Common Services Project Update February 27, 2015 Agenda for Todays - - PowerPoint PPT Presentation
Common Services Project Update February 27, 2015 Agenda for Todays Meeting Common Services Project Agenda Item Time Welcome and Introductions Overview of Upcoming Communication and 10:30 11:00 Engagement Activities Organizational
Agenda for Today’s Meeting
Common Services Project
Agenda Item Time
Welcome and Introductions
10:30 – 11:00
Overview of Upcoming Communication and Engagement Activities Organizational Readiness Team Common Services Presentation
11:00 – 12:00
Questions/Comments
Common Services Review – Background
A rapid assessment of the current state will be completed during the month of February; more detailed analysis will follow into Spring 2015
January 13, 2015
NBISA, Facilicorp and/or government departments:
– Information Technology – Finance – Human Resources – Supply Chain
savings and service improvements could be derived from such an endeavor
Brunswick (i.e. previous shared services analysis, lessons learned from NBISA / Facilicorp, any other pertinent studies or reports)
with business case development, benchmarking and detailed future state design.
Sub-Streams Project Management Office QA / Subject Matter Expertise Claude Francoeur Barbara Kieley Venkat Chandra Colleen Benson, PM Colin Bradley, PM Legend GNB EY Change Management/Engagement Carla Geldart Juliet Nicol Executive Steering Committee Gordon Gilman – Project Lead Kelly Cain – Human Resources Jean-Marc Dupuis – Finance Derrick Jardine - FacilicorpNB Christian Couturier - OCIO Andrea Seymour - Horizon Alain Bechard - Vitalité Strategic Program Review Committee Len Hoyt – Chair
DM / CEO Committee Gordon Gilman Executive Project Lead Steve Maynard E & Y Lead Finance Leads Dave Nowlan – Part I Venkat Chandra, EY HR Leads Lee Burry – Part I Juliet Nicol, EY Supply Chain Leads Jeff Trail – NBISA David Dumont – FacilicorpNB Peter Tonev, EY IT Leads Jill Ritchie - FacilicorpNB Pam Gagnon – NBISA Rob Arsenault – Part 1 Rhys Morgan, EY Renée Laforest – Health Kim Embleton – SD Dan Keenan – Horizon Ross Jefferson - FacilicorpNB Alain Bechard – Vitalité Amy Beswarick – DHR Joanne Stone – Health Mike Murray – PETL Josée Pelletier - FacilicorpNB Vicki Squires – Horizon Rejean Bedard – Vitalité Jaques Duclos - Vitalité Ann Dolan – FacilicorpNB Michel Levesque - FacilicorpNB Mark Gaudet – DTI Robert Penny – EECD Yvonne Samson – SD Rob Boyle - DGS Marc-Alain Mallet - DGS Ken Fitzpatrick – DGS/NBISA Joanne Lynch - DGS Rick Ouellette -(ECO Liz Byrne-Zwicker - NBISA Lachlan MacQuarrie-McLeod - JUS Philip Hawkins – FacilicorpNB Diane Nadeau - ECO IT Savings Group IT Investment Portfolio Group IT Long-term Plan Group IT Risk Group Subject Matter Experts representing each work stream
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Detail on Stakeholder Engagement Activity
A high level plan has been developed for customer and employee engagement over the next two
Stakeholder groups (Parts I-IV) Customer / Employee Level and details on engagement Timeline (estimated) A DMs / CEOs / Presidents Customer
interviewed will be followed up with for a ‘deeper dive’
will be asked questions consistent with those asked to the latter 14 individuals (one on one interviews
relevant insight from the individuals
February 23 – March 30
B ADMs / VPs / COOs Employee
March 13 – March 28
C Directors and below Employee
stakeholders
questionnaire) March 9 – March 28 Note: Several employee (IT Directors, HR Directors Part I) & customer (SEO, DM, ADM, VP Corporate) engagements and workshops, have taken place since January 2015
Week of Feb 16
Week of Feb 23
Week of March 2
Week of March 9
Week of March 16
Week of March 23
March 30 to April 17
Transition Teams
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8
9
People Process Engage Coach Inform Prepare
Goals
years to ensure active management of organization readiness. Early on the Executive Working group will focus on strategic items eventually moving into a more tactical direction.
Organization Readiness Plans
expertise and support leadership development to enable the
the communications plan
related processes for meeting the needs of the “new” structures
agreement management, case law research and communication with the union
Strategy and enhance the workforce adjustment process to meet the current needs of the organization
redeployment process to meet the current needs of the
Inspection etc.
Andrew Currie
– DM/ADMs – HR Directors / HR Community – Managers and Directors
Standardization Variation and Duplication
TO
Strategic Evidence Based Decision Making Centre of Excellence Reactive Traditional Drivers Fragmented Teams
FROM
PEOPLE PROCESSES ORGANIZATION
Departmental Silos One Organization Generalists Multiple Leadership Structures Single Leadership Consistent and Equitable Service Subject Matter Experts Differing Levels of Service
Meet Financial Targets
Contribute to a balance budget by fiscal year 2016-2017
Access to Services
Provide consistent and equitable services to internal customers to support their ultimate service delivery Enable greater and easier access to government services by citizens through technology Support health care improvements
Smarter Government
Reduction of information silos and duplicitous functions Improvement of business practices Innovation underpinned by adoption of modern technology solutions Reduced bureaucracy Greater transparency
Job Creation
Strategic investments in infrastructure that stimulate the economy and that make government more efficient Leverage purchasing where supported by business case
Respect the Official Languages Act
Best Practices
government.
Fair and Appropriate
Customer-centric
Alignment
responsibility, and families.
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Secretariat have been assigned
Clinical Eng., Translation, Print, etc.)
FacilicorpNB & Business Units within Departments and Agencies
(consultation required)
(consultation required)
Common Services IT HR Financial Services Supply Chain
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Auxiliary Services
Confirm landscape, understand scope, and set strategic direction for SSC operating model Identify root cause issues and rationalize options to develop roadmap and business case for change Design operating model blueprint in line with business case objectives Transform design blueprint into tangible
Realize benefits and identify opportunities for continuous improvement
► Define Scope and
Opportunity
► Define Vision and
Strategy for SSC
► Collect Data ► Analyze and Develop
Options
► Develop SSC Business
Case
► Develop Specifications ► Develop Detailed Design ► Confirm Approach and
Benefits
► SSC Build ► Validate Implementation ► Implementation ► Stabilize ► Operate ► Optimize SSC Operating
Model
► Extend SSC
Designing and Building the Shared Services Operating Model Delivering and Improving the Shared Services Operating Model
► Potential SSC Scope ► Engage of Senior Exec’s ► Level of solutioning ► Starting position ► Scope of organizations
involved in data collection
► Level of resources ► Level of organization
engagement
► Level of improvements ► SSC Scope ► Level of customization ► Technology scope ► Confirm implementation
Plan
► Process/SSC Technology
scope
► Availability of resources ► Phasing of waves ► Size of organizations, etc ► Level of improvements
needed
► Scope of further changes,
new OM, location, technologies Objectives Stages
Phase 1 Identify Phase 4 Deliver Phase 5 Sustain Phase 3 Design Phase 2 Diagnose
Common Services Review – Methodology
The methodology to be adopted for the shared services review will deliver options and recommendations for the future, grounded in leading practices
Process Framework
The American Productivity and Quality Centre (APQC) Process Classification Framework (PCF) will be applied; variant frameworks will be leveraged as appropriate
8.1 Perform planning / management acct 8.2 Perform revenue accounting 8.3 Perform general accounting and reporting 8.4 Manage Fixed Asset Project Accounting 8.5 Process Payroll 8.6 Process AP expense reimbursements 8.7 Manage Treasury Operations 8.8 Manage Internal Controls 8.9 Manage Taxes 8.10 Manage International Funds/Consolidation 4.1 Supply Chain Planning 4.2 Procure materials and services 4.3 Produce/Manufacture/ Deliver product 4.4 Deliver product / service to customer 4.5 Manage logistics and warehousing 7.1 Manage the business
7.2 Develop and manage IT customer relationships 7.3 Manage business resiliency and risk 7.4 Manage enterprise information 7.5 Develop and maintain IT solutions 7.6 Deploy information technology solutions 7.7 Deliver and support IT services 7.8 Manage IT knowledge 6.1 Develop / manage HR planning, policies 6.2 Recruit, source, and select employees 6.5 Redeploy and retire employees 6.6 Manage employee information 6.3 Develop and counsel employees
Level 1: Finance Level 1: IT
6.4 Reward and retain employees
Level 2 Level 2 Level 2 Level 2
Note that there is not a 1:1 relationship with the L2 end to end processes used in the Examination Report
Level 1: HR Level 1: Supply Chain
cases
structure
February 2– March 30 April 1 – June 30 July + Understand current state and build business case and vision for change Rapid design and quick launch Implementation and transition II III
and transition
model
enable future state
the future state
consolidation
Project Management, Stakeholder Engagement, Change Management & Transition Management
I
Current scope Confirm landscape, validate/build business case, develop and agree-on service delivery model and implementation plan Rapid design of service delivery model blueprint in line with business case
launch of quick-savings opportunities Transform design blueprint into tangible service delivery model
Objectives Activities
Common Services Review – project approach and timeline
The methodology adopted for the services review delivery options and recommendations for the future, grounded by leading practices
and Non-FTE data (e.g. spend)
delivery and technology landscape
dependencies
structure options
Understand current state and identify governance structure
High level operating model definition Implementation Planning by service I(b) I(c)
financial assumptions by sector representatives*
(Consolidation and transition)
detail for the selected service model
transfer budget and assets)
practice
service delivery mode
models by applying evaluation criteria to select preferred models
service area (e.g. interaction models amongst services and between services and clients)
governance structure recommendation
volumetric data
stream
*Includes detailed assumptions around FTE and non-FTE costs (technology, training etc) and benefits.
Project Management, Stakeholder Engagement, Change Management & Transition Management
I(a) February 2 – February 23 February 23 – March 16 March 16 – March 30
Common Services Review – the next six weeks
To deliver a thorough review and analysis for all entities in scope, the following critical path has been developed to meet the project’s requirements 24
– Current State
– Entity-Level Governance Options – Jurisdictional Scan
– High-Level Business Case – Service Delivery Options & Model Selection – Entity-Level Governance Recommendation – Short Term Savings Plan (separate stream)
– Revised Business Case (Level 2 – Improved Confidence) – Implementation Plan (including notional organization structure) – Organizational Roles & Responsibilities by Service – Risk & Mitigation Plans – Funding Model Options (to be confirmed) 25
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Dimensions Jurisdictions
Organizational scope
departments
authorities
associations
authorities
Health
Departments within Part I
government departments
and Provincial Health Services Authority (Health Shared Services BC & Lower Mainland Consolidation)
departments
(fire, police, etc.)
Functional scope (and depth)
(Health only)
(Depts. only)
(province-wide)
(province-wide)
Technology and Telecommunications
management / technology services, limited financial and people related transaction processing
from the 43 departments comes the responsibility of the maintenance and management of mission-critical systems and services
Chain, A/P, ERB, A/R, Laundry, Housekeeping, Food Services, Pharmacy, Labs, DI, HIM, Facilities Management, Security, Patient Transport, Parking, Technology Services & IMIT)
development
Legal entity form
department
Internal Services was formed in Spring 2014 to act as the service delivery agent to clients across government / health and education.
healthcare agency
created in 2008 to provide centralized / standardized services to Regional Health Authorities
agency with oversight from Dept. of Government Services
2010 to deliver common services to Part I organizations
department
transferred to SSC
plan and design IT- infrastructure initiatives, which included a large-scale consolidation of data centres across Canada
care agency
to provide partnership to BC’s health authorities and auxiliary healthcare agencies
department within the Singapore Ministry of Finance (‘Vital’)
created as department in 2006 to support the delivery of common services to all government departments, auxiliary agencies, and other non-government entities (e.g. universities)
Jurisdictional scan (1)
Shared services have been implemented across Canada in varied levels of organizational / functional
Dimensions Jurisdictions
Challenges / risks presented
– stand-up of new
budget transfers, approval of refined
structure
– establishing buy-in from clients of new org
difficulty disseminating consistent and frequent information both internally and externally
– consolidation of SAP platforms across government
communication on roles and responsibilities
engagement or mutually developed priorities were established at outset
New Brunswick’s
services
perceptions
components of IT is unclear and integration with OCIO
Facilicorp has been limited
and shift’ approach was taken with FTEs – this led to confusion in responsibilities and accountabilities
new facility that was not completed yet – this created functional roadblocks in the delivery of work
departments had its
systems, resources, processes and lexicon
(improve!) services while simultaneously establishing the
transforming relationships with partner organizations proved challenging
model (run / change business)
adopting the governance model
commercial discipline and decision making
communications and buy-in
model and decision making
– consolidating / bringing together disparate platforms and applications
and transition caused both employee and client satisfaction to suffer in early years (recent survey conducted showed 39% improvement from year 2)
provider that services such an expansive client base proved challenging (i.e. establishing and meeting varied service level expectations)
budget cutovers were also challenging during implementation
Early benefits
strong leadership team
the need of a sound service excellence framework
conducting strategic planning (i.e. formation
vision, mission, goals,
for detailed implementation planning; detailed plan contemplated program / service initiatives and interdependencies
achieved
risk
period of significant change and transition
regionally delivered through out the province
agreements are effectively in place
achieved
in complexity from the time when services were completely fragmented within Government Departments
mature processes were leveraged across the new department
were 475 critical business impact incidents affecting SSC and partner
Department effected recovery for 68 percent of critical incidents within 4 hours.
Provincial ASD deals
successfully transferred to HSSBC
strategic sourcing / category management
contracts (e.g. transcription, housekeeping)
with internal and external stakeholders in healthcare community
Vital Services
and single governance structure with formal SLAs for each service
services (e.g.. Vital for HR) has helped create service culture
Service College” to drive service quality excellence
Jurisdictional scan (2)
Shared services have been implemented across Canada in varied levels of organizational / functional
Total addressable cost base of $2.2B and 2,300 FTE across all parts of Government
all services
the service working groups
and FTE base for their respective service
detailed data collection to take place over the next 3 weeks
addressable spend is approximately $2.2B, which includes
– $155M in FTE related cost composed (salary & benefits); and – $2.0B in addressable non-FTE spend. 29
Based on initial high-level estimates*, it was noted that across the services in-scope had approximately 2,281 FTEs with estimated personnel cost of $155 MM 30
FTE base for all Parts in scope FTE base by service in scope
Group FTEs Personnel cost ($) Part 1 1,452 $ 101M Part 2 202 $ 12M Part 3 627 $ 42M
Total 2,281 $155M
Service FTEs Personnel cost ($)*
Supply chain (SC)
120
$6M Information technology (IT)
942**
$70M Finance
792
$49M Human resources (HR)
427
$30M
Total 2,281 $155M
**Excludes Part 4 IT FTEs of 115 120 942 792 427
200 300 400 500 600 700 800 900 1,000 SC IT FIN HR 1,452 64% 202 9% 627 27%
Based on initial high-level estimates*, it was noted that IT has an addressable non-FTE spend base of ~ $71MM and Supply chain has ~ $1.94B*
Information Technology Non FTE Costs / Spend $MM Part 1 Part 2 Part 3 Total Distributed Computing $6.4 $8.5 $6.8
$21.6
Application / Database Dev and Maintenance $11.2 $0.6 $8.9
$20.7
Production and Operations Computing $12.0 $0.8 $3.2
$15.9
Telecommunications (Voice and Data) $4.8 $3.6 $1.5
$9.8
IT Security $1.0 $0.3
IT Program Management $1.3
$1.4 Total $36.7 $13.8 $20.3 $70.8 16 22 10 21 1 1 71 IT Program Management IT Security Production and Operations Computing Telecommunications (Voice and Data) Total Distributed Computing Application / Database Dev and Maintenance
* Numbers in $MM Supply Chain Non FTE Costs / Spend
Parts Goods and Services Spend Managed Spend Unmanaged spend
Part I
$ 1.55B $ 0.54B $ 1.03B
Part II
$ 59M $ 20M $ 40M
Part III
$ 330M $ 282M $ 48M
Total $ 1.94B $ 0.84B $ 1.12B
$ 0.84B $ 1.12B
$ 1.94B
Goods and Services Spend Managed Spend Unmanaged spend
*Note: As of February 20th, project team is confirming that IT and Supply Chain non-FTE spend are mutually exclusive
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