Identification of Shared Services

Identification of Shared Services

There have been various methodologies and techniques adopted from industry for use in identifying opportunities and priorities for Shared Services, with others based around quality and continuous improvement of business processes to support established Shared Services operations. These methodologies are used extensively for standardisation and optimisation of business processes whether or not they are in a Shared Services environment. Some of the more common are described below.

Lean principles stem from developments by the Japanese manufacturing industry, notably Toyota and seek continuous improvement in the name of efficiency. Lean theory places the customer at the centre of the process so that anything that does not create value for the customer is considered to be wasteful and should be eliminated. It requires a thorough understanding of an organisation and its processes or flow of production together with enduring commitment on the part of management and employees to the process of Lean improvement. See also http://en.wikipedia.org/wiki/Lean_manufacturing

Six Sigma: was originally developed by Motorola to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to its specifications. The core of the Six Sigma methodology is a data-driven, systematic approach to problem solving with a focus on customer impact. Six Sigma asserts the following principles: succeeding at achieving sustained quality improvement requires commitment from the entire organisation, particularly top-level management; continuous efforts to reduce variation in process outputs is key to business success; business processes can be measured, analysed, improved and controlled. See also http://en.wikipedia.org/wiki/Six_Sigma

Systems thinking: used widely in the scientific community, it sets out the inter-related nature and complexity of organisations, encouraging a holistic approach to problem solving. It starts from the principle that issues do not exist in isolation and that any organisation can only be understood in relation to its processes and the way in which they operate together. See also http://en.wikipedia.org/wiki/Systems_thinking

Value Chain Analysis: the value chain categorises the generic value-adding activities of an organisation by identifying primary activities and support activities. Costs and value drivers are identified for each value activity - the aim being to maximise value creation while minimising costs, i.e. to increase the efficiency and effectiveness of an organisation. This approach allows an organisation to gain a better understanding of how its resources are distributed across a range of activities, highlighting those that are of most value from the customer's perspective. When done across an organisation, or organisations, it helps to identify significant areas of duplication and overlap, which would lend themselves to simplification, standardisation and sharing. See also http://en.wikipedia.org/wiki/Value_chain

Value Stream Mapping: part of lean principles and complements six sigma methods borne out of manufacturing, which have since been adopted and used in logistics, supply chain, and service related industries including Shared Services. Many of the leading Shared Services organisations have adopted these methods and principles. The aim is to improve processes and eliminate waste. Value stream mapping captures the whole process from end to end and uses a team approach and performance measures to critique activity. See also http://en.wikipedia.org/wiki/Value_stream_mapping

Lean principles stem from developments by the Japanese manufacturing industry, notably Toyota and seek continuous improvement in the name of efficiency. Lean theory places the customer at the centre of the process so that anything that does not create value for the customer is considered to be wasteful and should be eliminated. It requires a thorough understanding of an organisation and its processes or flow of production together with enduring commitment on the part of management and employees to the process of Lean improvement.
See also http://en.wikipedia.org/wiki/Lean_manufacturing

Six Sigma: was originally developed by Motorola to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to its specifications. The core of the Six Sigma methodology is a data-driven, systematic approach to problem solving with a focus on customer impact. Six Sigma asserts the following principles:

• succeeding at achieving sustained quality improvement requires commitment from the entire organisation, particularly top-level management;

• continuous efforts to reduce variation in process outputs is key to business success;

• business processes can be measured, analysed, improved and controlled.

See also http://en.wikipedia.org/wiki/Six_Sigma

Systems thinking: used widely in the scientific community, it sets out the inter-related nature and complexity of organisations, encouraging a holistic approach to problem solving. It starts from the principle that issues do not exist in isolation and that any organisation can only be understood in relation to its processes and the way in which they operate together.
See also http://en.wikipedia.org/wiki/Systems_thinking

Value Chain Analysis: the value chain categorises the generic value-adding activities of an organisation by identifying primary activities and support activities. Costs and value drivers are identified for each value activity - the aim being to maximise value creation while minimising costs, i.e. to increase the efficiency and effectiveness of an organisation.
This approach allows an organisation to gain a better understanding of how its resources are distributed across a range of activities, highlighting those that are of most value from the customer's perspective. When done across an organisation, or organisations, it helps to identify significant areas of duplication and overlap, which would lend themselves to simplification, standardisation and sharing.
See also http://en.wikipedia.org/wiki/Value_chain

Value Stream Mapping: part of lean principles and complements six sigma methods borne out of manufacturing, which have since been adopted and used in logistics, supply chain, and service related industries including Shared Services. Many of the leading Shared Services organisations have adopted these methods and principles. The aim is to improve processes and eliminate waste. Value stream mapping captures the whole process from end to end and uses a team approach and performance measures to critique activity.
See also http://en.wikipedia.org/wiki/Value_stream_mapping

Scotland's Shared Services Guidance 2011

Shared Services Guidance 2011

from http://www.scotland.gov.uk/
This is an update of the Shared Services Guidance Framework issued in December 2007.
The concept of Shared Services is not new and there are now many excellent examples of sharing across the public sector. Shared Services implemented effectively, can enable an organisation and its partners (whether in the public sector or not) to sustain its services and embed continuous improvement which in the medium to long term can ensure real benefits are delivered both in terms of efficiency and effectiveness. It is important to state from the outset that it is not a quick fix or a magic bullet and it has to be considered alongside a range of efficiency options available to the public sector.
Any transition to Shared Services is an undertaking that needs careful planning and execution. It requires from the outset a clear business reason and Change Management Strategy as difficult decisions will need to be taken and clear leadership and buy in at all levels will be crucial to success. It also requires a comprehensive understanding of the delivery process including customer requirements and the delivery objective(s). The real challenge is in developing a strategy and vision, identifying the most effective business models and selecting the right people and partners, whilst securing political and organisational agreement to be able to turn the strategy into reality and make the transition as planned.
It is important to breakdown the barriers which challenge traditional ways of working. The best way to make any meaningful change is to take the workforce with you; if they realise that improvements are for the benefit of all - customers and staff - then it is much more likely that they will take ownership of the process. This in turn will allow greater opportunity to shape the transition, allowing continuous feedback from all levels on what works and what doesn't.
In the public sector, local democratic accountability and concerns about the possible impact on the workforce when taking decisions over location will be important factors to consider. However, it is equally valid to take account of the potential for Shared Services to support the positive movement of public sector employment between areas with differing prevailing economic conditions, for example from fast growing urban areas to rural locations, or (with recent advances in the ICT infrastructure) from a real to a virtual office with all the benefits - financial, social and environmental - that can be realised from investment in flexible patterns of working.
This Guidance for Shared Services seeks to provide information, guidance and case study examples: designed for those considering a move to Shared Services and those already making the transition. There are many public sector organisations in Scotland that are embarking on or already implementing Shared Services initiatives. It is intended that the examples of best practice contained in the following pages will aid those considering making the change.
The resources provided should not be seen as a single source of guidance as there are many other comprehensive research documents available; some of these are referred to herein and in the Further Information and Acknowledgements .

Before you start - key points to consider

Each section of the guidance will provide information on the key areas you need to consider from the outset. The following questions aim to summarise the must do's for any organisation embarking on a shared services journey.

Strategy
Is there a clearly articulated Business Strategy in place that has been approved and communicated to internal and external stakeholders? Do you have specialist advice on the legal and financial implications? Has the case for change been agreed and the business benefits and resources required been approved?
Change Management
Have you agreed a change management strategy and secured leadership and dedicated resources to deliver the change management requirements?
Business Process Review
Have you agreed the processes in scope and out of scope and then focused on mapping and redesigning to ensure they are fit for purpose?
People
Have you agreed the skill set to deliver the redesigned processes and engaged throughout the above 3 steps with the key personnel and representative bodies?
Technology
Do you have a clear ICT Strategy to support the Business Strategy that capitalises on the investment already made across the public sector?

Contents

The Guidance is designed to help you consider how to deliver on these key requirements and for ease of reference is set out as follows:-

SECTION 1: Shared Services Theory

What is Shared Services and how does it work?
What can be shared: discusses the work processes that can lend themselves to a shared services model.
Definition of Terms: provides an explanation of some of the more common technical terms used when discussing Shared Services.
Identification of Shared Services: sets out some of the more common methods and techniques used to identify processes which might benefit from a shared services model.
Collaborative Models: provides an overview of the different types of shared services model currently in use.
Diagnostics and Design: lays out the importance of a diagnostic approach.
Benchmarking: the importance of being able to measure progress against a clearly defined standard.

SECTION 2: How to put it into Practice

You have decided to move towards a Shared Services model for your organisation. How do you get started?
Checklist: points to consider when embarking on Shared Services.
Drivers: why would you want to share services.
Strategy: decide on what you want to share, who with and in what type of structure.
Process: work out in detail what you already do and what needs to change.
People: the importance of strong leadership and buy-in from staff and customers.
Technology: an enabler and facilitator in the transition to a Shared Services model.
Governance: how the organisation will be led and monitored.
Sourcing and Location: the type of organisation you want to be and where it will be located.
Legal and Procurement Issues: sets out potential issues to be considered - in particular the extent of powers allocated to public sector organisations, legal constraints (including EU competition law, data protection/privacy issues and tax implications ), staffing and organisational issues.
Continuous Improvement: How to maintain progress once underway.

SECTION 3: Summary and Next Steps

A brief summary of points to consider and to avoid, together with information on how to keep this guidance current, and contact details for the Shared Services Team.

SECTION 4: Detailed Case Studies

Contains a number of Case Studies of Shared Services operations in Scotland.

Summary Case Studies

Offers a list of examples of good practice both in Shared Services and other forms of sharing in the public sector in Scotland.

Glossary

Further information and acknowledgements

Additional references for further reading with acknowledgements of source material used in the preparation of this guidance.

Negotiating Effective Service Level Agreements (SLAs) | Article

Bill Deckelman from The Outsourcing Centre http://www.outsourcing-center.com/1997-11-negotiating-effective-service-level-agreements-slas-article-38377.html 

     

SLAs are now part of outsourcing’s alphabet soup. In recent years, outsourcing consultants and lawyers have heavily emphasized the importance of including SLAs in contracts. That trend comes from experience gained when many customers learned that they had little ability to influence the outsourcer’s performance without an SLA.
Although SLAs are included in rudimentary “best practices,” many customers still fail to negotiate an effective SLA that will provide value in the outsourcing relationship. An overview of effective SLAs and some of the challenges in negotiating these agreements helps explain why.

What Are SLAs?

In the context of outsourcing, “SLAs” simply identify certain service levels or performance standards that the outsourcer must meet or exceed. The SLA also specifies the consequences for failure to achieve one or more service levels, such as credits granted to the customer on future invoices or rights of termination on behalf of the customer in certain instances. The SLA may also include credits or bonus incentives for performance that exceeds targets.
Although in industry practice the SLA is a separate addendum to the outsourcing contract, it is not legally a separate agreement, but another set of terms and conditions of the outsourcing contract itself.

Structure of SLAs: Good, Bad, and Ugly

A good SLA will usually include a section that provides precise definitions of key terms. Next, specific service levels will be described in perhaps more than a dozen categories. For example, if data center functions are outsourced, service levels could include host CPU availability, CPU response times, batch job completion, help desk responsiveness, security administration, problem management and change management service levels. If other functions are outsourced, such as desktop or network services, they must be defined also. In most cases, service level compliance is measured on a monthly basis.
From such service levels, the parties identify certain “key” service levels. It could be that the host CPU availability is a key service level in addition to certain response time and batch processing measures. Key service levels will be weighted by importance or severity so they total 100 percent. Then, if the outsourcer fails to achieve some of the key service levels, the percentage of key service levels missed for the month can be applied as a service level credit against a percentage of the invoice. If all the key service levels were missed in that month, then the full percentage service level credit could be given to the customer.
In some cases, the parties may choose to identify not only a threshold level of acceptable performance for each service level, but also a level of “increased impact” if the performance is at an agreed level below the threshold service level. If the outsourcer’s performance falls below the increased impact level, the percentage service credit may increase substantially.
Another factor that may be included in calculating service credits is a “frequency factor” that measures the number of times a particular service level is missed during an interval, such as a rolling 12-month period. If the frequency factor is triggered, the percentage to be applied against the total service credit is increased by some factor, for example, 1.5 or 2.0.
Just because certain service levels are not included in the “key service levels” does not mean they have no significance. First, they provide an objective measurement for tracking performance in areas that are important to the customer’s business and can spotlight the problem areas. Second, these non-key service levels are in fact contractual obligations which if not met, could form the basis of a claim of breach of contract by the customer.

Critical Conditions

Often the parties identify a subset of the key service levels as critical. For these critical service levels the parties will agree that the outsourcing contract may be terminated by the customer if the outsourcer fails to meet them at the frequency specified. Why is it important to include this type of provision? Contract law generally entitles one party to terminate a contract if the other party “materially breaches” the contract. A breach that isn’t “material” may entitle one party to claim damages, but it will not entitle that party to terminate the contract. Identifying the “critical” service levels and providing specific conditions for termination eliminates ambiguity in determining whether circumstances entitle the termination of a contract for cause as a material breach.
Prospective outsourcing customers often are curious about industry standards for the range of service credits in outsourcing SLAs. If there are such standards, they are difficult to identify, but it is not unusual to see potential service credits ranging from 5 to 10 percent of a monthly invoice for routine service level failures and up to 15 to 20 percent of a monthly invoice for more severe or frequent failures. A severe penalty for service level failure could actually worsen the service problem if it results in the outsourcer making no profit during a prolonged period.

Carrots and Sticks

Two special issues that deserve extra attention are the performance bonuses for the outsourcer and negotiation of the force majeure clause.
An issue that can have a significant impact on both parties is the inclusion of “performance bonuses” if the outsourcer exceeds the service levels specified in the SLA. While the customer is entitled to credits for unsatisfactory performance, the outsourcer may be entitled to bonuses for performance that exceeds the service levels. In typical IT outsourcing, customers expect the outsourcer to exceed the service levels without special compensation.
The view of service levels as minimum standards means they are not considered the target optimum performance standards. If the outsourcer can add real value to the customer’s business, customers should be willing to share the value gained as a result of superior performance. Some customers are willing to include performance bonuses in the SLA if structured to provide real incentives for outstanding performance by the outsourcer. For example, any bonuses that are earned by the outsourcer might be earmarked for a bonus pool for key team members.
Force majeure clauses excuse a party’s failure to perform if the failure resulted from an act of nature such as an earthquake or other natural disaster beyond the party’s control. In outsourcing contracts, negotiating the provisions of excused performance in the context of the outsourcer’s responsibilities and liabilities can be most challenging and time-consuming.
Examples include failures resulting from the customer’s non-performance, failures of third parties, and failures in hardware and software. Outsourcers seek a broad definition of force majeure and customers seek a narrow, tightly defined provision. Fair resolution lies somewhere in the middle. In any event, provisions should be included in the SLA addressing the outsourcer’s responsibility to correct and mitigate the effects of an excused performance failure. A force majeure event should not completely absolve the outsourcer from any responsibilities whatsoever.

Negotiation Challenges

Customers negotiating outsourcing contracts for the first time may be surprised to find that outsourcers are generally not proactive in proposing a fair and well designed SLA structure to the customer. Unfortunately, outsourcers may respond to a proposed SLA from the customer and negotiate in hopes that the customer will ultimately agree to an SLA that favors the outsourcer. There is clearly an opportunity for progressive outsourcers to distinguish their services by drawing on their experience in drafting and implementing an SLA structure that thoroughly addresses the customer’s needs in a fair manner.
Every customer must be prepared to know what they want and why they need theSLA, and be ready to convince the outsourcer. Reasonable customers will avoid over-measuring and including every imaginable service level. They should agree to fair credits for failures in meeting the service levels. Outsourcers should be willing to understand that the customer requires significant protection in the SLA, and acknowledge that there are certain levels of performance that would justify termination of the contract.
SLAs are not easy to design or negotiate. But a comprehensive, fair and effective SLA is critical for a successful outsourcing relationship. In the course of negotiating an SLA, customers and outsourcers have the opportunity to learn a lot about how their future partner will approach important issues in the outsourcing relationship.

Value & Impact - Leadership and Strategy

Wednesday 21 March 2012, 10.30am-4.30pm
Fourth Floor, 184-192 Drummond Street, London, NW1 3HP


Booking form

This one day practical workshop offers Student Services leaders time out to focus on using the Value & Impact approach to improve their managerial and departmental performance.

The day follows AMOSSHE's national Value & Impact project. It addresses some of the issues that need to be taken into consideration at the planning stage and the skills associated with successful implementation, structured around templates from the toolkit. It draws on both the public Value & Impact Toolkit and the members' only Management Support Pack.

Delegates who are prepared to participate in group work and have familiarised themselves with both these documents in advance of the workshop, and have a basic level of understanding of the objectives and philosophy of the Value & Impact approach will benefit most from the day.

Who should attend?
Directors and heads of Student Services
Student Services department heads looking to implement Value & Impact approaches
Value & Impact champions at institutions
Student Services professionals developing Value & Impact assessments
Student Services professionals looking to develop their management skills
HE professionals interested in holistic service evaluation

Outcomes
By the end of the day, participants will have:
Considered Value & Impact in the context of their own institutional setting
Identified key issues and potential challenges to be considered prior to implementing the approach
Practised some of the skills associated with effective implementation
Identified their first (or next) steps in implementing the Value & Impact approach in their institution

Course facilitators
All of the course facilitators have been engaged in the Value & Impact work undertaken by AMOSSHE. Nicole Redman will chair the day, Jan Shine of Paullus Consultancy will lead on the professional development and reflective sessions, and Nicole Redman and Raegan Hiles will facilitate the Value & Impact case study work.

Nicole is a member of the AMOSSHE Executive board and led the work of one the original Value & Impact Project pilots at University of East London. Jan Shine has delivered development materials supporting the Value & Impact approach, including the members’ only Management Support Pack. Raegan Hiles managed the national Value & Impact Project and delivered project management training at HEFCE.

Spaces are strictly limited to 30 for our practical working days. If you are interested in 'Value & Impact - Leadership and Strategy' book now to reserve your place.

To book
Complete the Booking Form and return it by e-mail to info@amosshe.org.uk. Alternatively fax it to 0207 383 0794 or post it to Tima Moledina, Administrative Officer, AMOSSHE, Fourth Floor, 184-192 Drummond Street, London, NW1 3HP.

Fees
Member - £100
Not named member/ AUA Members - £125
Non Member - £135

*This is the total fee for attendance. VAT is not applicable to these events as they are education.

AUA Members who are not affiliated with AMOSSHE may book for this event at the middle fee tier. To take advantage of this discount, select 'Special AUA rate' on the booking form and include your AUA membership number.

Terms and Conditions
Cancellations or substitutions may be subject to a fee, depending on when they are received. Full details of our operating policies including events administration and our cancellation policy are at www.amosshe.org.uk/about/governance/docs

Willetts: less red tape + fewer tax burdens = more autonomy

 

By Jack Grove, THES

Measures to cut red tape and reduce tax burdens on universities will strengthen their autonomy, David Willetts has said.

Speaking at a meeting organized by the thinktank Politeia in central London yesterday, the universities and science minister said he was keen to maintain the independence of universities, citing research which indicated a strong link between autonomy and quality.
To this effect, he announced a string of initiatives which he believed would further institutional independence.
He confirmed that new rules scrapping VAT on shared services for universities would come into immediate effect.
The move, which was made to comply with European Union legislation, will open the door for greater collaboration between universities, which currently have to pay the 20 per cent tax if they outsource in-house administration services.
Announced by Chancellor George Osborne, Mr Willetts said the new rules would start immediately and that a new finance law was not needed.
A letter had been sent to Universities UK to confirm the decision.
The universities minister also announced an initiative to help cut unnecessary data collection by higher education institutions.
“I have discussed the issue of data collection with people from across the sector, and there is a widespread desire to go back to first principles,” he said.

“We need to establish precisely what information we already collect, what we actually need and why – and to reconcile the two, so that collection is useful and proportionate for all institutions concerned.”
He said that the Information Landscape project launched just last month was “seeking answers to these essential questions”.
“Participants will be identifying any 'quick wins' for easing the burden on universities, as well as publishing a road map for implementing a simpler model overall,” he said.
He added moves to lower the amount of state funding for universities would allow them to escape certain EU dictates.
With the state contributing only 40 per cent of the sector’s costs from this autumn, as opposed to the current 60 per cent, institutions would escape EU rules governing public bodies, which were defined as those funded by at least 50 per cent of public money.
“We are in a government that understands the value of autonomy,” Mr Willetts said.
He also announced a review of philanthropy in the higher education sector following the end of the government’s match funding scheme.
In the talk titled The Idea of a University, Mr Willetts said the university was “one of the most precious institutions that modern societies possess” and vital for “transmitting a body of knowledge, culture and skeptical understanding from one generation to another”.
jack.grove@tsleducation.com

University of East London - Placements shared service

Background

Tribal has been appointed by the University of East London (UEL) to develop and oversee a flagship project to manage a placements shared service for Allied Health Profession (AHP) students from ten universities (HEIs) across London and the South-East. The project was commissioned by NHS London.
Existing approaches to managing placements across the different AHPs within the HEI's were ad-hoc and adapted over many years and required considerable administrative input from academic staff.  Furthermore, placement providers were required to respond repeatedly to requests from multiple universities in varying formats.  A new solution was needed to address inefficiencies and promote a networked system between the different AHPs and HEI's.
The solution 
The project will see the development of a database to maintain details of placement providers and students seeking placements. The database will include placement options for students across seven Allied Health disciplines, including physiotherapy, occupational therapy and podiatry. A corresponding software application will be developed to enable intelligent matching suggestions of students to placements across hospitals, GP practices and community practices. Tribal will work with representatives from each discipline to ensure that all discipline-specific requirements, as well as the generic system capabilities, are captured.
Following the system's go live in early 2011, Tribal will provide an administration service to support practice placement organisation for students, working in partnership with the placement providers and the university co-ordinators.
 
The solution is designed to be completely extensible so that additional courses can or HEIs can be added to the consortium.

“We have chosen Tribal to oversee this project because they have the in-depth expertise to tackle what is a very complex brief. The database will make the organisation of students’ placements much more efficient for the academics within the universities, the placement providers, and the students themselves. By centralising details of students at all these universities and contacts at placement providers, the system will allow universities and students greater choice and flexibility in their choice of placement, and will take an administrative burden off the shoulders of academics.”

Jacqui Potter, Principal Lecturer in Professional Health Sciences at the University of East London and project champion.

Cloud and Shared Service Solutions

An event for IT and strategic decision-makers in HE to discuss how to create a level playing field for business and environmental optimisation. This workshop was held at the Institute of Chartered Accountants in England and Wales, London, on Monday 12th December 2011.

Overview

This workshop aimed to give IT and strategic decision-makers in HE a chance to find out more about the potential advantages and disadvantages of cloud and shared services, and the opportunity to reflect on the key factors that are likely to influence decisions in this area
The workshop was been jointly organised by two JISC-funded projects: Responsible Energy Costs led by the Forum for the Future, and Green IT for Science led by the University of Bradford.

Full details: http://storify.com/eventamplifier/cloud-and-shared-service-solutions

Have shared services reached the tipping point?

Three significant factors may have pushed public sector shared services into real viability?

Over the next 12 months we will be able to judge whether 2011 was the 'tipping point' year for public sector shared services. If it is, then three significant factors will have contributed to it.

First, the publication of the shared services map by the Local Government Association. It shows that 219 councils areengaged in 143 partnerships and evidenced that more than 80 of them are up and running, and have made cashable savings of over £80m to date.

This case study of public sector success was added to by the Universities UK report, Efficiency and effectiveness in higher education, which gives examples of over £100m cashable savings in shared service projects over the past five years. For many this evidence of success and 'banked savings' has been the missing element which has heldsome bodies back from exploring partnership working as an option.

The second event was that shared service project management became a profession. During the year more than 400 leaders and senior managers in local government, fire, police, higher education and further education stepped onto the shared service architect's programme, the first module in the postgraduate certificate in shared services at Canterbury Christ Church University. Those who complete the programme can request to be recognised as shared service practitioners. A number of those have gone on to undertake the full, six-month, postgraduate certificate and will become recognised as shared service architects.

Sir Merrick Cockell, LGA chair and leader of Kensington and Chelsea council, presented the first postgraduate cohort with their graduation certificates in July. Talking to the group, Cockell stressed the importance of training and developing the shared service skills and knowledge of both members and senior managers so that they can deliver the benefits of shared service activity effectively and rapidly. In December, the second cohort received their certificates from Baroness Hanham, Parliamentary Under Secretary of State at the Department for Communities and Local Government. Baroness Hanham echoedCockell, emphasising that shared services can be complex to develop and deliver, and that building public sector shared service skills and knowledge is very important to the success, and rapid delivery, of partnership projects.

The third change has been the announcement by the chancellor in his autumn statement that the government will introduce a VAT exemption for shared services, between organisations in further and higher Education and charities. The inability of these sectors to reclaim VAT on partnership activity has been perceived as a major stumbling block. The chancellor's statement came on the back of more than £16m in partnership seed-corn grants being released into partnership projects during the year by the Higher Education Funding Council for England, the Association of Colleges, the 157 Group and the Learning and Skills Improvement Service. Full story see http://www.guardian.co.uk/public-leaders-network/blog/2012/jan/06/public-sector-shared-services-tipping-point?newsfeed=true 

National map of shared services

The  Local Government Association (LGA)  has launched the updated national shared services compendium and map showing that 219 councils across the country are engaged in 143 shared service arrangements resulting in £156.5 million of efficiency savings. http://www.local.gov.uk/better-for-less-po-map 

Shared savings plan to halve admin costs

By Jack Grove of THES

London Metropolitan University is set to cut its administration costs by up to 50 per cent by sharing services with other institutions, bringing "some staff losses and some staff gains".

The university announced the transformation after governors agreed on 21 December to redesign support services.
It has identified more than 70 different areas, such as payroll, procurement and careers, that could be made more efficient over the next five years by collaborating with other London-based institutions.
The proposed changes follow chancellor George Osborne's Autumn Statement on 29 November, which announced the removal of the 20 per cent VAT surcharge on shared services between VAT-exempt bodies.
This tax made it prohibitive for universities to share back-office functions, vice-chancellors had argued.
Malcolm Gillies, vice-chancellor of London Met, said that the university "aims to reduce its support-service costs over the coming five years by up to 40 to 50 per cent".
Professor Gillies, who is chairman of London Higher, which represents more than 40 London-based higher education institutions, added: "If every university tendered together for insurance, payroll or careers, you can see that would drive lower unit costs."

He said that "a lot of universities" are asking how they can do the same.
"There may be some staff losses and some staff gains, but if you run it into shared services, you grow a business."
Administrative support services cost the UK higher education sector £10 billion a year, Professor Gillies said, and the bill for London institutions is close to £2 billion.
The administrative shake-up follows radical action by London Met in response to the government's changes to undergraduate tuition fees and funding.
It reduced its course offering by 70 per cent to focus on high-demand areas such as business, while setting some undergraduate tuition fees for 2012 as low as £4,500.
jack.grove@tsleducation.com.

VAT shift could open back door to mergers

By Simon Baker, THES 

But as tax rules ease, institutional unions still face cultural hurdles, say experts. Simon Baker writes

Credit: Kobal

Want to do business? A VAT reprieve for institutions and their shared-service providers will encourage joint ventures

Mergers between universities may become more likely once they see the benefits of sharing services under new rules that remove a crucial tax barrier, it has been suggested.
It follows the announcement by chancellor George Osborne in his Autumn Statement that institutions will be able to work together to provide services without incurring a VAT cost.
University leaders have long argued that current rules deter them from sharing "back office" provision because they must save at least 20 per cent to make the project worthwhile.
But under the new proposals, which could come into effect next year, higher education institutions can provide a service together without imposing a tax burden.
Under the detailed plans set out in draft legislation by the Treasury last week, universities would run services via separate "entities" that are wholly owned by the institutions involved.
Although there had been some concern that this in itself could create a large administrative burden, the British Universities Finance Directors Group (BUFDG) has said that the proposed rules appear to be a user-friendly solution that would keep such costs down.
Andrew McConnell, finance director at the University of Huddersfield and chair of the BUFDG, said that even before the announcement had been made, there had been "active" discussions between institutions about potential sharing of services, particularly in the area of ICT.

But he added that it remains to be seen whether the Treasury's announcement would finally lead to an explosion in shared services or "whether it's just that people have been using the VAT obstacle as an excuse".
Jon Wakeford, director of strategy and communications at University Partnerships Programme, a firm that has long argued that the sector could save billions through sharing services even with the VAT barrier, said long-standing cultural barriers had always been a "key hurdle".
"The stumbling block tends to be the notion that somehow institutions will lose what is essential about them, that they will lose part of their character," he said.
He added that he did not see the sense of this argument with respect to sharing purely non-core services such as day-to-day procurement, accommodation and facilities management.
Meanwhile, Damian Shirley, partner and head of indirect tax at legal firm Eversheds, said that once institutions went down the road of clubbing together in certain areas, it could open the door to more full mergers as leaders came to realise the potential to make savings by working together.
"If universities begin to find efficiencies in sharing some of their back-office services, it could raise the question, 'Why aren't we going further and merging our core operations?'" he said. "One can already see those kinds of conclusions starting to emerge."
Mr Shirley also suggested that other factors, such as the threat to jobs among middle management, could come to the fore.
"It will be an interesting time to see if what were seen as incidental issues in the background are now thrown into the foreground and become the reasons why universities are not sharing services," he said.
simon.baker@tsleducation.com.

Removal of VAT barrier to encourage shared services

29 November 2011

By Simon Baker

A major barrier to universities saving money by sharing services is set to be removed by the government.

In his autumn statement today, the chancellor George Osborne said that the government would introduce a VAT exemption for services shared between organisations that are already exempt from the tax, such as universities.
In the past, universities have been deterred from saving money by sharing services such as payroll and procurement because any new operation would have to charge VAT back to the partner institutions.
This would mean that a shared operation would need to save at least the cost of VAT – currently 20 per cent – to be worthwhile.
However, the new arrangements – which had already been consulted on following the 2011 Budget – suggest universities could set up a new joint organisation to run services without facing an extra tax bill.
Nicola Dandridge, chief executive of Universities UK, said the move was “good news” for the sector and met a key recommendation from the recent Diamond Review of efficiency in higher education.

“Universities have wanted to develop more cost-effective operating models, and more creative collaborations with external partners.
“But to date, the VAT rules have acted to block this. We hope today's announcement will address this issue,” she said.
Meanwhile, the chancellor announced the launch of an online portal called HE Global to provide information and advice to universities on expanding overseas and also a vehicle to help the sector, government and business work together in selling “education offers” abroad.
Paul Marshall, executive director of the 1994 Group of smaller research-intensive universities, said: “Having ready access to insight and advice through a resource like HE Global will help institutions implement their own international strategies.
“We’ve also called for a collaborative approach to promoting cross-sector opportunities overseas. The new vehicle proposed in today’s statement will no doubt play a big part in making this a reality. We look forward to helping to take this forward.”
simon.baker@tsleducation.com

A programme shared is a problem halved

Universities could increasingly use the same degree programmes as they share services to save money, the vice-chancellor of London Metropolitan University has suggested. Malcolm Gillies questioned whether the University of London model, under which several separate institutions offer the same courses devised collectively, could be adopted more widely.
He asked delegates at the Shared Services for HE: Strategies for Results conference on 21 November whether universities could "go even further" than pooling functions such as IT and human resources.
"Could there be selective breaches of academic autonomy, and still have a fully coherent academic institution?" he asked, adding that institutions did not yet "quite have the answer" to this question. "The very qualification I have ... from the University of London, is a classic (example), in that now, if you did the same thing it would probably be awarded by four or five different bodies. In many cases that's very healthy," Professor Gillies said.
He also argued that whereas a year ago universities were looking to improve the quality of their services by sharing them, they now wanted to do so to save money.
"This year there are new cost-saving imperatives," he said. "There's a likely reduced number of higher education students next year, it could be as high as 10 or 12 per cent."

Professor Gillies is also chair of the board of London Higher, the body for higher education institutions in the capital.
He said that within the group there was a "good willingness to talk and some interesting shared approaches emerging" over pooling insurance, treasury management, and recruitment functions.
But he added that there was still a "lack of leadership" and that some institutions remained "wary" of sharing services.
In May it was revealed that the University of Warwick was in talks with the outsourcing company Tribal and five other unnamed universities about sharing "administrative services and IT infrastructures".
Tribal said that the discussions are still continuing and the other institutions remain anonymous.
david.matthews@tsleducation.com

For-profit? Charity? In the market, they'll act the same

24 November 2011

By David Matthews

Competition for 'share' will dissolve institutional difference, Deloitte claims. David Matthews writes

Distinctions between charitable and for-profit universities will disappear as all converge in the pursuit of "gaining or retaining market share", the head of education at consultancy firm Deloitte has claimed.
Julie Mercer said that private investment in universities and for-profit entrants to the sector were not a threat to the academy's mission because institutions would see a "convergence of behaviour, whether they are charitable or for-profit".
"I don't think it matters what kind of institution you are: you need to know your market and...target your marketing and your offer appropriately," she said. "What drives all of them is gaining or retaining market share."
She added: "The reality is that every single one of these institutions will be competing for students...so I think you will start to see some different behaviour from universities.
"Let's not kid ourselves that universities don't see themselves as commercial organisations: they do."
Sally Hunt, general secretary of the University and College Union, said that Deloitte should know that there was "a fundamental difference between a higher education institution whose primary goal is to provide education and a company whose first allegiance is to its shareholders".
"The only colleges being sued for fraud by students and the government in the US are those run for a profit because education can't safely be run to make a fast buck without degrading the product," she added.
Universities UK said in a 2010 report, The Growth of Private and For-Profit Higher Education Providers in the UK, that public institutions "have to operate in a businesslike manner and make 'profits', but their key motive is to promote the public good".

The "key distinction" was that while both types of institution make surpluses, those of the for-profits "flow into the private hands of shareholders" rather than being invested in capital funding and expansion.
Ms Mercer said that private equity companies saw UK higher education as a "beautiful swimming pool that everyone wants to jump into", but no one wants to go first.
She said that investors were looking to fund the expansion of postgraduate and international student numbers because they were not limited by number controls.
This might occur "if, for example, a university had a great brand around postgraduate qualifications, and an investment enabled [it] to grow and attract more students".
Ms Mercer argued that investment had to go to areas "that are not in the regulated system", which could also include areas such as innovation and intellectual property.
With private equity, "what you're starting to see is not [investment] in whole institutions but an aspect of that institution", she said.
Investors were keen to put money into the sector because "the political door is open; the ambition is clearly there".
david.matthews@tsleducation.com.

Finance shared services

Finance shared services | sharedserviceslink.com

http://www.sharedserviceslink.com/file/92757/finance-shared-services-sharedserviceslinkcom.html?gclid=CKuv8tzI2awCFQINfAodSjP1qw

Finance shared services can have many benefits for businesses, particularly in times of economic uncertainty when administrative costs seem to rise and the burden of legislation appears to grow heavier.
Shared services is essentially the better-performing sibling of centralisation, involving full collaboration between different parts of a wider organisation or group of companies.
It differs from outsourcing, whereby processes that were previously carried out internally are handed over to an external third party. With shared services, a separate body within an organisation is established to do the work.
Within this shared services centre, processes are centralised, standardised, consolidated and automated so that they become streamlined, more efficient and less expensive, which is a win-win situation for all involved.
At sharedserviceslink.com we can help you understand the finance shared services options available to you and formulate an approach that works for your business.
We provide monthly webinars on shared services, as well as white papers and reports, video interviews, newsletters and interactive conferences, all designed to help you improve the performance of your finance shared services ventures and your business.

Benefits of shared services

Efficiency is the core benefit of finance shared services, which in turn can result in large cost savings. Business typically report cost reductions of around 50 per cent, although they can be as high as 70 per cent.
But adopting a shared services business model is about more than just cost cutting. Another big advantage is higher and consistent standards based on best practice norms, which can lead to more responsive dealings with customers.
Shared services can also free up time from routine processes that can be spent on value-added or customer-facing tasks, and it can help to ensure continuity and resilience of service as well as improved visibility.
Economies of scale can be created through shared services too, giving businesses greater influence with suppliers and helping them gain a competitive advantage over their rivals.
Of course shared services benefits will differ from organisation to organisation, and while cost reduction may be a major motivator for some, others may be more interested in improving service delivery for the benefit of customers.

Shared services obstacles

Adopting a successful shared services business model can be complex and there are several obstacles that could prevent your organisation from making the most of collaboration and consolidation.
For example, disputes may arise regarding ownership of certain processes and activities, so communication is key to make sure that all parties are on board and that transitions are made as smoothly as possible.
Not only is this important from a human resources standpoint, it is also essential to good customer service and can help to ensure that there are no gaps in service provision.
Other potential barriers may include a lack of trust, cultural and policy differences, perceived risks to competitive advantage, problems with the technical infrastructure and VAT liability.
You'll need to think about how a shared services centre will operate alongside other elements of your business model and how roles will be defined so that important processes are not overlooked.

Make the most of shared services with sharedserviceslink.com

Companies recognise that, when properly optimised, finance shared services can be a highly effective tool. However, it's important to get it right, as a poorly structured model will not bring the benefits you desire.
At sharedserviceslink.com we can educate your teams and help you with the process of sharing services, so that you can overcome any obstacles in your way and start to see the advantages.
We provide members with informative resources such as white papers, reports, video interviews and newsletters, and we hold regular events such as conferences, master classes and webinars with key industry speakers.
Joining sharedserviceslink.com is free. All you need to do is complete our online member registration form and you'll receive ten issues of our newsletter and free access to our downloadable content and presentations archive.
To find out more about finance shared services and how it can help your organisation, or to ask about our conferences, webinars and online resources, simply get in touch

Creating Value conference: Who should attend and cost

A keynote address will be delivered by Zoe Radnor (Professor of Operations Management, Cardiff University), and there will be a number of workshops run by colleagues who have delivered efficiencies successfully, both from HE and organisations in the private sector (e.g. on shared services, lean, idea capture schemes etc.).

All are welcome, and the conference is specifically aimed at managers in university professional services, who want to find out more about how their department or unit could work more efficiently and effectively.

Online booking will open in mid-October. To find out more about the conference, visit the website at: http://www.exeter.ac.uk/spc/stratplan/hefcecreatingvalue/conference or contact the conference organisers Steph Sanders (s.a.sanders@exeter.ac.uk) and Iain Springate (i.e.springate@exeter.ac.uk).

Researcher and Project Manager- 'Creating Value'

Strategic Planning and Change

University of Exeter

http://www.exeter.ac.uk/spc/stratplan/hefcecreatingvalue/

www.twitter.com/morewithlessHE

I.E.Springate@exeter.ac.uk

01392 726195

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Creating Value conference: Provisional programme

The provisional programme is subject to change, and will be updated as speakers and their precise topics are confirmed. 
9.00-9.45: Registration and refreshments
9.45-10.00: WelcomePatrick Kennedy, Director of Strategic Planning and Change, University of Exeter.
10.00-11.00: Keynote address, followed by questionsProfessor Zoe Radnor, University of Cardiff
11.00-11.20 Break and refreshments
11.20-12.10: Workshops 

• Implementing Lean thinking- Capgemini. Lean is a generic process management philosophy, looking to make processes as efficient as possible, whilst delivering maximum value for the customer. The aim of the workshop is to introduce the concept of Lean, and consider what the benefits of implementing it might be for universities, based on the example of a large institution that is currently implementing Lean.
• Data mining to identify potential efficiencies. This workshop will discuss how large datasets relating to core university processes can be interrogated to look at how efficient processes are, where savings and improvements could be made, and to provide an ongoing measure of efficiency of processes. The workshop will use as a case study work being done at the University of Exeter to identify gaps in data being collected and to fill them, as well as to interrogate existing datasets in order to identify and deliver savings.
• Using idea capture schemes to gather intelligence from staff on working more efficiently and effectively- Anthony Denatale, Ideas UK. Staff often have great ideas about how their organisations could work more efficiently and effectively. This workshop will look at the benefits of staff suggestion schemes, and how to plan and run one successfully in a university.
• Making shared services successful- Carol Mills, Director of HR, University of Liverpool. Shared services has been identified by Universities UK, among others, as a potential way for universities to make savings. This workshop will look at how universities can make shared services a success, particularly drawing on experience from Liverpool.

12.15-1pm Speed updatingThis session will include several brief updates on how universities are delivering efficiencies and improving effectiveness successfully, and the launch of an online learning resource to help managers deliver savings.
1-1.45pm Lunch
1.45-2.30pm Workshops (repeated)
2.35-3.30pm Making it happen: Increasing efficiency and effectivenessThis session will involve a panel discussion and question and answer session, focusing on ways delegates can take forward some of the ideas presented at the conference, including key challenges and change enablers.
3.30pm Conference close

Creating Value conference: Who should attend and cost 

The conference is open to all, and is specifically aimed at managers in HE working within professional services, who want to find out more about how their department or unit could work more efficiently, and save time and/or money.

Examples of staff that might like to attend are:

• Faculty/School managers
• Assistant Faculty/School managers
• Directors/Assistant of Planning/Projects
• Directors/Assistant Directors of finance
• Project Managers
• Team leaders.

The cost is £145.

Creating Value: Delivering more with less in Higher Education

The University of Exeter is organising a conference entitled ‘Creating Value: Delivering more with less in Higher Education’ on the 5th January 2012. Delegates will hear about practical approaches that universities and those from other sectors have used to successfully deliver more with less, and increase efficiency and effectiveness.
This is important given the difficult economic climate, which, allied with the new funding regime, increasing expectations of students, and increasing global competition, means that to succeed, universities need to become more efficient, agile, and skilled at delivering more with less.  
The conference will focus on different ways that universities have successfully delivered efficiencies, as well as examples of what those in other sectors have done that are applicable to HE, and will aim to provide information and ideas for HE staff to take away and apply in their institutions. The conference will draw on good practice from within and beyond HE, including the work of the HEFCE-funded ‘Creating Value’ project, which has developed an evidence-based set of resources to aid managers in HE to deliver more with less.
The conference will include:

• Keynote presentation from Zoe Radnor (Professor of Operations Management at Cardiff University Business School), who has conducted important research into how institutions, including universities, are improving efficiency/effectiveness
• Practical workshops on delivering efficiencies (e.g.  implementing Lean, data mining to deliver efficiencies, idea capture schemes focused on making savings, and sharing services effectively)
• Speed Updates from several universities about how they are delivering efficiencies
• Launch of a set of online resources to help managers in universities deliver efficiencies
• Panel discussion focused on how to take the ideas from the conference and put them into practice.

How can you become a more intelligent outsourcing customer?

Freedom of choice outlined in the Open Services white paper, along with the rising trend for shared services, means spreading best practice in outsourcing has never been more important.
Government departments need to become more savvy consumers of services. It's the only way to cut costs whilst keeping service quality up-to-scratch.
The National Outsourcing Association Summit takes place on 9th & 10th November in Central London.
We have a released an extra 30 FREE places for public sector delegates (after they are taken, prices start at £640 + VAT)


Attending the summit will help you:

• Find out how collaborative relationship management will save you money
• Study innovative projects that have delivered big savings
• Speak openly with outsourcing users across all sectors
• Get advice from suppliers in a non buyer / seller situation
• Compare your department with a variety of best practice examples
• Make best use of the electorate's hard earned cash

Top level speakers from:

News International, Marks and Spencer, Essex County Council, Thames Water, Nottingham University, Land Registry, Deutsche Bank, BBC and Carphone Warehouse.

What you will learn at this conference will enhance your outsourcing acumen, helping you get better value with the voting public's money.


How to book:
To see the full programme and to download the booking form please click here
To find out more, contact Natalie Milsom on 0207 292 8689 or nataliem@noa.co.uk

Optimized Print Services - Introduction and Concept

Introduction and Concept

Flash Animation


Consult


Implement


Manage


Brochure

Making printing infrastructure work efficiently

Office technologies have advanced, users’ needs have changed. A lot of current printing environments are patchworks of printing, imaging and fax devices that aren’t managed or serviced to keep up with today’s business world. Konica Minolta’s Optimised Print Services (OPS) combine consulting, hardware, software implementation and workflow management in order to lower document spend. The OPS concept focuses on four essential areas:

• Fleet: Right-sizing the document output fleet to actual business needs, providing optimal business process and fleet support, and establishing continuous optimisation ? balanced with minimal cost of ownership and environmental impact.
• Process: Analysing all business-relevant document flows in order to increase productivity, to benefit from saving potentials and design, to implement and operate a solution tailormade to meet your precise daily needs.
• Finance: Offering different purchasing and leasing options as well as various contract models, and integrating existing contracts into a single transparent financial plan.
• Security: Designing and implementing IT and information security solutions, from user authentication and data-safe hard disk handling of disposed devices to complex network security requirements.

The OPS concept is based on a three-pillared approach: Consult, Implement and Manage.

Konica Minolta Optimized Print Services:

See http://www.konicaminolta.co.uk/business-solutions/products/consulting-and-services/optimized-print-services-old/introduction-and-concept.html 

http://www.konicaminolta-ops.eu/

LUPC Spend Analysis Shared Service

The London Universites Purchasing Consortium (LUPC) is a not-for-profit professional buying organisation owned by its Members, for its Members

LUPC has teamed up with BravoSolution to launch a brand new Spend Analysis Shared Service exclusively for LUPC Members. 

The central aims of the service are to ensure that LUPC frameworks continue to provide value for money and that new spend areas are identified and investigated where we can fully leverage our Members’ collective buying power.
Under the deal with BravoSolution, LUPC can analyse summary spend data at Consortium level, enabling us to monitor the use of LUPC frameworks and spot new value opportunities to generate further savings for our Members.
We have also detailed, high performance spend analysis within affordability for a great many of our Members.

LUPC Members, have you sent us your data?  Act today!
You can ensure that your Institution is included in this important shared services project by sending us your 2009-10 summary spend data (AP data) on a Microsoft Excel spreadsheet to l.administrator@lupc.lon.ac.uk.  Call us on 020 7863 1691 if you have any questions.

Huge discounts exclusively for LUPC Members
As an LUPC Member, you now have the opportunity to benefit directly from the new Spend Analysis Shared Service at a vastly reduced special Member’s rate, by providing your own detailed data extract direct to BravoSolution.  You can access a whole series of reports using a web-based system rich in functionality, allowing you to carry out your own detailed analysis to help identify trends and procurement buying or process savings for your Institution.  Full training is available.
Key features of the LUPC Spend Analysis Shared Service tool are:
Collaborative benefits

• Compliance analysis with existing LUPC framework contracts
• Identification of new contract opportunities
• Identification of supplier consolidation opportunities across Members and categories
• Increased negotiation leverage in existing relationships through demand aggregation

Direct Member benefits

• Online analysis and increased visibility into spend
• Accurate classification using line item details
• Category benchmarking across LUPC
• Contract compliance with Member’s own contracts

Specially-negotiated rates for joining the scheme for each Member are available

If you are interested in joining the scheme or would just like to hear more details, please contact Charlotte Reichard of LUPC on 020 7863 1692 or mailto:mail%20to:%20charlotte@lupc.lon.ac.uk, or Mike Roberts of BravoSolution on 07795 431102 or m.roberts@bravosolution.com.