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Transitioning to shared services


The risk with moving to a shared service is the thinking that designing and implementing the solution is simple, and that companies can just ‘morph’ into the new state of being – of sharing. Anyone …

The risk with moving to a shared service is the thinking that designing and implementing the solution is simple, and that companies can just ‘morph’ into the new state of being – of sharing. Anyone looking at a children’s playground can easily see that sharing is not always so simple, and adults are no better. Moving to a shared service is fundamentally ‘transforming’ your internal back-of-house functions and therefore requires a change strategy that allows your organisation to design for success from Day One.

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  • 1. TRANSITIONING TO SHARED SERVICESDesigning a Change Strategy that enablessuccess from Day One.Prepared byDon HolleyManaging DirectorMindset GroupReleased 6 December, 2012Mindset GroupSydney | Phone +61 (0)2 8905 0745Melbourne | Phone +61 (0)3 9621 2283
  • 2. SHARED SERVICES: WIIFM? Shared services refers to the provision of a service by one part of an organisation or group where that service had previously been found in more than one part of the organisation or group. Typically organisations may choose to adopt a shared service approach across one or more functions that are duplicated within different entities / divisions of“The risk with the company such as Human Resources, Information Technology, Finance, Legalmoving to a and Purchasing. With the sharing of such services across multiple entities withinshared service is an organisation / group, the expectation is that the business benefits by reducingthe thinking that operational costs, process efficiency, timely access to information, governance,designing andimplementing the consistency and quality of service.solution is simple,and that In today’s market both global and local markets are highly competitive and withcompanies can the rise of inorganic growth (through acquisition) across the globe, organisationsjust ‘morph’ into are constantly on the search for solutions to improve their operational efficiency.the new state of This is where Shared Services can be seen to drive cost benefits and operationalbeing – of excellence in a consistent measure across an entire organisation via the‘sharing’. Anyone standardisation of processes, systems, etc., and leveraging the size of the entirelooking at a organisation for economies of scale.children’splayground can The risk with moving to a shared service is the thinking that designing andeasily see that implementing the solution is simple, and that companies can just ‘morph’ into thesharing is not new state of being – of sharing. Anyone looking at a children’s playground canalways so easily see that sharing is not always so simple, and adults are no better. Movingsimple.” to a shared service is fundamentally ‘transforming’ your internal back-of-house functions and therefore requires a change strategy that allows your organisation to design for success from Day One. This paper is adapted from the Mindset change methodology and will provide useful insights in driving change as opposed to simply managing a project. Our view is that it should be equally helpful to those starting the journey as it is to those who have commenced the journey but are experiencing gaps in their execution. 2 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 3. A ‘BALANCED’ APPROACH TO IMPLEMENTING SHARED SERVICES The balanced scorecard concept is a strategic planning and management framework that is widely applicable to organisations regardless of size or type of business. The methodology, extensively used in business and industry, government, and non-profit organisations worldwide; » facilitates the development and ongoing review of an organisation’s vision and strategy, » provides a method of aligning the organisation’s business activities with that strategy, » improves the organisation’s internal and external communications, and » allows the organisation to monitor its performance against its strategic goals. A central component of the methodology is a management ‘scorecard’ that focuses on all of the important aspects of an organisation’s performance as well as its short term financial performance. It is considered balanced because it not only measures outputs of the organisation, such as customer satisfaction and financial performance, but considers key organisational inputs such as learning & knowledge management and critical processes that deliver the end value to the customer. At Mindset we have applied the same methodology to how change management underpins the successful execution of shared services. Research by SSON indicates two of the key mistakes made by firms when implementing shared services is a lack of measurement and monitoring. Mindset has created a framework to monitor and measure the successful transition to shared services by applying best practice change management principals. Key to this are: 1. Understanding how the organisation learns, shares knowledge, gathers information and manages performance. 2. Tailoring the change management approach accordingly. 3. Defining what constitutes key value for the most critical and often overlooked stakeholder- the customer. 4. Developing measures that keep all parties focused on achieving the desired benefits of the shared service. Figure 1 outlines a strategy map that can be used to provide a more holistic view of your move to shared services. Whilst we do not promote a one size fits all approach with our clients and customise scorecards accordingly, many of the components of the model are universal and, if considered, will likely result in a smoother transition to shared services or better performance from your existing SSO.3 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 4. FIGURE 1: SAMPLE SHARED SERVICE STRATEGY Now let’s use this framework to discuss what things you may want to consider in making a successful transition to shared services. It is not designed to be an exhaustive list or explanation but rather to stimulate your thinking and provide an overall mindset for your approach.4 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 5. 1. THE FOUNDATION: LEARNING PERSPECTIVE Designing the best change management approach for your organisation to move to shared services requires a robust understanding of how your organisation actually works. This is not to say this is how you want it to continue to work, but underestimating the shift required can often lead to painful and costly“People can delays.make or breakyour business, Even if this is an entirely new organisation and you have an opportunity to buildand the fear of the sort of teams and culture that you want, a proverbial blank canvas; all toothe unknown or often challenges such as loss of control, lack of trust, poor form in the changemisunderstood management area outside of the actual organisation you are creating, make itcan be lethal.” difficult for you to succeed. Let’s now consider some of these in turn. 1.1. FUTURE STATE, VISION & CONTEXT You may have heard the saying, “a plan without a vision is drudgery but a plan and a vision can change the world.” Getting your organisation excited about cost reduction and increased productivity can be hard work and to build a compelling business case you need to be able to answer the following questions: » How does a shared service model fit in with your broader organisational vision? » What’s happening in your Industry that makes this an essential part of the future of your organisation? » What’s your vision for what a transition to shared services will achieve for your organisation and how does it align to the organisational picture of the future. » From a learning perspective, what do we know about the context in which the organisation will operate in three to five years time? » What is the rate of change in the industry? This knowledge is critical to designing the most effective change approach. In addition, as shared services evolve in an organisation, the services provided often grow and the services area finds themselves in reactive mode. Knowing where you are going may avoid some confusion along the journey. A clearly articulated vision that is understood and promoted by your executive management team will help you to engage the commitment of your employees across the organisation. People can make or break your business, and the fear of the unknown or misunderstood can be lethal. Visioning workshops can be a great way to bring clarity to this and get buy in at all levels. 1.2. INTERNAL CHANGE CAPABILITY For many organisations in today’s world, change has been the new norm for some time. Yet, why it is that change management or leadership is often lacking 5 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 6. the capability and understanding of what it takes to drive change successfully? What mistakes have been made in the past and what has been learnt? Whilst you may need to engage third party consultants to help design and execute your Shared Service strategy, for sustainability of business results it is important that you also develop internal change capability within your leaders. This will allow them to mentor and coach their employees (old and new) on how“Change to move from old behaviours and skillsets and develop capability that is closerManagement and aligned with the future business strategy and value proposition. It can alsoProject include an understanding of your change methodology and its application. ThatManagement are is of course, if you have one!not the samedisciplines. You Change Management and Project Management are not the same disciplines.need to decide on You need to decide on a balance of specialists versus general practitioners, anda balance of understand the different competency sets required to make your projects aspecialists versusgeneral success, building your internal capability to deal with and lead change.practitioners, andunderstand thedifferent 1.3. PROCESS IMPROVEMENTcompetency setsrequired to make Are you the sort of organisation that has relied on embedded or inconsistentyour project a processes that are not working? Shared services may be a great opportunity tosuccess.” look at the way these things have been done and drive the change that you need. Alternatively, you may be well down the path of business process initiatives such as LEAN or Six Sigma and process improvement is part of everyday life. Most who have persisted and reaped the benefits of adopting such disciplines will tell you it doesn’t happen overnight. It takes time to learn these practices and build competency. In reality, there is rarely enough time to map every process ”AS IS” and create a “TO BE” before the journey is started. Even then, having all the answers or access to the knowledge, can be challenging. It helps all involved to have clarity around what processes are working for the business and which ones aren’t. » Document where you are starting from and understand the gaps. » In sourcing process improvement solutions, ensure they have clear measures and milestones attached with transparency to potential issues and risks in real time. Factoring this into your change approach is a must have, not nice to have. 1.4. CULTURE Culture can be a complex issue, particularly when you are talking about large multi-nationals. Having a consistent culture across countries is challenging and working in an SSO that is servicing a multitude of cultural ‘norms’ can be difficult. Even getting an internal function to treat its internal colleagues as customers can be a major hurdle. How many times have you heard internal support functions 6 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 7. use the term, “the business,” when referring to their own work colleagues? Shouldn’t it be, “our business”? Changing this mindset and language should not be underestimated as a foundational element of successful shared services. Culture can either be the key enabler of strategy or the silent force that kills it. Culture is the outcome of many of the aspects mentioned in this paper, but also includes many others. A robust assessment of cultural factors using a diagnostic“Culture can either tool can help you understand some of the issues that may need to be factoredbe the key enabler into your change management strategy.of strategy or thesilent force that If this information is available in your organisation and current then access it. If it iskills it.” not, then it is recommended that you at least perform a qualitative and preferably a quantitative analysis to help shape your change approach. It can definitely impact such things as communications, transition phasing and inclusivity. 1.5. KNOWLEDGE MANAGEMENT Sharing of knowledge across the appropriate areas and levels within the business is paramount for an effective SSO. Many organisations collect a lot of data that is useful but struggle to collate the information in such a way that they are able to leverage the information effectively. One of the key propositions of shared services is consistency. Think about how you will share knowledge within the function and to customers in order to deliver exceptional service. Any gaps here can be extremely frustrating and should be a key consideration in designing your change strategy. Knowledge is power and whilst we expect that sharing it would be relatively straight forward, this is often not the case. 1.6. PERFORMANCE MANAGEMENT Two of the most common reasons why change efforts fail and employees become disengaged are a lack of role clarity and effective feedback. When conducting post implementation reviews, it is all too common that a lack of adequate performance management process (that may or may not be inherited) pervades. This is critical to how an organisation learns, creates accountability and drives improvement. Annual appraisals are a thing of the past. Things are moving too fast for most firms. Building this capability can make a big difference and requires focus and commitment from all levels of the organisation. If the broader organisation is lagging behind in this area, there is no reason why you can’t lead the way. Web based systems for capturing and managing performance are very cost effective these days. Regardless, even if you are stuck with paper, the most important thing is that you have a process for feedback with universal commitment and growing capability. For SSO’s, performance can be measured through Service Level Agreements (SLA’s), which can then be developed into meaningful performance indicators 7 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 8. for people, processes and technology at all levels. What gets measured gets done! 1.7. INNOVATION Like culture, innovation is an outcome of many factors that contribute to it within the organisation, and some may say it is a part of the culture. Leadership is obviously a key contributing factor. How is innovation produced, promoted, recognized and rewarded in your organisation? Will people think of new ideas, new ways of working in the new world when they spend the majority of their time covering their own backsides, or in fear of failure (or both)? How the organisation innovates will likely be a good indicator of its readiness for change, the speed at which it will support the change, and the likely resistance that may occur, if any. Innovation is speed. How fast can you go? 1.8. TECHNOLOGY The tools at our disposal are an important foundational element. Without adequate consideration of this aspect, you may underestimate the shift required of your people in order to operate in the new world. » What is the level of technological sophistication? » What is the proportion of people who rely on technology to do their job? » Will the change require a steep learning trajectory or incremental change? » Does the technology automate a lot of manual processes that provide job security/ relevance to individuals and or functions? » What knowledge is gained in the application of this technology? An example of this may be transforming a manual data entry process in Accounts Payable to managing a workflow. This can require a new skillset and far more training than is budgeted for in the project. One issue that leaders face when embarking on transforming any part of the business is having the time to do it right with the insatiable need for immediate results. It is important to be able to understand the impacts of rushing through a transformation like moving to Shared Services with a plan or without. Structures like the Harbour Bridge haven’t been successful and sustainable without a robust design and plan, nor will your Shared Services transformation. And like the Harbour Bridge your Shared Services transformation is best built on a solid foundation.8 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 9. 2. MANAGING THE CHANGE The design phase of your journey to Shared Services is extremely important. It allows you to take this great step with your eyes wide open, ensuring you are not stepping into an expensive ‘black hole’. People don’t want change management, they want improvement. It’s like, do you buy a drill or a hole? 2.1. CHANGE LEADERSHIP SELLING THE UNITED VISION Creating and articulating a united vision for the organisation provides people with direction and a sense of purpose. It allows people to unite and bond over a common purpose. The vision should give people a good understanding of the ‘AS IS’ situation, and the ‘TO BE’ picture – ‘what are we working towards’? It also needs to be driven by an Executive Leader. People need to be able to see, ‘who’s taking charge?’ and, ‘where to?’ both operationally and strategically. To effectively sell the vision and engage the people there are some key factors that need to be taken into consideration: » The vision needs to be clearly understood by senior executives and management so they in turn can ensure that their teams also understand what the vision is. » It needs to be clear why the vision exists and the WIIFM for employees for them to truly buy into it. » Communication is key! It needs to be clear, regular and consistent – to both customers and employees; keeping them informed and involved along the way. » The vision should be aligned with the overall business strategy, so people don’t feel that what the business is proposing is counterproductive to the overall strategy and other key initiatives. Running ‘vision’ workshops with key stakeholders and senior executives encourages strategic thinking and input, engaging your key business drivers. A good way to ensure that the vision has taken into consideration any challenges or issues being experienced at ‘ground level’ is to run a survey and/or interviews with key people across the business. The insight gleaned from conducting these activities prior to formulating the Vision helps people to see and feel they are heard and their input is valued.9 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 10. CHANGE SPONSORSHIP In Prosci’s Best Practices in Change Management Benchmarking report1, the number one activity organisations cited they would do differently in driving a change initiative is gaining better engagement of senior leaders as change sponsors. This was consistent with their 2007 findings and found the drivers for this included:“The number oneactivityorganisations cited » Ensuring buy-in and alignment around the project;they would do » Obtain sponsorship at the right level in the organisation; anddifferently indriving a change » Enable senior leaders to participate actively as effective sponsors.initiative is gainingbetter engagement To do this effectively, it is important to ensure change sponsors are visibly alignedof senior leaders with the vision and come from areas of the business that make sense and areas change respected choices (executive management, middle management, etc.).sponsors.” Your Change Sponsors are there to promote the initiative, identify and manage resistance, and drive commitment. Acknowledging that the Change Sponsors may be going through a lot of change themselves and trying to cope with that whilst coaching others through their transition, identifies the need for coaching and education for the Change Sponsors so they can be effective in playing their part in the transition from ‘AS IS’ to ‘TO BE’. 2.2. CHANGE STRATEGY CHANGE METHODOLOGY As with project management, utilising a change management methodology brings some structure to the project allowing visibility of what needs to be done, when, how and by whom. Also critically important to ask is, how are we measuring our success? There are a number of Methodologies available, so choose one that fits well with your organisation / culture, is flexible enough to allow you to adapt as required along the way, logical, easy to implement, understand and communicate. A change management methodology working well will allow you to take a more proactive approach rather than being on the back foot throughout the change journey. CHANGE READINESS For an organisation to embrace change, people need to believe in it and be ready to accept it. However, there are many factors that can impact the readiness of the organisation. Without identifying what those factors may be, or indeed how ‘ready’ the organisation is to change, is like walking blindfolded into the Gladiator’s arena. This is a critical step in the design phase of the change 1 Prosci’s 2009 Best Practices in Change Management benchmarking report. Page 14. 10 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 11. project, and should be revisited throughout the project to assess for any changes to the commitment for change. Some of the ways to assess readiness include written or online assessments and surveys; interviews with key stakeholders, executive / senior leaders, managers and staff; and Focus-groups and workshops. This information gathering exercise is designed to identify potential roadblocks and assess the company’s agility when it comes to change. In some companies constant change can be exciting, where in others, people have ‘change fatigue’ – particularly if previous change initiatives have been ineffective or unsuccessful. This exercise identifies whether the business need for change is understood by all levels of the organisation, the change leaders have the capability and credibility to drive the change and looks at potential roadblocks to success (i.e. lack of resources, funding, etc.). STAKEHOLDER IMPACT ANALYSIS The stakeholder impact analysis gives insight into how each employee across all levels of the business may or may not be impacted by the change. This may include role, rewards, environment, etc. It will generally highlight the varying degrees of impact across the organisation and help to identify what business units are likely to be placed under greater levels of stress throughout the project as they transition. A clear understanding of impacts will help your organisation to effectively resource projects and create a compelling WIIFM message to engage employees throughout the different phases of the project. People are more obliging with disruptions to their day to day working day if they know what to expect. The stakeholder impact analysis may also help business leaders to identify structural issues that need to be addressed such as over-resourcing in one area and under resourcing in another. In looking at impact analysis and change readiness, a foundation for relevant development programs (both individual and team) should be forming. STAKEHOLDER ENGAGEMENT PLAN Once you have established the impact on your stakeholders and gathered enough information to understand what the potential WIIFM may be for different employees, it is important to have an engagement plan in place. This plan considers how they are communicated to and when, what will drive commitment from internal and external stakeholders, and how to best manage their expectations. Again, to achieve the best results, the stakeholder engagement plan should be put in place in the design phase and revisited throughout the life cycle of the project.11 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 12. RISK ASSESSMENT Assessing and understanding risk is important in any project from both a Project Management and Change Management perspective. According to Prosci research,2 the greatest management obstacles are: 1. Ineffective change sponsorship from senior leaders. 2. Resistance to the change from employees. 3. Insufficient change management resources and funding. 4. Middle management resistance. 5. Poor project management. 6. Ineffective communications. 7. A culture resistant to change. A good practice is to run a risk register, which is regularly updated throughout the project. You can’t possibly think of everything, however it’s amazing how many times on reflection, you see things coming but were so caught up in what you were doing, you just didn’t get to it. Better to call it out than ignore the possibility of it eventuating. 2.3. CHANGE MANAGEMENT COMMUNICATION PLAN Communication for projects driving change is a priority. Consideration must be given to align the messaging for stakeholders - internal (employees, leaders, etc.) and external (Board, Customers, Partners, etc.). Communications are best sent by leaders that are passionate, committed and“Build success credible. Key messages regarding organisational change are best coming fromstories and quick the Executive Leader, and messages relating to day to day changes to people’swins into your roles coming from immediate supervisors and managers. For consistency ofcommunication results throughout your project make sure that you communicate regularly withplan to keep employees (even when it seems there’s nothing of note to communicate), andmomentum andexcitement alive. what gets communicated gets done.Celebratingsuccess shows Plan for what needs to be communicated and when – what the change willpeople they’re on mean to the employee, why it’s being done, what is changing and what staysthe right track and the same; how it will impact the organisation and potentially their customers; andbeing appreciated.” how they can prepare for the change. Build success stories and quick wins into your communication plan (big and small) to keep momentum and excitement alive regarding achieving the goal. Celebrating success shows people they’re on the right track and being appreciated. There are many mediums at your disposal for communicating. Video is increasingly becoming a way of messaging that is more powerful when face to 2 Prosci’s 2009 Best Practices in Change Management benchmarking report 12 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 13. face is not always possible. It’s critical to choose the right medium for the right audience and right message. STAKEHOLDER MANAGEMENT Stakeholder management can be complex, particularly if you have vastly different types of stakeholders groups. One of the risks in managing change is the tendency to manage the stakeholders that are closest to you, but they are all equally important. Know who your stakeholders are, know what they need, what they will respond best to and who is best to manage them. Aligning the appropriate Leaders and Sponsors to manage stakeholders will provide a better chance of engaging your stakeholder groups. Credibility and communication are key to success – both in getting the stakeholders communicating with you, and you communicating with your stakeholders. Communicating through a one way stream impedes the ability to effectively manage expectations and can create a platform for resentment if input is not sought. Stakeholders that are well informed and managed are more inclined to commit to the entire journey and offer support throughout. TRANSITIONING – COACHING AND SUPPORTING Too often change management is considered merely the user training component of project management. As reinforced in the Change Management Map, you will see that it is much more, as are the individual and team development needs of the people that are going through the change. To effectively build capability that is aligned with what is required to successfully get to and maintain the future state, the business needs to understand where the gaps are and how to bridge them. Some of the capability gaps will be fulfilled with specific ‘user’ training but the majority of capability building is achieved through coaching and mentoring of business leaders, and key stakeholders. Investing time, energy and funds into the development of leaders within the business, helps them to effectively develop those reporting into them and provides people with support in moving to the unknown and dealing with issues in real time. The key thing to remember is that your leaders are also going through their own personal change journey and may be reacting and resisting to change just as much as their subordinates are, whilst trying to ‘keep face’. Providing them with a safe coaching environment where they can work through their frustrations and concerns helps them to offer the same support to their teams. TEAM DEVELOPMENT No-one can implement a shared service alone. It requires teams that work together, collectively and cohesively to drive outstanding results. Therefore team development needs to feature in your Change Management design, and be refined as you go along. If it isn’t in the planning phase then chances are the team development may be delayed or forgotten entirely, negatively impacting13 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 14. employee engagement and productivity. Some considerations for team development in managing change are: » Ensure your team development programs are relevant to your teams, their jobs and the gaps they need developing; » Include development regarding culture and values. If the organisation already has values set, ensure the employees understand them and can relate their meaning to their day to day jobs; » Foster awareness of their individual and team traits and how that affects each other and team performance; and » How the team dynamics and behaviours impact others around them (internal/external customers, other functional teams, etc.). Done well, team development can achieve high performing and deeply committed employees.14 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 15. 3. THE CUSTOMER VALUE What successful organisation doesn’t have a comprehensive understanding of what value they are providing for their customers in return for their business? Whilst there is no doubt some do this better than others, it’s easy to argue that understanding the customer value proposition has benefits for all concerned. Unfortunately, our experience is that this is often overlooked and the consequent risk is that the SSO is too internally focused. The balanced scorecard approach provides this much needed external focus. Understanding the basis of value is equally important for the SSO (value provider)“It’s important to as it is for the internal or external customer (the value consumer). If you don’tlink the delivery of value yourself chances are others won’t either. It’s also important to link thecustomer value to delivery of customer value to the organisational operating values. For example,the organisationaloperating values. If let’s say you value commitment in your organisation. This can be demonstratedyou value and explained in your team as well as describing key behaviours that deliver thiscommitment in value to your customer. Running a values program can be highly effective toyour organisation, embed and reward internal behaviours that permeate the customer experience.this can bedemonstrated and Now consider the internal customer (value consumer). Understanding, tailoringexplained in your and reinforcing the value provided is good for the relationship. If people valueteam as well as and appreciate something, they generally tend to have a more positive mindsetdescribing key towards it. It is important of course that you can substantiate the value and thenbehaviours that communicate it and market it. Faster service, lower costs, convenience, thoughtdeliver this value leadership, etc. Depending on your Shared Services Model, you may have ato your customer.” combination of both internal and external customers to satisfy but the principal remains the same. Expectations in business generally seem to be increasing with the same pace as technology. These include faster service, ease of access, service uptime and mobility, just to name a few. Sometimes customers can tell you what they want but often this is not the case. Providing proactive thought leadership by creating roles such as, “IT Business Partner” or, “HR Business Partner” will allow you to move beyond a purely transactional service, and create value that the customer didn’t even know was possible. These types of roles can be game changers but recognise that they may require different skillsets and mindsets to what you have currently. 15 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 16. 4. METRICS It’s much easier to substantiate the value if you can measure it. Particularly if the model includes a charge back mechanism, having the level of objectivity that measuring brings can save you a lot of heartache downstream. It creates a different type of culture for the internal service provider and demonstrates that“Measurement can there is preparedness for accountability.create fear, whichcan lead toresistance. If the Measurement can create fear, which can lead to resistance. If the, “let’s just do‘let’s just do it and it,” and worry about measures later approach is taken then chances are it will beworry about more difficult than you think. We see this as a critical design element and shouldmeasures later’ be factored into your change approach.approach is takenthen chances are Some things of course are easier to measure than others but that shouldn’t deterit will be more you. Direct financial benefits such as cost reduction and increased revenue fordifficult than you example, are likely to be easier to access from the business financials. Businessthink.” Intelligence tools also provide ease of access to financial information and are becoming more the norm. There is a new genre of software that Gartner Group has termed, “collaborative decision making tools,” which I think can be applied well to a shared services environment. These tools provide the organisation with a forward looking strategic change monitoring capability with visibility to any potential deviation or risk before it happens. We believe that more progressive organisations will be early adopters here as it fills a void in the market. It can be used to monitor, cost and predict more complex processes such as cost to service, productivity gains and costs associated with these, supply chain etc. These tools create a whole new level of transparency and could be highly valuable for those shared service managers looking to be in the driver’s seat rather than just a passenger. As Stephen Covey says, if you, “begin with the end in mind,” embedding the focus on measurement in your culture from the start can be a lot easier than introducing it once the train has departed the station. 16 Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One
  • 17. CONCLUSION What we have proposed is a high level overview of taking a balanced and commercial approach to your shared service journey, combined with best practice change management which will enable the journey. It’s important that when you are designing your shared services to consider beyond the product/ service itself. The benefits of this approach are; » relatedness to customer needs, » less risk of resistance, » realising benefits faster, » beginning the cultural change journey earlier, and » increased capacity to expand service offering. Mindset’s 360 degree view of change is a way in which we can not only review your journey to date but also help you learn from our experience and others in getting off on the right track. It applies the balanced scorecard approach, tailored to your organisation needs. MINDSET CHECK As a first step, we recommend using our diagnostic tool, The Mindset Check, to gauge where you are at today, and where you need to be. For new clients, we offer the initial survey and basic results report for free. More detailed reports, customisation of survey, and follow up work is charged according to our regular consulting fees. Get in touch, give us a few details and we’ll set it up for you! GET IN CONTACT WITH MINDSET GROUP Sydney Melbourne Level 6, 53 Walker St Level 9, 470 Collins St North Sydney, NSW 2060 Melbourne, VIC 3000 Ph. +61-(0)2-8905-0745 Ph. +61-(0)3-9621-2283 Email us: Visit our Website: Read our Blog: Transitioning to Shared Services: Designing a Change Strategy that enables success from Day One