What is shared services? - University of Michigan

1 what is shared services ? shared services is a way of organizing administrative functions to optimize the delivery of cost effective, flexible, reliable services to all customers . Decentralized Standardized Centralized shared services Center Autonomous departments Schools run similarly Single department or site Focus on responsiveness Typically some common which performs the function Different systems and sub systems Focus on efficiency Separate organization but linked to non standard processes Common processes and control customers through oversight model S. Separate functional staff t f ti l t ff Separate functional staff T i ll Typically some common Managed service delivery through clear Managed service delivery through clear sub systems service level agreements No service level agreements Customer driven transactions nor performance targets Performance driven culture through measurement and feedback Process ownership end to end Page 1.

2 How is shared services different from centralization? Traditional View Attribute of Centralization shared services View Customers Treated as End Users customers ( , colleges, schools, units). Leadership Central Oversight Entity/ Independent Unit Customer Board/Advisory Group Headquarters (organization varies with geographic objectives). Location Capitol Area/Headquarters p / q High Skill, Low Cost Area g , Primary Focus Cost Control Service Excellence, High Performance, Cost Control, Continuous Improvement (service and costs). Service Responsibility Central Oversight Entity/ shared between shared services center and customers as Headquarters stated in Service Level Agreements Service Management Optional Service Level Agreements, Key Performance Indicators, Performance Reporting Customer Contact Ad Hoc Multiple channels ( , voice, email, web); Contact center Management staffed with customer service reps; Case Tracking software, Automated Call Distributor Computer Telephone Integration.

3 Automated Call Distributor, Computer Telephone Integration; Client relationship managers Typical Management Recruiting, Workload Customer Relationship Management, Continuous Processes Management, Cost Improvement, Knowledge Management, Performance Management Management, Service Management Page 2. shared services criteria Sample criteria used for shared services Sample criteria used for shared services Poor Candidates for Strong Candidates for shared services shared services C tB h Cost Benchmark k L di P ti C t Leading Practice Cost Hi h C t C. High Cost Compared to Benchmark dt B h k Type of Process Strategic\Consultative Transactional\Administrative Standardization No Potential to Standardize Standardization Exists or High Potential Transaction Volume Low High ( , more than 10 a day). Complexity of Task p y Highly Complex g y p Simple, Repeatable p , p Stability Volatile Content Static Content Copyright 2010 Accenture All Rights Reserved.

4 Page 3. what are the benefits for higher education? Economic Strategic Quality Speed Higher productivity Higher productivity Shift Shift funding/focus from funding/focus from Improved Improved information information Reduced Reduced cycle times cycle times back office to front office for decision making (for example): Lower cost location Support meeting Better service to key Close Reduced expenses increased demand stakeholders ( Authorizations Reduced systems educed sys e s with fewer full time e e u e sstudents, parents, ude s, pa e s, Procurement infrastructure costs employees faculty, and staff). Payments Leverage Achieve process and Reduced error rates . investments systems standardization quality at source Billing related to enterprise p Sourcing EEnable new/re organized bl / i d D. Develop centers l t resource planning entities of expertise and systems, other innovation technology Page 4.