1. Value Chain: USSM, FMLOB Managing Partner, and Category Managers
May 9, 2016
Presenters:
Stephanie Hrin, USSM
Steve Krauss, USSM
Craig Fischer, FIT
Moderator:
Austin Price, USSM

2. Table of Contents Category management (CM) and Shared Services (SS).
Common Federal government spending categories.
Complimentary characteristics of CM and SS.
CM and SS key players.
Illustration of CM and SS working together.
USSM and CM alignment to maximize interoperability.
Common Core Solution (CCS).
CCS Configuration Selection Process
CCS System Demonstration Evaluation Criteria

3. Common Challenges and Questions Asked
Category management and shared services: two efforts to maximize the value agencies and taxpayers receive.
Category Management
Shared Services
Category management is a commercial business model the federal government is applying to buy more like a single enterprise. It involves identifying core categories of products and services and developing purchasing and supply chain strategies that enable the government to optimize the value received for money spent in each category.
Shared services is a commercial best practice business model that involves the transference of common administrative or mission support operations to an organization, as designated by a marketplace oversight body, that performs certain services for more than one federal agency or business unit on a fee-for-service basis.
Common Challenges and Questions Asked
How do Shared Services and Category Management efforts complement each other?
How are these programs working together to ensure maximum value to federal agencies and taxpayers overall?

4. The 10 categories account for nearly $300B in annual spending.
Across Federal Government, there are 10 common spending categories.
The 10 categories account for nearly $300B in annual spending.
Categories
Amount (billions) %
Facilities & Construction
75.5
27%
Professional Services
61.9
23% IT
49.9
18%
Medical 36
13%
Transportation & Logistic Services
26.8
10%
Industrial & Product Services
10.5 4%
Security and Protections
5.5 2%
Human Capital
4.1 1%
Travel & Lodging
2.7
Office Management
1.9
Total
274.8
100%

5. Shared Overarching Objectives Complementary Value Propositions
Category management and shared services are complementary.
Shared Overarching Objectives
Category management and shared services both focus on how best to deliver against a defined requirement.
Both contribute to the government’s goal of increased efficiency by “acting as one.”
Complementary Value Propositions
Category Management:
Improves ability to deliver results through increased alignment with supplier markets
Increases government buying power
Eliminates waste and inefficiency by standardizing supply chain strategies
Shared Services:
Enables agencies to deploy critical resources to mission delivery
Drives economies of scale by standardizing business processes
Reduces the number of legacy, high-risk systems
Mutually Aligned Benefits & Results
Administrative and purchasing efficiency
Reduced fragmentation and duplication
Increased buying power of customers
Reduced total cost of service delivery
Increased spend under management
Regulated marketplace for customers

6. Who are the key players across the shared services and category management frameworks?
Roles
Primary Responsibility
Desired Outcomes
Shared Services Governance Board (SSGB)
Serves as the decision-making body for the shared services ecosystem
Cross-agency unified governance over shared service offerings
Unified Shared Services Management (USSM)
Enables the delivery and acceptance of shared services across the federal government through the designation and oversight of the shared service marketplace
High-quality, high-value shared services
Government-wide improvements in performance and efficiency
Establishes the universal criteria for being an SSP
Line of Business (LOB) Managing Partner (MP)
Manages cross-government business requirements for a given business lines (e.g. Financial Management or Human Capital)
Common business outcomes inclusive of customer feedback and policy changes
Effective cross-government product control boards
Category Management Leadership Council (CMLC)
Serves as the governing body for category management strategies across government
Increased spend under management
Reduced contract duplication
Savings and improved supply chain performance
Category Manager
Defines acquisition strategies and policies for a common category of “like” goods/services
Shared Services Provider
Fee-for-service organizations that deliver common services, such as HR, Finance, IT, and Acquisition to Federal customers
Best-in-class service delivery
Resource efficiencies due to economies of scale
Customer Agency
Fulfils agency-specific business needs
Timely, cost-effective, high-quality fulfillment of business needs

7. The primary use case illustrates how category management and shared services work together.
Use Case: Category Management Applied within a USSM-monitored Shared Services Offering (to be determined via services catalog)
Example: Customer agency transitions to USSM-designated Shared Service Provider
LOB MP defines business requirements (e.g. HR, FM)
Category strategy points agencies to SSPs
Agencies work w/ USSM to choose and move to SSP
SSPs follow accepted category strategies in sourcing vendor support
Customer
Agencies
Federal Shared Services
Provider
Acquire Services From
Acquires Goods & Services From
Vendors
How Category Management and Shared Services Work Better Together
Use of established SSPs is mandated as part of government-wide category strategy for those services within the USSM scope (to be determined by SSGB after the current data call is complete)
Category strategy and vehicles enable SSPs to efficiently and effectively source vendor support
Government gains efficiencies and economies of scale by implementing a business process as a shared service
Applicable category strategies help ensure that agencies adhere to policy while maximizing procurement efficiencies along the way 1 2
Bottom Line

8. Coordinating Governance
As we move forward USSM and the CM PMO are aligning to ensure we maximize the benefits of interoperability.
SSGB
FAS
USSM
SSPs
CMLC
LOBs
Creating a common combined strategy to achieve the desired benefits of both initiatives
Strategies
Coordinating between parties to begin aligning governance; representation from category management and shared services leadership executive boards
Governance
Aligning sourcing and shared services processes with both category strategies and tiered service delivery model
Processes
Transforming service delivery culture to represent results- based attributes required to build new operations and achieve maximum benefits
People
Coordinating Governance
Professional Service and Human Capital category representatives on the Shared Services Provider Council
CM PMO representative on the SSGB and/or Provider Council
USSM representative on the CMLC

9. The Common Core Solution (CCS)
Purpose: To develop a pre-configured system starting point for each major Federal financial software brand.
Eliminate unnecessary configurations (e.g., extensions)
Automate manual processes (e.g., accruals)
Streamline existing configurations
Meet (DATA Act) reporting requirements
Objective: To use the pre-configured system starting point when migrating new customers to a Shared Service Provider.

10. 1 2 3 Solution Configuration Selection Process
Process Steps and Degree of Effort 1
Apply Broad Criteria & Develop Use Case 2
Apply and Evaluate Use Cases 3
Select and Optimize Solution
Degree of Effort: Low
Degree of Effort: Medium
Degree of Effort: High
Gather system configuration / system customization documentation for review
Provide an inventory of their list of modules and interfaces
Demonstrate compliance with laws and regulations
Perform system demonstrations in support of the use case evaluation
Selection of solution will be made based on results of the use case analysis
Optimize the selected solution from a functional (not technical) standpoint
Periodically review the list of proposed use cases

11. System Demonstration Evaluation Criteria Examples
Criteria Category
Description
Measure
Examples
Rating 1.
Effectiveness
Accuracy and completeness with which users achieve specified goals
Was the system able to perform the use case scenario and achieve the desired outcome completely and accurately?
Was the outcome performed completely?
Was the outcome completed accurately?
(Scale)
Yes No
Partial 2.
Efficiency
Resources expended in relation to the accuracy and completeness with which users achieve goals
How much effort (human, time, cost, materials) did it take to achieve the desired outcome?
Do you have to complete unnecessary steps?
Does it take a long time to achieve the outcome?
Are there manual processes that could be automated?
Do you have to move in and out of different systems to achieve the outcome?
High
Med
Low 3.
Satisfaction
Degree to which user needs are satisfied when a system is used in a specified context of use
Usefulness – How satisfied are you with the user experience for achieving the desired outcome?
Is the process logical and easy to understand?
How difficult would it be to train someone how to do this?
Is the presentation layer intuitive and easy to work with?
1 Criteria adapted from from ISO/IEC 25010:2011(en) Systems and software engineering – Systems and software Quality Requirements and Evaluation (SQuaRE) – System and software quality models

12. USSM and CM CCS Primary Contact Steve Krauss, Director
Category Management Strategic Execution, GSA
Craig Fischer, Program Manager
Financial Innovation and Transformation, Fiscal Service
Secondary Contact
Stephanie Hrin
USSM, GSA