What does it take to launch an award winning SSC

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What does it take to launch an award winning SSC ?

• Nick Lewis BA FCCA
• Shared Services Interim Chief Financial Officer
• HM Prison Service
• Mobile [phone]
• Email nick.lewis_at_woodward-lewis.co.uk

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Background to HMPS

• 130 public sector prisons in England Wales
• London Headquarters Regional Offices
• 49,000 employees
• 80,000 inmates
• Annual cost c 2.5bn (3.1bn EUR or 4.5bn US)
• Equivalent to a major hospitality business

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HMPS Shared ServicesThe Need for Change

• To Refocus - HMPS management skills back on the
  core activities
• To Reduce back office costs in HR, Finance
  Procurement functions
• To Drive - smarter procurement practices
• To Create - organisational stress and the
  hunger for change
• To Provide - a platform to innovate
• To Deliver - increased business value
• A private sector ethos to deliver a public
  sector remit

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HMPS Shared ServicesBackground - Locations Size

• Newport
• Location South Wales
• Headcount 680
• Newbold Revel
• Location Leicestershire
• Headcount 250
• Field Regional Teams
• HR Field Team 80
• Purchase to Pay Regional Team 60

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HMPS Shared ServicesBackground - Service Lines

• Purchase to Pay
• Regional Purchasing Teams / Accounts Payable
• Human Resources
• Employee Record Maintenance / Pay / Resourcing
• Performance Management / Training Administration
  Delivery
• Finance
• Accounts Receivable / Record to Report
• Banking Services / Expense Management
• IT Services
• User Support / Systems Support

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HMPS Shared ServicesBackground - Customer Base

• HM Prison Service
• Fully rolled out May 2006 to March 2007
• Home Office
• Partially rolled out February 2008 to January
  2009
• Other Government Departments
• In discussions at this time

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HMPS Shared ServicesBackground - Volumes

• Annual Volumes HMPS Customer Only
• Finance Services
• 300,000 expense claims
• Accounts Payable Services
• 600,000 supplier invoices value 1bn
• HR Services
• 430,000 pay changes
• Customer Contact Services
• 560,000 calls taken
• IT Services
• 100,000 password resets

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HMPS Shared ServicesSeven Successful Strategies

• Senior sponsor engagement getting them on-side
• Customer engagement building long lasting
  relationships
• Service implementation a tried and tested
  approach
• Change management comprehensive coverage
• Service delivery focusing on excellence
  sustainable growth
• People our key asset
• Technology the now and the future

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HMPS Shared Services1 - Senior Sponsor Engagement

• Business Case approved and owned by the main
  Board as a live document
• Individual senior sponsors heading up Steering
  Groups and Assurance Boards
• Clear open channels for communication
• Tell them how it is and they will not waiver

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HMPS Shared Services2 - Customer Engagement

• Baseline current services before change
• Agree detailed service specification
• Agree any cost or delivery improvements
• Sign off Service Level Agreement
• Dedicated Account Managers
• Regular meetings how is it for you ?
• Its their service not yours

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HMPS Shared Services3 - Service Implementation

• Understand - customer requirements
• Define - the service class / sub classes
• Determine - access channels
• Baseline - current position
• Implement using the following techniques
• SIPOC (Suppliers, Inputs, Process, Outputs,
  Customers)
• Process Maps and Work Instructions
• Production Control and Performance Levels
• Knowledge Management FAQs and Policy
• Technology configuration
• Minimum Manning Calculations
• Transition Plans

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HMPS Shared Services4a - Change Management

• Go Live minus 5 months
• Area planning workshop
• Understand the service and define the impact
• Develop local change plans
• Set up briefings and demos
• Conduct Business Readiness Assessment 1
• Go live minus 3 months
• Staff transitions plans in place
• Update local change plans
• Start training
• Complete knowledge transfer
• Conduct Business Readiness Assessment - 2

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HMPS Shared Services4b - Change Management

• Go Live minus 1 month
• Update local change plans
• Complete training
• Go / No Go Recommendation
• Go live
• Desk side support
• Close out review
• Do not hesitate to slow down or stop

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HMPS Shared Services5 - Service Delivery

• Managing performance
• The Balance Scorecard approach
• Process improvement using Six Sigma
• Benchmarking of transactional and query
  resolution services
• Delivering the benefits
• Investment levels
• Benefits realised
• Break-even

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HMPS Shared ServicesPerformance Balanced
Scorecard
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HMPS Shared ServicesPerformance - Benchmarking

• Benchmark transactional costs against best in
  class - blue line
• Innovate to deliver art of the possible - red
  line

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HMPS Shared ServicesDelivering the Benefits

• Rationalisation of Finance HR teams in each
  region
• Setting up of Centre of Excellence for
  Procurement
• Move to on-line on-demand self service

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HMPS Shared Services6 - People

• The focus is on
• Quality not Quantity
• Staff Managed around attendance, retention and
  skill rate
• Talent Management growing our own
• Flexibility in deployment

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HMPS Shared Services7 - Technology

• Technology Partner
• EDS solution support and technology development
• Underpinning Technology
• Oracle E-Business Suite Finance, HR
  Teleserve
• Triboni Oracle connectivity to Documentum
• Documentum data repository
• Brainware OCR solution
• Input excel scanning manager solution
• Avaya telephony data switch
• Common Technology Platform
• Move customers on to one common and scaleable
  platform

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HMPS Shared ServicesSome Final Thoughts

• People
• Processes
• Technology

Thank You