Target high-volume, high-frustration processes for initial shared services migration

Begin with high-volume processes with the greatest potential for cost and time savings

You don’t need to reinvent the wheel when designing a shared services portfolio. Rather, begin with an assessment of the “usual suspects”—the tried-and-true activities most commonly delivered via shared services across human resources, information technology, procurement, payroll, finance, and research administration.

• Have a high transaction volume across many units
• Can easily be standardized and/or automated
• Can be completed without frequent face-to-face communication or knowledge of individual customers

More recently, shared services centers have expanded their offerings into areas such as advancement, marketing, and communications. While less “transactional” in nature, consolidating these services provides greater consistency and more equitable access to support among departments.

To help leaders understand the full range of activities performed by shared services organizations, EAB has compiled profiles of 24 shared services units across 19 institutions into a single compendium. Use the compendium to explore shared services organizations at institutions with demographic or academic profiles similar to your own. Then, compare their service offerings with what you might offer.

To accelerate buy-in, prioritize processes with acute pain points

Shared services is not only about finding efficiencies through consolidation and standardization. Shared services should provide greater value to the customer than the previous method of service delivery. Using shared services to provide relief to common pain points is a tried-and-true approach to winning allies for shared services.

As an example, the University of Louisville simultaneously pursued process improvement and shared services opportunities to effective ends. First, a committee of stakeholders from across the institution identified a “Top 10” list of most frustrating processes. Next, dedicated redesign teams distinguished between steps that required involvement of unit staff and those that could be absorbed into the shared services organization. For example, in tackling the employee onboarding process for temporary employees, students, and graduate assistants, the institution eliminated 36 pages of handwritten forms with a single electronic form processed and verified in the shared services center. Shared services thus provided immediate relief to unit business managers, securing fans across the institution.

Shared Services Provides Much-Needed Relief at the University of Louisville

Use EAB’s Consolidation Diagnostic for a shared services gut check

To help you determine which activities are prime candidate for shared services, EAB created the Shared Services Consolidation Diagnostic. It provides a framework for identifying the greatest lead-off opportunities for shared services. The diagnostic assesses a process based on efficiency and service, the two main factors to consider when consolidating activities. It helps leaders answer the questions, “will providing this service at scale make the process more efficient,” and “will it improve–or at least maintain–service quality?” The activities that provide the best opportunities for scale will have at least a few “yes” answers in each category.

Consolidation Diagnostic: Asking the Right Questions to Determine Opportunities for Consolidation

Six or more “yes” responses across the efficiency and service questions below indicate that an activity is likely a good candidate for consolidation

As shared services organizations mature, they expand by both recruiting new customers and offering additional services. When revisiting “menus” of shared services functions, continue to use the diagnostic to consider new opportunities for consolidation.