Shared services that work ppt

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Shared Services That Work: Surprise Findings from Charlotte-Mecklenburg Nonprofits


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


Welcome

Holly Welch Stubbing, SVP-Client Services & Legislative Affairs


Community Catalyst Fund Members


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


MSO Task Force Members • • • • • • • • •

Pat Phillips, Chair – Former BOA Executive Austin Adams – Former JPMorgan Chase Executive Laura Belcher – COO/ CFO, ASC Tom Brydon – Former Managing Partner - Accenture Gene Cochrane – CEO, Duke Endowment Andy Elliott – Partner, PricewaterhouseCoopers Matt Packey – CFO, Queens University Laura Meyer – EVP, FFTC Russell Schwartz – VP Administration, United Way


MSO Task Force Charge by CCF

Assemble a Task Force of volunteer experts

Seek proposals to conduct local assessment

Task Force to determine if viable to take to full planning & implementation phases


Goals for Charlotte-Mecklenburg MSO 1. Provide affordable, quality back-office services for nonprofit organizations to increase their effectiveness 2. Focus highly-qualified professionals on back-office services so program staff can focus on their missions 3. Develop a financially-sustainable shared service solution


Request for Interview (RFI)


Financial Modeling

Shared Services Grants

In-depth NPower/ CFSC Due Diligence Pro Bono Legal Counsel

Comprehensive MSO Survey

MSO Task Force

Procurement Interviews

HR Interviews

MSO Interest Survey

RFIs/ Consultant Selection Local Interviews

Focus Groups

National Interviews


Task Force/ MSO Timeline March – May

Recruiting of Task Force Members

June

Defined scope of MSO project Created & finalized consultant selection process

July

Consultant interviews and selection Research and analysis Presentation to CCF and grant approval

September

Task Force meeting – first results

October

Final results of studies and interviews

November

Reviewed in-depth information on focus areas, summarized research & debated recommendation

December

Task Force recommendation to MSO Task Force

January – April

11 Grant awards/ NPower & CFSC begin work/ Launch event


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


Charlotte-Mecklenburg Managed Services Organization Project

Community Presentation April 13, 2011


Challenges • The Nonprofit Economic Crisis • Reduced Funding • Increased Community Needs • Accessing Quality Space and Services


Opportunities: What Works

Youthville Detroit, MI

• Nonprofits and foundations focused on solving the problem • Nonprofit dollars can be leveraged to create sustainable infrastructure • Proven models exist


Almost Anything Can Be Shared

NonProfit Center Boston, MA


MSO Task Force • Community Catalyst Fund initiated • Research on feasibility of Managed Services Organization (MSO) • Hired Tides for feasibility study


Goals for Charlotte-Mecklenburg MSO Project • Provide affordable, quality back-office services for nonprofit organizations to increase their effectiveness. • Focus highly-qualified professionals on back-office services so program staff can focus on their missions. • Develop a financially-sustainable shared service solution.


Project Feasibility • Service Demand > Size of nonprofit market > Unmet need and satisfaction with current providers

• • • •

Desirable product/service Client criteria for satisfaction Competitive Landscape Sustainable financial model


Market Research • Nonprofit Survey > Received 71 responses, 78% response rate

• Focus groups > 4 groups, 18 organizations

• Participant Interviews > 17 different organizations > Emphasis on target market


Charlotte-Mecklenburg Nonprofits • Interested in managed services • Limited spending • Feel vulnerable in human resources management


Charlotte-Mecklenburg Nonprofits Current Provider Satisfaction

Price IT Service Provider

64%

IT Equipment Supplier

59%

Office Supplier Furniture & Equipment Supplier*

Availability/ Expertise Inventory Convenience 74%

Customer Service

72%

78%

68%

68%

54%

52%

90%

90%

59%

55%

70%

70%

65%

* Excludes participants who use primarily donated furniture and equipment


Charlotte-Mecklenburg Nonprofits • Some experience with outsourcing • Seeking customized, flexible services • Looking for strong provider reputation and relevant experience • Will not sacrifice quality or pay more


Market Research • Local Provider Interviews > > > > > > > > > > >

ADP Total Source and ADP Resource Beacon Technology Benefit Controls Children & Family Services Center CNP Technologies The Employers Association North Carolina Center for Nonprofits Npower Charlotte Region Premier Inc. TriNet United Way of Central Carolinas


Market Research • National Provider Interviews > > > > > > > > > > >

California Association of Nonprofits, Los Angeles, CA CCA for Social Good, Manchester, NH The Foraker Group, Anchorage, AK GroundWork Group, Columbus, OH Lumity, Chicago, IL MACC Commonwealth, Minneapolis, MN NEW’s npServ, Ann Arbor, MI Nonprofit Purchasing Group, Del Mar, CA PHMC, Philadelphia, PA Pittsburgh Cultural Trust, Pittsburgh, PA United Community Services Co-op, Vancouver, B.C.


Market Research • HR & Employee Benefits Interviews > > > > > > >

Robert Chambers, McGuireWoods, LLP Jef Fullagar, CarolinaPEO Employer Services Assurance Corporation Morgan Stanley Smith Barney National Association of Professional Employer Organizations Wells Fargo Insurance Services Woolard Financial Advisors

• Corporate Partner Interviews > Bank of America > Duke Energy > Wells Fargo


Nonprofit Clients • • • • •

Based on national and local research Loyal to existing providers Require “high-touch” services Undercapitalized Ideal budget size between $1-4M


Purchasing


Purchasing Interest in joint supply and equipment purchasing Relatively small volume of spending 75% use donated furniture or equipment Supply purchasing has extremely low margins, very competitive • No self-sufficient purchasing model at this time • Sector partnerships possible for specialized equipment and supplies • • • •


Technology


Technology


Technology • • • •

65% of organizations interested in shared IT services Hardware investments made in last 3-5 years Software procured at up to 95% discounts Top needs > Training > Sector-specific niche applications > Systems integrations/large projects


HR and Employee Benefits • 85% of organizations express interest in joint insurance • Spending ~$13.35M on employee benefits • Insuring 640 employees • Over 70% satisfied with current insurance and benefits providers • Health care cost increases are big concern • Commitment to maintain benefits


HR and Employee Benefits • Top needs > Affordable health insurance > HR consulting services/risk management


HR and Employee Benefits • Regulatory environment allows pooled employee benefits, but insurance companies will not write • Changes in health care environment make group purchasing model practically unavailable • Corporate HR providers will not work with “high risk” organizations


Shared Services Providers Results of national research: • Often nonprofit organizations • Typically grow organically • Take 3-5 years to reach self-sufficiency • Achieve impact through multiple services


Shared Services Options 1. 2. 3. 4. 5.

Establish New Managed Services Organization Incentivize Commercial Providers Grow Local Nonprofit Providers Use State Association Benefits No Managed Services


Structure Options


Structure Options


Structure Options


Structure Options


Structure Options


NPower Charlotte Region • Technology Training Tools > User groups > Onsite coaching

• Technology Capacity-Building Projects > Project Grants

Year Up, New York, NY


Technology Solution • Value Proposition > Successful peer-learning and problem-solving model > Customized for real-world needs of nonprofit organizations > Focus on nonprofit-specific applications and technology uses > Identifies best practices and top technology solutions > Provides cost-efficient ongoing professional development and learning opportunities


Technology Solution • Outcomes > > > >

Better use of technology tools by nonprofits Enhanced e-visibility for nonprofits Increased nonprofit staff efficiency Mutually-beneficial relationships between corporate partners and nonprofits


Children & Family Services Center • Service contract for HR Services • Participants maintain existing benefits plans • Core HR services > > > >

Payroll Personnel policies and templates Employee management support HR training

• Optional services > Recruitment > Benefits bidding


HR Solution • Value Proposition > Trusted team of HR advisors who know the nonprofit sector to help mitigate risk > High-touch services > Best practices of Charlotte-Mecklenburg nonprofits > Fully compliant payroll services > Ongoing HR training specifically designed for nonprofits > Keep current benefits providers


HR Solution • Outcomes > Improved staff morale and retention > Decreased HR risk > Increased recruitment of qualified, valuable staff members


Catalyst Community Fund Support • NPower: $264,800 • Children & Family Services Center: $ 50,000 (feasibility study & business plan)


The NonprofitCenters Network

The premiere learning community for shared nonprofit space and services www.nonprofitcenters.org


Contact Roxanne Hanson Director of Education and Consulting, Tides PO Box 29198 San Francisco, CA 94129 [415] 561.6311 rhanson@tides.org China Brotsky Senior Vice President, Tides PO Box 29198 San Francisco, CA 94129 [415] 561.6300 china@tides.org www.tides.org


Questions?


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


IT Shared Services Lead

NPower Charlotte Region Chris Meade, Executive Director


NPowering Change in the Community Nonprofit Tech Needs

Technology Resources


Shared Technology Services

NPower Shared Services


How To Get Involved?

• User Groups – Register for a current group and/or submit interest form

• IT Coaching – Submit an interest form

• Project Pool – Wave 1 is by invitation, Wave 2+ via open call for ideas

• Solutions Center – Schedule an Assessment


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


HR Shared Services Lead

Children & Family Services Center Peggy Eagan, Executive Director


Potential HR Services


Next Steps: Want to learn more? Meetings:

April 21 & May 5 11:30 -1:30 (Lunch provided)

Contact:

Peggy Eagan: 704-377-2899 Barb Bailey: 704-560-9431


Today’s Agenda I.

Welcome

Holly Welch Stubbing

II.

Overview of MSO Charge

Tom Brydon

III.

Research Findings

China Brotsky & Roxanne Hanson

IV.

IT Shared Services

Chris Meade

V.

HR Shared Services

Peggy Eagan

VI.

Closing Remarks & Questions

David Snider


Thank you!


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