Modernizing a shared service provider’s functional and strategic systems to meet future challenges

The Parnin Group (TPG) conducted a program assessment of a federal payroll shared services organization that provides payroll, human resources management, and financial services to more than 170 different agencies and sub-organizations and provides payroll services to more than 600,000 federal employees. The organization provides cost-effective, standardized, and interoperable solutions in the areas of strategic financial management and human resource management.

TPG developed a future state modernization roadmap for the shared services organization based on an assessment of its mission and operations as a shared service provider and its organizational capacity to meet present and future mission requirements. The Parnin Group analyzed governance and finance structures, supporting technology systems and processes, internal organization and infrastructure, and stakeholder engagement functions.

As part of the review of financial structures, the team examined the intricacies of budgeting as a shared service provider—including workload forecasting, capital investment, operations and management (O&M), and rate/fee setting—and considered the benefits of alternative funding structures. The Parnin Group also reviewed how the client evaluates and benchmarks its service levels and performance and its collaboration with its stakeholders, including customers, Congress, federal agencies, and the OMB.

Outcomes and Impacts

• Identified the desired future state of the SSC and what supporting functional changes are needed for them to achieve that desired future state.
• Provided a final report offering near-, mid-, and long-term recommendations with supporting strategies focused on optimizing outcomes across the client’s processes, organization, and service delivery.
• Developed cost estimates for IT systems improvements to inform long term strategic planning and resource needs.
• Developed a multi-phase roadmap focused on stakeholder engagement, IT system modernization, and forecasting future-state funding needs and strategies.