Your SlideShare is downloading. ×
Maximizing Value of Shared Services
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Maximizing Value of Shared Services

874
views

Published on

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
874
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
59
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Maximizing the Value ofShared ServicesShared Services and Outsourcing Week 2011Jessica Golden, PrincipalMark Klender, PrincipalDeloitte Consulting LLPMarch 2, 2011
  • 2. AgendaIntroductionSurvey results: Geography Operations Organization Scope Journey and valueQ&A -2-
  • 3. Introduction
  • 4. Survey participants This year’s survey attracted 270 participants from around the globe and provided data for 718 Shared Services Centers globally Annual revenues of Industries of organizations organizations surveyed surveyed 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey -4-
  • 5. Geography
  • 6. Geography There has been a shift in the location of established markets for Shared Services over the last ten years More mature centers indicated that they serve more geographies than newer centers Top five locations by Geographies served by maturity of center Shared Services centers 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey -6-
  • 7. Future Direction 38% of respondents indicate plans to relocate SSCs Labor factors were the most important drivers for relocation 72% of those with plans to relocate would likely select a more established location versus a pioneering one What locations are you considering for relocation? 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey -7-
  • 8. Key insights regarding geography Shared Services is increasing its reach into the “middle market” Organizations are migrating from decentralized SSC delivery, to regionalcenters, to a global hub & spoke model Labor factors continue to drive location selection for SSCs – quality,availability, and language skills – while cost stays top of mind Numerous factors are driving organizations to adjust where their centersare located and how many centers they operate There is increased focus on Latin America and Asia – both for regionalcenters and lower cost alternatives – for serving the Americas andWestern Europe 2011 Shared Services Week_3.2.11_315pm.pptx -8-
  • 9. Operations
  • 10. Operations 77% of companies mandate use of Shared Services The top reasons to opt out of Shared Services include the inability to support the business unit and poor responsivenessBusiness units/segments served by Reasons business units/segments a Shared Services center opt in to Shared Services 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 10 -
  • 11. Talent Organizations used a variety of motivators to attract and retain talent including an appealing work environment, advancement opportunities, and financial rewards Organizations which experienced difficulty recruiting and retaining management staff has increased by 23% since 2009 People-related challenges 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 11 -
  • 12. Key insights regarding operations For companies that make Shared Services an “opt in” strategy, cost reduction is table stakes Organizations continue to focus on leveraging new technologies to improve center operations and improve customer service – with a focus on improving interaction with their customers As centers mature, Shared Services ability to anticipate business unit needs increases in importance Organizations that do not focus on creating strong morale and an appealing culture struggle with retention and productivity 2011 Shared Services Week_3.2.11_315pm.pptx - 12 -
  • 13. Organization
  • 14. Organization As companies move from single to multi-functional Shared Services, the reporting relationship shifts to either an independent Shared Services organization or geographic leadership Reporting relationship for Shared Reporting relationship for Shared Services with a single process area Services with multiple process areas 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 14 -
  • 15. Standardization Areas where companies drive There continues to be aconsistency across Shared Services Centers focus on driving consistency across SSCs in numerous areas 50% or more of the processes for respondents’ SSCs are standardized for all customers 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 15 -
  • 16. Key insights regarding organization As organizations increase their portfolio of offerings and geographies served, reporting relationship shifts away from function As organizations pursue global delivery, governance becomes increasingly important There is no one right way to approach chargeback mechanisms, but clarity in calculation is a must in managing successful relationships SSCs are not only increasing their relationship management strategies but also putting accountability back on the business units to remain connected Organizations are missing the opportunity for incremental savings if they do not include tax considerations in their overall business case 2011 Shared Services Week_3.2.11_315pm.pptx - 16 -
  • 17. Scope
  • 18. Scope Since 2003, Finance has remained the #1 process area most common in Shared Services As Shared Services organizations mature, nontraditional process areas, such as Sales/Marketing, Real Estate/ Facilities, and Legal continue to grow Process areas in your Shared Services organization 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 18 -
  • 19. Function 47% of the SSCs represented in the survey have more than one process area in their center The more mature a center, the higher number of process areas performed Number of process areas in your Average number of process areas in SSC SSCs by maturity 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 19 -
  • 20. Key insights regarding scope SSCs continue to expand into new functions such as Real Estate, Sales& Marketing, and Legal Many SSCs are migrating mature transactional processes offshore toenable them to take on more advisory process areas Multi-functional centers now account for nearly half of all SSCs, withmore established centers having an average of 2.4 functions per center Organizations are using a portfolio approach of Shared Services andOutsourcing to optimize their service delivery model 2011 Shared Services Week_3.2.11_315pm.pptx - 20 -
  • 21. Journey and value
  • 22. Journey Consistent with previous surveys, the most popular approach to implementing SSCs is to move processes prior to standardization and technology changes Timing of process Timing of standardization technology change 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 22 -
  • 23. Level of effort Since 2003, people/change related areas continue to be the most underestimated aspects of implementation Aspects with underestimated level of effort during an SSC implementation 2011 Shared Services Week_3.2.11_315pm.pptxSource: 2011 Deloitte Shared Services Survey - 23 -
  • 24. Value At least 50% of respondents indicated that they had achieved their Shared Services objectives across most areas Short of Meeting Objectives Exceeded Objectives 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% Technology Automation Technology Standardization Headcount Reduction Time to Implement # of Processes in Scope Type of Processes in Scope 2011 Shared Services Week_3.2.11_315pm.pptx # of Locations ServedSource: 2011 Deloitte Shared Services Survey - 24 -
  • 25. Key insights regarding journey and value Regardless of the approach, organizations are delivering year over yearincremental value to their bottom line through Shared Services Organizations continue to underestimate critical elements of the SharedServices journey required for success Organizations are recognizing that benefits other than cost reduction,such as controls, data visibility and a platform for growth, are just asvaluable To maximize the value of your Shared Services initiative, the power ofthe organization’s culture cannot be underestimated or ignored 2011 Shared Services Week_3.2.11_315pm.pptx - 25 -
  • 26. Q&A
  • 27. Contact InformationJessica GoldenPrincipal, Deloitte Consulting LLPNew York+1 212-618-4663jgolden@deloitte.comMark KlenderPrincipal, Deloitte Consulting LLPSan Francisco+1 415-783-4087maklender@deloitte.com 2011 Shared Services Week_3.2.11_315pm.pptx - 27 -
  • 28. Copyright © 2011 Deloitte Development LLC. All rights reserved. 2010