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Driving High Performance in Government:

Maximizing the Value of Public-Sector Shared Services

Connected Government Summit


Mombasa, Kenya
30 March 2010
Governments all over the globe are facing similar challenges in
providing services to their constituents and external partners.

MASTER
Governments are experiencing rising demand for better public services STAMP
against a
background of increasing budgetary pressures and resource constraints

Three key pressures on governments globally in recent years:

1.Growing economic pressures and difficulties in balancing budgets

2.Rising expectations for citizen-focused government

3.Aging workforce and shortage of skilled resources

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Governments are challenged with balancing downward cost
pressures with demand for greater services.
Key strategic or operational challenges facing governments today
MASTER STAMP

Reducing
costs and
increasing
efficiencies Increasing
and
improving
services
Source: Accenture
Research. Note:
143 respondents
across 13 countries
were asked to rate
a range of
challenges on a
three point scale,
where 1= low
priority, 2 =
medium priority
and 3= high priority

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What is Government Shared Services?

MASTER STAMP
Accenture defines true shared services as

the consolidation of administrative or support functions – such as


human resources, finance, information technology and procurement –
from several departments or agencies into a single, stand-alone
organizational entity whose only mission is to provide services as
efficiently and effectively as possible.

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The objective of Shared Services is to optimize the delivery of
cost-effective, flexible, quality services to all “clients”
Shared Services Defined
MASTER STAMP
Achieving Higher Performance
Centralize Shared
d Model Services Combines the best of both models:
Model
Scale & Efficiency

 Reduces redundancy through process and


technology standardization
 Consolidates and redesigns non-core support
functions into service centers
 Redesigns the retained organization and
Distributed responsibilities in the operating units
Model  Drives shared responsibility for results using
two-way Service Level Agreements
 Operates like a business with high focus on
client service and cost management
Service & Responsiveness

85% of the Governments we surveyed believe shared services is or will be


important to supporting their organization’s strategic goals.

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Shared Services allow Governments to “do more with less,” shifting
more focus to value-added services for constituents.
Shared Services help Governments be more client-centered, outcome-oriented and
MASTER STAMP
accountable, by allowing Governments to focus on their core responsibilities and to
operate more efficiently.

Economic Strategic Quality Speed


 Higher productivity  Shift funding/focus from  Improved information  Reduced cycle times:
back office to front office for decision making − Close
 Lower cost location
− Authorizations
 Support meeting  Better customer
 Reduced expenses
increased demand with service − Procurement
 Reduced systems fewer FTE’s − Payments

Reduced error rates -
infrastructure costs 
Achieve process and quality at source − Billing

 Leverage investments systems standardization − Sourcing



Develop centres of
related to ERP systems, 
Enable new/re-organized expertise and
other technology
entities innovation

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While most support functions can be shared, the most common in
Government are IT, Finance and Human Resources.

– Likely Candidates For Shared Services –


MASTER STAMP
• Sourcing • Compliance Management • Travel & Expense Reporting
• Contract Management • Procurement Card Processing
Procurement • Supplier Management • Purchase Order Processing

• Accounts Payable • Fixed Assets • Regulatory Reporting


• Accounts Receivable • General Ledger • Sales Compensation Admin.
Finance • Cash Management • Internal Audit • Stock Option Admin.
• Financial Reporting • Rates & Regulatory • Tax Compliance

• Application Development • H/W & S/W Acquisition • Technology / Development


• Communications • Hosting • Data centre Operations
Information • IT Service Management • Software Design • Application Maintenance
Technology • Technical Support • Standards • Desktop Support

• Training & Education • Employee Records • Payroll Processing


• Benefits Administration • Employee Relations • Recruiting
Human • Compensation • Labor Management • Relocation Services
Resources • Data Management • On Boarding • Talent Management

• Call Centres • Inbound Sales


• Credit & Collections • Returns Processing
Customer • Customer Analysis • Order Management
Service • Customer Support • Outbound Sales

• External Training & Education • Legal • Product Design


• Distribution • Manufacturing • Real Estate
• Internal Communication • Marketing • Warehousing
Other • Inventory Management • Public Relations • Warranty Management

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“World Class” shared services solutions have several
characteristics in common.

High Performing Shared Services MASTER STAMP

Reengineered Processes  End-to-end processes redesigned around best practices


 Effective use of enabling technology
 Low cost

High Performance  Innovative organization and team structures


Organization  Leading edge training and skills development
 High-performance, collaborative management style

Low-cost Infrastructure  Market wages


 Placement for minimum tax structure
 Low cost, standardized technology platform

Highly Integrated  Enterprise-wide solution based on packaged software


Technology Platforms  Incorporation of leading edge technology enablers

 Strategic intent of shareholder value creation


Value-based Strategic Intent  Positioning as a strategic resource
 Supporting strategic corporate direction

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MASTER STAMP

Asante sana.

9 © 2010 Accenture - Proprietary and Confidential