# Presentation: 423164

## Shared Services for a More Effective Government 

- Shared Services for a More Effective Government

**North America Day 2005 **
**March 16-18, 2005 **

**Jim Alexander**
**Executive Director, IT/IM Stewardship**** **
**Chief Information Officer Branch ****/ ****Treasury Board of Canada, Secretariat **

## Recap of Progress

**CISD ****Recommendations**

**April 2004**
**Ministers Directive**

**2003**

**March 2005**

- The government adopt a shared services approach to the delivery of finance, materiel and HR services supported by common business processes and a common configuration on a single suite of applications hosted and managed by a common application hosting and management service.

- 2003 Budget Speech addressed the need for Expenditure Management Reviews and spoke to good government.
- Led to the TBS Common Infrastructure and Service Delivery Review (CISD)

- Ministers authorized proceeding to the next steps - validation of CISD findings and preparation of implementation recommendations:
- “**Propose **_**implementation strategies**_** for a more common approach to the delivery of services across departments and agencies**
**Propose **_**management and governance models**_** of the development and delivery of these services**
**Propose strategies for implementing  **_**standardized approaches to reporting**_** expenditures, service levels and outcomes**
_**Identify savings targets and timeframes**_** for their achievement based on moving to common services**
**Propose **_**strategies for harvesting and reallocating the savings**__.”_

- Longer term transformation vision
- Opportunities and priorities targeted
- Expected outcomes identified
- Risks and mitigation strategies
- Implementation strategies, including early projects
- Resource implications, including investment needs and harvestable savings
- Governance blueprint
- Community support

## Findings: Complexity 

- Findings: Complexity

- 7 different financial / materiel and 14 different HR applications in use
- Approx. 800 significant interfaces to other systems
- 315,000 workstations for approximately 250,000 staff
- More than 100 Data Centres

- Pressure for better information, more transparency, more agility, etc.
- Government-wide reforms (PSMA, MAF, new Comptroller General functions)

- Many horizontal initiatives (GoCM, E-Travel, E-Learning, Secure Channel, etc.)
- Expenditure Reviews
- Departmental initiatives

- 94 departments and agencies
- 40,000 FTE’s identified in Internal Services of HR, Fin, Materiel and IT

- Approx 30% of IT staff located in Regions
- Approx 55% of Finance and HR staff located in Regions.

## Findings: Improvement Potential

- Individual departments operate using varying business processes and service models for very similar processes (e.g. accounts payable).
- Horizontal initiatives underway but with limited overarching enterprise-wide strategy.
- Limited or fragmented self-service / workflow at odds with best practices.
- Significant savings (~ 20%) from a move to GoC-wide shared services based on common processes and a single integrated system solution.

**Information ****Technology**

- Individual departments perform at “average” in comparisons: could do better as Enterprise.
- Cost model in GoC is inverse of other organizations (high investment in people, low investment in technology solutions for service delivery).
- Significant savings (~ 20%) if benchmarked departments were aggregated for IT service and operated as Enterprise.

**Corporate ****Administration**

- Expensive and time-consuming (e.g. ERC exercise) to get reliable GoC information.
- Common GoC Chart of Accounts but with significant variations in departmental usage and interpretation.
- No common GoC vendor or inventory/asset numbering approach.
- Current consistent government-wide information only possible with enterprise business processes, information definitions and support systems.

**Enterprise information**

**Community**
**Feedback**

- Significant community support for enterprise approach.
- ...but differing perspectives and willingness from HR, IT and Finance communities

## Findings: Potential Shared Services

- GoC annual expenditures $10-11B annually in IT Services and Corporate Admin Services
- Functional areas chosen for potential of:  savings, streamlining, contributions to improved operational & strategic program decision support.
- Based on internal studies and experience of other jurisdictions and private sector

## Internal Services 2010...

## Departmental View – April 2007

- Financial and HR transactional services provided to Wave 1 departments by Shared Service Organization under Service Level Agreements, following common business processes with common information definitions
- Very limited business process reengineering in first release, but all Wave departments using common processes and information definitions
- Employees and managers accessing common desktop configuration, common email system across Wave 1 departments
- Employee Portal provides access to some or all of On-line Leave, Shared Travel, GoC Marketplace & Benefits
- Integration with departmental Intranets will be limited
- Single log-on will likely not be fully implemented across IT and other Internal services
- Information Services provide managers with current information on resource utilization integrated across HR and Financial areas
- Transparency of costs for internal services.  Costs and efficiency for coming years identified

## New Roles in GoC Service Delivery

- New Roles in GoC Service Delivery

**Service Canada**

**PWGSC**
***Real Property, Receiver General***
***Acquisition & Travel***

**Corporate Admin**
**Shared Services**
***HR, Fin, Materiel***

**IT Shared Services**
***Desktop, Data Centres, ***
***Secure Channel,***
***Networks***

**Citizens, Business**

**Single Shared Service Organization**

## Internal Services Transformation: Roles

***Central Agency Leadership:***
***Policy, requirements, common processes***

- Shared Internal Services Delivery

- Internal Systems Solution
- Development & Configuration

- Internal Systems Operations

- Desktop & Data Centre
- Services & Systems

***Shared Service Organization(s)***

**Shared Services**
**Scope**
**Unified Business**
**Requirements;**
**Streamlined Common Processes**

- Departmental Corporate &
-  Program  Requirements

- Departmental Services
-  & Systems

**Requirements**

**Services Delivered**
**System Interfaces**

- Financial Services

- Materiel Services

- Acquisitions Services

- Resourcing Services

- Compensation Services

- Classification Requirements

- Benefits Services

- Labour Relations Services

- IM/IT Services

**Alignment for **
**Integrated Streamlined**
**Internal Services**

## Getting Started: To March 31, 2007

- Getting Started: To March 31, 2007

## Timeline: Key Initiatives to 2007

**April 2005**

**April 2006**

**April 2007**

**Identify**
**Initial**
**Depts**

**By Dept –**
**Baselining**
**Planning,**
**and Design**

**Continuing**
**Operations**

**In Depts: **
**Manage legacy to shutdown**

**In Depts: **
**Adapt to new**
**Processes and interfaces**

**SSO Operation**
**and Transformation**

**Operate New**
** ****/ Transform**

**Finalize**
**Division of **
**Resources**
**and SLAs**

**Determine common**
**business processes**

**Standardize Information Definitions & Develop Information Services**

**Develop Integrated System Solutions & Employee Portal**

**Communications & Change Management – engagement of staff, bargaining agents and leadership**

**Enterprise Architecture and mandatory services to drive alignment**

**Develop Common Distributed Computing and Data Centre Service**

## Cultural Change
Experience from other jurisdictions and private sector indicates this is biggest challenge
Measured pace of initiative with strong change management focus required
Human Resources and Regional Impacts
Considerably fewer staff needed as a result of consolidation and self-service
Relocation of processing functions between NCR and Regions will require coordinated approach across GoC change initiatives
Pace of change and strong communication and engagement of staff and bargaining agents required
Impacts on vendors, suppliers
Reduction in number of professional services contract staff 
Vendors rationalized (e.g., corporate systems, desktop suppliers, software)
Engagement/Consultation with private sector required after TB approval
Magnitude of Initiative
Manage overall initiative as Major Crown Project with Project Leader in TBS.  
Within MCP, individual initiatives would be treated as projects themselves. To mitigate risk, these individual projects would be limited to <$50M and 18-30 months to ensure benefits achieved throughout.
TB Ministers would approve an annual plan to identify and reinvest savings (specific changes, closures, etc) as committed in the project approvals and would review an annual report on the performance of the total Internal Services’ portfolio.

**Cultural Change**
- Experience from other jurisdictions and private sector indicates this is biggest challenge
- Measured pace of initiative with strong change management focus required
**Human Resources and Regional Impacts**
- Considerably fewer staff needed as a result of consolidation and self-service
- Relocation of processing functions between NCR and Regions will require coordinated approach across GoC change initiatives
- Pace of change and strong communication and engagement of staff and bargaining agents required
**Impacts on vendors, suppliers**
- Reduction in number of professional services contract staff
- Vendors rationalized (e.g., corporate systems, desktop suppliers, software)
- Engagement/Consultation with private sector required after TB approval
**Magnitude of Initiative**
- Manage overall initiative as Major Crown Project with Project Leader in TBS.
- Within MCP, individual initiatives would be treated as projects themselves. To mitigate risk, these individual projects would be limited to <$50M and 18-30 months to ensure benefits achieved throughout.
- TB Ministers would approve an annual plan to identify and reinvest savings (specific changes, closures, etc) as committed in the project approvals and would review an annual report on the performance of the total Internal Services’ portfolio.

## Slide 13