Business Case & Roadmap to Shared Services

ROBERT TOWLE
Managing Director
North America (East)
Tel: (862) 812-7851
roberttowle@chazeypartners.com
Robert has over 20 years of experience in Finance, Shared
Services and Technology implementations. He has
managed multiple shared services transformation projects
and has held multiple roles managing shared services
operations in the U.S., U.K. and in multiple locations in
India. Prior to his recent assignments, he was the Vice
President of Finance for Pinkerton Consulting.
Prior to Pinkerton, Robert was the Vice President of
Global Operations Finance for Travelport Limited, with
responsibilities including the management of company’s
Indian Shared Service Center, global corporate travel and
North American payroll operations.
He is well suited to developing transformation activities,
but is comfortable focusing on daily operational issues,
managing staff at all levels and ensuring a high level of
customer service.
Robert holds an MBA with dual concentrations in Finance
and Information Technology from Auburn University.
CHAS MOORE
Managing Director
North America (West)
Tel: (250) 469-4168
chasmoore@chazeypartners.com
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.

What is a Shared
Services Business Case,
and why is it so
essential?
Key steps to building a
successful Business
Case for Shared
Services in the Public
Sector
Developing a multi-
phase roadmap for
your Shared Services
Failure to launch?
How to avoid costly
mistakes!
Lessons learned from
highly effective
examples of Shared
Services in the Public
Sector

Chazey Partners Profile
Shared Services Concepts
Roadmap & Activity 1
Business Case
Lessons Learned & Activity 2

Strategic advice
Project management
Business case
development
Support from concept to
realization
For new, existing and
mature organizations
The big four:
• Finance
• Human Resources
• Information Technology
• Procurement
Other back office:
• Facilities
• Office Administration
• Communications
Over 20 Years Experience
Offices in
North & Latin America,
Ireland, United Kingdom,
Europe & Singapore
Practitioner led
Over 50 active full-time staff
and over 70 specialized
resources
Knowledge transfer
Client-focused approach
Who We Are What We Do Where We Focus
Chazey Profile

Who We Have Worked With
OUR CLIENTS
WHERE HAVE WE COME FROM

“Chazey’s team all have a strong background as CFOs or Finance or HR leads in
global organizations, and understand the ins and outs of a Shared Services
environment. They are familiar with all phases, whether a new launch or a mature
operation. That’s the kind of knowledge that even a good consulting team cannot
give you. It’s based on real-life experience. In addition, Chazey has access to a
wealth of benchmark data based on their own experience across different
industries. These best practices proved valuable when analyzing processes to
incorporate into our own model.”
Manolis Fafalios
Shared Services
(Transition) Director
Coca-Cola Hellenic
“Critical to our success was the great partnership that we formed with the Chazey
team. By embedding Chazey staff into our GNB work groups we were able to
create a collaborative and interactive relationship that was very different from a
traditional vendor client arrangement. Phil, Grant and John (and others) brought
a depth of shared service knowledge, along with tactical expertise from multiple
previous implementations that enhanced the approach developed by our GNB
core team. This integration of teams allowed us to produce a dynamic GNB
specific service strategy, based on best practices and world class implementation
techniques.”
“We were impressed by the Chazey team’s responsiveness and professionalism
in reacting and managing this assignment at very short notice and with highly
restricted timelines. The Study Report we received clearly reflected their depth of
first-hand experience and knowledge. In addition, the quality of insight they
brought to the assignment resulted in a Study Report which was clear,
comprehensive and put us in a position to make a decision on a very sound
base.”
Andrea Seymour
Former Chief
Operating Officer,
New Brunswick
Internal Services
Agency
Les Gill
Senior Director, HR
Shared Services
Gilead Sciences, Inc.
Testimonials

Shared Services Concepts

•Treats its internal client with the same level of respect and service that external clients
expect
Elevator
Speech
•Provides non-core services to the “business”, employing a specialist team,
geographically unconstrained, and focusing on the requirements of the internal
client. This involves a philosophy and approach totally unlike traditional “corporate-
driven” centralization.
Definition
•Has the goal of providing 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.
Goal
•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.
How-To

Centralization/Decentralization Cycle
 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

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

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
Scenario: “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 not
transformed or have transformation
Shared Services for long (it will fail)

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

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

Output
Proces
s
Input
KPIs
Operational
& Individual KPIs
Output
KPIs
Measure effectiveness
and efficiency of SSO
“The engine room”
Achieving targets?
Working as a team?
Measures the success,
quality and effectiveness
of service delivery
Downstream part of
process
Aka “lagging” indicators
Measure client input to process
Timely, standardized and in the
prescribed format?
Upstream part of process
Aka “leading” or “reverse”
indicators
Input

Roadmap & Activity 1

Business Case
•Provides framework to achieve executive buy-in & sign-off; Acts as essential control mechanism
•Key activities: stakeholder interviews, Activity Based Analysis, Leading Practices Diagnostics
Design
•Provides all templates, plans and frameworks to support actual deployment
•Key activities: Design processes & technology, plans for training, hiring & employee transition
Build
•Building processes & technology, training staff, and set-up of end-state location
•Key Activities: Configure processes, build technology, recruitment & training
Deploy
•Full operationalization of new end-state across organization with new processes and systems
•Key activities: Detailed deployment plan, testing, Service Partnership Agreements
Stabilize
•All functions fully integrated, process-orientated, client-focused, culture of continuous improvement
•Key Activities: Optimize work allocation, continuous training, comprehensive feedback review

• Trade cards with other tables to get a set of seven activities that are aligned with
your designated phase
Purpose
• Each table has an envelope containing 8 cards
• One card designates your table’s phase
• Seven cards describe activities
Set Up
• Open up envelope and note your table’s designated phase
• Discuss at your tables which of the seven activity cards:
• Are aligned with your phase
• Need to be traded with another table
• Trade cards with other tables: you may only trade one card at a time and you must
accept another card in return; your table will always have 7 activity cards
Instructions

Business
Case
•Complete Activity
Based Analysis
•Confirm Baseline
Performance
•Complete
Stakeholder
Analysis
•Leading Practices
Diagnostics
•Create
Opportunity
Matrix
•Finalize
technology
assessment
•Develop Financial
Business Case
Design
•To-Be Process
Design
•Define Required
Competencies &
Identify Gaps
•Develop Initial
Technology
Specifications
•Select Location,
Design Facility
Confirm Costs
•Adapt/Write Job
Descriptions
•Develop
Technology
Roadmap
•Complete Job
Impact Analysis
Build
•Validate/Test
Processes in
Conference Room
Pilots
•Build Technology
Enabled
Processes
•Develop Detailed
Deployment &
Cutover Plan
•Recruitment &
Training
•Build Service
Partnership
Agreements
(SPAs)
•Develop KPIs &
Metric tools
•Build/Adapt End
State Facility
Deploy
•Resource
Deployment
Team
•Deliver Detailed
Deployment Plan.
•Test Readiness for
Go-Live &
Execute
•Implement & Sign
Off Service
Partnership
Agreements
(SPAs)
•Work Shadowing
& Knowledge
Transfer
•Implement
Employee
Transition Plan
•Roll Out
Technology with
Training
Stabilize
•Stabilize
Operations
•Optimize Work
Allocation
•Assess Client
Interaction
Framework
•Implement
Continuous
Improvement
•Assess
Technology Tools
•Implement
Continuous
Training
•Conduct
Comprehensive
Feedback Review

Was this harder or easier than you expected? Did anything surprise you?
Were you able to get a set of activities that aligned to your phase?
• From the original set aligned with your phase
• To accept in trade from other tables
• Made it into your final set of activities
Was your table able to achieve consensus on which activities:
Did any activities fit into more than one phase?
Did you discern clear tollgates and logic between the phases?
Do you see any benefits or constraints by organizing the activities in this way?

Business Case

Financial
Business Case
Organizational
Structure
Operating
Model
Governance &
Policy
Frameworks
Change
Management &
Comms Plan
Implementation
Plan
Report &
PresentationBaseline Opportunity
Matrix
Project
Initiation
Baseline
Reports & Data
Stakeholder
Interviews
As-Is/Client
Interaction
Workshops
Activity Based
Analysis
Technology
Landscape
High-Level
Benchmarking
As-Is Leading
Practices
Diagnostics
To-Be Leading
Practices
Diagnostics
Technology
Assessment
Location
Analysis
To-Be Design
Principles
Stakeholder
Analysis

Lessons Learned & Activity 2

FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEU
FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FEUD FAMILY FE

0
24
20
17
14
11
7
5
2
Achieve Efficiency
Savings
Improve Quality &
Leading Practices
Compliance, Visibility,
Control
Scalability
Innovation &
Culture Change
Critical Mass for
Technology Enablement
Free Up Capacity and
Enable the Business
Enable Alternative
Service Delivery Models
Cheer SilenceLoseWin Boo
Round 1

0
35
28
20
12
5ERP
Document Management
& Workflow
Case Management &
Performance Measurement
Cloud
Social Media
Round 2

0
24
20
17
14
11
7
5
2
Shadow Operations
Low Customer
Satisfaction Scores
Complaints about
Paying Chargebacks
Losing Clients/
Market Share
Lack of Standardized
Processes
High Employee Turnover,
Center is “too quiet”
Minimal use of
Automation Tools
High Cost of
Operation
Round 3

0
31
25
18
14
9
3
Lack of senior level
sponsorship
No Business Case/
Weak Project Management
Taking on Too Much/
Too Soon
Technology Issues
Roles & Responsibilities
Poorly Defined
Weak processes
Round 4

0
24
20
17
14
11
7
5
2
Executive sponsorship
Is key
Develop clear
Business case
Do not Underestimate
Change Management
Leverage Formal Client
Interaction Framework
Innovate &
Continuously improve
Global Standards &
Process Ownership
Standardize &
Integrate Technology
Transformation
Takes a Team
Round 5

Got CIF?
Go to www.chazeypartners.com/cif and complete the
Client Interaction Framework (CIF) Self-Assessment
Obtain your free report and access to resources
Remember that without client engagement, there is no
Shared Services

1. Without client engagement,
there is no Shared Services
2. You need a structured,
proactive approach to
manage the client
relationship
3. A robust business case
helps achieve executive
buy-in & acts as an essential
control mechanism Leverage our Experience
for Your Success

Business Case & Roadmap to Shared Services

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