relationship with agencies and
provide customer support services
to handle operational queries
across all service lines.
All agencies in the general
government sector will receive
services from Shared Services SA
to ensure the full benefits ofeconomies of scale and scope are
realised.
Staff working in Shared Services SA
will be part of a customer focused,
team based culture that encourages
and actively supports continuous
improvement.
The current Chief Executive Shared
Services Steering Committee, which
comprises five Chief Executives, will
continue to oversee the shared
services reform program.
The consultative groups established
as part of the Shared Services
Governance and Consultation Framework
will remain in place to ensure the
continuation of open and transparent
communication and consultation with
key stakeholders.
Further information about the Shared
Services Governance and ConsultationFramework can be found on the
shared services website.
Introducing
Shared Services SA
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Reform.
Service.
Workplace.
Guiding vision and
mission
The vision for Shared
Services SA has three dimensions:
to be an asset of government and
a valued business partner of our
clients
to be respected for the quality and
efficiency of our services, our
capability and responsiveness and
the calibre of our people
to be recognised as an organisation
where people want to work.
Shared Services SA has a mission to:
provide a suite of high quality
corporate and business services that
are cost effective, standardised and
relevant to the SA public sector.
We will achieve this through thedevelopment and empowerment of our
people, the continual pursuit of system
and process improvement and
maintaining strong relationships with
our clients.
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A number of services in ICT,
HR, finance and procurement have
been identified as having the potential
to be delivered in a shared services
environment including general accountingand system generated reports, cash
management and financial systems
support, purchase / credit card
management, and ICT infrastructure
and network support.
Initially, the shared services reform
program will focus on three priority
services and the required ICT services
to support their delivery. The design of
these services is still to be completed.
When finalised, the specific detail for
each of these services will be
incorporated into a Service Catalogue.
Human Resources -
Payroll/Human Resource
Management System (HRMS)
services
The payroll/HRMS shared service
encompasses the entire payroll cycle
from data input, payroll processing to
disbursement. The payroll service also
incorporates responding to payroll
queries, application administration,
training of HRMS users and leave and
termination management.
Procurement - Accounts Payable
The accounts payable service involvesthe receipt and processing of invoices,
checking and verification of invoices,
inputting invoice data into the accounts
payable system, reconciling accounts
payable ledgers, managing vendor lists and
performing supplier payments.
Finance - Accounts Receivable
Accounts receivable will include activities
related to the management of the order to
cash process including masterfile
maintenance, invoice processing, debtor
management (including collections and
cash application), reporting, analysis,banking, month end processing and
reconciliation to the general ledger.
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Initial
services
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Detailed transition plan-
ning has commenced for each
priority service to determine the
order and sequencing of
transitioning agency / servicegroups.
Transition of payroll / HRMS
services, accounts payable and
accounts receivable to Shared
Services SA will commence in
late February 2008. Service
transition activities will occur
simultaneously for the three
priority services.
Planning for the next phase of
services to transition is currently
being considered and will be
scheduled as the three priorityservice transitions conclude.
Learnings from formal post
transition reviews, which will take
place after each transition, will
be used to refine the strategy for
subsequent transitions.
More information in regard to
how services will transition is
provided on the shared services
website.
Service
transition
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Governance and Consultation Framework
will continue to be engaged.
Shared Services SA will provide a
challenging environment where staff
are encouraged to achieve excellence
and embrace innovation.
To establish Shared
Services SA, services and
associated staff will be
incrementally migrated into the
new organisation. This meansthat 'in scope' employees
currently working in agencies will
become employees of the
Department of Treasury and
Finance, and will physically
transfer to Shared Services SA.
Substantial work is now
progressing to ensure Shared
Services SA is a place where
'people want to work'.
To support transferring staff and
to help establish a new and
positive culture for SharedServices SA, an overarching
Change Management Framework
is being developed. The framework
will incorporate workforce and
HR principles and practices,
targeted communication strategies,
training and development,
induction, culture and team
building strategies. Focus groups
of 'in scope' employees will be
established over the coming
months to help shape this
Framework.
To ensure the interests of staffare represented key workforce
consultative groups established
as part of the Shared Services
Working in
Shared Services SA
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Once services transition to
the shared services environment,
service delivery will change. Each
service will be reformed to improve
efficiency and service deliveryoutcomes in a planned and
structured way. These efficiency
reforms will result in more
standardised systems and processes
with fewer resources required to
deliver services. The gradual
reduction of workforce numbers will
be managed through natural attrition,
redeployment of excess staff and
reducing contract staff usage.
The South Australian Government
remains committed to its "no forced
redundancy" policy for ongoing
employees as reflected in currententerprise bargaining arrangements.
Consultation with the Public Service
Association commenced in March
2007 through the Shared Services
Workforce Consultative Group and will
continue through the reform program.
A Service Reform Framework hasbeen developed to define how the
nature of each service will evolve as
service delivery reforms are
implemented. This will assist Shared
Services SA to consistently manage
and maintain ongoing business
improvement.
The Service Reform Framework can
be found on the shared services
website.9
Reforming
services in
Shared Services SA
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The shared services
initiative will introduce a new
business relationship between
agencies receiving services andShared Services SA as the
service provider.
To support the way Shared
Services SA will work with client
agencies to deliver services, a
Service Level Determination
(SLD) and a Service Catalogue
are being developed. These
documents will be finalised in
consultation with agencies and
will provide information about
roles, responsibilities, services,
service levels, performance
management and pricing.
Working with
Shared Services SA
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Further
information
Communication and consultation
will continue with agencies and staff
across government and will become
more targeted as detailed transition
planning identifies the priority of groupsthat will transition to Shared Services SA.
There are a number of ways to access
further information:
The shared services website
provides current shared services
reform information and is regularly
updated -
www.treasury.sa.gov.au/ssro
Read the shared services reform
monthly newsletter
Talk to your manager and find out
about shared services preparation
in your agency. The Shared Services
Reference Group has a membershipcomprising corporate service
executives from across government
and meets monthly.
Email
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Publication date:
Current as at October 2007
Contact details:
The Department of Treasury and Finance,91 King William Street Adelaide SA 5000
Telephone (08) 8226 6770
Website www.treasury.sa.gov.au/ssro
Postal DX: 56205
GPO Box 1045, Adelaide SA 5000
Translating & Interpreting Service (TIS)
Telephone 131 450