How To Make Shared Services a Success

1. How To MakeShared Services a Success Carol Mills Director of HR University of Liverpool

2. Overview • The pre-requisites of effective shared service partnerships • One model • Learning Points • What can go wrong • If it goes right

3. Pre-requisites • Ownership at the top of all the partner organisations • Shared, clearly stated objectives • Reviewed annually • Performance Management • Understanding local bureaucracy!

4. Pre-requisites • Partnership ethos – long-term • Intelligent client function • understanding/responsive service provider • Penalties and incentives • Long-term service development plans vs short-term gains

5. Pre-requisites • ensure key metrics are known beforehand • Operational SLAs are clear and understood • where does responsibility lay? • where is the service over and under achieving? • What is the level of service demanded? • Measurement to drive quality and standards of delivery

6. Pre-requisites • Governance • What might impact on future delivery? • Cost and recovery of investment • where does “contractual responsibility” sit • if you have a 3rd party provider/partner what are their responsibilities • If you bring on other partners impact on charges and rewards

7. One model – In-house HR functions to focus on strategy and policy and shared service provider focuses on transactional and potentially HR advisory services Examples of share Of activity Exit Services Managed HR Programs Learning Services Performance Services Reward Services Resourcing Services Retained service Competency Definition and appraisal policy Learning Strategy Case Escalation Health & Safety Policy Exit Policies Redundancy Planning Pensions Scheme Policy Resourcing Strategy Target Setting Compensation & Benefits Strategy HR Strategy Shared service area Campaign Planning Agency Management Event and Programme Design Portfolio management Tools and forms design Reporting Provider Integration Benefits Package Design Health & Safety Advice Discipline & Grievance Management Redundancy Programme Policy Exit Package Advice HR Advisory Services Recruitment Process Admin Employee Screening Payroll Administration Redundancy Admin Annual Review processing Promotions processing Absence Management Health & Safety Admin Course Booking Admin Training Evaluation Admin Pensions Administration Exit Administration HR Admin/Transactional Services

8. Learning Points • Negotiators to stay around (memory loss!) • Due diligence – more time & accuracy • Intelligent clients – sufficient staff • Shared benefit – greater clarity • Annual review of objectives • Communications – internal vs external

9. Learning Points • Performance Indicators need to be benchmarked against best • Joint strategic management arrangements • Clarify finances – core; additional; contractual increases; partner investments • Partners need to share the savings pain too

10. What can go wrong • Time input and no outcome • No business case • Resource gaps • All incentives or all penalties • Inadequate client arrangements • Contractual personalities • No ownership or understanding

11. If it goes right • The right fit • Key people on board and senior lead • Client control • Day to day relations • Service improvement focussed • Enhanced relationships • Not IT – BPR emphasis • Skills transfer

12. Contact Details Carol Mills Director of Human Resources University of Liverpool The Hart Building Mount Pleasant Liverpool L3 5TQ Tel: 0151 794 2191 Fax: 0151 794 2456 Email address: Carol.Mills@Liverpool.ac.uk