1. Shared Services Workshop Break-out Session Summaries July 7, 2015

2. L EAD ∙ T RANSFORM ∙ D ELIVER Page 2 The Office of Financial Innovation and Transformation (FIT) conducted a Shared Services Workshop in March of 2015. The workshop brought together industry representatives and Government leaders to assist in identifying next steps for Federal financial management shared services based upon studies conducted by several industry associations. The industry associations represented were the American Council for Technology and Industry Advisory Council (ACT-IAC), the Partnership for Public Service, and the Association of Government Accountants (AGA). FIT began the workshop by reviewing projects it has undertaken that also respond to industry recommendations to improve the shared services marketplace. The industry associations presented overviews of their recent studies and survey results on shared services. Industry participants were assigned to break-out groups to respond to questions about ways to improve the performance, governance, and marketplace growth in Federal financial management shared services. At the workshop conclusion, each break-out group presented their ideas to the audience, which included senior leadership from the Office of Management and Budget (OMB), the Department of Treasury, and the four designated Federal Shared Service Providers. The remainder of this document summarizes the industry recommendations from the Shared Services Workshop. FIT will use these recommendations to guide projects to improve the Federal financial management shared services marketplace. Overview

3. L EAD ∙ T RANSFORM ∙ D ELIVER Page 3 Establish service level metrics and agreements that hold both providers and customers accountable for performance; benchmark against best in class; publicly report performance; incentivize incremental performance improvement (e.g., employees and executives); un-designate providers with poor performance Consider adopting risk-based pricing arrangements (not just cost-based) Establish greater flexibility in government revolving funds for capital investments to modernize, among other changes Promote an open marketplace allowing commercial providers in all business lines Use risk-based acquisition arrangements with the private sector (e.g., firm fixed price, performance-based) and less frequently used arrangements (e.g., public private partnerships) Incentivize continuous improvement and innovation through share in savings initiatives for industry to assist in optimizing processes and systems Performance How would you hold Federal and commercial shared service providers accountable for optimizing performance in areas such as service levels, resource management, innovation, and continuous improvement?

4. L EAD ∙ T RANSFORM ∙ D ELIVER Page 4 What are the advantages/disadvantages of having one governing body manage all administrative shared services mission support functions (e.g., financial management, procurement, information technology, human resources)? Governance Advantages: Allows for uniformity of overarching standards and policies for all providers, regardless of business line Improves coordination across business lines, including risk management Enables greater customer shared service adoption through coordinated discussions Disadvantages: Increases risk of overregulating the marketplace Shifts resources away from improving the provider marketplace and increasing customer adoption Consolidate all shared services business line program management together to form a shared services policy office Focus on common issues across shared services business lines (e.g., organizational change management) Have the governing body hold providers to achieving outcomes and standards and not manage the shared service providers How would you structure such a governing body?

5. L EAD ∙ T RANSFORM ∙ D ELIVER Page 5 Have FSSPs on a common acquisition timetable to decrease the lead time to acquire commercial products or services Establish contract vehicles to facilitate adoption of large agencies and use the private sector for “surge support” to scale temporarily Have separate acquisition strategies for operations and maintenance and new technology (e.g., innovation) Establish proofs of concepts to determine feasibility of new technology Perform an assessment of risk across shared services and providers and identify opportunities (e.g., products, services) to leverage the private sector to better manage risk Use risk-based acquisition arrangements with the private sector (e.g., firm fixed price, performance-based) and less frequently used arrangements (e.g., public private partnerships) Consider share in savings initiatives for industry to assist in optimizing processes and systems Marketplace Growth How can industry’s role in shared service efforts be expanded while also increasing the amount of risk industry accepts when engaging with the government?