Insights

Critical success factors for programme delivery - the simple, but effective, people techniques (*)
Why does a strong command of the theory not necessarily result in successful outcomes? Because the approach to delivery is as much about practical application as it is about formal methodologies. The tools and techniques for controlling delivery are important to understand and deploy, but without addressing the fundamental people issues a programme can never be truly effective and objectives will not be met.

Here's the newly updated list of do's, don'ts, and, most importantly, the things in between.

Sarbanes-Oxley Section 404 For such a far-reaching and important piece of legislation the Sarbanes-Oxley Act is remarkably light on practical guidance to its implementation. The bulk of the work in achieving compliance with the act is driven by Section 404 which looks at the internal controls. However Section 404 of SOX simply states that a requirement exists that "Annual reports filed with the SEC shall state the responsibility of management for establishing and maintaining adequate internal control structure and procedures for financial reporting", and "contain an assessment of the effectiveness of such controls".

Given the aggressive timelines and the lack of fully complete practical examples in implementation organisations are working from first principles in devising their SOX strategy and approach.

Have You Been To India Recently?

This is the question that everyone is asking when the conversation turns to reducing the cost of the company's back office operations.

General Electric's Jack Welch cites the 70:70:70 rule - 70% of your processes should be outsourced, 70% of those should be outsourced offshore, and 70% of your offshore outsourcing should be done in India.

GE was one of the first entrants into offshore outsourcing in India and now employs over 10,000 people serving GE and non-GE companies from multiple locations.

The newest lessons learned from successful Shared Services implementations - what to think of when you're designing and implementing. Newly updated (*)

Shared services have been around now for a while in the public sector and a number of councils have used the technique. Based on our experience in working with a number of these, here's the updated list of what to think of when you are designing and implementing shared services.

Characteristics of Excellence - Delivering Efficiency and Service Improvements in Local Authority Finance Operations (*)

There are a series of best practices or characteristics which functions meeting these challenges are demonstrating. We've made an overview of them based on our experience of finance functions in both local government and the private sector, and our practical experience in helping departments implement the changes necessary to deliver them. The document seeks to provide clear guidance that will enable you, as a Finance leader.

A lesson learnt by the private sector

In July 1991, some 320 staff from BP transferred from six different locations to provide finance & administrative services from a single operations centre in Aberdeen. The centre was set up by a private sector supplier enabling BP to focus on its core business of drilling and producing oil and gas.
Since then, the centre has taken on work from several more companies that operate in the North Sea Oil industry. Each new company chose to join because of a compelling business case. Those business cases reflected the benefits of a more integrated and reliable finance & administration service, underpinned by a modern IT platform.

Achieving Efficiency Gains in Local Government ...Again and Again

Whilst Local Authorities haven't avoided the need to make efficiency gains in the past, there is now much more clarity as to what's expected of them. The Gershon Review requires gains of 2.5% each year for the next three years to 2007/08. The Office of the Deputy Prime Minister's Efficiency Technical Note for Local Government clarifies that at least half these gains must be ‘cashable'. It also emphasises that efficiency ‘is not about cuts, but about raising productivity and enhancing value for money.'

Corporate Management Teams will be clear about where the bulk of these savings are coming from in the current year. But how many know where they're going to get another 2.5% of gains the following year ... and another 2.5% the year after that?

The Future of the Back Office in Local Government (*)

While the media coverage of the Gershon report has focused attention on the loss of Civil Service jobs within Central Government, one third of the efficiency savings required by the report are to come from Local Government. Central to delivering these savings is far greater collaboration between authorities in sharing back office operations. Gershon states "Many public sector bodies try to provide all internal functions themselves or through individually negotiated contracts. In some areas like back office functions, procurement, or where hundreds of bodies are providing a similar service, this is unlikely to be the most efficient way forward. Instead new ways of sharing services need to be developed"

The Future of Shared Services

Fundamental forces have emerged over the last 3 to 4 years to influence the future direction of Shared Service Centres (SSCs).

This Point of View looks at these forces, current and future SSC delivery models and the competencies required to support future SSCs.

Basic drivers for shared service centres have been around cost reduction, improved service levels, and efficiency all of which are still vital. The logic of a centralised operation providing a common service to a range of business units is still relevant and compelling.

Throughout the ongoing trend of cost reduction, performance improvement and focus on core competencies, business process outsourcing (BPO) has emerged as a key tool to fulfill these business objectives.

Outsourcing, whether onshore or offshore, allows organisations to relinquish primary control of non-core processes and focus on strategic activities central to their core business.
The end-to-end BPO process encompasses a number of distinct phases.

HR Process Optimisation

Recognising the need to change is one thing but how does HR select the best option to deliver this change? Outsourcing, insourcing, shared services, best practice, business process re-engineering, swim-lane diagrams, e-HR, ERP, are all terms which have either been bandied about in isolation or, even more confusingly, in combination to provide solutions to HR's dilemma about what it should do and how it should do it.

The problem is, the advice given is rarely impartial because guess what the outsourcing or technology company will say is the right answer? Not the sort of question that you need to phone a friend on!