Transcript One University System’s Journey to Implementing a Shared

One University System’s Journey
to Implementing a Shared Services
Initiative
SACUBO 2013 ANNUAL MEETING
HYATT REGENCY-ATLANTA
APRIL 23, 2013
University System of Georgia Shared Services Center:
• Becky Prince – Director
• Diane Kirkwood – Associate Director Payroll & Benefits
• Julie Harris – Program Manager
The University System of Georgia’s Journey to
Shared Services
 Shared Services Initiative
 Introduction
Who We Are
 Why Shared Services
 Scope of Responsibility
 Implementation Timeline
 Shared Services Governance & Structure
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Successes & Lessons Learned
Value of Change Management & Communication to
Stakeholders
 Shared Governance Benefits
 Standardizing Business Processes
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University System of Georgia (USG)
Who We Are
 31 colleges and universities
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4 research universities
2 regional universities
12 state universities
13 state colleges
 Also Includes:
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Skidaway Institute of
Oceanography
Georgia Public Library System
University System Office
USG Shared Service Center (SSC)
Who We Are
 Location
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Centrally located in Sandersville, Georgia
Best of breed virtualized technology and state of the art facility
Part of rural economic development initiative
USG Shared Service Center (SSC)
Why Shared Services
 Reduce overall risk by creating redundancy in critical
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support areas through shared services
Reengineer processes utilizing best practices
Upgrade systems to latest technology to automate
and streamline manual processes
Enhance specialized knowledge through training and
skills development
Standardize processes, policies, and procedures to
minimize variability and errors
Increase customer service through dedicated service
desk
USG Shared Service Center (SSC)
Scope of Responsibility
 Shared Services Center (SSC) focuses on Payroll &
Benefits processing and Tier 1 Call Center support for
employees & retirees of:
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28 universities & colleges (of the total 31)
Plus Skidaway Institute of Oceanography, Georgia Public
Library System & the University System Office
 SSC shares transactional tasks with campus HR, Benefits
and Payroll practitioners
 SSC manages the relationship with Third Party HRMS
Vendor (ADP)
Implementation Timeline:
Shared Services Concept Planning
June 2007
January 2008
Hackett
Benchmarking
Study
Accenture
Study
Study showed
USG not best in
class in financial
& HR/payroll
operations
Study
recommended
adopting a
shared services
approach
June 2008
Board of Regents
Approved Shared
Services Strategy
~July 2008
RFP Process
and Third
Party Vendor
Selection
ADP selected –
Time & labor,
Benefits processing,
Payroll Processing
(incl. tax, garnishment)
Retiree benefits direct
bill, COBRA, Employee
On-Line Self Service,
etc.
Implementation Timeline:
Shared Services Center Start-Up
March 2009
Shared
Services
Center Site
Sandersville, GA
Temporary
building
August 2009
GO LIVE Third
Party Vendor
(ADP)
14-month
Implementation
“Big Bang” all 34
entities at once
April 2010
Shared Services
Center moves to
Permanent
Building
August 2010
Begin Phase 2 :
Payroll
Centralization
SSC expands
service offering
to include more
payroll
processingrelated tasks
Implementation Timeline:
Shared Services Center Stabilization
July 2011
Employee/
Retiree Call
Transition
Project started
January 2012
April 2012
January 2013
Campus
Consolidation
Project
announced
Common
Remitter Go
Live
University
System Office
Payroll processed
at SSC
Consolidation of 8
institutions into 4
Unified submission
by SSC of Tax
Savings Annuities
(TSAs) &
Retirement Funds
SSC begins to process
HR and payroll
transactional
processes for
University System
Office ~439
employees
USG Shared Service Center
Governance & Structure
 SSC Governing Council
 Chaired by USG Institution President
 Representation from Fiscal Affairs, Human Resources, Payroll,
Academic Affairs, Student Affairs, Information Technology and
University System Office
 Committees designated to focus on:
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Contracts
System Evaluation
Hosting
New Shared Services Opportunities
 SSC Advisory Committees
 Payroll
 Benefits
 HR
Successes & Lessons Learned
 2012 General Statistics – Our Customers
 ~66,000 W-2’s generated
 Over ~800,000 payroll advices/payments processed
 ~23,000 active benefit eligible employees
 ~8,000 benefit eligible retirees/survivors
 ~44,600 cases logged in 2012 at SSC Call Center (approx. one point
of contact every 3 minutes)
 129 Benefits Plans (incl. USG Health & Welfare and Institution
Voluntary Plans)
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62 Benefit System Changes (ADP Change Controls) ; 42 changes in 2011
Facilitate Open Enrollment Benefit Changes & Communications
Successes & Lessons Learned
 Business case is critical
Understand current state and workflow
 Develop future state and fiscal targets
Standardize business processes BEFORE implementation
Involve ALL levels of the organization for buy-in and
information exchange on an ongoing basis
 Practitioners need to be part of solution
Partner with key vendors, brokers and consultants with
proven track record who understand the unique nature of
higher education
Recommend the start-up of a Shared Services Center not
be simultaneous with the implementation of a new ERP
system
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Successes & Lessons Learned
 Allow sufficient timeline for successful system planning,
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testing, documentation, training and implementation.
Easily accessible documentation is key to user success.
Communicate often and involve ALL stakeholders. Use
multiple communication methods to reach various
audiences.
Develop strong internal project office early to
compliment external consultants.
Hiring customer-focused personnel (all levels) is critical
Develop Service Level Agreements (SLAs) early on to
establish expectations with vendors as well as
institutions.
Successes & Lessons Learned
 USG’s Benchmarking Visit to UC Davis Shared Services
 “Transformational change that is highly complex
 Invokes significant emotional responses and resistance at
all levels of the organization
 Requires significant change management support
 Must have organizational fortitude and unwavering
leadership commitment”
Successes & Lessons Learned
 SSC Culture
 Competent and cohesive leadership team
 Environment where feedback for continuous improvement is
encouraged
 Project-based focus
 Employee cross-training and growth
Successes & Lessons Learned
 Communications
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Bi-weekly Practitioner Web Based Information Sharing Meeting (e.g.
Up-to-the-Minute Call)
SSC Hosts an annual Exchange training session on site. (3-days
offered)
SSC sponsors a tract at annual Georgia Summit event
Regional Training on critical/timely topics (e.g., IPEDS, leave
management, security, etc.)
Present at USG annual meetings (e.g., CBO, CHRO, etc.)
Standardized branding of all communications
Invite campus practitioners to visit the SSC and provide opportunity
to monitor live customer calls
Successes & Lessons Learned
 Example of a Monthly
Communication the SSC
provides to each
institution related to their
Employee/Retiree
Contacts to the Shared
Services Center.
Successes & Lessons Learned
 Shared Governance Benefits
 Cross-functional Representation
Champions Shared Services Operations and New Opportunities
 Provides Resources
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Executive sponsors and senior leadership support
Successes & Lessons Learned
 Importance of Standardized Business Processes
 Developed SSC specific Business Procedures Manual (BPM)
 Working with USG System Office to standardize voluntary
benefit plans
 Facilitate standardized business practices including:
Joint Staff policy and procedures
 Retirement processing
 Internal USG transfer processes
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Questions
University System of Georgia Shared Services Center:
• Becky Prince – Director
[email protected]
• Diane Kirkwood – Associate Director Payroll & Benefits
[email protected]
• Julie Harris – Program Manager
[email protected]