The complex sourcing options available to global operations leaders today can prescribe real opportunities for business improvement, but can also pose intricate challenges. As we’ve been at pains to point out on HfS over the years, outsourcing is only one vehicle to provoke change, impact cost and provide process improvement opportunities. 90% of enterprises, with over $1bn in annual revenues, have shared services operations, and these need to be aligned more effectively with the 97% of these organizations grappling with governing outsourcing relationships.
So how do you take shared services leaders and blend their expertise with the outsourcing governors? How do you go from fragmented service delivery with multiple points of contact, to a global governance model with a rationalized and centralized administration of third-party service providers?
In our first paper on the topic, The Evolution of Global Business Services: Enhancing the Benefits of Shared Services and Outsourcing, we asserted that senior leaders can leverage a Global Business Services strategy as a comprehensive approach to achieve strategic objectives through blended shared services and outsourcing solutions. In our new report, which we have co-written with Charlie Aird and Derek Sappenfield of PwC and entitled The three tenets of Global Business Services execution: customer alignment, accountability, and economies of scale, we are sharing best practices from organizations that have successfully implemented a Global Business Services strategy. In particular, these include:
» Focusing on the Customer – Global Business Services’ processes and technologies enable business unit strategies. Building alignment and sharing a vision is imperative to achieving successful results.
» Building the Service Delivery Model – Achieving economies of scale and scope requires well-defined and common business architecture. Effective organizations have a strategy to construct and leverage their global business service capabilities.
» Aligning Processes and Technology – Providing best practice back office services requires vision, agility, and coordination across multiple functions. It requires a focus on the provision of solutions, not technology.
So what are you waiting for?