Exploring the new Exploring the new Service Frontier Service - - PowerPoint PPT Presentation

Exploring the new Exploring the new Service Frontier Service Frontier

The Gauteng Shared Service Centre

Objectives Objectives

• To explore the Concept of a Shared

Service Centre

• To explain the how Gauteng is applying

the concept

• To share challenges thus far

How did it all start? How did it all start?

• During 1998 Gauteng Province reviewed the reasons for

non delivery, to its constituency

• Several issues were identified – but a major one was the

inefficiency and lack of effectiveness, of support services, which in turn impacted on core service delivery. The cost

• f running support services was too high, delivery too low
• A Shared Service Centre was proposed as a solution
• The decision to implement a SSC was validated in

October 2000 and the detailed design began thereafter

• The Operationalisation of the GSSC begins next month

Working Definition of a Working Definition of a Shared Service Centre Shared Service Centre

“The concentration of company resources performing like activities, typically spread across the organisation, in order to service multiple internal partners at lower cost and with higher service levels, with the goal of delighting external customers and enhancing corporate value”

“Shared Services: Schulman, Dunleavy, Harmer and Lusk”

Higher costs Variable standards Different control environments Duplication of effort

The Best of Centralisation and Decentralisation

Shared Decentralisation Centralisation

Unresponsive No business unit control of

• verhead costs

Inflexible to business unit needs Remote from business Pooled Experience Enhanced career progression Independent of business Synergies Lean flat

• rganisation

Recognition of group functions Dissemination of best practices Common support systems Economies of scale Critical mass

• f skills

Bus unit maintains control of decision Sensitive to local priorities Responsive to Client needs

Typical Value Proposition Typical Value Proposition

• A common (and often better planned) approach to delivering

services (“support” services become “core”)

• An increase in productivity through streamlined work design

(processes)

• A more cohesive platform on which to leverage enabling

technologies for longer term quantum improvements

• A reduction in operating costs (we can do more with the

same or less)

• Better career pathing for involved employees, through a

concentration of roles and opportunities

• Opportunity to recognise provincial risks or opportunities to

improve service delivery at a coordinated level

• Increased governance and functional accountability

Why a Shared Service Why a Shared Service Centre in Gauteng? Centre in Gauteng?

Departments relieved of support functions – therefore allowing a greater allocation of resources and focus on core service delivery

Why a Shared Service Why a Shared Service Centre in Gauteng? Cont. Centre in Gauteng? Cont.

Vision

– Create a Centre of value for GPG by providing:

• Premier Customer Service at Competitive Cost

advantage

• Enabling Technologies
• Accurate information for decision making
• Opportunities for employees to learn, grow and

contribute to the business

GSSC Vision GSSC Vision

“To be the service provider of choice for transversal services for the public sector in Gauteng, through delivering high quality service to our customer”

• and its strategic intent is

“..to deliver a world class reference site with the best of breed practices, procedures and systems that provides enterprise wide support services to the public sector.”

Which services will be Which services will be

• ffered by the GSSC?
• ffered by the GSSC?
• Finance
• Human Resources
• Procurement
• Technology Support Services,
• Internal Audit

How does it work? How does it work?

Dept 1 Dept 1 Dept 3 Dept 3 Dept 2 Dept 2 HR HR HR HR HR HR Fin Fin Proc Proc Proc Proc Fin Fin Proc Proc Fin Fin Functions move to GSSC GSSC services

The scope of the GSSC includes services that are non-core, internal, repetitive, high volume, low value and transactional - based in Finance, Human Resources, Technology Support Services, Procurement and Internal Audit.

High Volume and Repetitive : Standardised Service Requirements Common across all GPG departments e.g.

• Accounts Payable
• Payroll
• Data Processing
• Lease Administration
• Salary benefit & transfers

Technical expertise necessary Every GPG department can’t afford to have it’s

• wn expert e.g.
• Internal Audit
• Labour Relations advice
• SME Vendor Development

Centres of Scale for processing Centre

Reduced costs through : Centralisation, process re-engineering, standardisation, and technology applications

Service Characteristics Centres of Excellence

Leverage expert advice across the GPG

Service Characteristics

What kind of services will form part of the GSSC?

Design principles Design principles

• Process orientation
• Flat structure (“Broadbanding”)
• Naming protocols for roles to function focused
• Empowerment-direct line of site to client
• Technology rich
• Client Centred
• Equitable distribution of limited resources

HR Planning, Policy and Management Source and Select Reward and Retain Develop and Counsel Redeploy and Retire

Level 1

• HR policies and

procedure development

• Strategic planning
• Strategic business

partnering

• Establishment

Administration

• Change and project

management

• HR information
• HR Communications

Human Resource Management Services Human Resource Management Services Example: Process Scoping and its application Example: Process Scoping and its application

• Recruitment
• Selection
• Induction
• Personnel

administration

• Service benefits

administration

• Salary

administration

• Performance

management

• Training and

development programmes

• Career and

succession planning

• Employee well-

being

• Labour relations
• Transfers
• Terminations

Human resource and Organisation Development

• Human

resource development (systems, approaches, tools, etc.)

• Organisation

development (systems, approaches, tools, etc.)

Level 2

Manager: Source & Select Manager: Reward & Retain HR Processing Team Leader: Reward & Retain HR Processing Practitioner: Reward & Retain HR Processing TL Terminations HR Processing Practitioner: Terminations HR Processing TL: Source and Select Manager: Terminations HR Processing Practitioner: Source and Select Manager: Senr.

• Mngnt. Support

(SMS) HR Processing Specialist: SMS GM: HR Services HR COE TL: HR Policy & Proc. Dev. HR COE TL:

• Org. Struc. &

Job Design HR COE TL: HR Information HR COE TL: HR Communication. HR Processing TL: Persal HR COE Spec: HR Policy & Proc. Dev. HR COE Specialist : Persal HR COE Specialist: HR Information HR COE Specialist: HR Communication Manager : HR Planning, Policy and Info. Management

Human Resource Services Human Resource Services Organisation Structure Organisation Structure

HR COE Spec:

• Org. Development

HR COE TL: Change & Project Man. HR COE Specialist: Change & Project Man. HR COE Spec: Estab. Admin. Manager HR and Org. Development HR COE TL: Org. Development HR COE TL: HR Development HR COE Spec: HR Development HR COE TL: Generic Training and Induction HR COE Practitioner: Generic Training and Induction HR COE Spec: Org Struc & Job Design HR COE TL:

• Estab. Admin.

Manager: Employee Relations HR COE TL: EAPs HR COE T L: Labour Relations HR COE Specialist: EAPs HR COE Specialist: Labour Relations Manager Org.

• Struct. Design

& Implementatio n

Processing Centre of Excellence

Some interesting information… Some interesting information…

• Around 3700 employees in scope – currently

performing functions

• GSSC will require roughly 1600 to deliver same
• r better
• 92 Sites will be migrated to GSSC
• process over 700 000 CV applications
• procure more than R4b worth of goods and

services

• answer more than 100 000 calls per month
• Handle more than 250 000 pieces of hard copy

mail

What have the challenges What have the challenges been? been?

• Labour: resistance to changes, lack of capacity
• Poor management support
• Lack of performance ethos – establishing a world class
• peration required performance driven people
• Transversal systems have limited application
• Lack of accessible information/intelligence
• Concomitant objectives:

economic efficiency and service delivery – fear that of consequences

• Environment rewards rule followers not rule makers.

Extreme systemic risk aversion

What do the next 12 months What do the next 12 months hold? hold?

• Stabilise!
• Create culture of “can do”
• Do the basics right first – “payslips on

desks”

• Focus on low hanging fruit (Pareto

principle)

• Build competency and client orientation
• Benchmark and improve service delivery

Questions?