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- 1. Run Shared Services Centers like a Business How to achieve higher ground?
- 2. Run Shared Services Centers like a Business Evolutionary path for the Shared Services concept 1 Consolidation Establishment Shared Services Important to SSC customers Timeless of response Routine cost effective services Knowledge of the Business Gradual expansion of shared services Formation of Islands of Services Perceived and / or real performance shortfall Performance shortfalls Technology automation Process standardization Utilization of resources Implementation time Business opt-in Scalability (lower cost) Efficiency through synergy Center of Excellence Higher quality/talent ? Reconstitute Ignore Devolve Business opts-out Inability of global delivery Lack of service culture Poor quality, higher costs Maturity Journey in time
- 3. Run Shared Services Centers like a Business A learning curve to work with a shared services concept 2 Corporate office Shared Service Center Customer/ Retained organization Inexperienced Experienced Soft money concept Customized services BU Governance Time-driven costing Differentiated services Executive steering SSC as central staff unit Passive / Defensive Low value Cost reduction Cost Center Core business Innovative/Competitive Business Value Strategic enabler Investment Center
- 4. 1998 2003 2004 2008 2009 2010 2011 2013 Future steps Creation of shared services Finance, then other support services Increased geographical scope Outsourced & regional/global shared services Creation of GBS End-to-end process management Group wide governance Expand GBS scope End to end process optimisation Move further up value chain Creation of shared services All support services Consolidation & automation Partial Integration of shared services Driven by finance Common infrastructure and services organisation Creation of GBS Fully integrated infrastructure Reporting to function, not GBS Creation of shared services All support services Creation of multi-function shared services Head of CBS appointed Creation of shared services Finance, HR, Proc. Service consolidation & basic infrastructure Creation of GBS IT added to scope Strategic sourcing with external partners Increase and optimise GBS 3-fold increase in org capacity & flow-to-work Reduction in costs Run Shared Services Centers like a Business It is not a one-shot but a continuous journey* 3* Source : Market research (Deloitte, PwC,)
- 5. Run Shared Services Centers like a Business Sorry, there is no best practice to move towards a GBS model 4 Change Posture Delivery Model & Improvement Levers Business Model Realignment Multifunctional/global transformation implemented within 18 24 months Convulsive Drivers: Urgent external threat Dramatic organizational realignment Bundled outsourcing Centrally/tightly governed Labor arbitrage & standardization Transformation Journey Multifunctional/global transformation evolving over 3 5 + year program Resolute & Driven Drivers: Burning Platform Top 3 Priority Captive/outsourcing blended model Cross functional governance Leading practices & simplification, labor arbitrage, IT enablement Stepped Progression Functional transformation implemented in serial initiatives Evolutionary Drivers: Clear opportunity Focused Single-tower outsourcing or captive model Functional governance IT enablement, six-sigma/ leaning, labor arbitrage
- 6. A goal is not always meant to be reached, it often serves simply as something to aim at. Bruce Lee Run Shared Services Centers like a Business Positioning of Shared Services in the end-state 5
- 7. Run Shared Services Centers like a Business Setting the scene 6 Building blocks . . . Commercial Orientation Cost and Service orientation Steering Models from strategic oversight to tactical data management Leadership Alignment Strategic roadmap Performance management framework Information management Performance Improvement culture Quality oriented behavior Best Practice Stewardship Promote knowledge sharing Implementing Excellence From organization to service Communication Framework Attention to change management at corporate and customer levels Visible Leadership Functional alignment Alternative Global Service Delivery Mechanisms Reskilled labour Incentived Reward mechanism Financial Transparency End to End Process Ownership Cross-functional synergies Enabling Web Technologies Service Life cycle management Executive Steering End-to-End alignment Differentiators . . .
- 8. Single - functional alignment SSC drives autonomous standardization Fully integrated regional centers with slim global coordination role Multi-function alignment and control GLT drives standardisation and process excellence Fully integrated centers controlled and managed globally Embryonic maturity level (technology driven) Single functional model Functional end-to-end Optimization coordinated at strategic level Low integration between functions Hybrid delivery model with outsourcing providers Advanced maturity level (Regional P&L driven) Multi-functional model Multi-functional end-to- end Regional accountability Optimization coordinated at strategic level High-integration at regional level Regional captive centers Optimized level (process driven) Single functional model GLT lead as landlord of SSO Multi-functional standardization & tactical optimization Captive delivery solution Best-in class maturity level (Global P&L driven Multi-functional model Global integrated end-to- end services & optimization Hub-spoke hybrid model with 1 global delivery center and 1 or more center of excellences Run Shared Services Centers like a Business Variants of GBS models becoming more integrated as the business matures 7
- 9. Run Shared Services Centers like a Business Create additional value to your business 8 Optimisation Value Creation Data analytics Improving global insight through the use of consistent data structures and delivery of enterprise-wide data analytics. Growth platform New markets - expediting expansion into emerging markets Mergers & acquisitions - enhancing PMI capability Process value Generating business value across a widened scope of end to end processes Commercial focus Freeing up market resource to focus on driving business growth by truly removing distraction of support services. Innovation Leveraging skill and deployment ability to drive innovation Boosting talent attraction and access to a wider pool of skills as Global Business Services becomes an increasingly rewarding career and training ground. Sites Economies of scale Low cost locations Labour pool Maximise arbitrage Optimise strategic and operational roles Operations Standardise use of enabling technology Standardise processes GBS enabled integration of Gillette in 15 months vs. 3-4 years, saving $4m per day Achieved significant process savings across O2C and P2P India analytics centre provides market leading commercial insight Traditional Cost and operational efficiencies
- 10. Run Shared Services Centers like a Business Bottom line key enablers for success Agree on overall maturity levels, priority setting and governance upfront implementation Take time to align Senior Leadership as well as your customers to increase project success Distinct clearly and implement simultaneously GBS-wide design vs. SSC functionally specific solutions Run GBS projects in conjunction with any Corporate wide Target Operating Model project Agree the scope of end-to-end processes as well as ownerships to be reviewed Factor in sufficient resource / time to obtain cross-function and cross-geography elements Plan realistically and understand the critical path 9
- 11. Devi Kencki Shared Services Transformation Expert (+32) (0)-468-198132 e-mail: dkencki@so-consulting.be Run Shared Services Centers like a Business Questions and Answers 10