SHARED SERVICES Group 2016 DRAFT STRATEGY

1. SHARED SERVICES Group2016 DRAFT STRATEGY

2. A trusted, exemplar Provider of shared services for THE Australian government • We will work with our people to set the vision Environment • APS values • Solutions Focussed • Evolving Principles • A people focus • Standardised end to end services • Transparent pricing • Understanding value as well as cost Service Offer • Human Resources • Finance • ICT • Other Corporate Services Performance • Service standards and targets • Cost and value conscience • Balanced Scorecard People • Corporate Professionals • Engaged Customers • Foundation partners • Human Services • Social Services • Health • Veterans’ Affairs Leadership • Committed • Visible • Engaged Technology • SAP ERP platform • SAP HANA • Ongoing investment Processes • Phased Implementation • Co-design with Foundation Partners • Process improvement Program Organisation • Shared Services Group • Steering Committee • Client managers • Ongoing engagement with industry leaders

3. OVerview • In 2011, as part of the Department of Human Services (DHS) integration, internal shared services arrangements were established to support DHS’s large and geographically dispersed workforce. • Corporate processes were centralised and standardised. A single Human Resource and Financial Information system was implemented. • Last financial year, our corporate services supported over 34,000 staff. We processed 896 000 payslips, $2.6 billion in annual payroll with a 0.04% error rate, 38 000 credit card payments, 92 000 invoices with 401 000 line items and $1.6 billion in payments. • We currently provide ICT shared services to 10 agencies. We provide travel, credit card and fleet management services to the Department of the Prime Minister and Cabinet and often provide our training services to other agencies. • The National Disability Insurance Agency is currently transitioning to our ICT and corporate services. For the second year, we are administering the Indigenous Apprenticeship Program for a number of agencies. • In moving forward with shared services, we intend to build on existing arrangements with agencies where there is a natural alignment and the potential for agencies to leverage from the existing DHS size and scale. • DHS through the delivery of health and welfare payments and services works closely with the Department of Social Services, Department of Veterans’ Affairs and the Department of Health. • We plan to work collaboratively with these agencies to be a trusted, exemplar provider of shared services for the Australian Government. • Our approach is to ensure business as usual continues with a seamless transition of new clients, with a focus on transforming services over time through better enabled technology. We are committed to developing professional staff and bringing people with us on the shared services journey

4. Our approach Ensure business as usual continues Business and process transformation enabled by technology Bring people on the journey

5. principles and organisation • Organisation • The Shared Services Group (SSG) was established in 2015. It is responsible for the establishment of the shared services framework. • SSG consists of operational areas that are providers of corporate services. • The Shared Services Steering Committee meets monthly to monitor planned establishment and transition activities. • We support our current shared service arrangements with client managers, documented agreements, regular reporting and layered governance arrangement. • Further organisational changes to support shared services including how to manage investment through our pricing are planned. • Our arrangements are supported by a large number of external providers and we will continue to engage with industry leaders. • Principles • We understand the many lessons that have been learned in shared services over the past 20 years. • We know there are some critical principles required for successful shared service arrangements. • These include having: • A people focus • Standardised end to end services • Transparent pricing • Understanding value as well as cost • These principles are instilled in our practices.

6. PEOPLE and environment • Corporate professionals • Shared services provides an opportunity for corporate staff across the Commonwealth through recognising the importance and value of corporate professionals. • We will continue to invest in our people and develop the necessary, customer service and professional skills to support shared services. • We have commenced a programme of shared service seminars for our staff. We support staff to attend shared services learning opportunities. • We know that shared services will represent a change for staff across agencies. • We will support our people by listening and being transparent, ensuring the APS values are upheld and by creating a positive workplace with positive people. • We will continue to evolve based on changing priorities and build on staffing capabilities, capacity and skill sets to ensure service excellence. • Foundation Partners • Shared services will be a new way of doing business for agencies. • Understanding the relevant cultural aspects between agencies is critical when entering into shared service arrangements. • We know that working collaboratively in planning and establishing foundation activities with agencies will contribute to the long term success of shared services arrangements. • Planning with our foundation partners is planned to commence in late April with a co-located project team. • Our customers • We will continue to support, engage and work with agencies which currently receive services, and agencies that might wish to work with us in the future. By investing in our people, our customer focus and expertise in client management will continue to develop.

7. understanding cultural aspects between agencies is critical

8. OUR SERVICE OFFER • The SSG service catalogue has been developed with a standard process framework (using the American Productivity and Quality Centre (APQC) taxonomy – a global database covering the main areas of Shared Services). • The services include core transactional services (accounts payable/receivable, credit card management, payroll administration), value-add transactional services (such as asset management, learning and development, and recruitment) and strategic services (including treasury, taxation, insurance and procurement). • We are structuring our contracts and arrangements with providers to ensure these support shared services and so that agencies can leverage from the existing size and scale of DHS. • Our catalogue will continue to be developed as we work to establish shared services arrangements with our partners. • PERFORMANCE Our services are supported by clear service standards and targets. We will be focussed on overall shared services outcomes. We will have a balanced scorecard approach to overall performance across services to determine if shared services arrangements are meeting these outcomes. We will be both cost and value focussed.

9. processes and Technology • TECHNOLOGY • We use an integrated SAP Enterprise Resource Planning (ERP) and Supplier Relationship (SRM) system that supports many of our services. • Last year we upgraded our SAP ERP and SRM systems to a high-performing SAP HANA version running on IBM Power8 ICT infrastructure. • We are among global industry leaders in adopting SAP HANA and the first organisation to implement this application globally with the combination of the ERP and SRM running on a modernised IBM Power8 Infrastructure. • Our future direction includes implementing existing technology such as SAP Fiori and driving efficiencies through automation and other technology such as robotic process automation to provide savings and to deliver processes that are run faster with less error rates. • Processes • We have mapped our corporate processes. Our service catalogue is a reflection of how we operate. It is based on real world experience. • While our existing processes are the baseline for providing services, we will work with our partners to co-design processes wherever this is required. • Our process improvement work will be an integral part of our operations to ensure the alignment and standardisation of processes. • We have commenced benchmarking our processes and services. • Our business and process transformation will be enabled by technology. Our SAP HANA platform already gives us an advantage – our approach is to stay in front.

10. Our business and process transformation is enabled by global leading technology platforms

11. BUILDING FOR SUCCESS • We have reviewed many lessons from past shared services arrangements. We have read reports and we have spoken to a lot of people both in Australia and overseas. • In building for success we will learn from lessons of the past. Here are some examples.

12. Leadership • We know that leadership is the most critical element of shared services. Leaders must be visibly committed within organisations for shared services to succeed. • Mr Barry Jackson, Deputy Secretary, shared services group is responsible for our shared services operations. Mr Jackson reports to the Secretary of the Department of Human Services, Ms Kathryn Campbell CSC. • Mr Barry Jackson • Deputy Secretary • Our leadership team that oversees the establishment of shared services operations includes General Managers and National Managers across corporate operations, people services, financial services and ICT services. Here are a few of them. • Ms Liz Bundy • NM Shared Services & • Contract Management • Mr Robert Higgins • NM Advisory Services • Ms Vanessa Graham • GM Corporate Operations • Mr Adrian Hudson • A/g GM People Services • Mr Shane Bennett • A/g GM People Capability

13. OUR SHARED SERVICES JOURNEY ICT Shared Services, learning and development, accessibility service support DHS Finance and HR/Payroll Consolidation Planning for future shared services 2016 Corporate and ICT Services to NDIA 2011 Corporate Services to PM&C

14. To support our planning we have reviewed • Report of the Review of the Measures of Agency Efficiency, Australian Government, Canberra. • Next generation shared services: Strategic Plan, 2012, HM Government • Australian Government 2009, Strategic Review of Future Directions for Australian Government Shared Services, Vanderheide Strategic Review, KPMG • Business Process Interoperability Framework: Enabling seamless service deliver, 2007,Department of Finance and Administration • Review of the Indigenous Land Corporation and Indigenous Business Australia,Shared services Review for PM&C, Ernst and Young, 2014 • Strategic Review of Small and Medium Agencies In the attorney-General’s Portfolio: Report to the Australian Government 2012 • Shared Services in the Public Sector: a triumph of hope over experience, Australian Institute of Management, 2012 • 2015 Annual State of the Shared Services Industry Report: 5 Mega Trends Disrupting Services Deliver and Australasian Results • In 2010, a shared services feasibility study (referred to in Australian Government, 2011) Australian Government 2011