Financial and Procurement Shared Services

1. Financial and Procurement Shared Services Comptrollers Conference November 2010

2. Agenda • What you heard last year • Project background and benefits refresher • Lessons Learned • Where are we now… • Governance • Service Partnership Agreements • Functional Design • Key Milestones • Client Expectations • Breakout activities

3. What you heard last year… • Originally planned to proceed with the SAM project, however the project was deferred • Financial Shared Services Centre (FSSC) implementation was approved for implementation in 2011 • A Procurement Shared Services Centre (PSSC) be coordinated with the FSSC planning • Information on the purpose, benefits, scope, timeline and planned activities as originally planned in November 2009 • Service centres in place April 1, 2011

4. What you heard last year…. • Original work had been completed in 2007 (pre-SAM) which will be used as a starting point • Which we will leverage later this afternoon • Recognize that we operate differently now post SAM • All detailed work was done in the FIS world and while much should still be relevant we need to vet that and identify new and changed activities.

5. Background - Benefits • Retention and development of a skilled staff with consistent experience and training • Team of experts • Clear progression path • Involved in continuous improvement of daily activities • Backup support

6. Background - Benefits • Improving the quality of internal service delivery to managers and employees • Enable departments to focus on delivering programs and services • Service focus • Leverage specialist skills

7. Background - Benefits • Improve Government-wide information and reporting • Improved technology leverage • Standardize practices and processes • Leverage best practices

8. Background – A Shared Service Model

9. Background – A Shared Service Model • The focus of shared service centres: • Customer Service • Employee development and retention • Partnership • Joint Accountability and Responsibilities • Performance Measurement • Continuous Improvement

10. Background – Scope * No decisions have been made on the Scope as the function design has yet to be finalized or discussed • Financial Shared Services could… • Provide common financial processing functions • Include Accounts Payable, Accounts Receivable, Expenses, and some aspects of revenue and collections, asset management, general ledger and project costing support • Financial Shared Services probably won’t provide… • Departmental budgeting • Program financial analysis and variance reporting • AP and AR for program specific applications

11. Background – Scope * No decisions have been made on the Scope as the function design has yet to be finalized or discussed • Procurement Shared Services could… • Be responsible for procurement of goods and services • Responsible for developing/maintaining procurement policy and purchasing directive • Contract administration for goods purchasing • Procurement Shared Services probably won’t provide… • Development of technical requirements

12. Lessons Learned • Previous GNWT Initiatives • Technology Service Centre • Human Resources • Departments will be left with residual resources • Residual resources will remain with departments for responsibilities not moved to service centres

13. Where we are now… • Project Management Teams • Financial Shared ServicesProcurement Shared Services • Warren St. Germaine – Executive Project Lead Mike Burns – Executive Project Lead • Jamie Koe – Project Manager John Vandenberg – Project Manager • Louise Lavoie – Assistant Comptroller General • Advisory Committees • Joint Senior Management Steering Committee

14. Where we are now… • Advisory Committees • Financial Business Advisory Committee • Jamie Koe (Chair) Finance • Nancy Magrum ITI/ENR • Jim Martin DOT • Kim Schofield Justice • Sheldon Grayston NWTHC • Blair Chapman HR • Anne Mould Justice • Sheila White Finance – Regional Rep

15. Where are we now… • Advisory Committees • Procurement Business Advisory Committee • John Vandenberg (Chair) PWS • Daniel Auge DOT • Colin Gordon Justice • David Jarvis ITI/ENR • Martina Simons DOT • Joe Tkachuk H&SS • Art Durkee PWS • Steve Lewis PWS • Michelle Beard HR

16. Where are we now… • Communications Plan (ongoing) • Bear Facts announcement on August 20th, 2010 • SharePoint site activated on August 20th • Standing agenda item on RMC’s and DFA meetings SharePoint Site Address (http://finportal/shared- services/default.aspx)

17. Where we are now… • Governance Structure • Discussion paper provided to all Departments and the NWTHC • Governance options presented • Executive Governance Committee • Advisory Committees • User Committees • Milestone is to finalize the Governance Structure in December 2010

18. Where are we now… • Service Partnership Agreements • Discussion paper provided to all Departments and the NWTHC • Presented a potential template for Shared Services Service Partnership Agreements • Goals • Principles • Proposed Template • Detailed Services to be incorporated into template once agreed to • Focus group consultations held in Yellowknife November 8-10 • Finalize Service Partnership Agreement template in December 2010

19. Key Milestones *No final decisions have been made on timeframes. • Project team staffing April 2010 Complete • Communications Plan June 2010 Ongoing • Change Management Plan June 2010 Ongoing • Define FSSC governance model Dec. 2010 • Service Level Agreements - Draft Dec. 2010 • Finalize FSSC scope/Departmental Scope March 2011 • Develop organizational & staffing requirements May 2011 • Determine infrastructure requirements May 2011 • Determine staff impacts May 2011 • Finalize Service Level Agreements June 2011 • Staffing activities May-June 2011 Phased? • Implementation July 2011 Phased?

20. Next Steps • Finalize governance structure • Finalize Service Partnership Agreement template • Develop and consult on functional design • No decisions have been made on final services to be provided • Will be developed in consultation with departments • Design service centres • No decisions have been made on organizational design • No office planning decisions have been made • No decisions have been made on staffing impacts

21. Questions?

22. Client Expectations • Discussion • Imagine that you are the client of a Financial or Procurement Shared Service Centre • Ask yourself the following questions: • What will I expect from shared services? • How will these expectations change over the next few years?

23. Activity • Breakout Group Activity • Functional Design • Group 1 - Functional Design for Financial Shared Services • Directors of Finance, Controllers, Finance Managers • Group 2 - Functional Design for Procurement Shared Services • Procurement Focused Employees • Time Collection Trial • Groups of 6-8 people