The promise of Shared Services is simple: to generate efficiencies through the consolidation of internal services (HR, payroll, IT, accounting, etc.). Unfortunately, reality is not always as simple. Many organizations have found it difficult to effectively move the concept forward, or found that the promised benefits were not realized when implemented.
Where Do Things Go Wrong?
With respect to creating a Shared Services organization, there are several common areas where companies struggle:
- Strategy development and business case preparation
- Understanding the true cost of services and the allocation of charge backs to business units
- Problems with governance, accountability, and reporting
- Decisions regarding in-house vs. outsourced service provision
- Inadequate organizational realignment and process redesign
- Inadequate training and change management for staff
- Service level and contract management
- Performance measurement
Getting It Right – The Do’s and Don’ts
There are a number of invaluable Do’s and Don’ts that we have learned during Shared Services implementations:
- Think big, start small, scale fast
- Invest in benchmarking and have a thorough business case
- Have a clear understanding of service delivery costs
- Transform, don't just consolidate
- Engage staff from the outset
- Keep Service Level Agreements simple
- View Shared Services as simply a cost-cutting opportunity
- Underestimate organizational resistance
- Forget to adjust job descriptions, compensation and recognition systems
- Allow "shadow services" to develop
The Total Solution
We will work with you to move your Shared Services initiative from concept to reality. We help clients in assess, design, implement, and operate their Shared Services organization.
Shared Services Manager is a complete measurement and management software solution that provides the tools needed to effectively manage a Shared Services organization.
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Contact us to learn more about our unique approach to Shared Services.
See our case studies for some real world examples of our approach.