Richard ArbuthnotExecutive DirectorNASA Shared Services Center

Shared Services in the Public Sector

August 16, 2010August 16, 2010

National Aeronautics and Space Administration

www.nasa.gov

NASA Shared Services Center

National Aeronautics and Space Administration

2

Agenda

•What is Shared Services?

•Why Shared Services?

•The NSSC Vision and Mission

•NSSC Operations/Financial Profile

•Lines of Business

•Performance Scorecard

•The NSSC’s Successes

•The NSSC’s Key Challenges

NASA Shared Services Center

National Aeronautics and Space Administration

What is Shared Services?

•A business model for delivering support services

Centralization is not shared services

Consolidation is not shared services

•How shared services differs from other business models

Cost is transparent

Service is transparent

A disciplined approach to delivering support services

Structured management of customer interactions

Sustained and systematic focus on customer service

Entrepreneurial approach to solving problems and leveraging opportunities

Fee-for-service drives a balance between service and cost

Business intelligence and data-driven decisions

3

NASA Shared Services Center

National Aeronautics and Space Administration

Why Shared Services?

4

•Support costs reduced by 20-30%

Consolidation of services into a single efficient organization reduces duplication of overhead functions

Shared services’ core tenets lead to more efficient service at significantly lower cost

•Improved services

Cross-cutting infrastructure, such as the NSSC Customer Contact Center, Customer Service website, Document Imaging, and Service Recovery Plan, adds structure and consistency to service delivery

•Leveraged buying

For example, Enterprise License Management provided cost avoidance of $2.45M in year one

•Improved processes

The NSSC redirected $4.3M by using purchase cards in lieu of purchase orders to pay for external training

NASA Shared Services Center

National Aeronautics and Space Administration

Why Shared Services? (continued)

5

•Standardization

Consistent interpretation and application of policy ensures equity, and standardization makes it easier to improve processes, fix problems, and infuse technology

•Better use of technology

High volume makes it easier to identify and prioritize system changes; consolidating work and standardizing processes make it easier to architect and implement technology solutions

•Full cost of service delivery is captured

A well-documented chargeback model with defined business rules to capture and identify major cost drivers

NASA Shared Services Center

National Aeronautics and Space Administration

Why Shared Services? (continued)

6

•Core business processes are well documented

Use of Service Delivery Guides, Service Level Agreements (SLAs), and Services Catalog

•Data integrity and consistency

SLA managed and performance monitored with metrics captured in a Business Intelligence Data Mart

•Balance of policy, process, service, and cost

Results in managed demand that changes consumption patterns and evaluation of the financial impact of policy and process decisions

NASA Shared Services Center

National Aeronautics and Space Administration

7

What is the NASA Shared Services Center (NSSC)?•A NASA Headquarters organization located at

Stennis Space Center, MS

•Consolidates activities into a separate, independent NASA Service Center

•Performs a variety of transactional and administrative activities in four lines of business:

Financial Management

Human Resources

Information Technology

Procurement

National Aeronautics and Space Administration

NASA Shared Services Center

National Aeronautics and Space Administration

8

The NSSC Vision and Mission

NASA Shared Services Center

National Aeronautics and Space Administration

Supports All NASA Centers

9

Customers ServedCustomers Served18,000 Civil Servants62,000 Support Contractors and Vendors

NASA Shared Services Center

National Aeronautics and Space Administration

Public/Private Sector Partnership

• Partnership between CSC and NASA

• CSC referred to as the Service Provider (SP)

• Working Capital Fund Operating Budget ~ $70M

• An important local economic initiative

– Civil Service: 130

– Service Provider: 388

– Total Staffing: 518

(Data as of July 2010)

Service Provider CSC(75%)

Service Provider CSC(75%)

NASA Civil Service (25%)

NASA Civil Service (25%)

10

NASA Shared Services Center

National Aeronautics and Space Administration

The NSSC’s Financial Profile

•NSSC Return on Investment Agency’s $30M financial investment paid in full by 3rd Quarter FY09

Currently exceeding the initial savings projections of $6 to $8 million per year and on track to recognize savings in excess of $12 to $16 million a year

•NSSC is a Working Capital Fund (WCF) fee-for-service organization

•NSSC’s total operating budget for FY10 consists of $75.2M ($58.4M services, $16.8M training) in the WCF and $100M in non-WCF

11

NASA Shared Services Center

National Aeronautics and Space Administration

The NSSC’s Financial Profile (continued)

•Fee-for-service supports the shared services business modelMatches cost, consumption, and service

Promotes transparency of cost and services

Supports goal of operating in a business-like manner

Customers modify behavior to achieve the optimum balance between service and cost

Promotes a long-term approach to asset management

Encourages process efficiencies

12

NASA Shared Services Center

National Aeronautics and Space Administration

13

Lines of Business

•Transitioned 52 activities from March 2006 to September 2009

FY06: 27 activities FY08: 6 activities

FY07: 15 activities FY09: 4 activities

•Human Resources

Processing personnel actions

Maintaining employees’ personnel records

Employee benefits, advice, and services

Processing training requests

Maintaining HR systems

Employee drug testing

NASA Shared Services Center

National Aeronautics and Space Administration

14

Lines of Business (continued)

•Financial Management

Employee travel (foreign and domestic)

Employee relocation services

Accounts Payable (AP)

Accounts Receivable (AR)

Payroll

Financial statements

•Procurement

Consolidated contract management

Grants processing

NASA Shared Services Center

National Aeronautics and Space Administration

15

Lines of Business (continued)

•Information Technology

Outsourcing Desktop Initiative for NASA (ODIN)

Agency Consolidated End-User Services (ACES)

NASA Operational Messaging and Directory (NOMAD)

Enterprise Licensing and Seat Management

Agency Print Manager

Enterprise Service Desk (ESD) & Enterprise Service Request System (ESRS)

System for Administration, Training, & Educational Resources for NASA (SATERN)

NASA Shared Services Center

National Aeronautics and Space Administration

Cross-Cutting Support Required for NSSC Services

•Document Imaging and Management Service

•Customer Contact Center

•Self-Service Customer-Focused website

•Business Office supporting facilities, budgets, chargeback processing, and customer communications

•IT Infrastructure and Business Applications support

16

NASA Shared Services Center

National Aeronautics and Space Administration

Data Driven and Performance Measured

17

Activity by Month Oct Nov Dec Jan Feb Mar Apr May Jun Jly Aug Sep

Accounts Payable - On Time Payments

Accounts Payable - Int. < $200/MM

Payroll

Domestic TravelNot Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported

Foreign TravelNot Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported Not Reported

PCS (6) Travel

PCS (15) Travel

PCS (30) Travel

Relocation Assistance

NASA Awards & Recognition Processing

Off-Site Training

Internal Training <25K

Internal Training >25K

SES AppointmentsN/A

SES CDP Mentor AppraisalsN/A N/A N/A N/A N/A

Retirement Estimate - 10 day

Retirement Estimate - 20 day

Retirement Estimate - 45 day

Retirement Processing - 10 day

Retirement Processing - 20 dayN/A N/A N/A N/A N/A N/A N/A N/A N/A

eOPF - 15 Day

eOPF - 25 Day

Personnel Action Processing

Grants

Grants - Supplemental

SBIR / STTR - Phase 1N/A N/A N/A N/A N/A N/A N/A N/A

SBIR / STTR - Phase 2N/A

Initial Call Resolution

Call Response Rate

Call Abandonment Rate

Website Availability

NASA Shared Services Center

National Aeronautics and Space Administration

•August 2010: Corporate Executive Board “Force of Ideas” award winner – Advanced Service Center Category – award recognizes best demonstrated practices, key business processes, and the creation of sustainable, measurable value.

•March 2009: Best New Captive Shared Services Organization Excellence Award Recognizes the most successful shared services organization launched within the last three years; Nationally recognized as the highest accolade for shared services organizations; and Runner-up: Wal-Mart Stores, Inc.

•January 2009: Help Desk Certification by Help Desk Institute

•March 2008: Government Information Technology Executive Council (GITEC) Project Management Excellence Award in the category of Cost Savings / Cost Avoidance

•March 2007: 2nd Place - Best New Shared Services Organization Excellence Award

The NSSC’s Successes

18

NASA Shared Services Center

National Aeronautics and Space Administration

The NSSC’s Key Challenges

•Enterprise Service Desk / Enterprise Service Request System

•Improving the quality of our communications across all channels

•Institutionalizing responsiveness

•Stabilization

•Capital investments

•Managing the NSSC portfolio

•Striking the appropriate balance between policy, process, service levels, and cost

19

NASA Shared Services Center

National Aeronautics and Space Administration

Questions

20

NASA Shared Services Center

National Aeronautics and Space Administration

NP-2006-08-00108-SSC