Shared Services in the Public Sector

1. National Aeronautics and Space Administration Shared Services in the Public Sector Richard Arbuthnot Executive Director NASA Shared Services Center August 16, 2010 www.nasa.gov

2. Agenda • What is Shared Services? • Why Shared Services? • The NSSC Vision and Mission • NSSC Operations/Financial Profile • Lines of Business • Performance Scorecard • The NSSC’s Successes • The NSSC’s Key Challenges

3. What is Shared Services? • A business model for delivering support services • Centralization is not shared services • Consolidation is not shared services • How shared services differs from other business models • Cost is transparent • Service is transparent • A disciplined approach to delivering support services • Structured management of customer interactions • Sustained and systematic focus on customer service • Entrepreneurial approach to solving problems and leveraging opportunities • Fee-for-service drives a balance between service and cost • Business intelligence and data-driven decisions

4. Why Shared Services? • Support costs reduced by 20-30% • Consolidation of services into a single efficient organization reduces duplication of overhead functions • Shared services’ core tenets lead to more efficient service at significantly lower cost • Improved services • Cross-cutting infrastructure, such as the NSSC Customer Contact Center, Customer Service website, Document Imaging, and Service Recovery Plan, adds structure and consistency to service delivery • Leveraged buying • For example, Enterprise License Management provided cost avoidance of $2.45M in year one • Improved processes • The NSSC redirected $4.3M by using purchase cards in lieu of purchase orders to pay for external training

5. Why Shared Services? (continued) • Standardization • Consistent interpretation and application of policy ensures equity, and standardization makes it easier to improve processes, fix problems, and infuse technology • Better use of technology • High volume makes it easier to identify and prioritize system changes; consolidating work and standardizing processes make it easier to architect and implement technology solutions • Full cost of service delivery is captured • A well-documented chargeback model with defined business rules to capture and identify major cost drivers

6. Why Shared Services? (continued) • Core business processes are well documented • Use of Service Delivery Guides, Service Level Agreements (SLAs), and Services Catalog • Data integrity and consistency • SLA managed and performance monitored with metrics captured in a Business Intelligence Data Mart • Balance of policy, process, service, and cost • Results in managed demand that changes consumption patterns and evaluation of the financial impact of policy and process decisions

7. National Aeronautics and Space Administration What is the NASA Shared Services Center (NSSC)? • A NASA Headquarters organization located at Stennis Space Center, MS • Consolidates activities into a separate, independent NASA Service Center • Performs a variety of transactional and administrative activities in four lines of business: • Financial Management • Human Resources • Information Technology • Procurement

8. The NSSC Vision and Mission

9. Supports All NASA Centers Customers Served 18,000 Civil Servants 62,000 Support Contractors and Vendors

10. Public/Private Sector Partnership Partnership between CSC and NASA CSC referred to as the Service Provider (SP) Working Capital Fund Operating Budget ~ $70M An important local economic initiative Civil Service: 130 Service Provider: 388 Total Staffing: 518(Data as of July 2010) NASA Civil Service (25%) Service Provider CSC (75%)

11. The NSSC’s Financial Profile • NSSC Return on Investment • Agency’s $30M financial investment paid in full by 3rd Quarter FY09 • Currently exceeding the initial savings projections of $6 to $8 million per year and on track to recognize savings in excess of $12 to $16 million a year • NSSC is a Working Capital Fund (WCF) fee-for-service organization • NSSC’s total operating budget for FY10 consists of $75.2M ($58.4M services, $16.8M training) in the WCF and $100M in non-WCF

12. The NSSC’s Financial Profile (continued) • Fee-for-service supports the shared services business model • Matches cost, consumption, and service • Promotes transparency of cost and services • Supports goal of operating in a business-like manner • Customers modify behavior to achieve the optimum balance between service and cost • Promotes a long-term approach to asset management • Encourages process efficiencies

13. Lines of Business • Transitioned 52 activities from March 2006 to September 2009 • FY06: 27 activities FY08: 6 activities • FY07: 15 activities FY09: 4 activities • Human Resources • Processing personnel actions • Maintaining employees’ personnel records • Employee benefits, advice, and services • Processing training requests • Maintaining HR systems • Employee drug testing

14. Lines of Business (continued) • Financial Management • Employee travel (foreign and domestic) • Employee relocation services • Accounts Payable (AP) • Accounts Receivable (AR) • Payroll • Financial statements • Procurement • Consolidated contract management • Grants processing

15. Lines of Business (continued) • Information Technology • Outsourcing Desktop Initiative for NASA (ODIN) • Agency Consolidated End-User Services (ACES) • NASA Operational Messaging and Directory (NOMAD) • Enterprise Licensing and Seat Management • Agency Print Manager • Enterprise Service Desk (ESD) & Enterprise Service Request System (ESRS) • System for Administration, Training, & Educational Resources for NASA (SATERN)

16. Cross-Cutting Support Required for NSSC Services • Document Imaging and Management Service • Customer Contact Center • Self-Service Customer-Focused website • Business Office supporting facilities, budgets, chargeback processing, and customer communications • IT Infrastructure and Business Applications support

17. Data Driven and Performance Measured

18. The NSSC’s Successes • August 2010: Corporate Executive Board “Force of Ideas” award winner – Advanced Service Center Category – award recognizes best demonstrated practices, key business processes, and the creation of sustainable, measurable value. • March 2009: Best New Captive Shared Services Organization Excellence Award Recognizes the most successful shared services organization launched within the last three years; Nationally recognized as the highest accolade for shared services organizations; and Runner-up: Wal-Mart Stores, Inc. • January 2009: Help Desk Certification by Help Desk Institute • March 2008: Government Information Technology Executive Council (GITEC) Project Management Excellence Award in the category of Cost Savings / Cost Avoidance • March 2007: 2nd Place - Best New Shared Services Organization Excellence Award

19. The NSSC’s Key Challenges • Enterprise Service Desk / Enterprise Service Request System • Improving the quality of our communications across all channels • Institutionalizing responsiveness • Stabilization • Capital investments • Managing the NSSC portfolio • Striking the appropriate balance between policy, process, service levels, and cost

20. Questions

21. NP-2006-08-00108-SSC