Exploring the new Exploring the new Service Frontier Service Frontier The Gauteng Shared Service Centre
Objectives Objectives • To explore the Concept of a Shared Service Centre • To explain the how Gauteng is applying the concept • To share challenges thus far
How did it all start? How did it all start? • During 1998 Gauteng Province reviewed the reasons for non delivery, to its constituency • Several issues were identified – but a major one was the inefficiency and lack of effectiveness, of support services, which in turn impacted on core service delivery. The cost of running support services was too high, delivery too low • A Shared Service Centre was proposed as a solution • The decision to implement a SSC was validated in October 2000 and the detailed design began thereafter • The Operationalisation of the GSSC begins next month
Working Definition of a Working Definition of a Shared Service Centre Shared Service Centre “The concentration of company resources performing like activities, typically spread across the organisation, in order to service multiple internal partners at lower cost and with higher service levels, with the goal of delighting external customers and enhancing corporate value” “Shared Services: Schulman, Dunleavy, Harmer and Lusk”
The Best of Centralisation and Decentralisation Shared Pooled Experience Enhanced career progression Unresponsive Independent of Bus unit Common Higher costs business maintains support No business unit control of systems control of Variable standards Synergies decision overhead costs Economies of Different control Lean flat Sensitive to scale Inflexible to environments organisation local priorities business unit Critical mass needs Duplication of Recognition of Responsive to of skills effort group functions Client needs Remote from business Dissemination of best practices Decentralisation Centralisation
Typical Value Proposition Typical Value Proposition • A common (and often better planned) approach to delivering services (“support” services become “core”) • An increase in productivity through streamlined work design (processes) • A more cohesive platform on which to leverage enabling technologies for longer term quantum improvements • A reduction in operating costs (we can do more with the same or less) • Better career pathing for involved employees, through a concentration of roles and opportunities • Opportunity to recognise provincial risks or opportunities to improve service delivery at a coordinated level • Increased governance and functional accountability
Why a Shared Service Why a Shared Service Centre in Gauteng? Centre in Gauteng? Departments relieved of support functions – therefore allowing a greater allocation of resources and focus on core service delivery
Why a Shared Service Why a Shared Service Centre in Gauteng? Cont. Centre in Gauteng? Cont. Vision – Create a Centre of value for GPG by providing: • Premier Customer Service at Competitive Cost advantage • Enabling Technologies • Accurate information for decision making • Opportunities for employees to learn, grow and contribute to the business
GSSC Vision GSSC Vision “To be the service provider of choice for transversal services for the public sector in Gauteng, through delivering high quality service to our customer” • and its strategic intent is “..to deliver a world class reference site with the best of breed practices, procedures and systems that provides enterprise wide support services to the public sector.”
Which services will be Which services will be offered by the GSSC? offered by the GSSC? •Finance •Human Resources • Procurement •Technology Support Services, •Internal Audit
How does it work? How does it work? Functions move to GSSC Dept 1 Dept 2 Dept 3 Dept 1 Dept 2 Dept 3 HR HR HR HR HR HR Fin Proc Fin Proc Proc Proc Fin Proc Fin Proc Fin Fin GSSC services
What kind of services will form part of the GSSC? The scope of the GSSC includes services that are non-core, internal, repetitive, high volume, low value and transactional - based in Finance, Human Resources, Technology Support Services, Procurement and Internal Audit. Centres of Scale for processing Centre Service Characteristics High Volume and Repetitive : Reduced costs through : Standardised Service Requirements Centralisation, process re-engineering, Common across all GPG departments e.g. standardisation, and technology applications • Accounts Payable • Payroll • Data Processing • Lease Administration • Salary benefit & transfers Service Characteristics Centres of Excellence Technical expertise necessary Leverage expert advice across the GPG Every GPG department can’t afford to have it’s own expert e.g. • Internal Audit • Labour Relations advice • SME Vendor Development
Design principles Design principles • Process orientation • Flat structure (“Broadbanding”) • Naming protocols for roles to function focused • Empowerment-direct line of site to client • Technology rich • Client Centred • Equitable distribution of limited resources
Human Resource Management Services Human Resource Management Services Example: Process Scoping and its application Example: Process Scoping and its application Level 1 HR Planning, Source Reward Develop Human Redeploy and Policy and and and and resource and Retire Management Select Retain Counsel Organisation Development Level 2 • HR policies and • Recruitment • Personnel • Training and • Transfers • Human procedure administration development resource • Selection •Terminations development programmes development • Service benefits • Induction (systems, •Strategic planning administration •Career and approaches, succession •Strategic business •Salary tools, etc.) planning partnering administration •Organisation •Employee well- • Establishment •Performance development being Administration management (systems, •Labour relations •Change and project approaches, management tools, etc.) • HR information •HR Communications
Human Resource Services Human Resource Services Organisation Structure Organisation Structure Processing Centre of Excellence GM: HR Services Manager : HR Manager Org. Manager: Senr. Manager HR Manager: Manager: Planning, Policy Struct. Design Manager: Manager: Mngnt. Support and Org. Source & Employee and Info. & Reward & Retain Terminations (SMS) Development Select Relations Management Implementatio n HR COE TL: HR HR COE TL: HR HR HR COE TL: HR HR HR COE TL: Policy & Proc. EAPs Processing Processing TL Org. Processing Processing Org. Struc. & Dev. Specialist: Terminations Development Team TL: Source Job Design HR COE HR COE Spec: HR COE Spec: HR SMS Leader: and Select HR Specialist: EAPs HR COE Spec: Org. Development Policy & Proc. Dev. Reward & HR Processing HR COE TL: HR Org Struc & Job Retain Processing HR COE T L: Practitioner: HR COE TL: Development Design HR Practitioner: Labour Relations Terminations HR Information Processing Source and HR COE Spec: HR COE TL: HR COE Practitioner: HR COE Select HR Estab. Admin. Specialist: Reward & Specialist: HR Development Labour Retain Information HR COE Relations HR COE TL: Change Spec: HR COE TL: & Project Man. Estab. HR Communication. HR COE Specialist: Admin. HR COE Specialist: Change & Project HR Communication Man. HR Processing TL: HR COE TL: Generic Persal Training and Induction HR COE HR COE Specialist : Practitioner: Persal Generic Training and Induction
Some interesting information… Some interesting information… • Around 3700 employees in scope – currently performing functions • GSSC will require roughly 1600 to deliver same or better • 92 Sites will be migrated to GSSC • process over 700 000 CV applications • procure more than R4b worth of goods and services • answer more than 100 000 calls per month • Handle more than 250 000 pieces of hard copy mail
What have the challenges What have the challenges been? been? • Labour: resistance to changes, lack of capacity • Poor management support • Lack of performance ethos – establishing a world class operation required performance driven people • Transversal systems have limited application • Lack of accessible information/intelligence • Concomitant objectives: economic efficiency and service delivery – fear that of consequences • Environment rewards rule followers not rule makers. Extreme systemic risk aversion
What do the next 12 months What do the next 12 months hold? hold? • Stabilise! • Create culture of “can do” • Do the basics right first – “payslips on desks” • Focus on low hanging fruit (Pareto principle) • Build competency and client orientation • Benchmark and improve service delivery
Questions?
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