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
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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
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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
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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
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7. Run Shared Services Centers like a Business
Setting the scene
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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
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9. Run Shared Services Centers like a Business
Create additional value to your business
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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
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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
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