Request for Proposal: The University of California, Davis
Request for Proposal: The University of California, Davis
Request for Proposal: The University of California, Davis
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� <strong>Request</strong> <strong>for</strong> <strong>Proposal</strong>:<br />
<strong>The</strong> <strong>University</strong> <strong>of</strong> Cali<strong>for</strong>nia, <strong>Davis</strong><br />
Shared Service Center Model Assessment and Implementation<br />
RFP No. 014339533DFD<br />
January 15, 2010
TABLE OF CONTENTS<br />
A. EXECUTIVE SUMMARY.................................................................................................................... 1<br />
B. COMPANY PROFILE ........................................................................................................................... 3<br />
Skills and Competencies ........................................................................................................................ 6<br />
Shared Services Focus ............................................................................................................................ 6<br />
Lessons Learned ..................................................................................................................................... 7<br />
C. ASSUMPTIONS .................................................................................................................................... 8<br />
D. PROJECT APPROACH AND DETAILED PROJECT PLAN ............................................................. 9<br />
Step 1 – Organize the Project ............................................................................................................... 10<br />
Step 2 – Assess the Current State ......................................................................................................... 11<br />
Step 3 – Develop Future State Options and Opportunity Assessment ................................................. 12<br />
Step 4 – Prepare the Business Case ...................................................................................................... 15<br />
Step 5 – Plan the Implementation ......................................................................................................... 16<br />
E. PROPOSED TEAM ............................................................................................................................. 18<br />
F. PROFESSIONAL FEES ....................................................................................................................... 20<br />
G. REFERENCES...........................................................................................................................Removed<br />
H. ADDITIONAL INFORMATION ........................................................................................................ 23<br />
1. ScottMadden Recent Projects ........................................................................................................ 23<br />
2. ScottMadden Team Resumes ......................................................................................................... 26<br />
3. ScottMadden Engagement Costs and Billing Practices .......................................................Removed<br />
4. ScottMadden’s <strong>Request</strong>ed Changes to Terms and Conditions ............................................Removed<br />
5. ScottMadden Shared Services Insights .......................................................................................... 34<br />
I. SIGNATURE...............................................................................................................................Removed<br />
i
A. EXECUTIVE SUMMARY<br />
Proposers should briefly summarize relevant experience and expertise as it relates to Shared Service<br />
Center Model assessments and implementations <strong>for</strong> administrative functions.<br />
As the <strong>University</strong> <strong>of</strong> Cali<strong>for</strong>nia, <strong>Davis</strong> (UC <strong>Davis</strong> or the <strong>University</strong>) has expanded in complexity and<br />
size, so too has its infrastructure <strong>for</strong> providing basic administrative services (personnel, payroll, finance,<br />
technology support, etc.). This growth has occurred with a strong departmental focus, with units adding<br />
positions or functions as dictated by local demand and priority. This has resulted in opportunity <strong>for</strong><br />
improving efficiencies and reducing costs.<br />
UC <strong>Davis</strong> seeks assistance to examine, redesign, and restructure its administrative service delivery<br />
model. Specifically, UC <strong>Davis</strong> seeks assistance to move select administrative functions into a shared<br />
services model.<br />
ScottMadden is well suited to assist with this important project. Founded in 1983, ScottMadden is a<br />
general management consulting firm providing independent and objective counsel and specialized<br />
business services to large organizations. While the majority <strong>of</strong> our clients are headquartered in North<br />
America, many have global operations. To that end, we work on projects all over the world, from<br />
Europe to Asia to South America. We have four primary practice areas—shared services, government,<br />
energy, and sustainability. Since the early 1990s, we are a leading consulting firm in the United States in<br />
the area <strong>of</strong> shared services assessment, design, implementation, and management. We have assessed,<br />
designed, and/or implemented shared services <strong>for</strong> human resources (HR), finance and accounting,<br />
in<strong>for</strong>mation technology (IT), real estate, security, and other administrative services <strong>for</strong> organizations<br />
including Fortune 500, non-pr<strong>of</strong>it, universities, and major government departments and agencies.<br />
Our expertise in shared services consulting covers the range <strong>of</strong> relevant competencies and skills. Among<br />
them:<br />
• Shared Services Delivery Design and Implementation – We work with new and existing<br />
shared services organizations to design an overall service delivery framework that meets the<br />
needs <strong>of</strong> internal customers, while taking organizational strategies into account. Once the<br />
model has been tested internally and externally, we develop the components necessary to<br />
build and launch the framework; including delineating the discrete activities <strong>of</strong> each service;<br />
outlining activity ownership; designing service delivery organizations; setting staff sizes and<br />
outlining specific roles and responsibilities; redesigning processes and related tools; and<br />
selecting, designing, and integrating supporting technologies. We also assist organizations in<br />
developing comprehensive business cases to support implementation <strong>of</strong> the new framework.<br />
We work in many functions, including finance and accounting, HR, and IT. We also assist<br />
with multi-function implementations.<br />
• Service Center Design and Build – We design, build, and implement service centers as a key<br />
element <strong>of</strong> our shared services practice. Our staff has experience and expertise in the<br />
consolidation and integration <strong>of</strong> a business function or functions into one operational<br />
1
organization, as well as deep experience with process flow design, technology selection and<br />
implementation, and staffing assistance.<br />
• Change Management – We assist our clients in identifying key criteria <strong>for</strong> a successful<br />
organizational change. This includes assessing and managing all aspects <strong>of</strong> change by means<br />
<strong>of</strong> a <strong>for</strong>mal change management process. We assist in the development <strong>of</strong> strategies <strong>for</strong><br />
adapting the structure <strong>of</strong> the organization to a changing environment.<br />
• Customer Surveys – We assist our clients in designing and implementing customer<br />
satisfaction measurement tools that determine the efficiency and effectiveness <strong>of</strong> the delivery<br />
system and functional programs. We have a proprietary shared services web-based customer<br />
survey that efficiently measures customer satisfaction.<br />
• Sourcing Strategy and Analysis – We have significant experience in assisting clients with<br />
sourcing initiatives, including opportunity assessment, detailed analysis and vendor selection,<br />
negotiations, transition, and relationship management. ScottMadden has its own sourcing<br />
process methodology and has developed numerous analytical tools to augment the process.<br />
• Strategy Development – We help organizations define the shared services mission and value<br />
proposition, create a business plan, and develop an implementation strategy.<br />
• Project Management Planning – Because we have a successful track record, our clients<br />
frequently request ScottMadden to project manage the build <strong>of</strong> a shared services operation or<br />
a service center. Our clients also lean on us to build the implementation or improvement<br />
project plan, based on our thoroughness and ability to ensure integration <strong>of</strong> key project<br />
components.<br />
We are a recognized expert on shared services and frequently chair and present at top conferences.<br />
Within the past three years, ScottMadden has sponsored, presented in, and held workshops <strong>for</strong> 26 shared<br />
services conferences. We are a partner with the International Quality & Productivity Center, Ltd (IQPC),<br />
an organization that facilitates networking among shared services organizations. Our senior vice<br />
president <strong>for</strong> shared services served <strong>for</strong> a number <strong>of</strong> years on the advisory board <strong>for</strong> the Shared Services<br />
News, a publication <strong>of</strong> the Shared Services Network. In addition, ScottMadden was named “Shared<br />
Services Vendor <strong>of</strong> the Year” in 2006 and was nominated again <strong>for</strong> 2007. Our consultants have<br />
published numerous articles and white papers, given speeches, and conducted workshops on shared<br />
services. Some recent examples appear in Section H-5 <strong>of</strong> this proposal.<br />
2
B. COMPANY PROFILE<br />
Proposers should provide relevant in<strong>for</strong>mation about their organization, including an organizational<br />
chart, the company’s business model (breadth and depth <strong>of</strong> services <strong>of</strong>fered, even if outside the scope <strong>of</strong><br />
this RFP), the number <strong>of</strong> staff, and an overview (sufficiently detailed to be evaluated) <strong>of</strong> experience in<br />
administrative functions Shared Service Center Model assessment and implementation consulting,<br />
especially in higher education or other government funded or not-<strong>for</strong>-pr<strong>of</strong>it organizations. Please<br />
include the company’s mission statement or corporate vision/values statement and overall consulting<br />
approach.<br />
Shared Services<br />
Samuel Poston<br />
SVP and Practice<br />
Lead<br />
Government<br />
Samuel Poston<br />
SVP and Practice<br />
Lead<br />
ScottMadden Organizational Structure<br />
President and CEO<br />
S. Bradley Kitchens<br />
Energy<br />
Stuart Pearman<br />
Partner and Practice<br />
Lead<br />
3<br />
Sustainability<br />
Jere Jacobi<br />
Partner and Practice<br />
Lead<br />
Director <strong>of</strong> Finance<br />
Logan Toms<br />
ScottMadden is a general management consulting firm with 18 partners and two <strong>of</strong>fices in Atlanta,<br />
Georgia and Raleigh, North Carolina.<br />
Atlanta<br />
3495 Piedmont Road<br />
Building 10, Suite 805<br />
Atlanta, GA 30305<br />
404.814.0020<br />
Raleigh<br />
2626 Glenwood Avenue<br />
Suite 480<br />
Raleigh, NC 27608<br />
919.781.4191<br />
We have four primary practice areas in our business model—shared services, government, energy, and<br />
sustainability. ScottMadden began its shared services work in 1983 designing, building, and<br />
implementing internal and customer service centers <strong>for</strong> energy companies. In 1989, ScottMadden<br />
launched its shared services practice to focus on work outside the energy industry. Today, our work in<br />
shared services, including the assessment, design, build, launch, and improvement <strong>of</strong> shared service<br />
operations, accounts <strong>for</strong> nearly half <strong>of</strong> our consulting assignments. We have assisted a wide range <strong>of</strong><br />
clients, including Advocate Health Care, HCA, Johnson Controls, Kamehameha Schools, NASA,<br />
Progress Energy, Seagate, Sempra Energy (parent company <strong>of</strong> San Diego Gas & Electric Co.),<br />
<strong>University</strong> <strong>of</strong> Illinois, <strong>University</strong> <strong>of</strong> Maine, Weyerhaeuser, and the Woodruff Arts Center in the design,<br />
build, launch, merge, and/or improvement <strong>of</strong> their shared services operations. A sample <strong>of</strong> additional<br />
ScottMadden shared services clients appears in Figure 1. For more in<strong>for</strong>mation about ScottMadden,<br />
please visit our website: www.scottmadden.com.
Our firm is dedicated to helping clients understand, visualize, and realize their business objectives. We<br />
trace the source <strong>of</strong> that success to our focus, approach, culture, values, and our relationships.<br />
• Focus – We specialize in assessing, designing, building, and improving financial, HR, IT, and<br />
multi-function shared services. Our people are thought leaders in the shared services industry<br />
and have been working in this area <strong>for</strong> more than 20 years. We know shared services, and we<br />
take seriously the responsibility to improve the industry.<br />
• Approach – We work in small teams and strongly prefer that clients serve on those teams, as<br />
well. Our ratio <strong>of</strong> partners to consultants is about one to three. Our partners actively<br />
participate in engagements and devote more than 60 percent <strong>of</strong> their time to direct client<br />
consulting. Our experienced consultants have deep backgrounds in government, non-pr<strong>of</strong>it, or<br />
across industries as well as in our practice areas and <strong>of</strong>ten have advanced degrees. Our entrylevel<br />
consultants have business degrees and typically three to five years <strong>of</strong> work experience.<br />
Our partnership with our clients leads to more effective change management and practical<br />
solutions that can be implemented.<br />
• Culture – We believe each client’s situation is unique, and we produce a needs-based solution<br />
to match each requirement. Our consultants possess strong analytical skills, the ability to<br />
think creatively and, most importantly, the willingness to roll up their sleeves and get the job<br />
done. Our people are selected not only on their talent, but on their values and character. Our<br />
culture is rein<strong>for</strong>ced through the ScottMadden mission and vision:<br />
Mission – ScottMadden is a general management consulting firm that has been established<br />
<strong>for</strong> the primary purpose <strong>of</strong> providing independent and objective advice and counsel to clients.<br />
<strong>The</strong> firm is dedicated to helping its clients understand, visualize, and realize opportunities <strong>for</strong><br />
achieving their business objectives. In working with clients, we will always take the long view<br />
<strong>of</strong> the greater good <strong>for</strong> our client, and we will be empathetic, persuasive, and ethical in our<br />
assessments and recommendations. We will provide value to our clients through industryspecific<br />
expertise, knowledge <strong>of</strong> and skill in the application <strong>of</strong> business management<br />
practices, and a commitment on our part to advance carefully and positively the state <strong>of</strong> the<br />
management art within our client.<br />
Vision – We will be known <strong>for</strong> the surpassing quality <strong>of</strong> our service and the integrity <strong>of</strong> our<br />
relationships with clients. We will be successful if our clients are successful; and if we help<br />
our clients be successful, we will enjoy lasting and productive relationships with them.<br />
• Values – We sincerely believe it is an honor and a privilege to serve clients, and we treat each<br />
relationship accordingly. We do our best to exceed our clients’ expectations and to work<br />
cooperatively and positively alongside the managers and employees <strong>of</strong> our clients. This is<br />
reflected in our values:<br />
4
In satisfying client needs:<br />
− We will place the good <strong>of</strong> the client above our own interests<br />
− We will do what we say we will do, we will do it extraordinarily well, and we will<br />
exceed our clients’ expectations<br />
− Our reputation is our most valuable asset and we will always preserve it<br />
− We behave and interact with our clients with decorum, sensitivity, maturity and most<br />
importantly, in a manner that conveys our pleasure in being able to serve the client<br />
− We will create a challenging work environment that demands a commitment to the<br />
Mission and Values and that promotes creativity, responsibility, satisfaction, and an<br />
overall esprit de corps<br />
• Relationships – For more than 25 years, we’ve been recognized as a relationship-based<br />
consulting firm. ScottMadden continues to work with its first two clients who engaged our<br />
firm in 1983. We are proud that a significant amount <strong>of</strong> our work is from past and current<br />
clients who continue to trust us!<br />
Public Sector<br />
and Government<br />
Consumer<br />
Products and<br />
Services<br />
Manufacturing<br />
Technology and<br />
Communications<br />
Energy and<br />
Utilities<br />
Healthcare and<br />
Pharmaceuticals<br />
Aerospace and<br />
Defense<br />
Figure 1 – A Sample <strong>of</strong> ScottMadden’s Shared Services Clients<br />
<strong>University</strong> <strong>of</strong> Illinois<br />
<strong>University</strong> <strong>of</strong> Maine<br />
Kamehameha Schools<br />
A large public university in the<br />
South Central United States<br />
Adidas<br />
Alpina Productos Alimenticios<br />
Avalon Bay Properties<br />
Burlington Northern Santa Fe<br />
CasaLuker<br />
Agility Global Logistics<br />
Bechtel<br />
Danfoss<br />
Dura Automotive Systems<br />
Ericsson<br />
Seagate<br />
Siemens<br />
Solectron<br />
Bahamas Electric<br />
Dominion Resources<br />
Dominion Virginia Power<br />
Georgia Systems Operation<br />
Advocate Health Care<br />
Blue Shield <strong>of</strong> Cali<strong>for</strong>nia<br />
Hospital Corp <strong>of</strong> America<br />
Woodruff Arts Center<br />
Government Organizations<br />
- NASA<br />
- RTI International<br />
Domtar<br />
Georgia-Pacific<br />
MeadWestvaco<br />
Oakley<br />
Russell Corp<br />
Fluor<br />
Hercules<br />
Johns Manville<br />
Johnson Controls<br />
Sprint Nextel<br />
Communications<br />
Time Warner Cable<br />
Integrys<br />
Kerr-McGee Corp<br />
Laclede Gas<br />
Mirant<br />
Lockheed Martin<br />
A large defense contractor with 125,000 employees<br />
5<br />
- International Monetary<br />
Fund<br />
- Other Government<br />
Organizations<br />
SAB Miller<br />
Sara Lee<br />
<strong>The</strong>rmo Fisher Scientific<br />
TravelPort<br />
Michelin<br />
Newell Rubbermaid<br />
Simmons Corp<br />
Turner Broadcasting System<br />
Nova Scotia Power<br />
Oglethorpe Power Corp<br />
Plains All America Pipeline<br />
PPL<br />
Nat’l Multiple Sclerosis<br />
Society<br />
Salt River Project<br />
Colorado Springs Utilities<br />
T. Rowe Price<br />
Unum Provident<br />
Vegas.com<br />
Weyerhaeuser<br />
Southern Calif Edison<br />
South Texas Project<br />
Williams Companies<br />
Wisconsin Public Svc Corp<br />
Note: ScottMadden has many other notable clients with whom we have close working relationships;<br />
however, we are contractually prohibited from listing their names.
Skills and Competencies<br />
ScottMadden brings a combination <strong>of</strong> skills and experience in shared services design, build, and<br />
implementation that relatively few consulting firms can match. Consultants in our shared services<br />
practice have deep expertise in all facets <strong>of</strong> shared services assessment, design, build, and<br />
implementation, including:<br />
• Opportunity assessment/business case development<br />
• Project planning<br />
• Project management<br />
• Communications, marketing, and change management<br />
• Service delivery scope, design, and definition<br />
• Organization design, staffing, and selection<br />
• Process redesign<br />
• Technology selection, design, implementation, and integration<br />
− Telephony (IVR, CTI, ACD)<br />
− Case and customer relationship management<br />
− Knowledgebase<br />
− Workflow<br />
− Document management<br />
− Multi-channel contact management<br />
• Infrastructure (including customer satisfaction measurement, metrics, reporting, and<br />
per<strong>for</strong>mance agreements) design, build, and implementation<br />
• Customer and staff training<br />
• Facility design, selection, and construction management<br />
Shared Services Focus<br />
Our shared services functional expertise covers the entire spectrum <strong>of</strong> today’s leading companies<br />
including HR, finance and accounting, IT management, as well as multi-function. Within shared<br />
services, we focus on the following functions:<br />
• Human Resource Management – <strong>The</strong> firm has assisted Fortune 500 companies, non-pr<strong>of</strong>it,<br />
and various government organizations in redefining their HR delivery strategy, including<br />
restructuring HR departments, establishing HR contact centers, reengineering HR processes,<br />
and conducting employee surveys. Our shared services practice partners are recognized<br />
national leaders in the design and implementation <strong>of</strong> HR shared services operations.<br />
• Finance and Accounting – ScottMadden consultants have significant experience in finance<br />
and accounting. Our innovative thinking, flexible service delivery models, deep experience,<br />
and collaborative approach help clients improve the operating per<strong>for</strong>mance <strong>of</strong> their finance<br />
and accounting organizations and deliver bottom-line results. <strong>The</strong> firm excels in the areas <strong>of</strong><br />
evaluating and strengthening budgeting systems, designing and implementing financial<br />
control systems, and reengineering finance and accounting functions.<br />
6
• IT Management – ScottMadden has been a leader in helping to apply business management<br />
concepts to the management <strong>of</strong> in<strong>for</strong>mation services departments. We build on a foundation <strong>of</strong><br />
products and services to create a delivery system that is customer focused and efficient.<br />
Service level agreements (SLAs), reasonable chargeback systems, effective governance,<br />
valued account management, and useful per<strong>for</strong>mance management in<strong>for</strong>mation are hallmarks<br />
<strong>of</strong> our approach. Change management and leadership development are constant areas <strong>of</strong> focus<br />
in any <strong>of</strong> our IT shared services projects.<br />
• Multi-Function – ScottMadden has assisted a number <strong>of</strong> organizations across government and<br />
industries in the initial design and implementation <strong>of</strong> their service organizations. We have<br />
assisted many clients in strategy development, operating model infrastructure, and the<br />
implementation <strong>of</strong> multi-function shared services operations. This complex undertaking<br />
requires a significant change management initiative, as all functions which were stand-alone<br />
departments now must operate as a single entity to the internal customer.<br />
Lessons Learned<br />
ScottMadden evaluates each engagement at completion to identify areas <strong>of</strong> improvement and capture<br />
lessons learned. By nature, shared services implementations require significant integration and<br />
coordination to ensure success. Listed below are elements essential to shared services implementations.<br />
• Proper executive-level sponsorship, including both sponsorship within support organizations<br />
and operating units or divisions/departments<br />
• Well-articulated drivers <strong>for</strong> implementing shared services—quality-driven implementations<br />
<strong>of</strong>ten dictate different operating models and implementations than cost-driven<br />
implementations<br />
• Comprehensive, integrated, phased implementation plan<br />
• Customer and support service input and buy-in<br />
− Scope agreement<br />
− Service levels<br />
− Staffing levels<br />
− Pricing methodologies<br />
− Governance<br />
− Impact management<br />
• Detailed current state assessment that documents current costs, volumes, and service levels<br />
from which improvement can be measured and communicated<br />
• Detailed business case that specifies qualitative and quantitative benefits<br />
• Positions that are well-matched with skill set<br />
• Processes that are streamlined and reworked to fit the new shared services operating<br />
framework<br />
• Internal resources are leveraged to design and build the new shared services operation<br />
• <strong>The</strong> concept is marketed and communicated in a planned, strategic, and aggressive manner<br />
7
C. ASSUMPTIONS<br />
Please state any assumptions that your company has made that may significantly affect this proposal.<br />
<strong>The</strong>se assumptions may relate to anything that is not specifically mentioned. For example, any<br />
assumptions related to the timing <strong>of</strong> implementation, involvement <strong>of</strong> UC <strong>Davis</strong> personnel, or<br />
technological issues that were not specifically mentioned in the RFP document should be listed.<br />
ScottMadden would like to make the following assumptions <strong>for</strong> this project.<br />
• Key managers in administrative functions will be available <strong>for</strong> interview when and as they are<br />
needed<br />
• Responses will be provided to in<strong>for</strong>mation requests in a timely manner<br />
• Employee data from payroll systems will be available when requested<br />
• Deliverables submitted <strong>for</strong> approval will be reviewed and returned within requested timeframe<br />
• Thirty percent <strong>of</strong> one full-time equivalent (FTE) from each functional area will be available<br />
<strong>for</strong> the duration <strong>of</strong> the three-month project<br />
8
D. PROJECT APPROACH AND DETAILED PROJECT PLAN<br />
Please describe your company’s project approach and explain the methodology to be applied to this<br />
project based on the in<strong>for</strong>mation provided in the RFP. Proposers must provide a detailed project plan<br />
including work breakdown by major milestones and tasks as well as timing and the expected<br />
involvement <strong>of</strong> the consultant and <strong>University</strong> team members.<br />
Experience has taught us that it is rare <strong>for</strong> any two organizational solutions to be designed, built, and<br />
implemented in the same way. While we follow similar methodologies, each project is framed to fit the<br />
cultural fabric <strong>of</strong> the organization, company, or university. For this project, we recommend an approach<br />
involving the five steps outlined below. During these steps, we will review your current service delivery<br />
model including organizations, processes, staffing, systems, and costs. We will then assess the various<br />
future state options <strong>for</strong> the <strong>University</strong> and work with the UC <strong>Davis</strong> team to validate those options with<br />
your key stakeholders. After gathering stakeholder input and making the necessary enhancements, we<br />
will conduct a gap analysis and assess the best opportunities <strong>for</strong> meeting your organization’s objectives.<br />
We will then work with the organization to build a business case and a realistic, achievable<br />
implementation plan.<br />
It is important to note that we have developed our approach in order to leverage UC <strong>Davis</strong> resources and<br />
minimize consulting resources. Functional leadership team members will be active participants in the<br />
evaluation. In addition, representatives from the major in-scope functions will participate in data<br />
gathering, analysis, and development <strong>of</strong> the future design <strong>of</strong> the shared services organization.<br />
Throughout this project, ScottMadden will provide:<br />
• Benchmarks<br />
• Best practices<br />
• Expert counsel<br />
• Change management support<br />
• “Straw man” starting points<br />
• Facilitation<br />
• Project management and task execution support<br />
Our proposed methodology <strong>for</strong> this engagement can be mapped directly to your work requirements as<br />
outlined in the RFP. We intend to accomplish this ef<strong>for</strong>t in the following five steps:<br />
• Step 1 – Organize the Project<br />
• Step 2 – Assess the Current State<br />
• Step 3 – Develop Future State Options and Opportunity Assessment<br />
• Step 4 – Prepare the Business Case<br />
• Step 5 – Plan the Implementation<br />
Each <strong>of</strong> these steps is described below in greater detail.<br />
9
Step 1 – Organize the Project<br />
This first step is focused primarily on gaining an understanding <strong>of</strong> your situation and objectives, then<br />
developing a plan to achieve those objectives. It is during this step that we will work with you to<br />
organize and orient the project team. To ensure an efficient project start, we expect to complete several<br />
tasks be<strong>for</strong>e arriving on campus. Once on site, we will hold kick<strong>of</strong>f meetings with the executive sponsor<br />
and project team. One <strong>of</strong> your tasks during this step will involve the collection <strong>of</strong> background data.<br />
Additionally, we will finalize the detailed project plan and schedule.<br />
One <strong>of</strong> the most important aspects <strong>of</strong> this stage is to identify the key stakeholders <strong>for</strong> the project and to<br />
establish a communications plan to keep the appropriate individuals and organizations adequately<br />
in<strong>for</strong>med throughout the assessment.<br />
Specific tasks that will be completed during Step 1 are listed below:<br />
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Finalize and gain approval <strong>of</strong> the project plan<br />
• Develop initial data request including current<br />
state and future state in<strong>for</strong>mation (e.g., staffing,<br />
organization, costs) already assembled by UC<br />
<strong>Davis</strong>, as well as current implementation plans<br />
or schedules<br />
• Submit initial data request and track collection • Collect and provide requested data<br />
ef<strong>for</strong>ts<br />
• Identify interview participants and key • Schedule interviews<br />
stakeholders<br />
• Develop project communication plan<br />
• Develop preparation instructions <strong>for</strong><br />
interviewees<br />
• Prepare and test communication materials • Review and approve communication materials<br />
• Disseminate communication materials<br />
• Schedule project team and project sponsor • Assist in scheduling project team and project<br />
meetings<br />
sponsor meetings<br />
• Hold project kick<strong>of</strong>f meeting • Participate in project kick<strong>of</strong>f meeting<br />
Deliverables<br />
• Detailed project plan and schedule<br />
• Project communication plan<br />
• Initial stakeholder communication materials<br />
10
Step 2 – Assess the Current State<br />
During this step, we will review how you currently deliver services to your customers and will look<br />
specifically at your service delivery models by function including organizational structure, processes,<br />
staffing, systems, and costs. <strong>The</strong> tasks outlined in the current state assessment will be completed through<br />
interviews <strong>of</strong> Human Resources, Accounting and Finance, Communications, IT Desktop Support and<br />
Systems Administration, Development, Research Compliance, and Gift Processing leaders and/or<br />
managers from UC <strong>Davis</strong> departments and by culling data from available sources, including<br />
organization charts, management in<strong>for</strong>mation systems, human resource in<strong>for</strong>mation system or payroll<br />
system queries (e.g., salary and bonus in<strong>for</strong>mation, etc.), financial budgets, financial actuals, and similar<br />
sources. From our interviews, ScottMadden will compile in<strong>for</strong>mation on current work to produce a<br />
detailed account <strong>of</strong> costs by discrete work activity.<br />
In addition to interviews and system or organizational data, existing customer satisfaction survey results<br />
will be reviewed. Additional customer satisfaction surveys <strong>for</strong> select functional areas may also be<br />
considered during this step.<br />
<strong>The</strong> current state assessment is foundational <strong>for</strong> an accurate future state design and business case<br />
preparation, and will be used as the baseline when conducting the Opportunity Assessment.<br />
Specific tasks that will be completed during Step 2 are listed below:<br />
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Review data collected from the initial data<br />
request and develop supplemental data requests<br />
to obtain additional current state in<strong>for</strong>mation<br />
• Submit supplemental data requests and track<br />
collection ef<strong>for</strong>ts<br />
• Conduct interviews, as needed, to capture time<br />
spent on each work activity<br />
• Develop, populate, and run cost model<br />
− Load employees and salaries<br />
− Load work activity time allocations <strong>for</strong><br />
each employee derived from interviews<br />
− Assign significant, non-headcount costs<br />
to each service<br />
− Calculate labor and non-labor costs by<br />
work activity<br />
11<br />
• Prepare <strong>for</strong> and participate in interviews<br />
− Preparation entails holding discussions<br />
to understand the work <strong>of</strong> a manager’s<br />
direct reports<br />
− Interviews typically require one to two<br />
hours depending on the size <strong>of</strong> the<br />
support organization
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Analyze data<br />
• Conduct follow-up, as required • Respond to follow-up questions and data<br />
requests, as necessary<br />
• Compile relevant leading practices and<br />
benchmarks from ScottMadden’s proprietary<br />
shared services database or other sources<br />
• Develop current state deliverable<br />
− Headcount allocations by organization,<br />
function (e.g., recruiting and staffing),<br />
and work activity (e.g., recruiting<br />
process design)<br />
− Description <strong>of</strong> current cost allocation<br />
processes<br />
− Comparisons to best practices<br />
12<br />
• Review charts <strong>of</strong> accounts and compile nonlabor<br />
expenditures <strong>for</strong> specified categories (e.g.,<br />
headhunter fees) across business units<br />
− Current state strengths and weaknesses<br />
• Review current state results with project team • Review initial current state deliverable<br />
• Present current state findings to project • Participate in current state results review<br />
sponsors<br />
meeting<br />
• Develop communications <strong>for</strong> current state<br />
participants in accordance with project plan<br />
• Edit and disseminate communications<br />
Deliverables<br />
• Current state assessment<br />
− Work activity survey<br />
− Headcount allocations by organization, function (e.g., recruiting and staffing), and work<br />
activity (e.g., recruiting process design)<br />
− Labor and non-labor costs by function by business, sub-function, and work activity<br />
− Comparisons to benchmarks<br />
− Current state strengths and weaknesses<br />
• Communication materials<br />
Step 3 – Develop Future State Options and Opportunity Assessment<br />
Using the in<strong>for</strong>mation gathered from the current state assessment, leading practices, benchmarks, and<br />
our experience, we will work with the UC <strong>Davis</strong> team to develop and validate a set <strong>of</strong> future state<br />
options that best accomplish your objectives as defined in Step 1. <strong>The</strong>se options will comprise the<br />
Opportunity Assessment deliverable and will be used to develop recommendations on the future state<br />
design. <strong>The</strong> future state design is the strategic plan <strong>for</strong> shared services.<br />
With the future state design, future work activities <strong>for</strong> each function’s service delivery method (webbased<br />
self service, service centers, centers <strong>of</strong> expertise, and department-based resources) are determined
and the organizations required to deliver these activities are designed. A key component <strong>of</strong> this step is to<br />
reconfigure current state work activity data into the new future state organization design.<br />
This realignment <strong>of</strong> work activity enables you to set future staff levels and test the validity <strong>of</strong> the new<br />
organization design. Creation <strong>of</strong> the high-level implementation plan, phasing, and schedule is also an<br />
important task in this step.<br />
Specific tasks that will be completed during Step 3 are listed below:<br />
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Develop design criteria <strong>for</strong> the delivery model<br />
most suitable <strong>for</strong> UC <strong>Davis</strong><br />
• Review the design criteria with the project<br />
team, the project sponsor, select customers, and<br />
other key UC <strong>Davis</strong> personnel<br />
• Modify the design criteria as needed based upon<br />
feedback received<br />
• Research ScottMadden’s client and project<br />
databases as well as other sources to identify<br />
organizations similar to UC <strong>Davis</strong><br />
• Document potential service delivery model<br />
options <strong>for</strong> UC <strong>Davis</strong> based on design criteria<br />
and ScottMadden research<br />
• Prepare Opportunity Assessment deliverable by<br />
developing a listing <strong>of</strong> all future state work<br />
activities <strong>for</strong> each function, and identify various<br />
future state service delivery method options<br />
(web-based self service, service centers, centers<br />
<strong>of</strong> expertise, and department-based resources)<br />
based the end-state shared services vision at UC<br />
<strong>Davis</strong><br />
• Plan and facilitate a future state design<br />
workshop(s) in which the following tasks will<br />
be accomplished by the project team and other<br />
UC <strong>Davis</strong> personnel:<br />
− Review the various service delivery<br />
options <strong>for</strong> each function<br />
− Assess the delivery model options<br />
against the future state design criteria<br />
− Select the delivery model that best meets<br />
the future state design criteria <strong>for</strong> each<br />
function<br />
− Modify the model, as needed, to align<br />
with the future state design criteria<br />
13<br />
• Review and provide feedback on preliminary<br />
future state design criteria<br />
• Participate in reviewing the proposed service<br />
delivery models during the future state<br />
workshop
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Based upon the results <strong>of</strong> the workshop,<br />
document the recommended future state<br />
delivery model and finalize the Opportunity<br />
Assessment deliverable<br />
• Review the Opportunity Assessment deliverable<br />
and recommendations with the project team<br />
• Present the Opportunity Assessment deliverable<br />
and future state recommendations to the project<br />
sponsor<br />
• Design high-level future state organization<br />
structure<br />
• Configure current state work activities into the<br />
draft future state organization design<br />
• Set staff sizes<br />
• Calculate labor costs <strong>for</strong> future state<br />
• Identify high-level, non-labor savings<br />
associated with the new organization and shared<br />
services operating model<br />
14<br />
• Review Opportunity Assessment deliverable<br />
and best-fit future state delivery model with the<br />
project team<br />
• Approve future state service delivery model<br />
• Price jobs <strong>for</strong> future state organization designs<br />
• Determine licensing and acquisition costs <strong>for</strong><br />
internal IT-related items under assumptions <strong>for</strong><br />
future state<br />
• Assist in identifying potential non-labor savings<br />
• Estimate high-level costs <strong>for</strong> required future<br />
state technologies and equipment or other nonlabor<br />
expenses<br />
• Build high-level implementation plan, including<br />
phasing approach<br />
• Determine high-level implementation costs<br />
• Review future state results with project team • Review initial future state deliverable<br />
• Present future state results to project sponsors • Participate in future state results review meeting<br />
• Develop communications in accordance with • Edit and disseminate communications<br />
project plan, including meetings with select<br />
internal customers to position the future state<br />
vision
Deliverables<br />
• Future state design criteria<br />
• Opportunity assessment and future state recommendations<br />
• Future state organization design<br />
• Implementation phasing options<br />
• Estimate <strong>of</strong> future state costs<br />
• Communication materials<br />
Step 4 – Prepare the Business Case<br />
To support the project team’s opportunity assessment and recommendations <strong>for</strong> the future state design,<br />
we will facilitate the development <strong>of</strong> the business case <strong>for</strong> moving to the new operating model. <strong>The</strong><br />
business case will include one-time implementation costs, ongoing operating costs, and expected<br />
savings. <strong>The</strong> business case will also address qualitative benefits, such as service level improvements,<br />
improved controls and compliance, and increased customer satisfaction.<br />
Specific tasks that will be completed during Step 4 are listed below:<br />
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Modify ScottMadden’s gap analysis and • Review and approve gap analysis and business<br />
business case templates to fit UC <strong>Davis</strong><br />
case <strong>for</strong>mats<br />
• Prepare gap analysis using current state analysis<br />
and future date design<br />
• Quantify expected savings associated with the<br />
movement <strong>of</strong> identified work activities in<br />
Human Resources, Accounting and Finance,<br />
Communications, IT Desktop Support and<br />
Systems Administration, Development,<br />
Research Compliance, and Gift Processing to<br />
the new operating model<br />
• Identify qualitative benefits <strong>of</strong> shifting<br />
identified work activities to the new shared<br />
services operating model<br />
• Build the business case <strong>for</strong> shared services, • Review and provide feedback on gap analysis<br />
including:<br />
and business case drafts<br />
− Forecasted savings<br />
• Review and provide feedback on scenarios<br />
− Qualitative benefits<br />
and/or sensitivities to apply to the model<br />
• Build a gap analysis and business case<br />
presentation<br />
• Review initial gap analysis and business case • Review gap analysis and business case<br />
presentation with project team<br />
presentation<br />
• Present gap analysis and business case results to • Participate in final gap analysis and business<br />
15
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
project sponsor case presentation<br />
• Finalize go or no-go decision • Make final go or no-go decisions or changes to<br />
• Develop communications in accordance with<br />
plan<br />
Deliverables<br />
• Gap analysis<br />
• Business case<br />
− Current and expected operating costs<br />
− Expected one-time and recurring implementation costs<br />
− Required technologies<br />
− Financial analyses (breakeven/payback, IRR, NPV)<br />
− Qualitative benefits<br />
Step 5 – Plan the Implementation<br />
16<br />
the implementation phasing<br />
• Edit and disseminate communications<br />
Once the business case is complete, ScottMadden will develop an implementation project plan from the<br />
initial high-level implementation plan developed in Step 3 with the Opportunity Assessment. <strong>The</strong> project<br />
plan and initial change management plan will outline tasks, timing, and accountabilities <strong>for</strong> the<br />
implementation. In addition, during this step <strong>of</strong> the project, we will recommend an implementation<br />
project team structure and define the roles and responsibilities <strong>of</strong> the project team. While the full project<br />
team will not be required until implementation begins, identification <strong>of</strong> team members at this stage <strong>of</strong><br />
the project will enable UC <strong>Davis</strong> to begin to arrange <strong>for</strong> these resources, some <strong>of</strong> which will be required<br />
full-time.<br />
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Develop an implementation plan, based on the<br />
initial phasing plan, <strong>for</strong> the implementation <strong>of</strong><br />
the future state model at UC <strong>Davis</strong><br />
− Comprehensive, multi-year phasing<br />
project plan<br />
− Risk assessment and mitigation plan<br />
• Develop initial change management plan<br />
− Organizational and system change plan<br />
− Internal communication plan<br />
• Validate project plan and adjust as necessary<br />
• Recommend a project team to launch the<br />
functional shared services operations<br />
• Define project team roles and responsibilities by<br />
position<br />
• Review and provide feedback on<br />
implementation plan<br />
• Review and provide feedback on initial change<br />
management plan<br />
• Review and provide feedback on the project<br />
team
ScottMadden Key Tasks UC <strong>Davis</strong> Key Tasks<br />
• Develop communications according to plan • Edit and disseminate communications<br />
Deliverables<br />
• Implementation plan<br />
− Comprehensive, multi-year phasing project plan<br />
− Risk assessment and mitigation plan<br />
• Initial change management plan<br />
− Organizational and system change plan<br />
− Internal communication plan<br />
• Recommended implementation project team and project team roles and responsibilities<br />
ScottMadden can begin this project any time on or after February 1, 2010. Assuming the availability <strong>of</strong><br />
required data and the availability <strong>of</strong> project team participants and leaders <strong>for</strong> reviews and decisions, we<br />
anticipate requiring approximately 12 weeks to complete the project.<br />
Our proposed project timeline can begin as soon as UC <strong>Davis</strong> would like to start the project. An<br />
approximate schedule with a detailed project plan is shown below:<br />
1 – Organize the Project<br />
Develop project plan<br />
Conduct data gathering<br />
Prepare project communication plan<br />
Hold project team kick<strong>of</strong>f meeting<br />
Initial stakeholder communications materials<br />
2 – Assess the Current State<br />
Current state assessment<br />
Work activity survey<br />
3 – Develop Future State Options and Opportunity<br />
Assessment<br />
Develop future state design criteria<br />
Per<strong>for</strong>m opportunity assessment<br />
Construct future state design<br />
Establish future state cost estimates<br />
Identify implementation phasing options<br />
4 – Prepare the Business Case<br />
Per<strong>for</strong>m gap analysis<br />
Develop business case<br />
5 – Plan the Implementation<br />
Implementation plan<br />
Initial change management plan<br />
Implementation project team recommendations, roles<br />
and responsibilities<br />
Milestone<br />
Steps<br />
Weeks<br />
1 2 3 4 5 6 7 8 9 10 11 12<br />
c<br />
c<br />
17<br />
c<br />
c<br />
c<br />
c<br />
c<br />
c<br />
c<br />
c<br />
c<br />
c
E. PROPOSED TEAM<br />
Please provide an overview (sufficiently detailed to be evaluated), resumes and introduction <strong>of</strong> the<br />
proposed team member(s), including their experience with similar projects in higher education,<br />
government funded and other not-<strong>for</strong>-pr<strong>of</strong>it organizations. <strong>University</strong> reserves the right to make any<br />
changes to the contract should the consultant change the project team structure once the contract has<br />
been signed. <strong>The</strong> proposed team must be available <strong>for</strong> the duration <strong>of</strong> the engagement. <strong>The</strong> strength and<br />
experience <strong>of</strong> the project team is considered a critical element <strong>of</strong> the project.<br />
ScottMadden organizes its engagements to include key client personnel as active participants. In UC<br />
<strong>Davis</strong>’s case, this will include project team members, part-time project participants, and subject matter<br />
experts (SMEs). In our experience, this involvement speeds our learning, facilitates the client’s buy-in,<br />
and produces better-fit recommendations. Furthermore, it typically produces less costly engagements <strong>for</strong><br />
our clients.<br />
For purposes <strong>of</strong> our schedule and cost estimates that follow, we have assumed that UC <strong>Davis</strong> will make<br />
available one internal project manager that will be able to commit approximately 30 percent <strong>of</strong> his/her<br />
time to the project. In addition, other part-time participants and SMEs will be called on <strong>for</strong> brief periods<br />
to participate in specific tasks, including interviews.<br />
Actual ScottMadden project staffing will depend on the availability <strong>of</strong> key resources and the actual start<br />
date <strong>of</strong> the project. For this project, we will engage four individuals. All resources have significant<br />
functional (finance, human resources, or IT) and/or multi-function shared services experience.<br />
Douglas Utley will serve as engagement partner. As engagement partner, Mr. Utley will maintain<br />
responsibility <strong>for</strong> the project and its goals, manage the overall work <strong>of</strong> the project, and provide technical<br />
expertise.<br />
If UC <strong>Davis</strong> chooses to exclude a functional area from the project, ScottMadden may staff the project<br />
with fewer consultants as appropriate according to the combination <strong>of</strong> selected functions. <strong>The</strong> potential<br />
team selected <strong>for</strong> this project is listed below. Resumes <strong>for</strong> Mr. Utley and potential staff are included in<br />
Section H-2 <strong>of</strong> this proposal.<br />
Consultant Role<br />
Douglas Utley Engagement Partner<br />
Kevin Church Project Manager<br />
Dina Chanysheva Accounting and Finance, Research Compliance, and Gift<br />
Processing Workstreams<br />
Andrew Forbis Human Resources, IT, Development, and Communications<br />
Workstreams<br />
18
<strong>The</strong> following chart depicts a recommended project organization based on an engagement involving<br />
assessments <strong>of</strong> each functional area listed in the RFP. This structure may be modified depending upon<br />
the functional areas that are included in the assessment:<br />
� Doug Utley<br />
� Kevin Church<br />
� Dina Chanysheva<br />
� Andrew Forbis<br />
Research<br />
Compliance/Gift<br />
Processing<br />
Workstream<br />
Tentative Organizational Project Approach<br />
ScottMadden Team<br />
Accounting and<br />
Finance<br />
Workstream<br />
Administrative<br />
Process Redesign<br />
Team<br />
Executive Sponsor<br />
Project<br />
Management<br />
Human Resources<br />
Workstream<br />
Part-time Project Participants and<br />
Subject Matter Experts<br />
19<br />
Analytical and<br />
Administrative<br />
Support<br />
IT<br />
Workstream<br />
Change<br />
Management<br />
Development/<br />
Communications<br />
Workstream
F. PROFESSIONAL FEES<br />
Please identify a fee structure based on a review <strong>of</strong> each administrative function (A-G above) <strong>for</strong> which<br />
the services and key deliverables are provided. Functions A and B (Human Resources and Accounting)<br />
should be combined as these functions are so closely linked. Hence, the proposer will submit a fee <strong>for</strong> a<br />
Human Resources, Accounting and Finance services review, a fee <strong>for</strong> the Communication services<br />
review, a fee <strong>for</strong> the IT review, etc. Irrespective <strong>of</strong> the fees provided, the specific administrative<br />
functions that will be included in the consultant’s review are at the sole discretion <strong>of</strong> the <strong>University</strong>.<br />
Also provide a budget and overall cost <strong>for</strong> the project. Any additional costs that are expected to be<br />
incurred during the project that are not part <strong>of</strong> the budget and overall cost must be clearly identified.<br />
Our fixed price to per<strong>for</strong>m the proposed scope <strong>of</strong> work is $350,000, plus associated travel and living and<br />
support fees. With this structure, we will per<strong>for</strong>m the proposed assessment <strong>for</strong> all functional areas listed<br />
in the RFP including: Human Resources, Accounting and Finance, Communications, IT Desktop<br />
Support and Systems Administration, Development, Research Compliance, and Gift Processing. We<br />
estimate a breakdown by function according to the table below. Travel and living expenses are typically<br />
20 percent <strong>of</strong> pr<strong>of</strong>essional fees and support costs are two percent <strong>of</strong> pr<strong>of</strong>essional fees, both <strong>of</strong> which are<br />
in addition to pr<strong>of</strong>essional fees. ScottMadden’s Engagement Costs and Billing Practices is included in<br />
Section H-3 <strong>of</strong> this proposal.<br />
20
H. ADDITIONAL INFORMATION<br />
Please provide any additional in<strong>for</strong>mation considered essential to the proposal and not specifically<br />
requested in other sections. If there is no additional in<strong>for</strong>mation to present, please state in this section:<br />
“<strong>The</strong>re is no additional in<strong>for</strong>mation we wish to present.”<br />
1. ScottMadden Recent Projects<br />
ScottMadden has undertaken numerous consulting projects in shared services design, implementation,<br />
and management <strong>for</strong> companies throughout North America and beyond. <strong>The</strong> following list is a<br />
representative sample <strong>of</strong> some <strong>of</strong> our most recent projects.<br />
National Not-<strong>for</strong>-Pr<strong>of</strong>it Organization<br />
Shared Services Business Case<br />
<strong>The</strong> organization had recently announced a strategic initiative to significantly increase fundraising<br />
revenue while reducing costs. We were able to interview business unit employees to understand existing<br />
business practices and establish potential cost savings; compare the organizations current practices<br />
against leading practices, highlighting opportunities <strong>for</strong> improvement; and produce a business case with<br />
detailed implementation plans, including a change management plan to transition the semi-autonomous<br />
business units to common practices with a shared services center. <strong>The</strong> organization was able to<br />
confidently choose to implement a shared services solution that could be implemented within its<br />
financial constraints, incorporate leading practices <strong>for</strong> the shared services operations, and help the<br />
organization meet its strategic goals to reduce business unit costs and refocus resources.<br />
Private Educational Institution<br />
HR Trans<strong>for</strong>mation<br />
After implementing an internal service center within their HR organization, our client asked <strong>for</strong> support<br />
in documenting current state operations and in redesigning a future state organization to deliver HR<br />
services more efficiently and at a high level <strong>of</strong> service. <strong>The</strong> goal <strong>of</strong> the client was to adopt HR leading<br />
practices across their three campuses and to implement standardized processes <strong>for</strong> all employees. We<br />
conducted key stakeholder interviews across HR to document the current state <strong>for</strong> all HR functions,<br />
validated the current state via workshops with key SMEs, and worked with SMEs to develop future state<br />
processes based on leading practices and key customer feedback. Future state processes were built<br />
around recommendations that included organizational restructuring, organizational skill development,<br />
and a technology implementation and project plan to result in an improved tiered service delivery model.<br />
Leading Not-<strong>for</strong>-Pr<strong>of</strong>it Health Care Organization<br />
HR Shared Services Redesign and Implementation<br />
With multiple hospitals and health care facilities and a high percentage <strong>of</strong> the HR customer population<br />
working on their feet and away from desks and computers, the need was high <strong>for</strong> quick answers to HR-<br />
and payroll-related questions. We were engaged by the client to design a service delivery model <strong>for</strong><br />
human resources services that incorporated a service center and self service <strong>for</strong> employees. <strong>The</strong>se ef<strong>for</strong>ts<br />
resulted in a new human resources delivery framework, standardized processes <strong>for</strong> HR service delivery,<br />
23
and self service functionality launched <strong>for</strong> employees in multiple areas, including access to the company<br />
knowledge base.<br />
Not-<strong>for</strong>-Pr<strong>of</strong>it Electric Utility Cooperative<br />
IT Organization Assessment<br />
<strong>The</strong> client’s objective was to supply low-cost reliable power to member organizations, and the client was<br />
characterized by low employee numbers relative to revenue when benchmarked against other utilities.<br />
<strong>The</strong> client had undergone significant growth in the need <strong>for</strong> IT. We worked with the client to identify<br />
benchmarks <strong>for</strong> operational and capital budgeting as well as planning priorities and technology adoption<br />
trends. A leading practice process model was employed to structure the assessment, a maturity matrix<br />
was developed to identify processes, and a recommendation roadmap created a phased approach. As a<br />
result, a two-tier IT governance board was established, a three-year IT strategic plan was drafted, an IT<br />
project coordination procedure was instituted, management systems were established, and a virtual<br />
project management <strong>of</strong>fice was launched.<br />
Federal Government Agency<br />
HR Shared Services Design, Business Case, and Project Plan Development<br />
Senior management <strong>for</strong> this government agency had a solid vision <strong>for</strong> HR shared services but needed a<br />
clear implementation plan. We were able to work with them to identify and prioritize processes to<br />
reengineer and document current state processes and design future state processes based on a tiered<br />
service delivery model. As a result, our client was able to gain approval and funding to implement an<br />
HR shared services model, develop a detailed implementation plan to build the model, reengineer select<br />
processes, define an initial knowledgebase structure, and create an initial draft <strong>of</strong> technology<br />
architecture required <strong>for</strong> the implementation <strong>of</strong> the tiered service delivery model.<br />
Federal Government Agency<br />
Service Level Agreement Development<br />
A recent consolidation <strong>of</strong> services led to opportunities <strong>for</strong> superior service providers to attract new<br />
customers. Immediately prior to the absorption <strong>of</strong> a relatively large customer, the multifunction service<br />
provider elected to develop and utilize SLAs to identify services and per<strong>for</strong>mance metrics and improve<br />
communication ef<strong>for</strong>ts. We identified and defined current services <strong>of</strong>fered by the client, conducted<br />
customer focus groups to determine service level expectations, identified per<strong>for</strong>mance metrics, and<br />
developed a baseline <strong>for</strong> per<strong>for</strong>mance. We used benchmarks to establish targets, identified roles and<br />
responsibilities <strong>for</strong> both the service providers and the customers, and facilitated initial SLA discussions.<br />
As a result, SLA templates were developed <strong>for</strong> each functional service provider, including defined<br />
services, roles and responsibilities, points <strong>of</strong> contact, and per<strong>for</strong>mance metrics and targets.<br />
Large Fast Food Corporation<br />
Shared Services Strategy Development<br />
ScottMadden designed and facilitated the strategic planning process <strong>for</strong> the world’s #1 fast food chain.<br />
This strategy resulted in the original North American operation expanding to provide finance and<br />
accounting, human resources, and in<strong>for</strong>mation technology services globally.<br />
24
Large Consumer Packaging Company<br />
Shared Services Strategy Development<br />
ScottMadden designed and delivered a series <strong>of</strong> strategic executive workshops <strong>for</strong> the senior<br />
management team <strong>of</strong> an international consumer packaging company to provide insight and<br />
understanding <strong>of</strong> shared services best practices and trends. <strong>The</strong> workshops required the senior leadership<br />
team to identify and agree on the top qualities and characteristics <strong>of</strong> outstanding shared services<br />
providers and determine what their team would strive to achieve. <strong>The</strong> team agreed on collective actions<br />
<strong>for</strong> closing gaps in per<strong>for</strong>mance and had individuals set personal goals and commitments <strong>for</strong> ensuring<br />
the success <strong>of</strong> their groups. <strong>The</strong> workshop was then rolled out to other shared services organizations<br />
within the company.<br />
Diversified Entertainment Company<br />
Accounting Shared Services Assessment and Implementation Support<br />
ScottMadden conducted an assessment project and a subsequent implementation support project <strong>for</strong> this<br />
centralized finance and accounting organization, which includes accounts payable, payroll, and treasury.<br />
Internal customers <strong>of</strong> the organization included all major operations in the United States: 11 strategic<br />
business units, 52 corporate entities, 12 states, 18,000 invoices per month, 4,500 expense accounts per<br />
month, and payroll checks <strong>for</strong> 15,000 employees. Phase I consisted <strong>of</strong> a broad-based assessment <strong>of</strong><br />
processes, customer support, and organization structure. In Phase II, we provided implementation<br />
support <strong>for</strong> the new organization structure, re-staffing, establishment <strong>of</strong> a customer call center, creation<br />
<strong>of</strong> per<strong>for</strong>mance metrics and reporting, and incentives. ScottMadden also helped manage implementation<br />
and developed a customer satisfaction survey and report to help the organization monitor its progress.<br />
<strong>The</strong> resulting new organization has a better staff/organization “fit,” reduced operating costs, and<br />
customer satisfaction baseline and measurement processes in place.<br />
Diversified Entertainment Company<br />
Shared Services Assessment<br />
We assisted our client’s shared services center, which provides human resources, accounting, payroll,<br />
and some IT services, with a strategic planning project. <strong>The</strong> project was intended to identify issues and<br />
opportunities <strong>for</strong> the organization. <strong>The</strong> new strategy took into account opportunities at the parentcompany<br />
level and challenges <strong>of</strong> a new strategic partnership that provided client-hosted s<strong>of</strong>tware and<br />
strategic staffing. <strong>The</strong> refreshed strategy included an evaluation <strong>of</strong> customer base, service portfolio,<br />
organization structure, service delivery, account management, processes, technology, talent, and a multiyear<br />
prioritization <strong>of</strong> initiatives.<br />
Large Communications Equipment Provider<br />
Corporate Controller Organization Assessment<br />
<strong>The</strong> global corporate controller organization consisted <strong>of</strong> more than 550 FTEs in 36 locations around the<br />
world. ScottMadden helped plan, organize, and conduct an assessment <strong>of</strong> the organization to determine<br />
a more efficient and effective service delivery model. During the current state assessment, all positions<br />
(company and contractor) in the organization were inventoried, labor costs were estimated, and<br />
management spans <strong>of</strong> control and layers in the organization were calculated. Next, alternative service<br />
delivery models were developed and assessed relative to company-specific criteria, and a model was<br />
selected as the basis <strong>for</strong> the future organization design. Step three included development <strong>of</strong> a future<br />
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organization, specifying all positions and their reporting relationships. <strong>The</strong> final step was development<br />
<strong>of</strong> a business case <strong>for</strong> the new organization, including estimated savings and costs to implement.<br />
Leading Residential Construction Product and Service Provider<br />
HR Shared Services Planning, Design and Business Case<br />
Our client’s historical hands-<strong>of</strong>f approach led to autonomous operating companies, resulting in myriad<br />
HR and payroll delivery models and systems across more than 15 companies and nearly 40,000<br />
employees. <strong>The</strong> client was interested in implementing HR shared services as a way to remove<br />
redundancy, reduce costs, improve reporting and compliance, and increase cross-company coordination.<br />
Senior management wanted to see a business case and plan to move <strong>for</strong>ward be<strong>for</strong>e committing to a<br />
change that would affect so many independent operating companies. We were engaged by the client to<br />
evaluate their current service delivery model and design a new HR organization that incorporated<br />
centers <strong>of</strong> excellence, a service center, a single ERP solution, and self service <strong>for</strong> employees. <strong>The</strong><br />
analysis and design was leveraged to develop a business case and a corresponding multi-phase<br />
implementation plan which demonstrated the significant cost savings and implementation steps desired<br />
by senior management.<br />
2. ScottMadden Team Resumes<br />
Resumes <strong>for</strong> the proposed ScottMadden team are included on the following pages.<br />
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Summary<br />
27<br />
Résumé <strong>of</strong><br />
Douglas E. Utley<br />
Partner<br />
Since joining ScottMadden, Doug Utley has specialized in organization design and staffing, process reengineering, and<br />
process automation. Mr. Utley has extensive experience in strategic and operational planning, organization design, concept<br />
marketing, and operational processes. He has done extensive work on designing, planning and implementing shared services<br />
centers. He has become a recognized leader in service center technologies and integration <strong>of</strong> multiple technology<br />
applications <strong>for</strong> service centers. His 25-year career in the U.S. Air Force included high-level policy <strong>for</strong>mulation,<br />
organizational design, and strategic planning. He earned an M.B.A. from the Florida Institute <strong>of</strong> Technology and a B.S. in<br />
mechanical engineering from N.C. State <strong>University</strong>.<br />
Areas <strong>of</strong> Specialization<br />
� Shared services design and implementation<br />
� Shared services strategy<br />
� Shared services delivery systems<br />
� Human resources management<br />
� Organization design and restructuring<br />
� Financial business case and analysis<br />
Recent Assignments<br />
� Assisted a large defense contractor with planning, design, and implementation <strong>of</strong> HR shared services<br />
� Facilitated business case, planning, design, and implementation <strong>of</strong> HR service center <strong>for</strong> a large health care company<br />
� Assisted an automotive parts manufacturer with HR shared services design, business case, and implementation<br />
� Assisted major government bureau in developing strategy and plan <strong>for</strong> building capability to improve services and<br />
reduce cost<br />
� Facilitated the design and successful implementation <strong>of</strong> HR shared services <strong>for</strong> a large electric utility composed <strong>of</strong> five<br />
independent operating companies. In this project, he assisted with design, reorganization, re-staffing, process<br />
reengineering, technology requirements and design, training and change management<br />
� Assisted a large entertainment company with <strong>for</strong>mulation <strong>of</strong> security policy and implementation <strong>of</strong> security pr<strong>of</strong>iles that<br />
greatly improved security, especially in sensitive HR and payroll systems<br />
� Consulted with a governmental shared services organization to compare costs <strong>of</strong> service providers and recommended<br />
service consolidations at four overseas locations<br />
� Assisted a department <strong>of</strong> the U.S. government in conducting a comprehensive baseline <strong>of</strong> IT personnel, contracts,<br />
infrastructure, and costs<br />
� Assisted an electronics manufacturer in designing a technology suite <strong>for</strong> its new HR service center<br />
� Assisted a department <strong>of</strong> the U.S. government in developing plans and designing technologies to web-enable and<br />
improve efficiencies <strong>of</strong> administrative services<br />
� Managed the staffing, organization, processes, and change management <strong>of</strong> an ERP support organization <strong>of</strong> a large <strong>for</strong>est<br />
products company<br />
� Managed the design, build, and implementation <strong>of</strong> the employee service center <strong>for</strong> a large <strong>for</strong>est products company<br />
� Managed the design, reorganization, and implementation <strong>of</strong> the shared services center <strong>for</strong> a large entertainment company
Summary<br />
28<br />
Résumé <strong>of</strong><br />
Kevin Church<br />
Director<br />
Mr. Church has more than 15 years <strong>of</strong> experience with operations and organization trans<strong>for</strong>mations. He has more than ten<br />
years <strong>of</strong> experience leading financial shared services trans<strong>for</strong>mation ef<strong>for</strong>ts in conjunction with the rollout <strong>of</strong> ERP systems<br />
and other leading technologies. Kevin implemented shared services solutions with sustainable results by utilizing<br />
collaboration, change leadership and effect project leadership. He has led or was the subject matter advisor on shared<br />
services projects in all major industries and in multiple continents (U.S., Europe, U.K., Latin America, Africa and Asia). As<br />
a result, Kevin has a deep understanding <strong>of</strong> how to manage in multiple cultures to exceed service expectations and engage the<br />
organization to embrace shared services concepts. Kevin holds a B.S. in mechanical engineering from Ryerson <strong>University</strong><br />
and an M.B.A. from Queens <strong>University</strong>.<br />
Areas <strong>of</strong> Specialization<br />
� Project and change management<br />
� Program management<br />
� Shared services design, build, and implementation<br />
� Finance and accounting management<br />
� Per<strong>for</strong>mance management<br />
� Outsourcing advisory services<br />
� RFI and RFP development<br />
Recent Assignments<br />
� Shared services lead on customs and border protection <strong>of</strong> the Department <strong>of</strong> Homeland Security with the department’s<br />
initial implementation <strong>of</strong> shared services and governance model. Led two other external consulting companies to<br />
integrate the three largest agencies within DHS. Worked closely with agency leads to develop a collaborative<br />
environment, supported DHS leadership in developing the strategy and workplan, <strong>for</strong>mulated the structure <strong>of</strong> the<br />
governance council, and worked across the various shared services functions to establish SLAs<br />
� Completed detailed diagnostic <strong>for</strong> a $12 billion consumer goods company <strong>of</strong> their outsourced U.S. accounts payable<br />
function. Reviewed operational and transactional efficiencies <strong>for</strong> locations in the United States, Canada, and India.<br />
Identified process and system improvements, organizational changes, and quick wins. Led PMO to implement<br />
recommendations and coordinate other internal initiatives<br />
� Developed and designed shared services strategy <strong>for</strong> a global consumer goods organization with operations in Asia,<br />
Europe, and South America in conjunction with the implementation <strong>of</strong> SAP. Led the global process design team that<br />
included Europe, Asia, and Latin America (including Brazil)<br />
� Completed diagnostic <strong>for</strong> expanding shared services <strong>for</strong> a $16 billion global media company to identify opportunities to<br />
optimize their existing processes and expand shared services in Europe. Reviewed existing U.S. shared services<br />
operations and identified required process changes to support migration to SAP<br />
� Completed detailed diagnostic <strong>for</strong> a $10 billion global contract manufacturer <strong>of</strong> their outsourced accounts payable<br />
processing. Reviewed operational and transactional efficiencies <strong>for</strong> locations in the United States, Europe, Eastern<br />
Europe, and Mexico. Identified process and system improvements, organization changes and quick wins<br />
� Managed organization financial trans<strong>for</strong>mation projects that included the design and implementation <strong>of</strong> a redefined<br />
organization model. Typical project related activities included the assessment <strong>of</strong> current per<strong>for</strong>mance, development <strong>of</strong><br />
process visions, establishment <strong>of</strong> per<strong>for</strong>mance targets, business case and organization design <strong>for</strong> the new shared services<br />
model in North America and Europe<br />
� Supported the transition <strong>of</strong> <strong>of</strong>fshoring an existing shared service center <strong>for</strong> a U.S. healthcare organization from Chicago<br />
to Costa Rica<br />
� Led the assessment <strong>of</strong> A/P operations and developed the RFP to outsource to a third-party provider <strong>for</strong> a $4 billion media<br />
and entertainment company. Defined outsourcing requirements, developed RFP, managed vendors, developed scorecard<br />
<strong>for</strong> responses, and coordinated vendor presentations
Summary<br />
29<br />
Résumé <strong>of</strong><br />
Andrew S. Forbis, SPHR<br />
Senior Associate<br />
Andy Forbis joined ScottMadden in 2009 with more than 18 years <strong>of</strong> experience in industry and client service roles. Prior to<br />
ScottMadden, he worked in a shared services management role within human resources <strong>for</strong> Progress Energy. He has also held<br />
management consulting roles with PricewaterhouseCoopers where he focused on HR trans<strong>for</strong>mation, service delivery, and<br />
merger integration <strong>for</strong> clients. Recognized <strong>for</strong> leading teams through the design and implementation <strong>of</strong> solutions that simplify<br />
work, reduce cost, and increase quality, Andy uses technology and process improvements to reduce manual work and to<br />
increase the organization’s strategic focus. His background includes broad operational management and consulting expertise<br />
with experience in shared services management as well as consulting and outsourcing <strong>for</strong> companies across multiple<br />
industries including over six years in energy. He holds a Senior Pr<strong>of</strong>essional in Human Resources (SPHR) certification.<br />
Andy earned a B.S. from East Carolina <strong>University</strong> and an M.B.A. from Babcock Graduate School <strong>of</strong> Management at Wake<br />
Forest <strong>University</strong>.<br />
Areas <strong>of</strong> Specialization<br />
� Shared services strategy and implementation<br />
� Project and change management<br />
� Human resources management<br />
� Infrastructure technology<br />
� Operations improvement and process redesign<br />
Recent Assignments<br />
� Supported the governance model development and the strategic planning process <strong>for</strong> the finance organization <strong>of</strong> a large,<br />
investor-owned utility<br />
� Managed HR shared services center operations <strong>for</strong> a large energy company. Oversaw administration <strong>of</strong> employee and<br />
retiree benefit and retirement plans, employee data administration, and the corporate relocation program. Through the<br />
use <strong>of</strong> an HR outsourcing relationship, initiated a benefit eligibility audit <strong>of</strong> employee and retiree dependents generating<br />
$6 million dollars in O&M savings over two years. Also, led process and program improvements netting more than<br />
$5,000 in O&M savings annually<br />
� Provided support <strong>for</strong> the successful rate case <strong>of</strong> a Florida utility. Compiled more than six years <strong>of</strong> historical human<br />
resources data including changes in organization structure and headcount data following the merger with another utility<br />
� Partnered with client resources to develop the strategy <strong>for</strong> delivering HR services in conjunction with an implementation<br />
<strong>of</strong> SAP HR, an HR portal, a knowledgebase, and a data warehouse <strong>for</strong> a global pharmaceutical company<br />
� Collaborated on the implementation <strong>of</strong> an HR shared services center in conjunction with North American and European<br />
PeopleS<strong>of</strong>t HR implementations. Redesigned processes, per<strong>for</strong>med benchmarking, and created an HR help desk and<br />
processing center <strong>for</strong> the large, contract research organization<br />
� Assisted with the integration <strong>of</strong> HR administration processes <strong>for</strong> the merger <strong>of</strong> two large, global, IT industry companies<br />
with a combined employee population <strong>of</strong> more than 170,000<br />
� Managed the development <strong>of</strong> HR case management technology, streamlining support <strong>of</strong> the HR service center at a large,<br />
energy company<br />
� Led the development <strong>of</strong> HR metrics reporting technology <strong>for</strong> a large utility enabling the organization to access and track<br />
key per<strong>for</strong>mance data<br />
� Assisted with pre-merger planning <strong>for</strong> the HR organization <strong>of</strong> a large pharmaceutical and consumer products company
Summary<br />
30<br />
Résumé <strong>of</strong><br />
Dina Chanysheva<br />
Senior Associate<br />
Dina Chanysheva joined ScottMadden in 2008 after receiving an M.B.A. from the <strong>University</strong> <strong>of</strong> North Carolina’s Kenan-<br />
Flagler Business School. While pursuing her degree, Dina interned in Home Entertainment Brand Management Group at<br />
NBC Universal, a division <strong>of</strong> GE. Dina also spent a semester working as an analyst <strong>for</strong> Dominion Enterprises, private equity<br />
investment firm. Prior to business school, she worked <strong>for</strong> Global Access, an international non-pr<strong>of</strong>it organization focused on<br />
providing medical treatments <strong>for</strong> children, as a patient services manager. Dina holds a B.S in mechanical engineering from<br />
the Ufa State <strong>University</strong> <strong>of</strong> Petroleum Technology in Russia.<br />
Areas <strong>of</strong> Specialization<br />
� Shared services design and implementation<br />
� Operations improvement and process redesign<br />
� Organization design and restructuring<br />
� Marketing analysis and modeling<br />
� Financial Analysis<br />
Recent Assignments<br />
� Conducted a current state activity and cost analysis <strong>for</strong> the human resources shared services organization <strong>of</strong> a large<br />
global company. Built cost models to quantify HR services costs<br />
� Assisted a large nuclear energy generation company to review and redesign a management model to align with industry<br />
best management principles<br />
� Conducted an organizational benchmarking assessment <strong>for</strong> the real estate and corporate facilities functions at a $19<br />
billion electric utility. Documented common organizational models, trends, and industry best practices based on<br />
interviews with 15 companies. Recommended an improved real estate and facilities organizational model supported by a<br />
business case and implementation plan<br />
� Assisted a large electric utility in the development <strong>of</strong> budget assumptions to support capital and O&M budgeting process<br />
and a new <strong>for</strong>ecasting processes <strong>for</strong> retail utility margin to support a rate case filing with state regulators<br />
� Identified and researched investment targets, per<strong>for</strong>med financial modeling and made investment recommendations <strong>for</strong><br />
media and in<strong>for</strong>mation services buyout targets in the United States <strong>for</strong> a leading marketing services company<br />
� Analyzed key competitors in Eastern Europe and recommended a market entry approach <strong>for</strong> a mid-sized, U.S.-based<br />
diversified technology company<br />
� Analyzed competitors’ market strategy and market share to develop brand positioning and marketing strategy <strong>for</strong> a series<br />
<strong>of</strong> universal DVD titles <strong>for</strong> children and young adults<br />
� Developed a multi-channel marketing plan <strong>for</strong> introducing a series <strong>of</strong> universal DVD titles through retail and rental<br />
channels<br />
� Conducted primary research, created a plan, and recommended a strategy <strong>for</strong> an international non-pr<strong>of</strong>it organization to<br />
increase the number <strong>of</strong> patients receiving medical treatments in North America<br />
� Directed a team <strong>of</strong> eleven as a lead manager <strong>of</strong> an international non-pr<strong>of</strong>it organization. Developed new hiring practices<br />
which resulted in the reduction <strong>of</strong> employee turnover by 50% and an overall increase in number <strong>of</strong> new hires<br />
� Developed and implemented a business plan <strong>for</strong> start-up <strong>of</strong> a new international student travel organization. Grew<br />
company’s active client base from ten to more than 500 in a span <strong>of</strong> two years
5. ScottMadden Shared Services Insights<br />
ScottMadden consultants have published numerous articles and white papers, given speeches, and<br />
conducted workshops on shared services. <strong>The</strong> following list contains some examples:<br />
• Trey Robinson, “Increasing the Value <strong>of</strong> Shared Services in 2009 and Beyond,” White Paper (March<br />
2009)<br />
• Jim Murray and Trey Robinson, “In<strong>for</strong>mation Technology Assessment,” White Paper (January<br />
2009).<br />
• Brad DeMent and Scott Manning, “HR Shared Services 101” (workshop, IQPC HR Summit<br />
conference, Atlanta, December 2008)<br />
• “Shared Services in Challenging Markets,” Shared Services News (November 2008)<br />
• Sam Poston, “What an Economic Recession Means <strong>for</strong> Shared Services Organizations” (keynote<br />
presentation, IQPC Shared Services Summit West conference, Las Vegas, September 2008)<br />
• Sam Poston, Scott Manning, and Brad DeMent, “Building the Business Case around Designing,<br />
Implementing and Improving Shared Services Economically and Otherwise” (workshop, IQPC<br />
Shared Services Summit West conference, Las Vegas, September 2008)<br />
• Brad DeMent and Scott Manning, “Trans<strong>for</strong>mational Change Management” (workshop, IQPC<br />
Shared Services Summit West conference, Las Vegas, September 2008)<br />
• “2008 Shared Services Week Survey: Scope Continues to Expand,” Shared Services News (June<br />
2008)<br />
• “Getting Compensation Right <strong>for</strong> Shared Services Positions,” Shared Services News (April 2008).<br />
• “Moving the Masses (Physically and Mentally) to a Shared Services Center,” Shared Services News<br />
(March 2008)<br />
• “Using Surveys Results to Improve Customer Satisfaction – Exelon’s Business Service Company<br />
Shows the Way” Shared Services News (November 2007)<br />
• Brad DeMent, “Developing an Infrastructure Framework – A Key to Operating a Successful Shared<br />
Services Organization” (workshop, IQPC Shared Services Summit West Conference, Las Vegas,<br />
September 2007)<br />
• Walt Simpson, “Start Me Up! – Planning and Implementing Your F&A Shared Services Center from<br />
Business Case to Go Live” (workshop, IQPC Shared Services <strong>for</strong> Finance & Accounting<br />
Conference, Austin, July 2007)<br />
• Sam Poston, “Keys to Successful Shared Services Organization Expansion” (keynote presentation,<br />
IQPC Shared Services Exchange, June 2007)<br />
• Scott Manning, “Build Greater Value in Your HR Shared Services Center” (workshop, HR Shared<br />
Services Summit, Atlanta, May 2007)<br />
• Sam Poston, “Customer Relationship Management: Taking Your SSO to Greater Levels <strong>of</strong> Service<br />
Delivery” (featured presentation, Shared Services Week, Orlando, March 2007)<br />
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