Grant Farrell, Managing Director of Chazey Partners US - Consolidating Back Office Functions Across A Univerysity System

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Who We Are Definitions & Trends Lessons Learned

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Global Offices Flexible Resource Model
Presentation handout is appended with
more information on Chazey Partners

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What is the
back office?

 Remote from
business
 Unresponsive
and inflexible
 No Business/
Operational
control over
costs
 Viewed as
central
overhead
 Prevalence of
shadow
operations
Centralized
Challenges
 Disparate
processes
 Multiple
standards
 Duplication of
effort
 Different
control
environments
 High cost and
costs unclear
across the
business
 Not scalable
Decentralized
Challenges
 Responsive
to Business
and
Operational
needs
 Business/
Operations
control
decisions
 Customized
solutions to
meet
Business/
Operational
requirements
Benefits Shared
 Highly client
focused
 Commercially
driven
 Service
Partnership
Agreements
 Clear unit costs
 Flexible
delivery
 Clear
understanding
of drivers and
activities
 Common
systems and
support
 Consistent
standards
and controls
 Tight control
environment
 Economies of
scale
Benefits
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Attribute Shared Services Centralization
Accountability Business Unit Corporate
Key Performance
Target
Service excellence
and continuous
improvement
Cost reduction and
central control
Service Partnership
Agreements
Widespread Rare
Classification An independent unit
Another corporate
function
Responsibility Partnership Demarcation
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North America | Latin America | Europe | Middle East | Asia-Pacific
Shared Services is the organization that…
Providing services that are…
Achieve by leveraging…
Employs a
specialist team
Geographically
unconstrained
Client-
focused
High quality Non-core Mission
critical
Repetitive or
professionalLower costHigh efficiency
Organizational
realignment
Technology
Standardization
Best Practices
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Higher Quality
Lower Costs
Improved Control

Recession’s impact on funding
Increasing student fees not enough
Efficient/Effective back office is prerequisite
Several Shared Services examples in higher education sector
Next wave of Shared Services: broader scope, moving up value chain
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Strategic
• No longer a radical idea in the public sector
• Moving from an opportunity to a necessity
• Make It Mandatory and High Profile
• Can Work Across a Large Geography and Multiple Jurisdictions
• Opportunities are “Borderless”
• Core Challenges Unchanged
• Not Just Transactional
• End-to-End, Not Functional
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Structure
• Independence is Important
• Governance Matters
• Create Durable Structures
Business Cases
• Prepare Business Cases
• Recognize Need for Funding
• Infrastructure can be Enabler and Barrier
• Taxes Matter 14

Implementation
• Get control of the budget
• Identify quick wins & strategic opportunities
• Co-Locate Staff
• Client-focused operating model
• Adapt rather than Adopt
• Changing Culture is challenging
• Multifunctional Enabled by New Technologies
• Outsourcing a Mess Doesn’t Clean It Up
• Delivery of Shared Services is Not a Core Government Skill 15

Grant Farrell
Managing Director, Chazey Partners United States
grantfarrell@chazeypartners.com
Mobile: 408-767-1285
Toll-Free: 1-855-5-SHARED
Chas Moore
Managing Director, Chazey Partners Canada
chasmoore@chazeypartners.com
Mobile: 250-469-4168
Toll-Free: 1-855-5-SHARED
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Spring 2008: Mandate to transform the back office to provide 21
Common Services to general government, healthcare & education
Characteristics of Common Services before transformation:
Antiquated payroll system on brink of failure
Significant reduction in workforce through demographics in 5 years
Conservative 25% inefficiency rate in accounts payable and payroll
Decentralized
Multiple information technology data sites
Manual processes
Lack of self service options
Intersol and Chazey Partners hired to provide specialist expertise

In 2008, undertook prioritization exercise to determine which of
initial 21 services were best candidates for transformation
In 2011 undertook second round of strategic prioritization to assess
the next round of opportunities to prioritize
2 new functions
4 new services that were extensions of existing functions
3 out-of-scope opportunities that could be supported by NBISA
Engaged broad cross-section of stakeholders
11 weighted criteria in four categories
(financial, strategic, implementation, impact) were
assessed & scored
Tools used included workshops, Activity Based
Analysis, interviews, and benchmarking

Developed initial scenarios for conceptual design
Based on moving towards leading practices
Considering suitability and do-ability for NBISA
Models considered: Shared Services agency, crown corporation,
special agency, new department, distributed, clusters, status quo
Key tools and activities:
Leading practices diagnostics
End-to-end process design workshops
High level organizational design
Service delivery framework
High-level KPIs & metrics

Savings of $8.8m annually ($32.1m
over six years) net of investments
Other budgets
$6.5m
IT Service Desk
$2.0m (50%)
Accounts Payable
and Payroll
$2.3m (30%)
New support
structure $2.0m
Net Ongoing
Savings $8.8m
Savings Investment Net

KPIs continue to be monitored to drive continuous improvement
Volume of transactions processed
Performance against targets
Quality measures (eg. time to answer calls, abandonment rates)
Customer satisfaction rates
Sample observations
Backlogs in payables measured, explained, and addressed; resulting in
2x proportion paid within terms (average Nov-11 to Jan-12 vs Feb-12)
Working with departments/supplies to address delay between invoice
date and receipt of invoice by NBISA
Client satisfaction trending upwards

Consistent standards of service delivery
Economies of scale, including group purchasing
Sector-wide strategies, enhanced decision making
Organizational improvement and innovation
Opportunities for staff development and
career advancement
Improved staff retention and recruitment
Better access to a pool of scarce or specialist skills & resources
* Adapted from Government of New Brunswick document, Government
Renewal – NBISA Workplan, Spring 2011

New Brunswick is one of Canada’s three Maritime Provinces with a population of 750,000,
supported by a provincial government annual budget of $8 billion. The Government of New
Brunswick engaged Chazey Partners to develop the business case and implement shared
services for several of their administrative functions. The result was the creation of the New
Brunswick Internal Services Agency (NBISA), which initially included four service lines:
Accounts Payable, Payroll and Benefits, IT Services Desk, and IT Operations. The project
started in 2009, lasting three years.
Testimonial from Andrea Seymour, Vice President and COO, GNB
“Phil Searle and the Chazey team has been helping is with our Shared Services program for the last two years and
their support continues today. Chazey Partners initially validated the approach that we were taking in the summer of
2009, as we embarked on this exciting change and value-adding program for Government. They have since been
actively and directly involved in planning, design, testing and implementation.
The initial 4 services deployed were Accounts Payable, Payroll and Benefits, IT Services Desk and IT Operations. The
Chazey team (including Phil, John Martin, Grant Farrell and others) has brought process and domain expertise, as well
as some level of passion for our success. The expert advice and support from Phil has been a major contributor to our
success and the team from Chazey has really become part of our team and has performed a number of critical support
and deployment roles, including comprehensive knowledge transfer. Phil has also been involved with advising us with
our Enterprise Resource Planning initiative and his advice and counsel has been very important to us.
I would personally highly recommend Chazey Partners from my own experience with their team. Indeed, we still
actively use their support today in a number of areas, and as we look to expand the scope of our New Brunswick
Internal Services Agency.”
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We provide advice, guidance, support and implementation
expertise, covering strategy setting, business case production,
program management, outsourcing assessment, process
optimization, technology enablement, training and change
management.
Our functional breadth of experience includes the “big four” of HR,
Finance, IT and Procurement, plus other support services such as
Facilities, Real Estate, Legal, Communications, etc.
Example clients include Coca Cola Hellenic, Coca Cola Enterprises,
Government of New Brunswick, Agrium, May Gurney, Gilead
Sciences, Interior Health, Northern Health, Lawrence Berkeley
Laboratory, FormFactor, National University of Ireland, Bridgestone,
Gerdau, and many others.
Because we are passionate business people and Shared Service
practitioners, we care about your success and deliver solutions
relevant to your organization.
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We have serviced a great variety of clients across many industries and countries,
covering Shared Services and Outsourcing, Business Transformation and Technology
Enablement.
Due to the unique nature of working within the Public Sector and with Non-Profits, we
wanted to specifically highlight the following organizations and experience below:
New Brunswick Internal Services Agency, New Brunswick, Canada
Lawrence Berkeley National Laboratory, Berkeley, California
Interior Health and Northern Health, British Columbia, Canada
Stanford University
University College Galway in Ireland, Ireland
The World Wildlife Fund
The International Baccalaureate
National Health Services (NHS), UK
Health Service Executive (Ireland)
Non-Departmental Public Bodies (NDPBs)
Ministry of Defense (MOD)
South Yuba River Citizens League
Outsourced Services to Local Authorities 28

Phil Searle, Grant Farrell, Chas Moore and Janey Jux have chaired, arranged,
presented at and facilitated workshops at a number of Public Sector Shared
Services events, including the following:
• Shared Services in the Public Sector at the Queen Elizabeth II Conference
Centre in London
• Chaired, presented at and help organize the Shared Services and Outsourcing
Network‘s first North American Public Sector shared Services Conference, held
in Chicago in November 2011
• Presented at and helped organize the Shared Services and Outsourcing
Network’s second North American Public Sector Shared Services Conference,
held in Chicago in November 2012
• Delivered a master class at the “Managing Change – Transforming the Public
Sector” conference at the Barbican Centre, London 2011
• Chaired and presented at the 2012 “Power of Collaboration” conference for
financial professionals in BC Healthcare at Vancouver, Canada 29

Public Sector Shared Services and “Collaboration vs. Sharing”. Phil Searle, CEO Chazey Partners
What might be the Impact of the 2012 Presidential Election on Shared Services and Outsourcing in
the US Public Sector? Phil Searle, CEO Chazey Partners
Are you getting the SPA treatment? Chas Moore, Managing Director, Canada
From front to back office. Grant Farrell, Managing Director, United States
Proactively managing your stakeholders. Janey Jux, Head of EMEA Public Sector Practice
Make or Buy Decision. Phil Searle, CEO Chazey Partners
What are Shared Services Best Practices? Phil Searle, CEO Chazey Partners
When is Shared Services not really Shared Services? Janey Jux, Head EMEA Public Sector Practice
Business Continuity Planning. Grant Farrell, Managing Director, United States
Client Relationship Management Framework. Grant Farrell, Managing Director, United States
Deploying Shared Services. Grant Farrell, Managing Director, United States
Developing the Business Case. Chas Moore, Managing Director, Canada
Shared Services Optimization. Phil Searle, CEO Chazey Partners
Technology Enablement. Grant Farrell, Managing Director, United States
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Business Transformation
We help clients to transform their
support functions to realise
significant benefits (lower costs,
optimised working capital and
improved performance) through
best practice process development
and roll out of optimal organisation,
support and delivery structures.
Functional scope covering Finance,
HR, IT and Procurement
Identify and target opportunities,
and produce powerful business
cases to reflect the opportunity and
gain organisational buy in
Implement and support approved
transformation initiatives rapidly to
drive maximum ROI
Effective acquisition integration and
business divestitures
Powerful project and change
management, focussing on delivery
and outcomes
Chazey Partners’ Profile • What We Do
Shared Services
Planning for, resourcing and
implementing global and regional
Shared Service Organisations (SSOs)
covering a wide ranges of functions
and processes including offshore
solutions
Turning round sub optimal or failing
SSOs
Statutory and Fiscal compliance
delivered by SSOs for multiple
countries and legal jurisdictions
Independent of any outsourcing
providers, we offer impartial
sourcing advice and support
covering both internal and external
options, to ensure that the best
solutions for your business are
found
Training and development for
Shared Service practitioners and
Shared Service customers
Technology Enablement
Implement and optimise ERP and
other technology enablement
solutions to maximise return on
investment and in quick time.
Focussing on needs and value to the
business, we view technology as an
enabler and not an end in itself.
Resource technology projects to
enhance chance of success through
an optimal mix of IT, Business
Systems Analysts, Business Process
Integration, Business Process
Owners, and Users
State of the art additional
technology enablement where
required
Effective training and support
Experience includes SAP, Oracle, JD
Edwards, BAAN, Siebel, Peoplesoft,
COINS and many others
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AS-IS
Carry out multiple site visits and
workshops
Review and catalogue any
existing process & sub
processes
Review a catalogue technology
landscape
Complete Activity based
Analysis
Finalise stakeholders interviews
Review existing reporting tools
and mechanisms
2 to 4 weeks
Current State
Analysis:
Summary of Key
Findings & Gap
Analysis
Proposed
Complete best Practice
diagnostics
High level process design
High level org design
Service delivery
framework
Define high level KPIs and
Metrics
Develop high level
operating model
Finalise Technology
assessment
4 to 5 weeks
Operating Model :
To Be Processes
& Organisational
Design
DESIGN, BUSINESS
CASE,
RECOMMENDATION
5 to 6 weeks
Opportunity Matrix
Business Case Evaluation
Location
Recommendations(s)
Recommend Governance
Framework
Implementation Plan
Change management Plan
Identification of next steps
Recommendation,
Business Case &
Implementation
Plan
Checkpoints with key stakeholders:
 Project Board
 Steering Group
Key
Deliverables
BASELINE &
BENCHMARK
Project kick off &
mobilisation
Establish detailed plan,
timelines, key deliverables
etc. for this stage
Review output from work to
date
Initial Communications
Review and update baseline
Calculations
Complete Further
Stakeholder interviews
KeyActivitiesWorkstep
0 to 2 weeks

As-Is (4.0)
Considered finance function, not part of procurement
Manual invoices
All payments in through single SAP ERP
Accounts payable responsibility centralized
Weekly cheque runs plus ad hoc
No statistical review of small invoices
Manual cheques infrequent
Achieve 50% of available vendor discounts
EFT not used
To-Be (8.0)
Achieve leading practices except:
Continue with manual invoices (initially no funding
for document management/scanning solution)
EFT only possible for 30% of vendors
Is part of an end-to-end purchase-to-pay process with
front end transactional processes designed to
minimize own stream error correction
Scan and route 100% of invoices when received by
accounts payable processing center
Process all payments through a single system.
Centralized accounts payable responsibilities across
the organization
Optimize number of check runs each month.
Review 100% of large dollar invoices and statistically
sample the remainder
Eliminate manual cheque request generation.
Maximize vendor discounts
Utilize EFT for payment to eliminate use of paper
cheques
0 4 102 6 8
Diagnostic Rating Scale:
• 1 = Leading Practice is not adopted
• 10 = Leading Practice is adopted in full
Score in Range 1-4
Score in Range 5-7
Score in Range 8-10
Current Future
Leading PracticeObservations

Balanced
Scorecard
Creation of
Service Partnership Agreements
Delineation of roles and
responsibilities
between SSO and other functions
/ local regions / businesses
Standardised processes and sub-processes across
all functions
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Beliefs Behaviours
Customer
Focus
“By understanding the needs of my customers, I
can improve the service I offer them’’
· Know who our customers are and what they need
· See things through our customers eyes
· Go out of our way to deliver what our customers want
Accountability
“My actions and performance directly impact
the performance of others”
· Gives and receives feedback openly
· Performs tasks effectively, even under time pressure
· Understands, and acts to support, wider business
objectives
Team
Commitment
“Everyone in the team has something valuable
to contribute”
· Takes collective responsibility rather than attributes
individual blame
· Supports those who surface problems
Innovation “Everything we do is open to challenge and
improvement”
· Demonstrates ability to identify opportunities for process
improvements
· Provides solutions, not just issues
Flexible ‘’My way is not the only way’’
· Sees change as an opportunity and not a threat
· Open to alternative approaches and working styles
· Openly shares knowledge within the group
Organised
“Prioritisation ensures that I deliver my
workload and still get involved in other
activities”
· Sees each job through to completion
· Completes processing in an efficient and effective manner
· Recognises the cost implications of all actions
Learning
“My proficiency directly impacts the ability of
the SS to deliver"
· Is motivated to take on new challenges and develop new
skills
· Shares skills and experience to build team capacity
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Grant Farrell, Managing Director of Chazey Partners US - Consolidating Back Office Functions Across A Univerysity System

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Grant Farrell, Managing Director of Chazey Partners US - Consolidating Back Office Functions Across A Univerysity System