High Performance Government in Action 

The Ohio Shared Services Story

J. Pari SabetyRonn Kolbash

July 15, 2010

Looking Back: A Brief History of Ohio Shared Services

Nov ‘07 Jan ‘08 Feb ‘08 Apr ‘08May ‘08

OAKS Financials Go-Live

Assessment Results

Shared Services Project Start-up

Governor’s ExecutiveOrder 2008-01S

RFP AwardImplementation & Quality Assurance

BusinessCasePublished

Aug ‘09

Go Live

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Facing the Facts

It’s the best of times to launch shared services for enterprises…– 12% reduction in revenue as a result of recession– Reduction of 5000 positions in state government, or 8%– Ready to retire: 14% of workforce in 2011; 33% of workforce in 2014

But it’s the worst of times for agencies…– Repeated operating budget reductions– Loss of key fiscal staff– Climate of fear

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The Play: Use capital dollars to reduce and redeploy operating resourcesThe Play: Use capital dollars to reduce and redeploy operating resources

Business Case

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Processing Low Processing Medium Processing High

ROI 6.6 years ROI 4.5 years ROI 3.8 years

IRR 22% IRR 44% IRR 65%

Functions & SpeedNPV

(20Years)Functions & Speed

NPV(20Years)

Functions & SpeedNPV

(20Years)

AP, T&E Only 33 Months

$180 MillionAP, T&E, Payroll, Time

Reporting 30 Months

$541 MillionAll Targeted HR/ FIN

Functions 27 months

$1.17 Billion

Key Assumptions Scope: AP, T&E, Payroll, Time Reporting,

ISTV, COA Maintenance, and Vendor Master 25,382 AP vouchers / FTE / yr. (13 / hr.) 14,946 Travel vouchers / FTE / yr. (8 / hr.) 20,401 Change Requests / FTE / yr. (11 /

hr.) 15 to 1 Span of Control Current Agency FTE: 660 Shared Services FTE: 255

Key Assumptions Scope: AP, T&E, ISTV, COA Maintenance,

and Vendor Master 9,077 AP vouchers / FTE / yr. (5 / hr.) 10,892 Travel vouchers / FTE / yr. (6 / hr.) 13,486 Change Requests / FTE / yr. (7 / hr.) 10 to 1 Span of Control Current Agency FTE: 378 Shared Services FTE: 219

Key Assumptions Scope: AP, T&E, Payroll, Time Reporting,

ISTV, COA Maintenance, Vendor Master, Staffing, Total Rewards Admin, Data Mgmt, Workforce Dev, Accounting/External Reporting, Compliance Mgmt, and Revenue Cycle

41,688 AP vouchers / FTE / yr. (22 / hr.) 17,246 Travel vouchers / FTE / yr. (9 / hr.) 28,562 Change Requests / FTE / yr. (15 / hr.) 20 to 1 Span of Control Current Agency FTE: 1,699 Shared Services FTE: 862

Aggressive ScenarioModerate ScenarioConservative Scenario

Governance Structure

Agency Partnership Governance

Union Governance

ResponsibilitiesFocus on:1. Performance

Management & Compensation

2. Training and Development

3. Continuous Improvement

ResponsibilitiesFocus on:1. Working with OSS

management2. Resolving escalated

issues

ResponsibilitiesFocus on:1. Resources2. Buy-in3. Strategic direction

ResponsibilitiesFocus on:1. How well?2. What’s next?

ResponsibilitiesFocus on:1. Continuous

improvement2. Operational

performance

GovernanceCouncil

CFOCouncil

ProcessCouncil

PartnershipCommittee

WorkingGroupsWorkingGroupsWorking

Groups

Str

ate

gic

Op

era

tio

na

l

Meet Biannually

Meet Monthly

Meet MonthlyCommunicate

Often

Meet Quarterly

Meet MonthlyTalk Daily

Leadership

Management

Operations

Outside AdvisoryCouncil

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What is Ohio Shared Services

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What is Ohio Shared Services?

Ohio Shared Services is the first shared services environment in Ohio government that delivers common transaction processing for state agencies and business vendors with an emphasis on customer service.

 At Ohio Shared Services, we deliver Service First by engaging our employees and partnering with our customers. 

Mission

Execution, Efficiency, Customer Service

Ohio Shared Services executes administrative transactions for its customers while skillfully balancing efficiency and customer service to add value through lower cost and

improved effectiveness. Our primary key to success is a highly motivated, top-performing, self-directed workforce.

Vision

Best In Class, High Performing Public Service Entity

Ohio Shared Services is nationally recognized as a public sector pioneer that manages multiple business processes

for a variety of public sector entities. It is recognized as best in class in serving its customers, in maintaining a

high- performance workplace and in recognizing employees as

its most critical asset.

Ohio Shared Services Video - Opening

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Ohio Shared Services Video - Facility

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Ohio Shared Services Video – Contact Center

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Ohio Shared Services Video – Travel and Expense

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Ohio Shared Services Video – Service Management

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Ohio Shared Services Video – Technology

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Self-Directed Work Teams Defined

A group of employees who have day-to-day responsibility for managing themselves and the work they do with minimum [of] direct supervision. Members of self-directed teamstypically handle job assignments, plan and schedule work,make production – and/or service-related decisions, and take action on problems.

- the Association for Quality and Participation

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SDWTs vs. Traditional Teams

Self-Directed Work Teams Traditional Teams

Customer-driven Management-driven

Multi-skilled work force Work-force of isolated specialist

Information shared widely Information limited

Few levels of management Many levels of management

Shared goals Segregated goals

Results achievement emphasis Problem solving emphasis

Continuous improvements Incremental improvements

Self-controlled Management controlled

Values/principles based Primarily policy/procedure

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L2

L3

L4

L5

L6

L2

L4

L3

`

Span-of-Control Approach

Illustrative Current State Org Chart Illustrative Future State Org Chart

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Collect Org Charts & Interview Team

Calculate Current Spans of Control

Identify Opportunity areas relative to SOC Benchmarks

Identify Organizational Constraints

Develop Future State Org Charts by Function

What do SDWTs Do?

1. Develop goals and plans

2. Enhance communication among members

3. Solve problems and make decisions

4. Provide development opportunities for team members

5. Clarify roles for team members

These are the main characteristics of self-directed work teams.

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Associate Selection Process

Selection: The OSS Associate selection process involves four steps.

1. Screen Application: Candidates meet minimum qualifications to continue to proficiency testing.

2. Test Proficiency: Candidates pass proficiency test to continue to interviews.

3. Interview: Candidates complete mock call and critical behavior interviews before being considered for offer.

4. Offer: Candidates are ranked and the number of offers are determined based on hiring need.

Screen Applications

Screen Applications Test

Proficiency

Test Proficiency Interview

InterviewOffer

Offer

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Self-Directed Work Teams are Supported by Seven Pillars

Customer Inquiries

Travel & Expense Voucher Processing

Vendor Maintenance

Performance Management

Decision Rights

Coaches

Technology Workflow

Continuous Improvement

OCSEA Partnership Governance

Compensation

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Reporting Overview

By directly measuring strategic objectives outlined in the Ohio Shared Services Mission, the Balanced Scorecard will be a key tool to communicate the quantitative successes or challenges of Shared Services to a wide audience.

To measure efficiency and effectiveness of service delivery to our key agency partners, Service Charter Scorecards will track commitments made in these Service Charters by both Ohio Shared Services and agencies.

Daily Scorecards for each function at Ohio Shared Services will serve as the foundation for the performance-based culture at Ohio Shared Services. These scorecards will measure Key Performance Indicators (KPIs) in the Service Charter as well as other key operational metrics, and ensure that each day’s performance is appreciated.

A unique set of Operational Reports for each function will be identified as needed to drive key actions or measure detailed metrics on a daily, weekly, and monthly basis.

Certain KPIs will be selected for each function to be measured by associate and included in each Individual used in the quarterly Ohio Shared Services Performance Management process.

Ohio Shared Services Balanced Scorecard

Ohio Shared Services-Agency Service Charter

Scorecards

Functional Daily Scorecards

Operational Reporting

Individual Scorecards

Establishing Data Control

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Contact Information

For more information please visit:

www.ohiosharedservices.ohio.gov

Contact: Pari Sabety, OBM Director Tel: 614.466.4034E-mail: Pari.Sabety@obm.state.oh.us

Contact: Ronn Kolbash, OSS LeaderTel: 614.338.4815E-mail: Ronn.Kolbash@obm.state.oh.us 

Ohio Shared Services4310 E. Fifth AvenueColumbus, Ohio 43219877-644.6771

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APPENDIX

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What We Do Here

The processes currently performed at Ohio Shared Services: Accounts Payable

– Invoice Processing

– Document Retention

Maintain Vendor Information– 1099 Forms

– Vendor Inquiries

– Vendor Maintenance

– eSupplier (vendor self-service)

Travel and Expense Reimbursement Chart of Account Maintenance Statewide Finance and Learning Management End User Support

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How We Do It

Core Competencies

Together we will: Deliver world-class customer service Strive for excellence in finance processes Empower employees to exceed customer expectations Monitor performance both internally and externally and act on the results Champion change and innovation in government

Core Competencies

Together we will: Deliver world-class customer service Strive for excellence in finance processes Empower employees to exceed customer expectations Monitor performance both internally and externally and act on the results Champion change and innovation in government

Shared Values

Every individual must:Show ResilienceDemonstrate IntegrityCommit to ExcellenceProvide StewardshipExpect Continuous ImprovementFoster PartnershipsNever Stop Learning

Shared Values

Every individual must:Show ResilienceDemonstrate IntegrityCommit to ExcellenceProvide StewardshipExpect Continuous ImprovementFoster PartnershipsNever Stop Learning

Service First

Continuous Improvement

Teamwork

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Individuals are accountable for their own performanceThe individual… Understands or seeks clarity on what is expected of him or her Seeks timely performance information and feedback Assesses and improves his or her performance

Individuals are accountable for helping others improve their performanceThe individual… Helps others understand expectations Provides data and/or observation-based feedback, as appropriate, to other Ohio Shared

Services employees regardless of level Willingly shares, teaches, and coaches others to improve their performance

Leadership supports a culture of continuous learning and developmentEvery leader… Fosters a safe environment for employees to ask for help Assures clarity of expectations and alignment between individual and center performance Strives for each Ohio Shared Services employee to be successful by providing learning and

development opportunities Reinforces the importance of the performance management process and commits to executing

it well Assures the performance management process supports high performers with development

opportunities

Scorecard for Success

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Facility Supports Culture

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Mail/Scanning Room

Transaction Processing

Requirements and Configuration Management

Call Center Team

Huddle/Conference/Training Rooms

Server Room

Break Room

High-performing facilities account for functional requirements of everyday tasks, support flat hierarchical and centralized organizational structures, and promote employee well-being, satisfaction and productivity.

Front Entrance and Reception

3

2

1

You are here

Organizational Structure

Ohio Shared Services is comprised of two segments: contact center and transaction processing with a dedicated team of: Center Leads

– Contact Center– Finance

Coaches Ohio Shared Services Associates

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Associate Scorecard – Actual Data

12/1/09 - 2/23/10 AP Volume AP Quality

Name TotalAverage per Day

Average per

Month

Exceptions Completed

(included in Totals)

Passed Failed Total

% Passed

Associate 1 1987 41 662 75 155 3 158 98.10%

Associate 2 1920 41 640 81 172 31 203 84.73%

Associate 3 1920 37 640 63 149 57 206 72.33%

Associate 4 1082 24 426 0 92 30 122 75.41%

Associate 5 1236 26 414 188 96 12 108 88.89%

Associate 6 1151 26 412 3 56 13 69 81.16%

Associate 7 1178 23 393 2 111 17 128 86.72%

Associate 8 845 23 384 0 60 29 89 67.42%

Associate 9 1242 24 383 11 89 11 100 89.00%

Associate 10 1278 22 361 109 101 8 109 92.66%

Associate 11 1150 22 348 163 67 4 71 94.37%

Associate 12 1044 22 325 0 64 22 86 74.42%

Associate 13 976 17 282 3 50 8 58 86.21%

Associate 14 686 14 229 130 30 10 40 75.00%

Associate 15 350 9 117 36 14 3 17 82.35%

Average 1203 25 401 58       83.25%

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