without client engagement there is no shared services


PHIL SEARLE CEO & FounderGlobal/AmericasTel: (408) [email protected]

Phil has more than 20 years of experience in Finance, Shared Services, Technology and Outsourcing. Prior to his current role, he was Group VP and CFO of Cendant TDS International, which encompassed all areas of Finance across four continents, including Decision Support, Financial Planning & Analysis, Controllership and Financial plus certain HR Shared Services.

Phil was granted O1 visa status by the US government in 2008 which resulted in him gaining accelerated Green Card status in 2009 through the “Extraordinary Ability” classification. This classification is for “ability…demonstrated by sustained national or international acclaim” and was based on Phil’s unique experience in Shared Services and Outsourcing. Phil also was issued a C10 visa by the Canadian federal government in 2010; this visa is only granted where there is “significant benefit to Canada" [R205(a) CEC C10].

Phil is a Chartered Accountant and has a BA Honors Degree in Economics from the University of Exeter. He is a member of Financial Executives International (FEI).

CHAS MOOREManaging DirectorCanadaTel: (250) [email protected]

Chas has 19 years of experience in business leadership, management and Shared Services implementations. He leverages his extensive experience in healthcare and industry to help teams innovate effective and realistic solutions for complex industries. Prior to his recent assignments he was the Interior Health Business Support Director for Corporate Initiatives leading Shared Services implementations involving the Canadian healthcare sector. Prior to the formation of Interior Health, Chas was the CFO of one of the 18 predecessor organizations.

In addition to his Canadian assignments, Chas provides subject matter and technical expertise to American clients and holds a US work visa. He has extensive experience in project management, business case development, mentoring & coaching, and public speaking, including facilitation at several international Shared Services events.

Chas is a Chartered Professional Accountant, Chartered Accountant, and has a BSc Degree in Microbiology from the University of British Columbia.

Your SpeakersGRANT FARRELLManaging DirectorUnited StatesTel: (408) [email protected]

Grant has over 20 years of experience in finance, Shared Services and technology implementations. He has managed change programs on the back of Shared Service implementations, significantly reducing the cost base, enhancing controls and service levels. Prior to his recent assignments he was the Shared Service Controller for Interpublic. Prior to Interpublic, Grant was the European Operations director for McGraw-Hill, where he was responsible for the set-up and subsequent running of the European Shared Service Centre.

Grant is well suited to strategic planning and set-up, but is equally at home focusing on daily operational issues, managing staff at all levels and ensuring a high-level of customer service. He is a recognized thought leader, holds work visas for both US and Canada, and has spoken at numerous international events, including SSC training courses in Shanghai and Kuala Lumpur.

Grant is a Chartered Accountant and has a BSc Honours Degree in Engineering from the University of Nottingham.

mailto:[email protected]





Purpose of this WorkshopWithout Client Engagement There is No Shared ServicesSometimes the only thing “shared” about a Shared Services Organization is the name.Is your organization set-up for really sustainable success? Learn about the four critical success factors for Shared Services, and what happens when supporting the client is not really at the heart of the operation. In this interactive workshop, we combine small group work with synergistic plenary sessions to cover the nine key components of the Client Interaction Framework. This workshop is valuable both to Shared Services organizations just planning and launching and to those more mature SSOs that want to ensure that they have this Client Interaction Framework in place.Participants will come away with an assessment tool that will enable them to review their own initiatives and develop a plan to close the gaps between their current state and leading practices.


Chazey Partners Profile

Shared Services Concepts

Critical Success Factors

Client Interaction Framework (CIF)

Example CIF Assessments

Agenda





Agenda




Chazey Partners is a practitioners-led global management advisory business. We bring together a unique wealth of experience, empowering our clients to strive for world class excellence through

Business Transformation, Shared Services & Outsourcing and Technology Enablement

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

Our end-to-end capability offers advice, guidance and implementation expertise, covering strategy setting and business case production, program management, implementation and process optimization

Who We Are · Overview


Who We Are · Services Portfolio

FINANCE & ACCOUNTING●

HUMAN RESOURCES●

INFORMATION TECHNOLOGY

●PROCUREMENT

● TRAVEL & EXPENSES

●CONTACT CENTRES

Expertise In Public Sector & Private Sector

INVENTORY & LOGISTICS●

STAT & TAX COMPLIANCE●

SUPPLY CHAIN ●

LEGAL SERVICES●

FACILITIES MANAGEMENT●

MARKETING BACKOFFICE

BUSINESS TRANSFORMATION

−SHARED SERVICES & OUTSOURCING

−TECHNOLOGY ENABLEMENT

−OPERATION EMPOWERMENT

−CHANGE MANAGEMENT

−LEAN SIX SIGMA

Functional Breadth of Experience

Other Supporting Services


Why Chazey Partners · Uniqueness

Effective Diagnostics & Unique Methodology

Hands-On Approach of Seasoned Practitioners

Exceptional Project Payback

Having “lived and breathed“ a great number of projects, we understand what it takes to be successful. Our hands-on, partnership driven, approach forms the cornerstone of our practice

Independent of Other ProvidersOur solutions are unbiased and personalised, and are coupled with our value enriching thought-leadership

Blending more than two decades of experience to create a unique diagnostic based methodology. This allows us to identify critical gaps, strength quotient, and materialize feasible opportunities

Liberating budget for core services, driving highly competitive ROI, and compelling transformation timelines


Global Reach · Local Expertise

GLOBAL REACH As one of the world’s leading niche management consultancy firms specialised in Shared Services & Outsourcing, we have offices located in nine major countries around the world, including USA, Canada, Argentina, Mexico, UK, Ireland, Cyprus, Singapore, and South Africa.

LOCAL EXPERTISEHands-on experience in 100+ countries, influenced key industry practices in diversified fields.

Our Leadership Team Exemplifies The Combined Value Of Global Reach And Local Expertise


Who We Have Worked With

OUR CLIENTS

WHERE HAVE WE COME FROM







Agenda


What Exactly is Shared Services?Shared Services

…is the organisation that provides non-core Services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal customer/client. This involves a philosophy and approach totally unlike traditional “corporate”-driven centralisation.

The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself.

Shared Services achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, standardized end-to-end processes and best practice.


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


ATTRIBUTE SHARED SERVICES CENTRALIZATION

Accountability Business Unit Corporate

Key Performance Target

Service excellence and continuous improvement

Cost reduction and central control

Service Partnership Agreements

Widespread Rare

Classification An independent unit

Another corporate function

Responsibility Partnership Demarcation

Shared Services vs. Centralization






Agenda



Client• 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

CRITICAL SUCCESS FACTORS

Typical Transformation Focus: Technology & Process,sometimes on the People …but Client-focus is missing


Corporatization/Centralization:• Users of service must accept

corporate direction• Cost containment is prioritized

over performance

Transformed Shared Services:• If consumers of service are unhappy,

they’ll leave• Performance is prioritized over cost

containment

No Customer, No TransformationScenario: “Management decides to reduce the hours of their help desk for their information technology services.” What are the key drivers behind the decision?

If your organization is not focused on the client, you either:Do not have Will nottransformed or have transformation

Shared Services for long (it will fail)


Exercise: Share your Biggest Irritants

1. Introduce yourself at your tables

30 Seconds eachName, Role, Stage of Shared Services (planning, building, new, mature)

2. Share your biggest irritant

30 Seconds eachFrom perspective of• Provider• Client

3. Discuss at your tables

5 MinutesChoose 2 or 3 of irritantsLink back to critical success factors• Technology• Process• People• Client

4. Report out

5 MinutesThree tables will be selected to report out to room on themes

Issues/concerns that you are

currently problem solving


Without CIF• Lack clarity on who does what• “Perception versus reality”• Focus is on negative aspects of

service delivery• One-way traffic without traction• Strained client relationships• Not proactive; takes effort to

maintain morale• Takes emphasis away from

customer service

With CIF• Outward looking and proactive• Client-orientated• Deliver to pre-defined standards of

service to meet agreed client needs• Accountable and measured, using

metrics and KPIs• Drive cost of service towards a

world-class standard• Active management of client

relationships

Through a formal framework: The Client Interaction Framework (CIF) distinguishes a leading practices Shared Services from a simple act of centralization and drives a spirit of partnership between the SSO, its clients, and all key stakeholders

How to Achieve Client Engagement?


The same service characterisic can be seen as an improvement or loss, It depends on your perspective

To shape and influence this perspective, you need to a structured way tomanage your client relationships: the Client Interaction Framework

Intangibles are as Important as Tangibles

What is potentially better:• Cost savings• Standardized processes• Controllership• Common system• Consistent process metrics• Accessibility and quality of information• Customer service management• Quality in the process

What is potentially worse:• Slow response and recovery• Inflexibility• Risk of client working for SSO• Lost decision rights• Additional bureaucracy• Disconnection from the business• Lack of local personal support• Local desire to “touch everything”


Looking for Three Volunteers…

• Next part of workshop covers the Client Interaction Framework and Assessment Tool• Using live examples will help explain the tool and make it more interesting

• Ideal volunteers• Have an existing Shared Services Organization (SSO)• Have been in operation long enough for some big irritants to become apparent• Willing to share and talk about their experiences

Irritants• Volunteers disclose

their 1 or 2 big irritants

CIF• We introduce the

nine elements

Assessment• Each element

includes five yes/no questions

• Score out of 5

Debrief• Chart assessment• Identify any linkages

between assessment and irritants





Agenda




Client Interaction Framework

Account Management• SSO to client; via reporting,

interaction, escalation & communication

Client Contact Management• Client to SSO; to manage

and resolve queries and drive learning/improvement

Service Partnership Agreements• SPAs are 2-way agreements

clarifying both SSO 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 SSO

processes; highlights activity of both SSO & client

Performance Measurement• Comprehensive KPIs,

measures and metrics framework, SSO & client

Performance Reporting• Process performance will be

reviewed monthly by SSO and client

Recharging Methodology• Define basis for charging for

SSO services to turn consumers into clients


…is not involved in bulk of transactionsthat flow directly to SSO

…acts asescalation point

…acts as the “voiceof the client”

Responsible for Facilitating Successful Client Relationships

Account Management

…meets regularly with clientin addition to informaland adhoc dialogue

…collaborates and drives process improvement

“How operations needs to support service delivery”

“What service needs to be delivered”

…conducts service expectation discussions

Client Shared Service

Account Management…

Account Management

…helps establish andmanage Client Interaction

Framework

…fosters dialoguewith fact-based

analysis & reporting

...effectively manages transparency and process

compliance


CIF Assessment

Your Organization’s Account Management Function is: Yes No

1. Proactive and transparent through regular client meetings, communication, and reporting

2. Formally documented in job descriptions, organization charts and agreements

3. A dedicated function with one or more full-time employees

4. Independent of service provision

5. Described by both clients and providers as effectively representing the “voice of the client”

Account Management


Transaction Processing

Call Centre

OnlineQuery

Function

OnlineShopping

Cart

Purchase Cards

ElectronicData

Interchange

ElectronicAuthorizations

Online PortalsDirect DeliveryOf Mail

Client Contact Management defines how regular/daily interactions with clients are managed, how they contact the SSO to request service, and also how requests are managed to completion

Client Contact Management Funnel Approach


Your Organization’s Client Contact Management: Yes No

1. Is designed on the funnel approach

2. Can handle multiple types (transaction, information, query) and channels of requests (web, phone, email, meetings)

3. Each request is captured, routed, acted upon, monitored and resolved

4. Is enabled through case management software and a structured telephony solution

5. Is supported by an organizational structure that separates client contact management from transaction processing

Client Contact Management CIF Assessment


Service Partnership Agreement Different from SLAs

DirectionTypically one-way outlining SSO services & cost to client

Bi-directional outlining SSO & client responsibilities in service provision

Service itemsCatalogue of services that can be purchased by clients

End-to-end breakdown of service by process, showing ownership (whether

client, corporate or SSO)

DevelopmentCan be inflexible & imposed; often presented to clients near go-live

Negotiated & agreed between clients and providers; developed during

Design & Build phases

LanguageLegal/contractual language Includes legal/contractual language and guide to operating business

KPIsSometimes Negotiated & agreed

How UsedGenerally avoid invoking SLAs as use indicates contractual/legal issue

SPAs used regularly to enhance understanding & drive process

improvement

Service Level Agreements (SLAs) Service Partnership Agreements (SPAs)


Your Organization’s Service Partnership Agreements : Yes No

1. Document the services, service levels, escalation procedures and process ownership

2. Are two-way agreements covering responsibilities of the provider and client, input & output KPIs, and process ownership

3. Are agreements that were negotiated and agreed with the SSO, client and Corporate

4. Are effective agreements that truly describe the actual service levels, targets and processes, and are updated regularly

5. Foster a sense of partnership and teamwork between the SSO and client

Service Partnership Agreement CIF Assessment


ClientFeedback Communication Mechanism

Regional Client Forum

(monthly)

Strategic Review Forum

(quarterly)

Internal Client

Survey (bi-annual)

External Client/Supplier

Survey (Annual)

Regular Client Calls

(weekly)

Be clear on your purpose/intent and use

the right type of communication

(remember the 3 C’s):

Communication you own message, generally one-way

information transfer

Consultation recipient can

influence/impact message, but you have veto

Collaboration you do not control final

result


Your Organization’s Client Feedback: Yes No

1. Uses multiple channels of communication, including regular calls, forums and surveys

2. Is tracked, mitigated and acted upon

3. Helps drives your continuous improvement process

4. Has a high rate of participation

5. Is an important consideration in strategic planning & reviews

ClientFeedback CIF Assessment


Process Control Database

Service Offerings List is incorporated into Service Partnership Agreement and identifies:• Respective responsibilities of SSO and Department/Corporate• Department deviations from standard services

Detailed Service Offerings


Your Organization’s Process Control Database: Yes No

1. Provides a detailed list of service offerings

2. Indicates responsibility of SSO, client and Corporate, using table format, swim lane process flows and narrative

3. Documents any Department deviations from standard practice

4. Is included in the Service Partnership Agreement

5. Contains effective service listings that truly describe the actual services and activities, and is updated regularly

Process Control Database CIF Assessment


Performance Measurement Performance Measurement Framework


Your Organization’s Performance Measurement: Yes No

1. Includes input, operational, and output KPIs

2. Links KPIs to strategic goals and cascades strategic KPIs to operational/output KPIs then to individuals KPIs

3. Was negotiated and agreed with the client and departments

4. Includes targets for current and future operations, comparisons to external benchmarks, and a process to refresh

5. Includes key exception indicators to go after exceptions/defects in processes and drive continuous improvement

Performance Measurement CIF Assessment


Performance Reporting Monthly Reporting Contents

• Achievements past period• Initiatives for next periods• Other commentary: main risks and issues, improvement

activities, high-level summary of KPIs

Performance Commentary

• Output and inputs KPIs• Selection of operational KPIs• Department specific KPIs• Root cause and effect analysis

Key Performance Indicators

• Process improvement overview• Adhoc services delivered• Risks and issues• Service incidents• Backlogs

Appendices


Your Organization’s Performance Reporting: Yes No

1. Is prepared at least monthly

2. Is distributed to providers, clients, executive and stakeholders

3. Reflects reality today and is considered an effective tool by providers, clients, executive and stakeholders

4. Is enabled by technology to minimize/eliminate manual data collection

5. Drives discussion, follow up and action

Performance Reporting CIF Assessment


The implementation of an equitable recharging methodology to recover operating costs enables the SSO to operate as an independent business and

encourages better behaviour throughout the organization

46

Recharging Methodology Influence Behavior

SIMPLEAvoid very complex time collection and billing

systems

VISIBLESufficiently detailed metrics and billing so

critical cost elements are understood

FLEXIBLEEmbed flexibility to account for variations in

business requirements

FAIREnsure fairness for each client involved and

SSO

FOSTERS CONTINUOUS IMPROVEMENT

Encourage better business practice through the chargeback mechanism

Recharging methodology critical success factors:

Not one-size-fits-all; consider: cost per transaction, variable cost based on complexity/non-standard service, allocation of historical, future or actual

costs, initial moratorium, availability of baseline funding


Your Organization’s Recharging Methodology: Yes No

1. Was implemented when operations were stable

2. Exists and is applied at regular, predictable intervals.

3. Is enabled by technology to minimize/eliminate manual data collection/reporting/analysis

4. Drives positive results by linking actual behaviors of clients to the costs shown in their respective operating statements

5. Is simple, visible, flexible, and is considered fair by clients, providers, executive and stakeholders

Recharging Methodology CIF Assessment


Continuous Improvement Driven by All CIF Elements

Recharging MethodologyPerformance

Reporting

Performance Measurement

Process Control Database

ClientFeedback

Client Contact Management

Service Partnership Agreement

Account Management

Culture ofContinuous

Improvement

What issues are being escalated?

Achieving targets for volumes by type?

Continues to reflect reality and is effective?

Captures exceptions? Any need to realign?

Any complaints? Are we driving positive behaviors?Are we discussing,

following up and acting?

Do KPIs or targets need to be adjusted?

What are our clients telling us?


Your Organization’s Continuous Improvement Function: Yes No

1. Is driven by feedback from multiple channels that gathers both hard and soft data

2. Formally documented in job descriptions, organization charts and agreements

3. A dedicated function with one or more full-time employees

4. Leverages a formal process that includes phases for planning, implementing and evaluating the improvement

5. Described by both clients and providers as being transparent, effective and accountable

Continuous Improvement CIF Assessment



Agenda






CIF Assessment: Volunteer 1

Account Management



Client Feedback

Continuous ImprovementProcess Control Database


Performance Reporting

Recharging Methodology

0

5



Account Management



Client Feedback





0

2

4



Account Management



Client Feedback





0

5


Top Three Takeaways

1. Without client engagement, there is no Shared Services

2. You need a structured, proactive approach to manage the client relationship

3. Benchmark your client interaction using our free, online assessment tool at www.chazeypartners.com Leverage our Experience

for Your Success


Got CIF?

Go to www.chazeypartners.com/cif and complete the Client Interaction Framework (CIF) Self-Assessment

Obtain your free report and access to resourcesRemember that without client engagement, there is no

Shared Services


Contact us

[email protected]


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