Shared Services at NC State: What we’ve learned so far…

1. Shared Services at NC State: What we’ve learned so far… Jim Klingler Acting Executive Director University Business Operations Division North Carolina State University

2. Session Etiquette • Please turn off all cell phones. • Please keep side conversations to a minimum. • If you must leave during the presentation, please do so as quietly as possible. • Thank you for your cooperation!

3. Overview • What is Shared Services? • Why Shared Services? • Who has Shared Services Operations? • Where should I start? • What does a Shared Services Organization look like? • How should we staff Shared Services? • Service is key! • NC State’s hybrid approach • Expected benefits • Concluding thoughts

4. What is Shared Services? • Can include Finance, Procurement, HR, IT, Research Administration, and Facilities. • Neither decentralized services or centralized services • Seeks to balance the benefits of decentralized and centralized service delivery • High volume, repeatable, with clear rules and procedures – “transactional”

5. What is Shared Services? Decentralized Shared Services Centralized Independent Data-Driven Process Expertise Redundant Complex Inefficient Responsive Customer-Focused Unresponsive Inflexible Detached Scale Economies Standardization Automation Source: Education Advisory Board, Making the Case for Shared Services, 2009

6. Why Shared Services? Budget reductions combined with preserving University core mission Source: NC State Finance and Resource Management Division

7. Why Shared Services? Regulatory environment increasing 42% - Average time PI’s spend on administrative tasks for federally funded research projects 97% - Percentage of Faculty reporting that some of the time they spend managing federal grants could be conducted effectively by administrative personnel Source: Faculty Standing Committee of the Federal Demonstration Partnership Survey (2009) http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2887040/

8. Why Shared Services? Campus Strategic Planning Efforts

9. Why Shared Services? Complexity at the department level creates risk, uncertain performance, and inefficiencies Source: Education Advisory Board, Making the Case for Shared Services, 2009

10. Who has Shared Services Operations? Source: Education Advisory Board, Making the Case for Shared Services, 2009

11. Where should I start? • Do you have a sponsor team? • At NC State, our Chancellor, Provost, and VC for Finance and Business signed on as early sponsors • Do you already have Shared Services at your campus? • NC State’s Office of Information Technology shared services • NC State’s Integrated Research Support Group • Business consolidation at your colleges (University of Washington; UNC-CH) • Put your exploratory group together • Consider the leadership of your central business units • Research the model and campuses that have implemented – site visits • Engage campus stakeholders in preliminary conversations • Determine potential scope – Business Functions & Customers

12. Where should I start? • Consider forming a Steering Team • Cross-section of campus stakeholders – affected central business offices and who will be initially served • Hire the Shared Services Director • Develop the Business Case for Campus • Design the Shared Services Delivery Model • NC State – Business Operations Realignment Steering Team • Our steering team • Composed of a Dean, department head, PI, college business reps, and central office reps • Recommended a campus-wide model of customers, both academic units and non-academic units • Multiple shared service centers with clusters of customer groups • Finance and HR functions + pushing “approval” from the central offices to the shared services centers Before we go further, let’s discuss the classic shared services model

13. What does a Shared Services Organization look like?

14. How should we staff Shared Services? • Shared Services is a consolidation effort - budget resources will come from current operations • Questions to ask yourself: • Do you staff exclusively with current campus personnel? • Do you internally recruit center positions? • Do you reallocate current personnel (Lift & Shift)?

15. Service is key! • Anyone can achieve savings! • Previous centralization efforts are excellent at scaling and cutting costs • Centralization increases compliance • Prioritizing customer service with Shared Services • Formal Customer Service program for all employees • Contact center or service protocols – no dropped cases • Enabling technology – ERP, Case Management, Knowledge Base • Simplify! Simplify! Simplify! Customers remember how they feel…

16. NC State’s Hybrid Approach Timeline April 2012 - Steering Team recommended multiple regional centers with Finance and HR services December 2012 – University Business Operations Division switched to multiple center organized by Core Business Function May 2013 – Onboarding Center Pilot opens June 2013 – Onboarding well received, but deadlines were aggressive and overall model wasn’t sufficiently articulated July 2013 – Revisited design, implementation, and Change Management

17. NC State’s Hybrid Approach • Shift away comprehensive and compulsory • Shifts willing partners and demonstrations • NC State would deliver certain campus-wide services through a single shared services organization – University Business Operations Division (UBOD) Ex: Onboarding • UBOD would pilot new campus-wide services through pilot customers Ex: Travel Services • UBOD would pilot comprehensive shared services at the college or division-level as a proof of concept and scale

18. Onboarding at NC State Create a new hire experience that welcomes, acclimates, engages, and retains new hires in the Wolfpack community by: • Making a positive first impression! • Equipping new hires with the tools, information and resources needed to be productive on their first day, first week and first months of employment. • Orienting new hires to campus. • Assisting Departments and Colleges with onboarding best practices and manager support/resources. • Providing tools and resources for campus-wide integration. • Establishing personal relationships through networking and social connections. • Increasing new hire morale and productivity. • Helping make NC State a “Best Place to Work”.

19. What is done during the Onboarding appointment? • Campus One Card • Parking pass • I-9 (Part 1 on/before first day) • Tax withholding (W-4, NC-4) • W-2 consent • Direct deposit • Emergency contacts • Emergency alerts • Tax assessment reminders • Assist with any incomplete checklist items • Secondary employment • Conflict of interest • NEO100 registration • NEO200 benefits registration • Howl About It! • Complimentary coffee and water for new employees

20. Travel Accounting at NC State • Self-service interface for Travel Authorizations and Reimbursements – December 2012 • Partnership between the Controller’s Office, University Business Operations, and Enterprise Applications Services • Paperless Workflow w/ Uploading receipts • Itemized expenses w/ comments at line item detail • Traveler Pagelet to see all open travel transactions

21. Travel Accounting at NC State • Piloting Travel Shared Services with a single college – Summer of 2014 • Perform reimbursement transactions • Provide expertise to travellers on systems, policies, and procedures • Transfer resources from the college • After demonstration, open up to more campus customers • Online Booking Tool – Early 2015 • Partnership with the Controller’s Office, Purchasing, University Business Operations, and Enterprise Applications Services • Central web-portal for making flight, hotel, and rental car purchases on a campus purchase card

22. College of Agriculture Partnership College of Agriculture and Life Sciences (CALS) - Largest college at NC State Fall 2011 - Consolidated into a college business center in 2011 Summer 2013- College leadership sought to restructure the business office • Classic Shared Services Model, at the college-level August 2013 - Partnered with University Business Operations October 2013 - Hired ScottMadden Management Consultants January 2014 - ScottMadden delivered recommendations

23. College of Agriculture Partnership

24. College of Agriculture Partnership Partnership Goals: • Improved business services for the faculty of CALS • Improved business performance and reduction of compliance risk for CALS • Improved quality of life for business center staff • Proof of concept for NC State that shared services can work in an academic setting • A large college providing a significant foundation for scaling shared services to more customer units • Increased potential for converting other campus units to the shared service model

25. Expected Benefits • Do not fall prey to large promises of savings • Some consultants will promote administrative cost savings of up to 50% • Some universities are looking at savings of 10% to 30%, but over time (~ 5 years) • NC State expects savings, but has not projected $$$ • Remember the budget reductions taken since 2007 • We have communicated to campus that the administrative savings have already been captured • Shared services may be the necessary answer to protect our campus from increased compliance risk and increased administrative burden on faculty

26. Concluding Thoughts – A Top 10 • Hire your Shared Services Director early • Know your model before selling your campus on shared services – make a business case • Stick with your model • Shared services is not just about savings, but compliance and great customer service • Look around your campus, you may already have a shared service and not know it

27. Concluding Thoughts – A Top 10 • Know your business processes and simplify them! • Decide on your staffing model early – Internally recruit or reallocate • Communicate, communicate, communicate! • You have to spend money to save money – investment in the implementation is key • At best, plan on 3-5 years

28. Concluding Thoughts Bonus Thought Change is really hard, so get your sleep

29. Thank You! Jim Klingler NC State University University Business Operations 919-513-7132 Jim_klingler@ncsu.edu