Vice Chancellor Matt Fajack presents his ideas regarding the launch of a shared services center in the Division of Finance and Administration.

1. The Service Center of
Excellence
The Division of Finance and Administration
August 2015
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2. What is a Service Center
of Excellence?
 The Division of Finance and Administration’s
name for its shared service center
 Educational Advisory Board’s definition of
shared service centers:
“Models for providing business service delivery
within an individual institution, whereby a single
provider absorbs transactional activity previously
performed by generalist staff across campus.
Through simplification, consolidation and
automation, these task-specialized models
leverage economies of scale to increase service
quality of back-office functions.”
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3. Service Center of
Excellence Team
 Meredith Weiss, Senior Associate Vice
Chancellor for Finance and Administration
 Carly Perin, Director of Finance
 Bill Stockard, Director of Human Resources
 Ray Reitz, Director of Information Technology
 Allison Reid, Director of Marketing and
Communications
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4. 4
Initial Stages Full Implementation Maturity
Institutions Implementing SSCs

5. Shared service centers are designed to capture the efficiencies available through
consolidated services, but still remain accountable to the customer.
• Higher costs
• Variable standards across
departments
• Different control
environments
• Duplication of effort
Decentralized Services Shared Service Centers Central Services
• Independent from schools/units and
central administration
• Pooled experience
• Enhanced career progression
• Lean, flat organization
• Specialization
• Dissemination of best practices
• Environment of continuous
process improvement
• Perceived as unresponsive
• No school/unit control of central
overhead costs
• Inflexible to school/unit needs
• Remote from customer
• Schools/units maintain control of
decisions
• Recognition of local priorities
• Responsive to customer needs
• Common systems, policies and
procedures
• Consistent standards & control
• Economies of scale
• Critical mass of skills
Through regional distribution around campus, a governance board, Service Level
Agreements and ongoing metric assessment, shared service centers will maintain high levels
of responsiveness and service to their customers.
How are shared service centers
different than central services?
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6. Service Centers combine advantages
of centralized and decentralized orgs
Most appropriate when...
• Staff advise units on
crucial business decisions
• Co-location improves
effectiveness
• There are efficiency gains
with scale
• Activities require expertise
in a particular field
Most appropriate when...
• Activities are
transactional
• Activities have high level of
standardization
• Benefits from
coordination across units
outweigh unit-specific
expertise
• Cost-savings outweighs
benefits from physical
proximity
Most appropriate when...
• Activities influence
university-wide policy
or strategy
• Activities require
appropriate monitoring
and controls
of units
• Cross-unit initiatives must
be managed
In Central
Administration
In a Shared Service Center
Most appropriate when…
• Activities influence unit-
specific philosophy or
policy
• Benefits from unit-
specific expertise
outweigh benefits from
centralization
• Increased accountability,
proximity and flexibility
to a unit outweighs
benefits of lower cost
In the units
Transaction Center Expertise Center
• Improved capturing of economies of scale
• Higher service levels and customer
satisfaction due to market-based
relationships and increased customer
orientation
Benefits of Shared Service Centers:
• Increased standardization and better
use of new technologies
• Increased skills and competencies of
staff with better career paths 6

7. Service Center of Excellence
Guiding Principles
Service
Excellence
Innovation and
Continuous
Improvement
Collaboration and
teamwork
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Healthy, High-
Performance Culture
Prudent Management
and Leadership

8. What might be in a
service center of excellence?
What services will be provided in the various organizations?
We need your help to define the specific
services provided by our Service Center of
Excellence. Participate in our information-
gathering meetings, focus groups and activity
assessment survey.
Financial transactions and
consulting
Human resources transactions and
consulting
Communications
Information Technology
What organizational structure and reporting relationships
will exist?
Service center staff will report to service area directors.
Service center directors report to senior associate vice chancellor for finance
and administration.
Advisory/governance committees will be in place for each service center.
Service level agreements with AVCs.

9. The Planning Process
 Information gathering:
Conduct research
 Staff survey of time spent on activities
 Information gathering meetings and focus groups
 Planning:
Work with F&A staff and advisory groups to design
service center and processes.
 Staff at departments
 Staff at shared service center
 Staff at central administration
 Implementation:
Implement Service Center of Excellence
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10. Announcement of
Service Center of Excellence
July 2, 2015
Kick-off Meeting
August 13, 2015
Advisory Committees Formed
Services Plan Complete
Personnel Actions Begin
Implementation
Complete
Information Gathering
July - September
Staffing Plan Complete
Staff Relocation Plan
Phase 1 Summer 2015 Phase 2 Fall 2015 Phase 3 December 2015 – Spring/Summer 2016
Project Planning
September - December
Project Implementation and
Continuous Improvement
December 2015 – July 2016
The Timeline
Core Transition Teams
Implemented

11. EMERGING FEEDBACK
PEOPLE ARE EXCITED ABOUT:
 Better reporting.
 System and service improvement.
 Gaining operational consistency.
 New services.
 Access to expertise.
 Project and consulting help.
 Opportunities for career development
and cross-training.
 Strategic planning support.
 Business process improvement.
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12. EMERGING FEEDBACK
ISSUES OF CONCERN THAT
WE NEED TO ADDRESS:
 Relocation of staff raises concerns of proximity,
responsiveness and subject matter expertise.
 Role of job specialist vs. generalist.
 Unknowns related to changing job responsibilities,
autonomy and reporting lines.
 Resource control.
 Services provided vs. services left at unit level.
 Source of funding.
 Change fatigue.
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13. EMERGING FEEDBACK
MUST HAVES TO BE SUCCESSFUL:
 Communication and transparency.
 Advisory committees to ensure needs are being
met.
 Metrics.
 Meaningful ownership by staff of the transition
process.
 Adequate funding.
 Training and professional development to support
new roles.
 Director and staff support.
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14. Frequently Asked Questions
 Anticipate and mitigate risk
– Listen and encourage open honest two-way communication
 Accelerate adoption
– Engage key influencers early and at all levels within your organization
to build an uninterrupted commitment
 Make this your top priority
– Invest sustained attention, personal credibility and political capital
and assign the best people with sufficient time to serve in key roles
 Establish a ‘fair process’
– Empower people to make proposals and apply a transparent
decisions process
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 Will Service Center of Excellence employees
be placed or assigned from their existing unit,
or will a search occur?
 What if the work that I currently do is being
moved to the Service Center?
 Where will the Service Center be located?
 How will the Service Center improve service
in my area?

15. What can you do?
Speak Up.
– Give us your feedback as you learn more about the process.
Survey located at https://sharedservices.unc.edu/.
Take ownership.
– Influence the direction of this transformative initiative.
Participate.
– Join committees, take surveys and participate in focus group
conversations.
Educate.
– Learn more about the process as we update the website at
https://sharedservices.unc.edu/.
Ask questions.
– Email us with any questions.
Fasharedservices@unc.edu
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16. Discussion
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