The Kieku program aimed to standardize financial and HR administration processes across the Finnish government to improve quality and reduce costs. A common IT system called Kieku was implemented along with centralized shared service centers. Lessons learned included the importance of senior leadership, communication, and partnership. While standardization enabled productivity gains, integration between the SAP and Logic components of Kieku posed challenges. Overall Kieku achieved the objectives of increased productivity through simplified and automated processes, efficient knowledge sharing through common operating procedures, and harmonized service provision through the shared services model.

1. Sharing Services across Government to improve quality and reduce costsExperience from Kieku-programme 13.10.2010 Mikko Kangaspunta

2. Contents State Treasury in Brief Kieku backround Howwestandardisedprocesses Government service centres in Finland Common application (Kieku) Whathavewelearned (untilnow)? 2

3. Treasury in brief Developer and provider of internal corporate services for central government in partnership with government offices and agencies: - financial and personnel administration processes and data systems, government shared IT services, fiscal administration - pensions and accident compensations for government employees, support for activities to maintain work ability Servicesfor private citizens and companies: - compensation for military injury and criminal damage, guarantees and interest subsidies for home loans, exemption decisions, government yield bonds 600 employees operates under Ministry of Finance 3

4. 4 Drivers for moving to more efficient support services Expectations on Electronic Administration and self-service Economic framework and productivity expectations Retiring population and competition for workforce Financial and personnel administration Evolving management and emerging information needs Development of technologies and service models Impact of regionalisation

7. How we standardised processes 7

8. How we standardised 8

11. 90% of total number bureaus as a customer

12. 13-30% improvement in productivity

13. Target

14. 100% standardisation (phase 2) and 100 % customership

16. 11 Service Centre create consistency in service quality and cost improvement Cost/benefit analysis Customer and job satisfaction surveys Service contract templates Pricing models Follow-up of monitoring of productivity Acquisition of training services Finnish states service centre (as one agency) was established in beginning of 2010 800 employees in six cities

17. Service Centre Locations 12 Kuopio Joensuu, Head Office Hämeenlinna Mikkeli Pori Turku

18. Common Application (Kieku) 13

19. Kieku – new system for government financial and HR administration

20. What Kieku enables?

21. Lessons Learned 16

22. Lessons Learned - in general Start with the end in mind Senior Leadership is essential Take care of Communication Build up Partnerships Be prepared this is totally different from anything you have done before 17

23. Lessons learned- in practise 1(2) Master data: payenoughattention Whoownsstructures, content, rights to update data? Kieku is master for personnel and vendor data Office/substancesystemsaremasters for customer data Team of playersinvolved: who ”drives”? Who is the ”solutionprovider”/integrator? Whatareresponsibilities? Plandependencies on othersystems , projects and changescarefully Have ”planB’s” 18

24. Lessons learned - in practice 2(2) One technology (e.g. SAP) wouldhavebeeneasier to dealwith Challengingintegrationbetween SAP and Logicacomponents But SAP has no solution for Finnishgovernmentpayroll Supportingdifferentcollectivebargainingcontracts One centralisedsystemhasitsownchallenges How to guaranteefutureperformance and continuation? Organizationstructures, codes etc. aremorethancomplex Civilservantmayhavecontractwithmorethanoneoffice 19

25. Meet the programme objectives The common Kieku IT-system enables increased productivity by simplifying and automating financial and HR administration processes Common operating processes with clearly defined roles and responsibilities enable efficient knowledge sharing and ensure high-quality financial and HR administration processes and information. The Kieku IT-system enables harmonized services provision and continuous improvement based on the shared services model as well as supports the agencies core operations and information needs. Productivity Commonality Service andquality Skills

26. Contact www.kiekuhanke.fi kieku@statetreasury.fi