DWP Shared Services One organisation. Delivering together.

Beyond Austerity

David Thorpe Shared Services Director 11

th

July 2013

4th July 2013June 2013

Contents



DWP



Background to Shared Services



Journey so far



Shared Services Developments 2012/13



Rising to the Austerity Challenge

2

4th July 2013June 2013

DWP

• Largest public service delivery department in the UK.

• Serves

c22m

12/13.

people and over 20 million customers paid

£165 billion

in benefits in • Serves

12.6m

pensioners receiving State Pension and

2.7m

receiving Pension Credit and we make

13m

Winter Fuel payments each winter.

• Pays out

£941m

in Social Fund payments per annum (excluding Winter Fuel payments). This includes over

216k 3.2m

non-repayable Community Care Grants and almost interest free loans together worth over

£720m

per annum.

• Issue payments to the value of

£73 billion

, of which

£43.8 billion £29.2 billion

to Housing benefit* to suppliers* and • Every working day the following benefits are paid out: • Working Age • Housing • Pensioners • Disability & Carers £104m £112m £360m £84m •Housing Benefit and Suppliers are paid through Shared Services, other benefits are paid through DWP Central Payment System 3

4th July 2013June 2013

Background to Shared Services . . .

• Formed in 2006, from previous corporate functions within DWP to create a multi-functional Shared Service Centre for HR & Payroll, Finance, Business Intelligence, Debt, Compensation Recovery and Procurement.

• Since inception, we have saved in excess of

£400m

by rationalising: •Reduction in operational sites from 25 to 4, •Improvements in service quality, and process efficiency, •Reduction in headcount since inception from 5600 to 862. In the last two years a reduction in 577 as part of our Service Delivery Optimisation Transformation programme.

• Our

4 locations

provide Employee Services to over

119,000 employees

and we are the only Government Shared Services Centre to provide services outside our host department. • Our benchmarking figures demonstrate that our performance is predominately in the upper/second quartile which reflects complexities in process and no off-shoring.

• We have refined our scope of services to ensure that we provide true operational core services • Our Core Services are supported by

Enterprise Resource Planning (ERP) Release 12

and the

latest version of Hyperion

. We are currently the only provider in Government to have successfully implemented both these versions.

4

4th July 2013June 2013

Journey so far. . .

HR/Payroll

£3 billion

pay bill

115,000

people serviced utilising Self Service Solution

185,000

transactions processed

170,000

calls answered

90%

calls cleared at first point of contact

15

MOG changes

Procurement

4 million

payments issued electronically

86%

processed electronically

5 million

claims & invoices created

97%

invoices paid within 10 working days

£42 billion

value of payments issued

Finance

£224 billion

value of accounts produced for clients

730 million

benefit payments accounted for & reconciled for the 23 million DWP benefit customers

5

Close month end by working day 5 – upper quartile performance v industry standards

3

Top 3 of H M Treasury cash forecasting tables of Government departments for the last 6 years 5

Journey so far…….

“Your willingness to challenge our assumptions has provided an important critical friend role in our continuous improvement cycle.

I know your collaborative approach is welcomed by all DfE HR.”

DfE HR Group - May 2013 • The first true internal Government supplier to provide consolidated and integrated services to other Government Departments and Non Departmental Public Bodies (NDPBs). • Our Clients include: •

Department for Work and Pensions, Child Maintenance Group, Cabinet Office and Department for Education

.

•

The Health and Safety Executive

- migrated at the end of June 2013.

• We are a founder member of

Independent Shared Services Centre 2

, to support and accelerate the growth of Government Shared Services. •

Cost Effectiveness

In 2012 the National Audit Office confirmed, that we were the most cost effective Shared Service provider in Government, with an operational cost per customer of £500, and a Customer to Contact Centre staff ratio of 120:1.

•

Value for Money

To remain competitive, and provide value for money for our Clients and ultimately the taxpayer, we have consistently achieved a

10% year on year efficiency

since we were established in 2006. These savings are passed on to Clients, and this continues to be the aspiration today. 6 4th July 2013June 2013

4th July 2013June 2013

Shared Services developments 2012/13

Autumn 2012

Refocus Scope of Services

Summer 2013

Customer Growth - HSE

Autumn 2013

Shared Services Connected Limited (SSCL) implementation

.

Next Generation Shared Services (NGSS) Hyperion Implementation Oracle Upgrade version 12.1.3

Real Time Information (RTI) Civil Service Reform Quarterly Release 12 (QR12) Exploiting RM functionality Workplace Transformation and Estates Smarter Working

7

Rising to the Austerity Challenge

“... shared services will be a platform to support Civil Service Reform and enable a better way of working in central government.”

Stephen Kelly Chief Operating Officer, UK Government • In December 2012 the Government published the Strategic Plan for Next Generation Shared Services (NGSS) The goal is to enable core back office functions including HR, Finance, Procurement and Payroll to be shared across two independent, and three standalone Shared Service Centres, to drive efficiencies and savings of £400-£600 million each year.

This will be completed by: •

Reducing Costs -

The mission is to deliver significant reduction in costs while raising the customer experience.

•

Driving Service Excellence –

To have satisfied and loyal Clients through a focus on performance management and outcome based delivery •

Increasing Operational Efficiency -

• better management information; •improved benchmarking; Performance will be enhanced through: •and comparability between organisations.

•

Tracking the benefits -

Departments will be responsible for delivering the benefits, and reporting them to the NGSS governance to track stated benefits.

•

Forming a private and public sector partnership

- the creation of ISSC2 will introduce private sector expertise and investment to drive more effective, efficient delivery and an ability to run centres on a more commercial basis. 8 4th July 2013June 2013