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How To Do Everything Right
and Still Get Global Business
Services Wrong
UnitedHealthcare
Patrick StammCOO, Shared Services
Neo Group
Hemant PuthliPartner
sig.org/eval
A presentation by UnitedHealthcare and Neo Group
SIG Global Executive Summit, Orlando
April 20, 2016
How To Do Everything Right and
Still Get Global Business Services Wrong
3
© 2016 Neo Group Inc. Proprietary
• Globalization Strategy
• Sourcing
• Location strategy
• Health Checks
• Renegotiations
• Governance
Since 1999, we have been helping clients
accelerate benefits and minimize risks associated
with global in-house services and sourcing
We have a Singular focus on the global services
and sourcing supply chain
We achieve outcomes through deep IP, real-time
analytics, globally recognized experts, proven
methodologies and co-creation with our clients
NEO GROUP OVERVIEW
We deliver results through three distinct and linked solutions and services:
ADVISORY SERVICESGOVERNANCE
SOLUTIONS
• Design
• Run and support
• Ongoing Governance
Services, such as, Resource,
Contract and Performance
Management Services
SUPPLY WISDOM
• Country
• City
• Supplier
• Outsourced Service Desk
• Monitoring Subscription
Services
© 2016 Neo Group Inc. Proprietary
UNITEDHEALTHCARE OVERVIEW4
© 2016 Neo Group Inc. Proprietary
GBS Introduction
UnitedHealthcare Case Study
Is GBS for me?
Benefits of GBS
GBS Evolution Model
Appendix
AGENDA5
© 2016 Neo Group Inc. Proprietary
WHAT IS GBS?6
Global Business Services (GBS) is an autonomous business
organization within an enterprise that is responsible for the delivery of
end-to-end business processes using integrated services from internal
and 3rd party sources, across locations and business units.
Global Business Services
(GBS)
Autonomous Organization
End-to-End Process Control
Global Multi-Sourcing
Environment
Automation and Standardization
Centralized Data and Enhanced
Analytics
© 2016 Neo Group Inc. Proprietary
GBS IS DIFFERENT …7
Corporate
Perspective
Service Delivery
Perspective
Demand & Supply
Mgmt. Perspective
Intellectual & Human
Capital Mgmt.
Perspective
• Executive Sponsorship
• Charter
• Autonomy
• Metrics & Success
Factors
• Services
• Delivery
• Processes
• Resources
• Demand Management
• Vendor Management
• IP, Knowledge & Best
Practices
• Analytics
• Career Path
CASE STUDY:
© 2016 Neo Group Inc. Proprietary
SHARED SERVICES OPERATIONS9
#1 on Fortune’s “World’s Most Admired Companies” list for fifth straight year
Individuals Served
Employer & Individual 27M
Medicare & Retirement 11M
Community & State 5M
Military & Veterans 3M
Global 4M
© 2016 Neo Group Inc. Proprietary
SHARED SERVICES OPERATIONS10
Provider Experience
Deliver value through partnered
interaction and efficient outcomes
Customer Experience
Increase satisfaction using customized connections and
clarity
Quality
Improve healthcare with compassion and
consistency
Shared Services Operations Strategies
~1M Physicians~6k Hospitals
35M Members $2B Financials~15k Employees
© 2016 Neo Group Inc. Proprietary
SHARED SERVICES OPERATIONS11
Our Core Capabilities Our Fundamentals
LEARN, ADJUST, BUILD
ELIMINATE TURNOVERS
SMART SPEED
FOCUS FORWARD
Provider & Customer Service
#1most trusted
content creators
ONLINE SEARCHENGINES
Workforce Effectiveness &Training
Strategic
Vendor Management
Payment Integrity
Ranked No. 35 on Global 500 list of the world’s largest corporations
Ranked No.14 on Fortune 500 list of largest U.S. corporations
© 2016 Neo Group Inc. Proprietary
Yes, if:
– You currently have (or will soon have) a mix of captive and 3rd
party sourcing that operate separately, independent of each
other
– You currently source a variety services to support a range of
functions including a mix of IT services and/or business
process and/ or analytics services, all under different
organizational and management reporting models
May not be, if:
– You are a single function outsourcer
– You have only captives or only 3rd party sourcing relationships
IS GBS FOR ME?12
© 2016 Neo Group Inc. Proprietary
Consolidation of demand management
Consolidation of supply management
Centralized repository for IP and best practices
Comprehensive reporting and analytics
Unified approach to sourcing governance
BENEFITS OF A GBS MODEL13
© 2016 Neo Group Inc. Proprietary
5 STEPS TO GBS EXCELLENCE14
BASIC
I
Beginning
the journey
EVOLVING
II
Moving up
the curve
MATURE
III
Comparable
with local
peers
ADVANCED
IV
Better than
most local
peers
LEADERSHIP
V
On par with
world class
GBS
programs
© Neo Group
© 2016 Neo Group Inc. Proprietary
THANK YOU15
NEO GROUP
GLOBAL HEADQUARTERS6200 Stoneridge Mall Road, 3rd Floor
Pleasanton, CA 94588, USA
ASIA-PACIFIC HEADQUARTERSNo 13, 1st Floor, C Block,
Embassy Heights, Magrath Road,
Bangalore - 560025
AMSTERDAM, NETHERLANDS
AUSTIN, TEXAS
BOGOTA, COLOMBIA
LONDON, UK
NEW YORK, USA
ATLANTA, USA
SAO PAOLO, BRAZIL
SILICON VALLEY, USA
SYDNEY, AUSTRALIA
HEMANT PUTHLIPartner, Neo Group
978.707.9769
PATRICK STAMMCOO, Shared Services, UnitedHeathcare
www.neogroup.com
APPENDIX
© 2016 Neo Group Inc. Proprietary
GBS IS DIFFERENT …17
Attributes GBS Traditional GIC/ SSTraditional
Outsourcing
Executive
SponsorshipCEO/COO CFO or Function Head
Function Head or CPO
or Sourcing
CharterAligned with corporate
business objectives
Aligned with business
functions
Aligned with projects or
discrete functions
AutonomyGBS manages its own
budget
Budget controlled by
CFO or Function
Budget controlled by
Functions
Metrics &
Success
Factors
Measured by corporate
outcomes
Measured by process
outcomes
Measured by SLAs and
cost efficiency
… from a corporate perspective
GBS is a centralized business unit in itself, with its own charter and its own
budgets, directly accountable to the highest levels of leadership from whom
it derives its imperatives for success
© 2016 Neo Group Inc. Proprietary
GBS IS DIFFERENT …18
Attributes GBS Traditional GIC/ SSTraditional
Outsourcing
Services
Combination of internal
IT & business services
and externally sourced
services
Internal IT services and/
or functional processing
services
3rd Party ITO/ BPO/
KPO Managed Services
Delivery Integrated Function based Task based
ProcessesStandardized global
processes
Different levels of
standardization across
functions
Largely optimized for
cost efficiency at task
level
Resources Internal and external Internal External
… from a service delivery perspective
GBS integrates internal and external service delivery across multiple
functions by optimally leveraging global talent availability
© 2016 Neo Group Inc. Proprietary
GBS IS DIFFERENT …19
Attributes GBSTraditional GIC/
SS
Traditional
Outsourcing
Demand
Management
Demand consolidation at
Enterprise level – multi-
function, across all
engagement/ delivery
models
Demand consolidation
at functional level; No
3rdparty leverage
No demand consolidation;
Complete dependence on
3rd party services providers
Vendor
Management
Global VMO manages
all vendor relations and
reports up to the GBS
No vendors involved,
so no VMO
Procurement manages
vendor relations; in some
cases VMO exists but
siloed
… from the perspective of how demand and supply are managed
By consolidating demand management and supply management, GBS has
the ability to deliver significant improvements in quality and cost-
effectiveness of service delivery at lower levels of risk
© 2016 Neo Group Inc. Proprietary
GBS IS DIFFERENT …20
Attributes GBSTraditional GIC/
SS
Traditional
Outsourcing
IP, Knowledge &
Best Practices
Enterprise-wide
repository of IP,
Knowledge-base and
best practices; Promote
cross-functional sharing
Retained internally but
in silos
Potential risk of IP
leakage; Limited
opportunity to leverage
vendor’s knowledge or
learn best practices
AnalyticsComprehensive
enterprise-wide data
available for analysis
Limited Analytics;
Data availability
inconsistent across
functions
Minimal or no analytics
available as processes are
managed externally
Career PathMultiple career growth
opportunities, across
regions and functions
Career growth limited
to specific functions
and regions
No growth path for internal
employees and limited
career growth options for
3rd party resources
… from the perspective of intellectual capital & human capital management
GBS enables the creation of a central repository for knowledge and
analytics, to promote cross-functional learning and multi-skilling of
employees, opening the door to possibilities of a more rewarding career
© 2016 Neo Group Inc. Proprietary
Consolidation of demand management
– Efficiencies in demand aggregation and fulfillment
Consolidation of supply management
– Economies of scale: better cost control through vendor consolidation
– Synergies from an integrated approach to service delivery
– Strategic relationships with key vendors: customer of choice
– Leveraged ability to manage supply-side risks
Centralized repository for IP and best practices
– Encourages cross-functional learning and knowledge sharing
Comprehensive reporting and analytics
– Integrated dashboard enables a ‘Balanced Scorecard’ approach
Unified approach to sourcing governance
– At strategic, functional and operational levels
BENEFITS OF A GBS MODEL21
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How To Do Everything Right and Still Get Global Business
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Patrick Stamm
COO, Shared Services, UnitedHeathcare
Hemant Puthli
Partner, Neo Group
978.707.9769
