SERVICES
NEOSO conducts extensive research and interviewing on an ongoing basis to identify potential Shared Service offerings that will be of value to NEOSO's members. Our Service offerings are designed to strengthen our Members' operations. For example, we build back-office Service programs for administering contracts and disposing of obsolete assets. We are NOT focused on professional services, such as law and accounting.
GENERAL PHILOSOPHY: COST AVOIDANCE
We heard time and again from our Members that they are understaffed and over-committed, that they have a breadth of responsibilities and cannot afford to have a corresponding depth of resources on staff. As a result, there is often a long list of tasks that our Members want to implement and know they should, but can't ever accomplish.
Unfortunately, there is often an associated cost. For example, many Members want to implement preventive maintenance programs for their facilities, but do not have the capital or human resources to do so in the face of other priorities. The result? Facilities don't last as long as they should and cost far more to fix in the long run.
A great example involves roofing: a properly installed and well-maintained roof should last for at least 20 years. In the public sector, the typical roof only lasts 7 years!!! That means that a local government is paying for 3 roofs every time it is supposed to be paying for 1. Implementing a preventive maintenance program, with an eye toward maximizing the useful life of assets, is far more economical than buying 3 roofs. The percentage Return on Investment is measured in the thousands.
NEOSO is focused on developing offerings targeted to supporting and enhancing operational capabilities. We are dedicated to providing our Members with economically affordable Services that maximize cost avoidance and reduce the burden on existing staff.
WHY IMPLEMENT COST-AVOIDANCE STRATEGIES AS SHARED SERVICES?
Implementing proven operating practices as Shared Services provides a three-level value proposition to our Members.
- DIRECT VALUE TO MEMBER.
NEOSO's Services contain ongoing expenditure levels, minimize known and unknown risks, establish Member control over previously uncontrolled variables and free up staff operating capacity to focus on high-value activities.
- ENHANCED VALUE AS A SHARED SERVICE.
Implementing these offerings as Shared Services enables NEOSO to secure the greatest level of expertise and most sophisticated tools at an affordable unit price; the cost is distributed over multiple Members. Higher quality, lower cost. In addition, Shared Service models enable us to incorporate best practices from across multiple Members, creating a model in which our Members benefit from the successes of their peers.
- FORECASTING.
In effect, Shared Services implement operating standards across Members. With standards in place and a view across multiple organizations, NEOSO is in a position to forecast needs and requirements, thereby enabling systematic group purchasing for our Members.
HOW DOES NEOSO IDENTIFY SERVICES TO OFFER?
We identify Services through listening, asking questions and conducting research. Our Members are highly experienced. They know the operational issues that they don't have the time to pursue. They know, whether explicitly or instinctively, that there is often a high cost associated with inaction. They are often looking for the information necessary to make the case to the powers that be; NEOSO fills that gap.
We constantly seek feedback and input as to what the opportunities are for us to pursue. What frustrates our Members? Where are you constrained by time? What would you like to get off of your plate so you can focus on more important activities? We also conduct research and interview vendors and suppliers. What cost-avoidance practices can we implement that will have the greatest effect for an individual Member as well as long-term value for the group as a whole?
WHAT IS THE PROCESS FOR DEVELOPING A SERVICE OFFERING?
The process is straightforward. The NEOSO team includes professionals with deep experience in building leverage across multiple operating units. Their experience has proven, time and again, that there are several cost-avoidance practices that form the building blocks of success. Our initial Service offerings focus on those areas:
- Contract Administration
- IT: Shared Chief Information Officers
- IT: Computer Care
- IT: User Training
Once we decide to develop a Service offering, we work with our Members and subject matter experts. Our objectives are to
1) comprehensively define what it is that will provide the greatest value to our Members and 2) what they will buy. We seek to be creative and innovative, with an eye toward creating multiple levels of value.
Once we have a clear understanding of the particular Shared Service we are offering to our Members, we either build or buy it.
HOW DOES NEOSO ASSURE QUALITY CONTROL AND SERVICE LEVELS?
We constantly monitor performance and Member satisfaction. Our objective is to address potential issues before they become problems. For those Shared Services that we buy from the marketplace, our main focus, once a contract is in place with a partner, is ensuring that partners meet expectations and live up to their contracts.
We are in regular contact with all partners as well as with Members, checking to see if there are any current or potential issues. The communication lines, particularly with our Members, are critically important. We can't solve a problem if we don't know about it.
Once a problem has been identified, we work with the particular partner and the Member to resolve the issue as quickly as possible. We also have developed very specific terms and conditions for each of our contracts with partners to provide mechanisms for contract enforcement.
