Rob Carter

12th May 2014

“Future Perspective on University Shared Services” 

2© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

1. Introduction

Rob CarterKPMG

■ Rob works in KPMG’s Public Sector Consulting practice.

■ He has over 10 years consulting experience of working across all elements of the public sectors, delivering organisational improvement and cost optimisation projects.

■ Rob focus on within Higher Education (HE)

3© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

Objectives:

1. Share with you some of our experience of outsourcing and share serviced in HE and elsewhere

2. To explore how the efficiency agenda is changing the attitudes to more radical solutions

3. Consider what the future might hold for shared service in HE

2. Intended objectives of this session

4© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

3. Context: A changing environment....

1. The sector is becoming more market driven and customer- centric

2. Fees won’t increase leading to real term reductions

3. Demand is becoming increasingly unpredictable

4. Relaxing the cap on overall numbers will increase competition

5. The sector has a high degree of fixed costs

6. There will be winners and losers

The challenge:

• Achieve more with less

• Become more adaptable and more flexible

• Become better equipped to deliver change

Institutions will need to:

• More effective use of data and technology

• Increased focus on the elimination of waste

• Clear understanding of what is ‘core’ and what is ‘non-core’ business

To achieve this there will need to be:

5© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

….where driving efficient from non academic spend is key

Pay - Academic Pay

Non Pay - Academic

Non Pay - Academic Support

Pay – Academic Support

Pay - Back-office

Non Pay - Back-office

A significant proportion of the cost base of a HE organisation is supporting the operation of the organisation. It is increasingly debateable whether this is core to the organisation or not

Make or Buy?

Share with others?

6© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

4. Oursourcing is growing in HE

What Next?

Cost Sharing Group with

External Provider

LLP Outsource

Using the skills of the supply base can deliver significant

benefits

Be clear on what is core and non core

You need to have a clear reason for

change

The right commercial skills can often be in

scare supply

Getting the organisation “on side” is critical

Our key learning points:

Contractual Outsource

7© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

Student Management

5. Sharing

Strategy and Governance

Vision and Strategy

Development

Strategic Improvement

Risk and Compliance

Performance Management

Education Management

Course Development

and Accreditation

Education Delivery

Curriculum Dis-establishment

Education Commercialisat

ion

Workforce Strategy

(Education)

Curriculum Quality

Management

Support Services

Finance and Procurement

Legal Services

Records Management

Marketing and Public

Relations

Library Services

Recruitment

Enrolment

Advice and Support

Charging and Payment

Assessment

Scholarships, Prizes and

Awards

Graduation

Research Management

Opportunity Management

Workforce Strategy

(Research)

Impact and Reporting

Training and Accreditation

Quality Management

Admin. SupportEthics

Research Project

Management

Admission

ICT

Facilities and Estates

Management

HR

Timetable Management

Proven track record of Sharing in HE

And others exist in the Public Sector who can act as a guide

8© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

6. Sharing - What have we learnt?

Shared Service in HE to date has:

■ Grown organically

■ Taken time to develop – lack pace

■ Specific areas of focus

Heading

Second level

■ Third level

– Fourth level

■ Fifth level

– Sixth level

■A burning platform

■Willingness to build and develop

■Senior Support

Successful Shared Services developed elsewhere have required:

■Pace and agility

P?

?

?

Does this exist in HE?

9© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

In front of innovation Familiar interface

Human capital management SaaS solutions

Workday looks and works like your favorite consumer web site. With a minimal amount of training, every type of user – from the C-suite to managers and individual contributors – quickly adopts Workday. From thefirst time users interact with the application, they just get it.

Workday designers and engineers strive to create a user experience that follows three intuitive principles: get in, get it done, and get out. Simplicity is the overarching premise. Workday applications are simple enough for casual users yet robust enough for power users.

Designed for the way we workSocial tools, analytics, and mobile devices are pushing innovation in the enterprise cloud like never before. We are witnessing the birth of a new generation of enterprise applications that truly work the way people work.

The business of user experienceWorkday lets you take care of business in your natural workspace – at work, on a flight, in a meeting, or during your commute. Workday is simple, intuitive, and wherever you are. It's the most intuitive enterprise application ever designed.

Real multi tenant SaaS

■ Organizations can drastically reduce costs, increase productivity, and protect the bottom line by deploying Workday’s proposed Cloud Solution. Workday’s Solution is the result of innovative thinking, new technologies, and a fresh approach specifically designed for dynamic, global businesses.

■ Delivered in the cloud and leveraging a modern technology platform, Workday offers a fresh alternative to traditional ERP solutions. More than 350 customers, spanning medium-sized organizations to Fortune 50 businesses, have selected Workday.

170

39

24

20

99

8 7 6 5 5USAOtherCanadaUKFranceMexicoSingaporeAustraliaSwedenBrazilOther

Headcount by country

Case Study - Workday

10© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

Research Management

Workforce Strategy

(Research)

Impact and Reporting

Quality Management

Admin. SupportEthics

Research Project

Management

Opportunity Management

Training and Accreditation

7. Where could Sharing go in the future?

Strategy and Governance

Vision and Strategy

Development

Strategic Improvement

Risk and Compliance

Performance Management

Education Management

Course Development

and Accreditation

Education Delivery

Curriculum Dis-establishment

Education Commercialisat

ion

Workforce Strategy

(Education)

Curriculum Quality

Management

Student Management

Recruitment

Enrolment

Advice and Support

Charging and Payment

Assessment

Scholarships, Prizes and

Awards

Graduation & Alumni

Admission

Timetable Management

Support Services

Legal Services

Records Management

Marketing and Public

Relations

Library Services

Facilities and Estates

Management

HRFinance and Procurement

ICT

Obvious areas are mature offerings

There are common processes in admissions and enrolment

Others that could be shared

And others where sharing is highly unlikely

Thank you

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).