SACUBO 2013 ANNUAL MEETINGHYATT REGENCY-ATLANTA

APRIL 23, 2013

One University System’s Journey to Implementing a Shared Services Initiative

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

Successes & Lessons Learned Value of Change Management & Communication to

Stakeholders Shared Governance Benefits Standardizing Business Processes

University System of Georgia (USG)Who We Are

31 colleges and universities 4 research universities 2 regional universities 12 state universities 13 state colleges

Also Includes: Skidaway Institute of Oceanography Georgia Public Library System University System Office

USG Shared Service Center (SSC)Who We Are

Location 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 support areas through shared services

Reengineer processes utilizing best practicesUpgrade systems to latest technology to

automate and streamline manual processesEnhance specialized knowledge through

training and skills developmentStandardize processes, policies, and

procedures to minimize variability and errorsIncrease 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: 28 universities & colleges (of the total 31) Plus Skidaway Institute of Oceanography, Georgia

Public Library System & the University System OfficeSSC shares transactional tasks with campus HR,

Benefits and Payroll practitionersSSC manages the relationship with Third Party

HRMS Vendor (ADP)

Implementation Timeline:Shared Services Concept Planning

Hackett

Benchmarki

ng Study

Accenture

Study

Board of Regents Approve

d Shared

Services Strategy

RFP Process and Third Party

Vendor Selecti

on

June 2007 January 2008 June 2008 ~July 2008

Study showed USG not best in class in financial & HR/payroll operations

Study recommended adopting a shared services approach

ADP selected – Time & labor,Benefits processing, Payroll Processing (incl. tax, garnishment)Retiree benefits direct bill, COBRA, Employee On-Line Self Service, etc.

Shared Services Center Site

GO LIVE Third Party Vendor (ADP)

Shared Services Center moves to

Permanent Building

Begin Phase 2 : Payroll

Centralization

Implementation Timeline: Shared Services Center Start-Up

Sandersville, GATemporary building

14-month Implementation

“Big Bang” all 34 entities at once

SSC expands service offering to include more payroll processing-related tasks

March 2009 August 2009

April 2010

August 2010

Implementation Timeline: Shared Services Center Stabilization

Employee/ Retiree Call Transition Project started

Campus Consolidation

Project announced

Common Remitter Go Live

University System Office Payroll

processed at SSC

July 2011 January 2012 April 2012 January 2013

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 CenterGovernance & 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: 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) 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 implementationInvolve 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

Successes & Lessons Learned

Allow sufficient timeline for successful system planning, 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 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 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

Questions

University System of Georgia Shared Services Center:• Becky Prince – Director bprince@ssc.usg.edu • Diane Kirkwood – Associate Director Payroll &

Benefits dkirkwood@ssc.usg.edu • Julie Harris – Program Manager jharris@ssc.usg.edu