Statewide Shared Services Leveraging Technology and Best Practices To Deliver Quality Government Services

1. Statewide Shared ServicesLeveraging Technology and Best PracticesTo Deliver Quality Government Services Will GreerVice President, State and Local GovernmentSAP Public Services

2. Marcus Tullius Cicero (106-43 B.C.) Roman Statesman & Philosopher Government Goals “The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled … people must again learn to work, instead of living on public assistance …” …have not changed in centuries

3. Discussion Outline • What Is The Problem? • What Is Shared Services and Who Cares? • Technology Enables Shared Services • Who Is Succeeding With Shared Services?

4. What Is The Problem? • “In 2 years, there will be 10 million more jobs in the United States than people to fill them.” • - U.S. Bureau of Labor Statistics “At least ten states risk suffering severe worker shortages within the next decade.” - Council on State Governments “State Government could lose up to 40% of its workforce to retirement very quickly.” - Council on State Governments “Replacing talented people is the single most important managerial preoccupation for the rest of this decade.” - McKinsey Quarterly Personnel, Finances

5. What Is The Problem? StateGovernment

6. What Is The Problem? StateGovernment

7. What Is the Problem? • Increase Quality of Services, Cut Costs • Improve Productivity • Reallocate Resources

8. Discussion Outline • What Is The Problem? • What Is Shared Services and Who Cares? • Technology Enables Shared Services • Who Is Succeeding With Shared Services?

9. Audience Poll • Raise Your Hand If… Fundamental re-thinking of how states deliver administrative services and how agencies consume them

10. SYSTEMS AND PROCESSES Shared Service Center Financial Management Human Resources Procurement Systems and Technology Agency Agency Shared Service Center Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Shared Services Shared Services Centralized Decentralized Standardized Outsourcing • Onsite, semi-autonomous provider to source services • Accountable to customer • Performance monitored against defined SLA’s / MOU’s and targets • Service excellence focus, financial, social and political ROI • Governance / Ownership • Strengthen enterprise oversight • Same, but disconnected processes and systems • Services funnelled to existing agency or department • No service level agreements, no performance targets • Solely cost focus, financial ROI • Run agencies autonomously • Different, separate processes and systems • Different IT and functional staff • Onsite, semi-autonomous provider to source services • Accountable to customer • Performance monitored against defined SLA’s / MOU’s and targets • Service excellence focus, financial, social and political ROI • Governance / Ownership • Offsite • Access to commercial sector capabilities • Cost reduction is primary motivator • Profit center for provider • Cost and effort to manage relationship with provider • Potential political impact Defining Shared Services

11. Defining Shared Services SYSTEMS AND PROCESSES Financial Management Human Resources Procurement Systems and Technology

12. Support for Shared Services • No significant increase in funding or staffing for the foreseeable future. • Retirement and turnover continue to deplete the existing work force. • The Comptroller has stressed the need to eliminate redundant and inefficient processes. Susan CombsTexas Comptroller of Public Accounts

13. Support for Shared Services • “$100 million savings over the past 6 years.” Ken TheisCIO, Michigan

14. Support for Shared Services "If you think of all the siloing that goes on - the separate functions - it only exacerbates the siloing of departmental functions. Running government today is in many respects a consumer-oriented business. You need to think about how you do the best work at lower cost." Bill RitterGovernor, Colorado

15. Support for Shared Services • Top 10 State CIO Priorities • 1. Consolidation: centralizing, consolidating services, operations, resources, infrastructure • 2. Shared Services: business models, sharing resources, services, infrastructure • 8. Transparency: open government, performance measures and data, accountability • 10. Governance: improving IT governance, data governance

16. Support for Shared Services Source: www.NASCIO.org

17. Defining Shared Services Trouble loomingwith skilled laborpool Every agencyperforms the sameprocess differently Internal Agency Incompatibletechnologies do not exchange information across agencies Fragmented, inconsistent processes and inflexible technologies reduce resource productivity and service responsiveness while raising costs Internal Agency ? ? Other Agencies/ Suppliers/ Constituents Internal Agency

18. Defining Shared Services Solution: One sharedservices center servesmultiple agencies Solution: Best PracticeBusiness Processes Solution: Flexible, adaptive technology platform Shared services help governments achieve shared outcomes while maximizing resources and lowering costs Internal Agency Internal Agency SharedServicePlatform Other Agencies/ Suppliers/ Constituents Internal Agency

19. That Will Never Work… • “That will require all of our agencies to do things the same way, and they will never agree to it. I wouldn’t. Now SCRAM!”

20. Discussion Outline • What Is The Problem? • What Is Shared Services and Who Cares? • Technology Enables Shared Services • Who Is Succeeding With Shared Services?

21. “Consumption” BusinessClient Portal Apps Forms Governance “Interoperability” ProcessIntegration ApplicationComposition DataStandardization AccountingSystem RevenueSystem SocialServicesSystem “Provisioning” The One Thing You Need To Know “Mash-Up” Deployment Approach Traditional Deployment Approach Flexible Consumption Approach

22. The One Thing You Need To Know • Technology Enables Shared Services: • By allowing the same business function to be “consumed” in different ways. • By enabling combinations of business functions appropriate to the customer’s processes. • By wrapping security around the entire process, not only around its pieces.

23. The One Thing You Need To Know …eureka! • Technology allows a single provider of technology services to tailor the service to multiple customers’ needs without maintaining a separate application set for each customer.

24. Discussion Outline • What Is The Problem? • What Is Shared Services and Who Cares? • Technology Enables Shared Services • Who Is Succeeding With Shared Services?

25. Case study: Gartner Group, 2006 • Challenge • Aging back office systems in need of replacement • Each organization had operated on its own to procure, implement, and maintain systems • Desired a systems modernization approach with: • Consistent and increased financial accountability • Improved planning through evidence-based decision making • The ability to identify and execute Nova Scotia’s economic development opportunities in a more cost-effective way.

26. Approach • Single, province-wide competitive bid process resulting in adoption of applications and platform • Customer Competency Center (CCC) • Program Management Office • Locally led implementations Case study: Gartner Group, 2006

27. Progress • Finance, HR/Payroll, and Maintenance Management consistently implemented across the provincial departments • Finance, HR/Payroll and Business Intelligence across the eight school boards • Finance in 8 of 55 municipalities • Health sector underway • Implementations range from 6 to 13,000 users Case study: Gartner Group, 2006

28. Results • $43 Million in duplicate software purchases • Improved volume discounts with vendors • Unified data access, reporting, performance info • Reduced headcount growth projections by 75% Case study: Gartner Group, 2006

29. Discussion Outline • What Is The Problem? • Shared Services and How It Helps • Technology Enables Shared Services • Who Is Succeeding With Shared Services?

30. Statewide Shared ServicesLeveraging Technology and Best PracticesTo Deliver Quality Government Services Will GreerVice President, State and Local GovernmentSAP Public Services will.greer@sap.com 720.266.7933