the beginning of broader finance transformation
DESCRIPTION
How Process Documentation can trigger a broader Finance TransformationTRANSCRIPT
1
How Process Documentation Can
Trigger A Broader Finance
Transformation
Joe Peri
2
Ascension Health Ministry Service Center
in Indianapolis, Indiana
• Consolidated Finance, HR, and Supply Chain in support
of Ascension Health’s 2020 Vision to be a strong,
vibrant Catholic health ministry that will lead the
transformation of healthcare across the country
• Projected 16.2% ROI within 5 years of deployment
• 4 year deployment process began in 2011
3
The Beginning:
Defining Services
MSC Services • We provide 24 different services
in HR, Finance, and Supply
Chain.
• Less than 10% of the center
performs contact management
(“call center”)
• A Service Catalog houses all the
information relating to our
services:
• Description of service
• Timeframe for fulfilling service
• Measurements for service
• Cost of service
Accounts Payable
Analytic Support - Supply Chain
Asset Management
Benefits Administration
Commencement of Hire
Contingent Staffing
Contract Management Support
Cost Accounting
Customer Assistance (Contact Center)
Employee Data Administration for Pay & Personal Data
Exit Administration Services
General Accounting
Knowledge Management
Leave Management
Manage Requisitions and Purchase Orders
Payroll
P-Card Implementation & Administration
Position Management
Project Accounting
Rewards Administration
RFx and Auction Support
Talent Acquisition
Travel & Expense
Time and Attendance
4
The Beginning:
High Level Process/Technology Map
Avaya
Oracle
CCA
MSC
Portal
SharePoint
PeopleSoft
Imaging
(IPM)
MIC
(OBIE
E)
Capture
Service
Request
Open
Service
Request
Case
Process Service
Request
Level 2/3 Resolvers
Close
Service
Request
Siebel Siebel
Close
Project
Request
Begin
Standard
Service
Request
Phone
Chat
Paper
Fax
Form
Request
Service Request
Service
Conduct Approved
Projects
Capture
Project
Request
Open
Project
Request
Case
Begin
Special
Project
Request
Various Query Tools
Generate
Reports
Ministry
Relationship
Management
Continuous
Improvement
Service
Management
Knowledge
Management
Client Relations
Management
Non
Standard
Service
Request
Project
Charge
5
Process / Learning Maps
6
Process / Learning Maps
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Service Delivery / Service Management
Relationship
8
Identify and Build Alignment Relationship Honeycomb Chart
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Service Level Agreement (SLA): An Agreement between a Service Provider and a Client. The SLA describes the service, documents the service level targets, and specifies the responsibilities of the service provider and the customer.
An effective SLA will have the following key components:
• It measures the right performance characteristics to ensure the client is receiving its required level of service and that the service provider is achieving an acceptable level of profitability
• It can easily be collected with an appropriate level of detail but without costly overhead
• It is reasonable and attainable so that “good” service can be easily differentiated from “bad” service
Breaking Down The Process Maps:
Setting SLAs
Hospital
requests a
Procurement Card
for Manager
Service Center
Receives, Approves,
and processes
request
Service Center
Issues new card
Hospital
Manager receives
card
SLA = 95% procurement cards issued within 5 business days
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Operational Level Agreement: An Agreement between the internal support groups of
an institution that supports the SLA. The OLA documents the performance, relationship,
and responsibilities of the groups to each other. The main objective of an OLA is to
ensure all the support groups provide the intended Service Level Agreement.
We have multiple Operational Level Agreements (OLAs). For example, the Procure to
Pay area has two key relationships that require OLAs:
Governance and Transactional Data Entry
Hospital
requests a new
contract
Governance
Approves request
Service Center
Delivery Area
Creates contract
header
Service Center Data
Entry Area
Adds contract lines
Service Center
Delivery Area
Notifies HM request
is complete
Hospital
Receives notification
Client
Responsibility OLA OLA
OLA SLA
Breaking Down The Process Maps:
Setting OLAs
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Knowledge Management
The primary goal of Knowledge Management is to improve efficiency by reducing
the rediscovery of knowledge. • Ensure key information about current processes, events, and past experiences flows from
information holders to information users.
• Reduces time to onboard new associates into roles by using a robust library of accessible
documentation .
• Improves quality and reduces rework through standardized processes and output
Easy and intuitive access to information is key. • Technology – Pick a collaboration tool that centralizes information and aligns with your
document and process needs.
• Person to Person – Build a culture and environment that empowers everyone to participate.
KM is a culture. Everyone is responsible for sharing and recording knowledge.
KM leads to process compliance, information flow, and financial savings.
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KM Tools
Collaboration Tool
• Document Management
• Discussion Boards
• Announcement
Learning Maps
• Training tool
• Continuous Improvement
• Marketing
• Team Building
Digital Signage
• Passive Communication
• Metrics
• News & Events
• Mission, Vision, & History
Grassroots
• Job Shadowing
• Social Events
Other
Tools
• Expertise Locators
• Knowledge Base
• Blogs
Knowledge Management Tools
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Continuous Improvement
Continuous Improvement uses various methodologies to act on the correlation
between ongoing processes and improvement opportunities to satisfy our
customer goals and business objectives. Continuous Improvement focuses on:
• Voice of the Customer
• Performance of our Processes
• Tools to improve the alignment between the two
By understanding the correlation between process performance and customer
satisfaction, we identify areas for immediate improvement.
Outcomes of Continuous Improvement Program:
• Iterative improvement through constant measurement.
• Create / Improve repeatable, measurable processes
• Hold the gains created by improvement activities
• Manage process quality with a link to strategic objectives
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CI Tools
Lean Six Sigma
• Reduce Variance
• Consistent Results
• High transaction volume
Kepner-Tregoe
• Problem Solving
• Decision Making
• Fast Action
Best Practices
• Shared Ideas
• Same Language
• Ongoing Learning
Process Management
• Hold Gains
• Consistency
Rapid Response
• Deployable Team
• Mobile Toolkit
Continuous Improvement Tools
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Business Change Management
A change in
process,
system, or
design is
needed in a
Service Center
Delivery area
• The Business Change Management process is designed to identify impacts throughout
the organization, promote awareness, and help identify best practices.
• It is important to document:
Business Change
Management
Request is
created and
disseminated to
all areas to
identify impacts
Service Center
Directors
respond with
approval, denial,
or informational
only
Business Change
Management
issues approval
to Service Center
Director
Service Center
Director
implements
change and
notifies
Business
Change
Management
• Type of change • Description of change
• Reason for change • Impact of change
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Benefits of Proper Process Documentation
A critical error is made when process documentation is put in a binder and
relegated to a shelf somewhere, never to be seen again.
• Use the documentation to ensure it is kept up to date
• Training Programs
• Process Harmonization
• Continuous Improvement
• Consistent Outputs
• Root Cause Analysis
• Disaster Recovery
• Single point of reference for Service Delivery and Service Management teams
ensures accurate delivery, measurement, and improvement.
• Regular document usage coupled with enabling KM tools supports up-to-date
documentation
• Document versioning can be controlled, making auditors happy.
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Summary
This approach will transform your business because it is controlled, monitored,
managed, and repeatable.
Define the Service Catalog
Build alignment with process partners (internal and
external)
Create Process Maps
Align OLAs and SLAs with the steps in the process
map
Identify relationships and dependencies Manage the knowledge
Use Continuous Improvement to iteratively
improve
Implement a Business Change Management process
The techniques outlined in this presentation are proven to assist in running a
variety of operations in any industry.
