Penn State Introduces Modern Financial Shared Services Model
Penn State University has officially launched a new financial shared services model, marking a significant transformation in the way the institution manages its financial operations. After more than three years of collaborative planning, the Finance Optimized Service Team (OST) has unified nearly 500 finance employees under the Finance and Business division, rolling out new standardized workflows for financial transactions across the University. The launch took place on February 24, with the aim of enhancing efficiency, resiliency, and support for Penn State’s mission of academic excellence.
Background: Moving Towards Standardization
Penn State’s shift to a shared-services framework represents a strategic move away from decentralized financial processes. By consolidating financial activities under one umbrella, the University seeks to modernize operations and better respond to the needs of faculty, staff, students, and administrative leaders. Sara Thorndike, Senior Vice President for Finance and Business and University Treasurer, expressed gratitude for the collective effort that brought this milestone to fruition. She emphasized that the new model is designed to position Penn State’s financial professionals for long-term success within a university-wide structure.
The transition is part of a multi-year initiative, with input from financial professionals, faculty, staff, and University leaders. While most University units are adopting the new model, some, like the College of Medicine and the Applied Research Laboratory, will integrate at a later stage or experience minimal changes due to their unique operational needs.
Industry Best Practices Drive Change
According to Saurabh Bansal, OST co-lead, Chief of Staff for Finance and Business, and Smeal College of Business professor, the move to a shared services model reflects industry best practices. His research in decision-making under uncertainty and data-driven improvements played a key role in shaping the OST’s implementation. “As a leading research institution, we had the opportunity to apply well-established research findings to ensure our decisions were grounded in evidence and focused on supporting our employees,” Bansal said.
Streamlined Financial Transaction Experience
All financial transactions at Penn State will now begin in ServiceNow, the same platform used for IT support. Non-finance staff, known as “initiators,” will use a user-friendly web portal on the Finance and Business website to submit requests for financial transactions. These initiators, identified by their business executives, such as deans and chancellors, play a crucial role in prompting financial processes for their respective units.
Once a request is submitted, employees in five newly established financial hubs will process the transactions. Bansal explained that initiators are expected to provide as much information as possible, after which finance hub staff will collaborate with them to gather any additional details needed to complete the transaction efficiently.
Transition Period and Continuous Support
To ensure a smooth adoption of the new processes, Penn State is entering a 90-day “hypercare” period, during which extra resources are dedicated to supporting initiators and addressing any questions. Employees are strongly encouraged to reach out to their unit’s Strategic Finance Partner (SFP) teams for guidance and troubleshooting throughout this transition.
Kim Fisher, Senior Director of Financial Planning, Analysis, and Coordination, highlighted that SFP teams will remain dedicated to their respective units, now with expanded support through the hub model. “Our SFPs and financial coordinators remain committed to each unit, as they always have been, but with expanded support through the hub model,” Fisher said. Contact information for SFP teams is available for employees seeking assistance.
Comprehensive Training and Engagement
Preparing staff for the transition has been a top priority. Throughout January and February, Penn State organized extensive training sessions for unit initiators. The response was robust, with more than 7,500 seats filled by 2,000 community members in deep-dive and overview sessions. Christy Helms, Senior Director of Talent Management, noted that the training was designed to boost confidence and ensure all participants understood both the steps involved and the support available within the new system.
For those unable to attend live sessions, recordings are accessible on the Office of Enterprise Change & Transformation website, providing flexible, self-paced learning options.
Continuous Improvement for the Future
Penn State’s Finance OST is committed to ongoing improvement by integrating feedback from both initiators and finance professionals. As the new model matures, refinements will be made to further enhance support and operational effectiveness. Thorndike underscored the importance of this initiative, stating, “This shared services model is a vital investment in our collective future. By transforming our operations today, we are helping to position Penn State for continued strength and success.”
More information about the Finance OST and resources for employees can be found on the Office of Enterprise Change and Transformation website.
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