FIT Shared Services Workshop March 17, 2015 AGA Research into Shared Services

Shared Services Study –Based on user experiences with shared service implementation –300 AGA members responded to survey, 75% managers or staff –Included federal, state and local government CIO Survey –Interviews with CIO’s, CFO’s, Shared Services Directors –20 in-person interviews – Survey & Study questionnaires –Federal FSSP’s, LOB Managing Partners, 6 Cabinet agencies CFO Survey –Interviews with CFOs –65 in-person interviews, 281 online respondents –Included AGA members at federal, state and local level Report from Financial Systems Summit –Presentation to an audience of over 700 attendees –Approximately 200 online respondent answers 2

Highlights of Research Results Shared Services Study CIO Survey CFO Survey Financial Systems Summit Costs & Benefits Even split in seeing cost savings – 30% saw better, 30% worse. Many non-cost benefits result from Shared Services % typical Cost Savings. Savings will require process & labor shift to SSP. Specifically – the cost born by agencies in the short term will be higher than in- house. Some benefits will be government-wide Despite estimates, only 48% believe there will be 10% or less in savings realized through Shared Services. Governance Some recognized big improvement in systems. Need to manage expectations regarding level of service received. 40% feel they will lose control over FM Operations. Government desires fair representation & accountability Top concern of CFOs - how do they insure quality of service having given up control. Are SLAs really enforceable? 62% of respondents feel governance is not clear or no accountability/financial impact exists for non- performance. People & Change Management Very important, especially training. People are the most valuable resource & critical to SSP transition success. Skillsets & roles will change. 70% of respondents feel agencies talk about human factor issues without action, or avoided the subject altogether.. Capacity & Choice Public-private partnership would achieve the goal faster with more cost savings. Belief that most (90%) of government is not using SS. 60% want more choices. Desire for Public Private Partnership Models. Ability to scale, modernize and predict associated costs 84% of respondents would like more choice and more Best Practice private/public partnership models. Integration & Cloud 50% of users reported some/many changes were needed to administrative and program systems. Integration is the #1 concern in SSP migration. Cloud is not fully understood and security is a concern. Over 65% of respondents don't believe Shared Services is in their culture or budget. 3

Contact Information Shared Services Study –Carol Christian, LMI CFO Survey –Jim Taylor, Grant Thornton LLP CIO Survey –Kevin Greer, Accenture Federal Report from Financial Systems Summit –AGA Corporate Partners AGA –Ann Ebberts All reports can be found on the AGA Website: 4