1. Richard Arbuthnot Executive Director NASA Shared Services Center Shared Services in the Public Sector August 16, 2010 National Aeronautics and Space Administration www.nasa.gov

2. NASA Shared Services Center National Aeronautics and Space Administration 2 Agenda What is Shared Services? Why Shared Services? The NSSC Vision and Mission NSSC Operations/Financial Profile Lines of Business Performance Scorecard The NSSC’s Successes The NSSC’s Key Challenges

3. NASA Shared Services Center National Aeronautics and Space Administration What is Shared Services? A business model for delivering support services Centralization is not shared services Consolidation is not shared services How shared services differs from other business models Cost is transparent Service is transparent A disciplined approach to delivering support services Structured management of customer interactions Sustained and systematic focus on customer service Entrepreneurial approach to solving problems and leveraging opportunities Fee-for-service drives a balance between service and cost Business intelligence and data-driven decisions 3

4. NASA Shared Services Center National Aeronautics and Space Administration Why Shared Services? 4 Support costs reduced by 20-30% Consolidation of services into a single efficient organization reduces duplication of overhead functions Shared services’ core tenets lead to more efficient service at significantly lower cost Improved services Cross-cutting infrastructure, such as the NSSC Customer Contact Center, Customer Service website, Document Imaging, and Service Recovery Plan, adds structure and consistency to service delivery Leveraged buying For example, Enterprise License Management provided cost avoidance of $2.45M in year one Improved processes The NSSC redirected $4.3M by using purchase cards in lieu of purchase orders to pay for external training

5. NASA Shared Services Center National Aeronautics and Space Administration Why Shared Services? (continued) 5 Standardization Consistent interpretation and application of policy ensures equity, and standardization makes it easier to improve processes, fix problems, and infuse technology Better use of technology High volume makes it easier to identify and prioritize system changes; consolidating work and standardizing processes make it easier to architect and implement technology solutions Full cost of service delivery is captured A well-documented chargeback model with defined business rules to capture and identify major cost drivers

6. NASA Shared Services Center National Aeronautics and Space Administration Why Shared Services? (continued) 6 Core business processes are well documented Use of Service Delivery Guides, Service Level Agreements (SLAs), and Services Catalog Data integrity and consistency SLA managed and performance monitored with metrics captured in a Business Intelligence Data Mart Balance of policy, process, service, and cost Results in managed demand that changes consumption patterns and evaluation of the financial impact of policy and process decisions

7. NASA Shared Services Center National Aeronautics and Space Administration 7 What is the NASA Shared Services Center (NSSC)? A NASA Headquarters organization located at Stennis Space Center, MS Consolidates activities into a separate, independent NASA Service Center Performs a variety of transactional and administrative activities in four lines of business: Financial Management Human Resources Information Technology Procurement National Aeronautics and Space Administration

8. NASA Shared Services Center National Aeronautics and Space Administration 8 The NSSC Vision and Mission

9. NASA Shared Services Center National Aeronautics and Space Administration Supports All NASA Centers 9 Customers Served 18,000 Civil Servants 62,000 Support Contractors and Vendors

10. NASA Shared Services Center National Aeronautics and Space Administration Public/Private Sector Partnership Partnership between CSC and NASA CSC referred to as the Service Provider (SP) Working Capital Fund Operating Budget ~ $70M An important local economic initiative – Civil Service: 130 – Service Provider: 388 – Total Staffing: 518 (Data as of July 2010) Service Provider CSC (75%) Service Provider CSC (75%) NASA Civil Service (25%) NASA Civil Service (25%) 10

11. NASA Shared Services Center National Aeronautics and Space Administration The NSSC’s Financial Profile NSSC Return on Investment Agency’s $30M financial investment paid in full by 3rd Quarter FY09 Currently exceeding the initial savings projections of $6 to $8 million per year and on track to recognize savings in excess of $12 to $16 million a year NSSC is a Working Capital Fund (WCF) fee-for-service organization NSSC’s total operating budget for FY10 consists of $75.2M ($58.4M services, $16.8M training) in the WCF and $100M in non-WCF 11

12. NASA Shared Services Center National Aeronautics and Space Administration The NSSC’s Financial Profile (continued) Fee-for-service supports the shared services business model Matches cost, consumption, and service Promotes transparency of cost and services Supports goal of operating in a business-like manner Customers modify behavior to achieve the optimum balance between service and cost Promotes a long-term approach to asset management Encourages process efficiencies 12

13. NASA Shared Services Center National Aeronautics and Space Administration 13 Lines of Business Transitioned 52 activities from March 2006 to September 2009 FY06: 27 activitiesFY08:6 activities FY07: 15 activitiesFY09:4 activities Human Resources Processing personnel actions Maintaining employees’ personnel records Employee benefits, advice, and services Processing training requests Maintaining HR systems Employee drug testing

14. NASA Shared Services Center National Aeronautics and Space Administration 14 Lines of Business (continued) Financial Management Employee travel (foreign and domestic) Employee relocation services Accounts Payable (AP) Accounts Receivable (AR) Payroll Financial statements Procurement Consolidated contract management Grants processing

15. NASA Shared Services Center National Aeronautics and Space Administration 15 Lines of Business (continued) Information Technology Outsourcing Desktop Initiative for NASA (ODIN) Agency Consolidated End-User Services (ACES) NASA Operational Messaging and Directory (NOMAD) Enterprise Licensing and Seat Management Agency Print Manager Enterprise Service Desk (ESD) & Enterprise Service Request System (ESRS) System for Administration, Training, & Educational Resources for NASA (SATERN)

16. NASA Shared Services Center National Aeronautics and Space Administration Cross-Cutting Support Required for NSSC Services Document Imaging and Management Service Customer Contact Center Self-Service Customer-Focused website Business Office supporting facilities, budgets, chargeback processing, and customer communications IT Infrastructure and Business Applications support 16

17. NASA Shared Services Center National Aeronautics and Space Administration Data Driven and Performance Measured 17

18. NASA Shared Services Center National Aeronautics and Space Administration August 2010: Corporate Executive Board “Force of Ideas” award winner – Advanced Service Center Category – award recognizes best demonstrated practices, key business processes, and the creation of sustainable, measurable value. March 2009: Best New Captive Shared Services Organization Excellence Award Recognizes the most successful shared services organization launched within the last three years; Nationally recognized as the highest accolade for shared services organizations; and Runner-up: Wal-Mart Stores, Inc. January 2009: Help Desk Certification by Help Desk Institute March 2008: Government Information Technology Executive Council (GITEC) Project Management Excellence Award in the category of Cost Savings / Cost Avoidance March 2007: 2 nd Place - Best New Shared Services Organization Excellence Award The NSSC’s Successes 18

19. NASA Shared Services Center National Aeronautics and Space Administration The NSSC’s Key Challenges Enterprise Service Desk / Enterprise Service Request System Improving the quality of our communications across all channels Institutionalizing responsiveness Stabilization Capital investments Managing the NSSC portfolio Striking the appropriate balance between policy, process, service levels, and cost 19

20. NASA Shared Services Center National Aeronautics and Space Administration Questions 20

21. NASA Shared Services Center National Aeronautics and Space Administration NP-2006-08-00108-SSC