University System of Georgia Strategic Plan

Strategic Goal Six:
Increase efficiency, working as a System.

Strategic Plan in Action

Shared Services

Challenge

USG’s support functions will take better advantage of our scale as a System.

Action

Phase I: Create a shared services (SS) model for HR/payroll.

Phase II: Consolidate financials databases.

Phase III: Create a shared services (SS) model for financials.

Activities for Implementation

Hire consultant, form System team, and develop an implementation plan
Initiate implementation

Baseline Measure & Targets

Baseline Measure	January 2008 Target	January 2009 Target	January 2010 Target	January 2011 Target	January 2012 Target
2007 benchmarking study by Hackett Group/Accenture showed that USG was not best-in-class in financial and HR/payroll operations. Spending on administrative functions: $376M in FY 2007, 14.37% of total general funds	Reengineer current processes, integrate best practices, leverage technology for increased productivity Determine process splits between institutions and SS center Identify funding sources Board approval of Phase I strategy: HR/Payroll consolidation	Hire executive director for SS center Set up governing board for shared services by July 1, 2009 Develop required service levels and corresponding metrics Review options for SS site Change management/ communications plan with institutions Go live with payroll on July 1, 2009	Consolidate financials database (Phase II) Board approval of Phase III: financials shared services. Hire staff for SS center. Finalize service level agreements with performance metrics between institutions and SS finalized Training for institutions	Monitor service levels metrics against agreements Continuous process improvement Phase II: Explore other financial and student services that would be feasible in the SS environment	Reduce, redirect, and avoid costs of up to $1.9M from Phase I and up to $5M for the financials. This is to be reallocated to core mission of teaching, research, and service

Baseline Measure

January 2008 Target

January 2009 Target

January 2010 Target

January 2011 Target

January 2012 Target

2007 benchmarking study by Hackett Group/Accenture showed that USG was not best-in-class in financial and HR/payroll operations.

Spending on administrative functions: $376M in FY 2007, 14.37% of total general funds

Reengineer current processes, integrate best practices, leverage technology for increased productivity

Determine process splits between institutions and SS center

Identify funding sources

Board approval of Phase I strategy: HR/Payroll consolidation

Hire executive director for SS center

Set up governing board for shared services by July 1, 2009

Develop required service levels and corresponding metrics

Review options for SS site

Change management/ communications plan with institutions

Go live with payroll on July 1, 2009

Consolidate financials database (Phase II)

Board approval of Phase III: financials shared services.

Hire staff for SS center.

Finalize service level agreements with performance metrics between institutions and SS finalized

Training for institutions

Monitor service levels metrics against agreements

Continuous process improvement

Phase II: Explore other financial and student services that would be feasible in the SS environment

Reduce, redirect, and avoid costs of up to $1.9M from Phase I and up to $5M for the financials. This is to be reallocated to core mission of teaching, research, and service

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