By : sharedserviceslink.com
Date : 2009
Location : United Kingdom UK / London
The conference focused on the haemorrhaging of cash in Public Sector Accounts Payable, and how to reduce cost in invoicing process and increase your purchasing power.
e-procurement, e-invoice, accounting system, ERP, enterprise ressource planning, P2P, Purchase to Pay for public sector, conference proceedings
services ,shared ,business ,procurement ,management ,delivering ,invoice ,finance ,suppliers ,service ,supplier ,process ,change ,savings ,sector ,payroll ,training ,invoices ,member ,public
The conference focused on the haemorrhaging of cash in Public Sector Accounts Payable and how to reduce cost in invoicing process and increase your purchasing power.
The pressures on the public sector to reduce costs are massive. So what did all this mean? If funding and revenue was uncertain, and there was pressure to strip out operational costs, the first place to scrutinise for saving opportunities was transactional finance function.
The haemorrhaging of cash in Public Sector Accounts Payable is terrifying. On average one AP clerk processes 4,000 invoices per annum, three times less the average in the private sector. A cost of over £10 per invoices was standard. So a council or department processing 250,000 invoices per annum was staring at a staggering £2.5 million cost… just to pay suppliers. You had to ask yourselves why?
- Reduce costs in invoicing process by a staggering 50%
- Reduce the number of suppliers by 95% and increase your purchasing power
- Run finance operations off a robust and scalable ERP or accounting system
- Effectively centralise invoice processing and payments into an independent or collaborative shared services centre
- Implement e-procurement and e-invoicing initiatives which will quickly move AP to touchless processing
- Reduce Receipt to Post cycles by 60%
- Realise £1.5 million in savings through shared services.
The conference documentation includes slides and audio files recordings for the following presentations.
CONFERENCE DAY ONE
Accounts Payable As We Know It Is Dying – Ushering in the New Age of Public Sector Transactional Finance
Susie West Conference Chair and Director, SHAREDSERVICESLINK.COM
There had been an obvious shift in transactional finance operations within the public sector. The speed at which Councils and Government Departments were moving to introduce efficiencies and strip out costs in back office finance was unprecedented. The Gershon Report and uncertainty about the funding generosity of the next government meant the cost of running finance MUST reduce. This session looked at what the public sector is doing to achieve this single goal, namely the application of shared services. Who was operating independent shared services? Who was in collaboration with another body? Who is running off SAP? Who had managed to reduce their invoicing costs by 50%? Who had nailed shared services and how? This session revealed the need-to-know stats.
Sharing It All With Gusto – Managing a Complex Public Sector Shared Services Programme
Debbie Oliver Shared Services Programme Manager
DEPARTMENT FOR INNOVATION, UNIVERSITIES & SKILLS (DIUS)
Being newly created in July 2007 the Department for Innovation, Universities and Skills (DIUS) had no existing corporate services. Keen to follow Sir Gus O’Donnell’s steer for smaller Government Departments to share corporate services, it had embarked upon an ambitious shared services programme. Its drivers had been to keep the size of its corporate centre to less than 50 FTEs - “zero to the nearest 100” according to the DIUS Blueprint for Shared Services. This acknowledges that within such a small department (fewer than 900 employees) a fully functional corporate centre was disproportionately large in comparison to its Policy areas, and therefore highly cost inefficient. This particular programme was unique not only for its size (it incorporates 13 service areas) but for its ambition (no other department had attempted to share so many diverse services with 3 other Government Departments). To add greater complexity, the Department for Children, Schools and Families (DCSF) provided the majority of these services who in turn delivered the transactional Finance and Procurement processes via the Department for Work and Pensions’ (DWP) Oracle ERP system. This session was aimed at those who were looking at starting on the finance and accounting shared services journey. It covered the challenges of managing such a large scale and complex programme, the pitfalls, and why Shared Services had been the right choice for DIUS.
Where to Start Guaranteeing Your Savings – How to Ensure Project Success Early
Tony Glennon Oracle Support Manager , BOLTON COUNCIL
Bolton Council's major transformational change programme, when implementing its new ERP system helped to consolidate it as one of the
country's best performing local authorities. By centralising its payables and payroll services it was able to make significant efficiencies. In this session Tony Glennon examined in detail how the commitment of senior management and employees was obtained and maintained; how the challenges of centralising operations were overcome; and where the council planned to go to next to ensure it gets the most out of its investment
How to Develop the Shared Services Delivery Model to Deliver Real Value to the NHS
Bob Alexander Director of NHS Finance, NHS Finance , Performance & Operations Directorate
The NAO’s report “Improving Corporate Services Using Shared Services” highlighted the important role that the Department of Health had had in driving public sector efficiency through its NHS Shared Business Services organization. This pioneering joint venture had transformed the Shared Services model from cost savings to delivering real value to the NHS. As well as improvements in customer service, quality and operational consistency NHS Shared Business Services had developed a broader range of innovative services to support the changing needs of Trusts across the NHS. This session examined the Department of Health’s key focus areas – quality, value and innovation and how exactly it aimed to transform the NHSthrough the Shared Services model
DEPARTMENT OF HEALTH
ROUND TABLE EXCHANGE - Where to Start in a World of Unknowns – Getting Off on the Right Foot
The Department for Work and Pensions Shared Services organisation had generated cumulative savings of approximately £50 million and had delivered offerings to the Cabinet Office. 50% of central government employees were now customers of shared services… which meant 50% were not. This session was aimed at those who were looking at starting on the shared services journey. Shared services was inevitable, but there were so many ingredients, and opportunities for error, that it was critical to ensure the planning was right. Coupled with this, shared services required huge investment and attracts a lot of press attention, that it was vital to secure quick wins. This session looked at the absolute Dos and Don’ts of evaluating, designing and setting up shared services, to ensure your business case projections was realised.
MASTERING CUSTOMER SATISFACTION
Winning the Hearts and Minds of Your Customers through Elegant Change Management and Communications and taking Satisfaction over 90%
Casandra Daubney Assistant Finance Director, NHS ROYAL FREE
ENSURING USER COMPLIANCY
In the private sector, some SSCs charge their customers for the services provided, and allow their customers to use other providers. Scary! This meant that some SSCs were so confident about they quality, timeliness and value of their service, that they welcome the threat of competition. Surely this had to be the badge of a truly successful shared services organisation, which we all aspired to wear? If we looked at the public sector in terms of shared services customers, you had to ask yourself quite hard questions like: were the people that used your service really customers? Were they seen as customers and treated as such? Did they know they were customers? Did you believe they had customer rights, and did they? Were you seen as a supplier? Or Were you seen as a business partner? How did you know what your customer was thinking? How did you know what they wanted? How did you know if they were happy or unhappy? How important was their happiness to you? Did you care? This session looked at the massive topic of customer satisfaction - from elegantly communicating the change which shared services brings, all the way through to measuring their happiness once your operation was stable. If your customer satisfaction was currently under 60%... or you didn't measure customer satisfaction at all, this session was a must for you.
Using Shared Services to Actually Improve Relationships with Suppliers in Higher Education
Steve Butcher Head of Procurement and Shared Services , HIGHER EDUCATION FUNDING COUNCIL FOR ENGLAND (HEFCE)
Higher education institutions were well aware of the opportunities that exist to improve performance and achieve significant savings by moving to a shared services culture. It was estimated that universities spent over £900 million a year on ICT; a significant proportion of this was on administrative systems. The Higher Education Shared Services Advisory Group had been considering an approach to the sector’s business systems, which adopted the concept of “software as a service”. This session looked at how the HEFCE had put together its strategic plan, how it intended to develop relationships with suppliers, how it got the necessary funding to set its plan into motion, and how it created efficiencies in higher education through the implementation of a service oriented architecture approach to major business systems.
Using Shared Services to Drive Up Your Invoice 3 Way Match
Dave Hipple Group Finance Director, DEPARTMENT FOR TRANSPORT
MAXIMISING AUTOMATION AND SYSTEMS
When people talked about Finance Shared Services, they were largely talking about Accounts Payable. So it was absolutely essential to your shared services success story to get this bit right. And one essential and very telling reading of an efficient AP operation was how many of your invoices ‘pass first time’. Was it 90%? Or 57%. As you knew the difference between these two scenarios was £ hundreds of thousands – especially as an ‘exceptional invoice’ could cost well over £20 in the public sector. So huge attention needed to be put on driving up first time match. Without this attention, invoices continued costing over £20 to process and weeks to post on the system. SO, what were the secrets to using your shared services to boost first time match rates and drive exceptions down to under 15%? This session looked at what the DfT had done to do just that.
Getting the Most Out of Your ERP – Ensuring Your Integrated ERP is Scalable and Won’t Let you Down
Richard Saunders Change Programme Director ,HM REVENUE AND CUSTOMS (HMRC)
If you were doing shared services now, or just starting to get your teeth into it, one critical success factor was selecting, installing and maximising the use of your ERP. Many councils and government departments till recently had been operating off creaky systems which were on their knees. This session looked at the HMRC's journey towards shared services; how they were ahead of target in achieving gross savings of £200million over a 5 year period; the criteria for selecting the integrated single ERP system for their SSC; how compliance was ensured; and how and why the organisation had had to adapt to use their ERP system. This session was a must for any shared services professional looking to replace their existing ERP, or select and install a future ERP.
Automating the First P – Using E-Procurement to Drive P2P To Under £10 a Transaction
John Malloch Head of Procurement, UNIVERSITY OF EXETER
The Corporate Services directorate within the University of Exeter was formed in August 2007 to restructure and deliver efficiencies in seven key areas, including financial services. The Procurement Strategy 2007-10 forms part of Corporate Services' strategy, and was established to facilitate the delivery of savings within times of resource constraints. John Malloch examined how the university was reducing its purchase-to-pay end-to-end cost by £36 per transaction by moving from a manual PO to an e-procurement process. This session examined: how an
organisation could motivate both its buyers and suppliers to comply with the newly implemented systems; how continuous improvement technology could be bolted onto core financial systems to reduce costs; and the steps that needed to be made from the start of the project to ensure a high level of user acceptance. This session was essential for anyone looking to install and maximise e-procurement.
Using P2P Automation to Reduce Requisition-to-Delivery Cycles By 60%
David Walach Systems & Data Manager, KING'S COLLEGE HOSPITAL NHS FOUNDATION TRUST
The procurement department at King's College Hospital NHS Foundation Trust influences an annual budget of £160 million, and deals with approximately 1500 suppliers each year. In order to move away from a slow and error-prone paper requisitioning process (raised from 500-600 wards and hospital departments), effectively track orders within the system, and ensure compliance with purchasing policy it was deemed important to work towards an automated and more efficient procurement system, from requisition right through to the invoice processing phase. David Walach examined: how King's College Hospital NHS Foundation Trust had reduced its processing costs; how it had reduced requisition to delivery times from 13.5 days to 5.5 days; and how it was steadily progressing towards an automated invoice processing and approval solution.
Realising £400,000 Savings Through P2P Continuous Improvement Initiatives
Alex Hedley, Principal Accountant Exchequer
Michael Robson, Head of Strategic Procurement
LONDON BOROUGH OF HACKNEY
In August 2006 Hackney Council benchmarked their accounts payable process with the Chartered Institute of Public Finance and Accounting. We found that we were one of the worst in the country in terms of cost per invoice. There in started a journey to strip out costs, stop losing invoices, introduce efficiencies across the P2P process, and ensure everything was done to pay suppliers on time. First came the mapping exercise, where different types of invoices were mapped in terms of their processes, and challenged as to the way they were processed. The maps were then documented so standardisation of process could then ensue. Finance operations were then centralised moving all purchase invoice processing to one central department and onto one system. 70,000 suppliers were consolidated into a remarkable 3,500 and the contracts spend increased by 65%. In this presentation Alex Hedley was looking at how Hackney Council was now in the continuous improvement phase and had: reduced their Accounts Payable team; created purchasing specialists; converted 14,000 invoices per annum to pure electronic; got their teeth into a data capture and workflow project which was gaining real pace; maximized their use of Marketplace; had communicated effectively with suppliers; and arrived at an impressive £400K saving.
Using Finance Shared Services to Handle 5 Million Invoices and Post 99.9% of Good Invoices in 11 Days
Heather Tayler Director FMSSC , MINISTRY OF DEFENCE (MOD)
In April 2007 the MoD launched the Finance Management Shared Services Centre (FMSSC) as part of the "Simplify and Improve" initiative. The very clear intention here was to integrate several existing MoD back-office finance processes, encompassing 13 departmental business units, and establish an end-to-end financial accounting shared service centre. The FMSSC processed a massive 5 million invoices per annum with a value in excess of £20 billion annually. One of its key goals was to post 99.9% of 'good' invoices within 11 days of receipt, supporting the MoD in meeting its obligation to pay all invoices within 30-days. Heather Tayler will be looking in detail at: how this aggressive goal had been reached; how they were making significant process improvements whilst managing massive scale; and where next for this super-scale SSC.
Adding Massive P2P Savings On Top of Impressive £1.5 Million Shared Services Savings
Nicole Edbrooke Purchase to Pay Head, ESSEX COUNTY COUNCIL
Many councils had over 250,000 invoices per annum coming in from suppliers. Councils were quickly registering that one very effective way to ‘get rid of the invoice’ is to automate the trading transaction at the point of inception – its requistion. In this excellent session Nicole Edbrooke looked at: their shared services e-procurement tool, how they selected the tool and what their main drivers were; how they had already seen 75,000 orders go via the marketplace; how they had 10,000 suppliers connected to the marketplace; and how they were currently processing 23,000 invoices electronically. Having saved £1.5 million from centralising the invoices alone, these extra savings made for a very attractive return.
Next Generation F&A Transformation in the Public Sector – Where Gershon II will Really Take Us
David Hopkins Councillor , MILTON KEYNES COUNCIL
Local authorities had come to realise that there were real efficiencies to be made by pooling technology and sharing finance services – further tightening budgets meant that those who choose not to must definitely justify themselves. Cllr Hopkins examined the key success criteria for delivering tangible improvements through shared services, the latest developments in Gershon II and whether its required £5bn in savings is a realistic figure, plus the need for cultural change to enable transformation projects to be as successful as possible. What could be done to overcome instances where transformation targets were not being met and what did tomorrow really look like based on the changing economic landscape?
Company Description : Includes all presentations and audio files sold separatly: 14 files PDF files and 14 audio files. It also includes a software to access the presentations and audio files directly via a control panel)
Company Description : Includes all presentations and audio files sold separatly: 14 files PDF files and 14 audio files. All files can be downloaded one by one once purchase is made (compared to zip option that download all files)
Company Description : Susie West Conference Chair and Director SHAREDSERVICESLINK.COM Includes a presentation (PDF) and the corresponding audio file (MP3 file: 37mn37).
Company Description : Daniel Rona, Associate partner, KPMG Includes a presentation (PDF) and the corresponding audio file (MP3 file: 34mn48).
Company Description : Tony Glennon Oracle Support Manager BOLTON COUNCIL Includes a presentation (PDF) and the corresponding audio file (MP3 file: 45mn03).
Company Description : Bob Alexander Director of NHS Finance, NHS Finance , Performance & Operations Directorate DEPARTMENT OF HEALTH Includes a presentation (PDF) and the corresponding audio file (MP3 file: 46mn25).
Company Description : Richard Saunders, change programme director, HM REVENUE AND CUSTOMS (HMRC) Includes a presentation (PDF) and the corresponding audio file (MP3 file: 39mn32).
Company Description : Steve Butcher Head of Procurement and Shared Services HIGHER EDUCATION FUNDING COUNCIL FOR ENGLAND (HEFCE) Includes a presentation (PDF) and the corresponding audio file (MP3 file: 1h00mn28).
Company Description : Robert Duncan, Head of shared service, DEPARTMENT FOR TRANSPORT Includes a presentation (PDF) and the corresponding audio file (MP3 file: 43mn13).
Company Description : James Minards, Head of procurement NHS SHARED BUSINESS SERVICES Includes a presentation (PDF) and the corresponding audio file (MP3 file: 1h03mn46).
Company Description : John Malloch Head of Procurement UNIVERSITY OF EXETER Includes a presentation (PDF) and the corresponding audio file (MP3 file: 44mn49).
Company Description : David Walach Systems & Data Manager KING'S COLLEGE HOSPITAL NHS FOUNDATION TRUST Includes a presentation (PDF) and the corresponding audio file (MP3 file: 34mn45).
Company Description : Alex Hedley Principal Accountant Exchequer Michael Robson Head of Strategic Procurement LONDON BOROUGH OF HACKNEY Includes a presentation (PDF) and the corresponding audio file (MP3 file: 55mn07).
Company Description : Heather Tayler Director FMSSC MINISTRY OF DEFENCE (MOD) Includes a presentation (PDF) and the corresponding audio file (MP3 file: 34mn38).
Company Description : Nicole Edbrooke Purchase to Pay Head ESSEX COUNTY COUNCIL Includes a presentation (PDF) and the corresponding audio file (MP3 file: 51mn02).
Company Description : Susie West Conference Chair and Director SHAREDSERVICESLINK.COM Includes an audio file (MP3 file: 04mn53).
Organizer : sharedserviceslink.comWith almost 10 years experience in shared services, and having worked with hundreds of SSOs, patterns have been identied which mark out successfull SSOs. We share these patterns at events which focus precisely on the things that make a difference in a stimulating, inspiring format.