aplu shared services panel studham
DESCRIPTION
Panel discussion at APLU regarding shared service model.TRANSCRIPT
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EXPERIENCES IN BUILDING A SHARED SERVICE MODEL
R. Scott Studham
APLU Panel Discussion on Shared Services
November 16 2009
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MY BACKGROUND WITH SHARED SERVICES
CIO - Oak Ridge National Laboratory $1.4B research organization Consolidated 20 IT organizations to one via shared
service model Funded massive computer security effort and
application modernization while decreasing overall IT costs because the customers decided what services were their priority
CIO - University of Tennessee $1.7B higher education institution Nine months into building shared service structure
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My first job – Burger King.Factoria Mall in Bellevue WA
How many customers feel about IT organizations
“MOST IT ORGANIZATIONS ARE NOT QUALIFIED TO MAKE HAMBURGERS.”
- UT executive during my job interview
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ROADBLOCKS TO IT SHARED SERVICES Historically enterprise IT services did what they
wanted and not what the customer wanted (distrust of IT)
Everybody can do it better (entrepreneurial) False dichotomy of centralized vs.
decentralized IT Budgeting processes based on organizational
structure rather than services IT department that focuses on technology
rather than services IT leadership that wants to control IT rather
than giving customers control.
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STEPS TO IMPLEMENT IT SHARED SERVICES
1) Financial Services need to be in Shared Service model before IT2) Centralize as much of IT as necessary, but no more.3) Inside the IT organization; Establish IT Service Level Managers
(SLM) that are independent from IT Technical Line Organizations. Give the SLM’s control over projects & budgets.
4) Document IT Services and their costs. Determine the customer.
5) Move IT budgeting process to “Service Based Budgeting”. Most higher education use “organizational based budgeting”
6) Give “Customers” complete control over what services IT provides
7) After credibility of central services is established work with customers to reduce duplications.
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SO WHERE IS UNIVERSITY OF TENNESSEE IN THIS PROCESS?Done before I got there Financial Services need to be in Shared Service model
Year 1 Centralize as many IT services as necessary, but no more. Inside the IT organization; Establish IT Service Level Managers
(SLM) that are independent from IT Technical Line Organizations. Give the SLM’s control over projects & budgets.
Document IT Services and their costs. Determine the customer.
Year 2 Move IT budgeting process to “Service Based Budgeting”. Give “Customers” complete control over what services IT provides
Year 3 After credibility of central services is established work with
customers to reduce duplications.
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CIO
Input
Input
Input
Pro
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CIO
Project
Service
Serv
ice Le
vel M
anagers
Customer
Customer
Arch
itectu
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HistoricLine organization focused
CurrentCustomer focused
ORGANIZATION SHOULD REFLECT HAVING CUSTOMERS ESTABLISH IT’S DIRECTION
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CUSTOMER-DRIVEN GOVERNANCE BASED ON SERVICE CATALOG
IT has established a list of central services
Working with each customer to establish their priorities
Will result in a change in what we do and in some cases who pays for what service.
The next step will be to build customer IT plans
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CUSTOMERS HAVE NOTICED THE CHANGE
Working with customers to document what they want us spending their money on has improved customer satisfactionSurvey Pre-Reorg Post-Reorg Improvement
Responsiveness
4.36 5.4 23.9%
Communication
4.36 5.64 29.4%
Ability to deliver
4.4 4.75 8%
Shared
Services