Unlocking full potential shared services Miami


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Unlocking full potential shared services Miami

  1. 1. Eleventh Annual Accenture Global Shared Services ConferenceTrends in Shared Services:Unlocking the Full PotentialPaul BoulangerManaging Director, Finance and Enterprise PerformancePresentation
  2. 2. Trends in Shared Services: Unlocking the Full PotentialPresentation: focused on operators of shared services Now one way to think about or measure and then we conducted a series of in-depth process excellence is the degree to whichNow I’m going to talk about unlocking interviews to augment the data survey processes are standardized and a littlethe full potential of shared services collection and things like that. bit of our survey results here. But whyand speak a little bit to the research is process standardization so important?program that we ran this year and the There’s a series of competencies that build I mean, it should be obvious. Processresults that we found1; but what does upon one another and are deeply connected variability by very definition is morethat mean unlocking the full potential? and so what we’re going to do is kind of expensive to deliver and more complex toWell, of course, it means capturing take a little time on each of these and deliver in terms of service management.cost advantage through consolidation, show you some of the results and what we Now what our survey results told usthrough arbitrage. It means creating a learned in our most recent survey. is that only 49% of our respondentsplatform for standardizing, processes and reported having the three platformssupport services, providing a platform to So let’s start with process excellence. for process standardization in place;standardize systems but it means going And I’ll give you four points on process policies, the processes themselves and thebeyond those types of things. It means management. Point number one would supporting systems. That’s actually sort ofshared services supporting a corporate be engineering focus. Point two would surprising. That says that shared servicesstrategy, enabling things like mergers be religious zeal. Three would be process organizations or at least the ones thatand acquisitions and geographic growth. standardization and four would be we talk to have a fairly long way to go inIt means helping your organizations process ownership. terms of addressing what is a fundamentalcreate focus in your line management tenet in process excellence that isteams on your core business. It means So, on the first point—leading shared delivering processes in a standardizedexpanding the service model to its logical services organizations are taking an fashion. Now one of the challengesconclusions, illustrations of which you engineering focus in how they dissect and that some organizations may have inwill see this week to create as much value analyze their processes. They’re breaking standardizing processes, or in governingas possible out of the model available in them apart, they’re systemically finding and them is global process ownership. It’ssupply chain areas, customer areas; now searching for and exploiting opportunities difficult to standardize processes and drivewe are seeing integrated business services to remove variability and process exceptions process improvement if you don’t have theorganizations providing analytic services. eliminate process steps and process waste appropriate governance structure. ProcessIt’s taking the model and expanding the in the same way that they would on the ownership is on the rise, interestingly.value that it provides. That’s what we manufacturing shop floor; applying lean Sixmean by unlocking the value. Sigma techniques, holding Kaizen events. The second concept we examined was that of service excellence. What is the methodGary mentioned that we executed our Now religious zeal, to create that kind by which you systemically drive serviceshared services research program, we do of mindset in an organization requires a excellence? The system around the system.this every year, but what we did this year is deep conviction that this is the way you Our argument is that that structure needswe had a specific goal. There were a variety need to and want to operate and then you to be in place. We call it; Accenture calls it,of characteristics that came out in our have to convince your organization to do the service management framework. And2010 research program, Lessons from the so. So as a shared services leader to get this what is the goal of the service managementMasters2 that we wanted to explore more mindset imbedded of process excellence framework? The goal is discipline. Disciplinedeeply and that’s exactly what we did. So in the organization, you have to have a and how you manage customer expectations.we collected data from over 100 companies certain amount of religious zeal. A little Discipline in how you manage the rolesspanning a variety of geographies. We bit of a preacher. and responsibilities of the service operationfocused on the leaders of shared services versus the roles and responsibilities oforganizations. So we weren’t going out the service center. Ultimately what you’reand polling, you know, general corporate trying to do with the service managementorganization leaders. We specifically framework and certainly how we think about it is to create that seller-buyer relationship; that commercial focus of an enterprise within an enterprise.2
  3. 3. Trends in Shared Services: Unlocking the Full PotentialContinuous improvement. It’s great if you create in their organization’s leadership their business leadership that they’re notget your processes and your shared services teams and value marketing is a big part of only managing the traditional services welloperation. You make a lot of improvements creating that confidence. but that the model and business servicesup front, you’re harvesting value from leadership is equipped to take on newconsolidation and make some process Now you’re managing the processes areas, closer to the front office and drivechanges, standardize and that was last you own very well. Your service model significant value. That they have strategicyear. What are you doing this year? Having is flawless. You’re delivering a very high ownership and management of end-to-a continuous improvement competency service. You’re producing a continuous end processes, they actually play a strongis critical to the ongoing evolution of stream of improvement opportunities role and in some cases own governing thethe shared services operation within a that the organization sees value in. You’re architecture of end-to-end process, andcompany because you’ll be asked that effectively marketing the value. Where are as or more important compliance withquestion. Again you’re trying to convince you? You’re in a position to elevate the the end-to-end process and then lastlyyour business leadership that the shared shared services organization to a place we accountability. Accountability is sort of anservices model delivers value not just one call integrated business services. You’re in ethereal concept, isn’t it? But at the end oftime but over time. And so we believe it to a position to expand services—place the the day they are run like a business. Theybe a critical competency. shared services organization in a different are accountable for a broad set of business reporting role, providing even more value. results and we’ve even seen integratedSo, how do you convince the organization Be treated as a business unit, an internal business services organizations that, asof all this value that you’re creating? business. That’s sort of how we think about part of their accountability model in theirThere’s the concept of value marketing integrated business services. annual planning cycle the organization,and again we’re trying to convince line is holding them accountable for growthleadership in our businesses that the Let me give you some specific characteristics of their business i.e. the assimilation ofshared services model and shared services that we look for and think about referent other parts of the organization into theirleadership is actually driving value. So to integrated business services. First, service model. That’s confidence. When youwe view value marketing as a critical and it’s an independent entity. It tends to be have convinced the business leadership,emerging competence and it’s a learned treated like a business unit and it tends that shared services is such an effectivebehavior especially for support services to be reporting to a C-level leader. What concept, shared services has the competentorganizations. Talking frequently about the you see over here in our survey results was leadership to deliver value that they’revalue we’re delivering to the organization that 59% of the shared services operations saying I want to hold you accountableand thinking about it in those terms. that we queried reported as reporting to for taking on more each year into your the CEO, COO or President, actually 17% business, you’ve achieved something.Now in our survey over 15% of the reporting to the CEO. That’s up from 8% This is the future. This is the future forrespondents reported that they have three years ago. That’s a material change shared services and for some companiesaspirations, intentions that the services in three years. Shared services as an it’s the reality today with the result beingthey provide are going to expand influential entity, internal to most competitive advantage.dramatically in the next five years into companies, is on the rise. So thinknew areas, into supply chain operations, into independent entity, business authority,customer operations. Well those intentions reporting to the C-level or reporting towill be bounded by the confidence that they an officer. So that’s one characteristic. Another characteristic is that they provide a wide array of services, multi-function. But the types of areas that we see integrated business services playing reflect the fact that they have created the confidence in Notes 1 Trends in Shared Services: Unlocking the Full Potential, Accenture 2011 2 Achieving High Performance through Shared Services: Lessons from the Masters, Accenture 20093
  4. 4. About Accenture About Accenture Management Consulting, Finance & Enterprise Accenture is a global management Performance consulting, technology services and outsourcing company, with more than Accenture is a leading provider of 244,000 people serving clients in management consulting services worldwide. more than 120 countries. Combining Drawing on the extensive experience of its unparalleled experience, comprehensive 16,000 management consultants globally, capabilities across all industries and Accenture Management Consulting works business functions, and extensive research with companies and governments to on the world’s most successful companies, achieve high performance by combining Accenture collaborates with clients to help broad and deep industry knowledge them become high-performance businesses with functional capabilities to provide and governments. The company generated services in Strategy, Analytics, Customer net revenues of US$25.5 billion for the Relationship Management, Finance & fiscal year ended Aug. 31, 2011. Its home Enterprise Performance, Operations, Risk page is www.accenture.com. Management, Sustainability, and Talent & Organization. Accenture Finance & Enterprise Performance consulting services help finance organizations maximize the value they create for their enterprises. For more information please visit us at www.accenture.com/fep.Copyright © 2012 AccentureAll rights reserved.Accenture, its Logo, andHigh Performance Deliveredare trademarks of Accenture.