Winning application for ''value creation 2012''

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What Does “Value Creation” Mean? …

What Does “Value Creation” Mean?
Ask EMC – its SSO’s achievements impressed our judges so much that they won the 2012 Award for Excellence in this category.

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  • 1. SHARED SERVICES & OUTSOURCING NETWORK (SSON)Shared Services & Outsourcing Excellence Awards 2012 “Excellence In Value Creation 2012” WINNER: EMC 1
  • 2. The winning application for “Excellence In Value Creation 2012”General InformationYour Contact Details EMCCompany NameYour Name Erin ChamplinYour Title Vice President, Global Business ServicesSelect the Industry which best describes your business (Please select One) Fast Moving Consumer Goods Retail Food and Beverage Financial Services Public Sector (Government & Non Profit) Pharmaceuticals & Healthcare Manufacturing Technology, Media & Telecommunications Other – Please SpecifyYour Shared Services Organization (SSO)Head Office of SSO – City/Country Franklin, MA USANumber of Staff (Full Time EquivalentsDate Shared Service Operations 07/10/2008Started (MM/DD/YY)Awards Previously Received for N/AShared Services and related AwardsShared Service Centers – Geographic LocationThis application represents Shared Service Centers (SSC) located in the following geographic area: Asia/Pacific Europe Latin/South America Middle-East/Africa North America/CanadaSpecific Country/Countries 5 Regional Hubs: Franklin, Massachusetts; Cork, Ireland; Buenos Aires, Argentina; Cairo, Egypt; and Beijing, China. 2 Delivery Centers: Bangalore, India and Manila, Philippines 2
  • 3. The winning application for “Excellence In Value Creation 2012”*** Entries will be accepted for any regional award program on the proviso that either yourSSO and/or majority of recipients of your services are based in that region ***Customer Information – Scope of SSC / BPOFor all the business units served by the SSC applying for this award:Number of business units served Serve 18 business unitsNumber of Employees Serve over 52,000 employeesNumber of Countries you are Serve over 100 countriesServicingWhat is the strategic growth or transition plan of your SSC for the future? For Example Expansion of services tomore locations/introduction of new services/outsourcing existing services etc.EMC is a global leader in enabling businesses and service providers to transform their operations and deliverInformation Technology as a service. Fundamental to this transformation is cloud computing. Through innovativeproducts and services, EMC accelerates the journey to cloud computing, helping IT departments to store,manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way.EMC works with organizations around the world, in every industry, in the public and private sectors, and of everysize, from startups to the Fortune Global 500. Our customers include banks and other financial services firms,manufacturers, healthcare and life sciences organizations, Internet service and telecommunications providers,airlines and transportation companies, educational institutions, and public-sector agencies. EMC also providestechnology, products, and services to consumers in more than 100 countries.EMC ranks 152 in the Fortune 500 based on total consolidated revenue of $20 billion in 2011, the largestrevenue year in EMCs 30+ year history.EMC employs approximately 52,000 people worldwide. We are represented by approximately 400 sales officesand scores of partners in more than 100 countries around the world. We have the worlds largest sales andservice force focused on information infrastructure, and we work closely with a global network of technology,outsourcing, systems integration, service, and distribution partners.Global Business Services is committed to supporting EMC’s cloud computing and big data managementstrategies. We support this through our multi-functional capabilities in Finance, Professional Services, Presales,and Business Operations. The growth strategy for GBS is to increase the breadth (offering more services) anddepth (continuously improving our services) of our functions and continue to expand our customer base.What Services do you provide in your SSC today? 1. 2. 3. Centralized Service Is this process Fully Automated? Offering Outsourced? (F)Accounts Payable x xAccounts Receivable x xBusiness Performance Analysis x x (both captive and BPO)Business Performance Reporting x x (both captive and BPO)Call Centers: Employees, Suppliers, Customers x x xCollections x xCredit x x 3
  • 4. The winning application for “Excellence In Value Creation 2012”Customer Billing x xExternal Reporting x xFixed Assets x xGeneral Accounting (G/L, I/Co. Inventory) x xManagement Reporting x xPurchase Order Processing x xTax Services x xTravel Expense x x xOther: Project Accounting x xOther: Presales x x xOther: Master Data Maintenance x xOther: Education Services x x x 4
  • 5. The winning application for “Excellence In Value Creation 2012”Excellence In Culture Creation Your StoryStrategyDescribe the background on how you came to create value within the Business. • What do you do as the SS Management consider value add and value creation? • What do you feel your SS Employees consider value and value creation? Is this also what your customer base considers value add and value creation? • Did you plan for a wider value creation over and above the business case for implementing Shared Services or has it been an unexpected outcome? • If planned, please specifically describe and quantify the benefit you were trying to achieve, whether cost savings, cost avoidance, roles eliminated, efficiency increase, improvement in Customer satisfaction etc.To create value, the strategy of Global Business Services focused on: • Achieving our business case by reducing operating costs, balancing the off-shore/on- shore mix, and consolidating disparate shared services groups under a common service infrastructure. • Freeing up more time for our customers to focus on their core competencies. • Increasing our global footprint. • Enabling scale in support of EMC’s growth strategy.Above and beyond the business case, we aimed to create value in the following areas: • Creating a business continuity plan for all operations. • Developing a governance framework for all services, including signed SLAs, measured KPIs, and cost/transaction metrics that we can benchmark against peer organizations. • Providing operational transparency to our customers. • Supporting M&A integrations. • Driving change and where appropriate, partnering with customers on innovation through Lean Six Sigma.Our employees felt value creation was: • Supporting our customers so they can spend more time on their core competencies. • Scaling with EMC’s growth as a company. • Generating and implementing continuous improvement ideas. • Utilizing cutting edge technology to improve processes.Our customers looked to us to: • Grow shared services by taking on more work and freeing up their teams to support the business. • Provide high levels of service, governed by SLAs and supported by tools like business continuity plans. 5
  • 6. The winning application for “Excellence In Value Creation 2012” • Protect the company from risk through financial controls. • Drive global process standardization. • Reduce operating costs. • Present our sales force with more revenue opportunities using our analytics capability. • Provide knowledge of best practices in shared services and education on how to leverage these practices within their business.By setting up GBS, we looked to achieve the following benefits. We have achieved all of thebelow:Financial Organizational Customer Service Process• Reduce cost per • Grow organization • Retain current • Develop and head metrics by 100% customer base by deliver new service• Reduce cost per • Become a providing offerings transaction multifunctional outstanding service • Integrate metrics shared services • Continue to grow Acquisitions into• Drive incremental organization by our customer base GBS processes revenue offering services based on • Provide 3rd party outside of Finance demonstrated support to EMC’s and Professional results joint venture Services • Achieve 5% YoY • Recruit and retain improvement talent (measured through Lean Six through attrition) Sigma and process • Make GBS a Great improvements Place to Work (measured through Employee Satisfaction Survey) 6
  • 7. The winning application for “Excellence In Value Creation 2012”Improvement MethodologyTell us how you created Value • What were the specific steps you took to create additional value in the wider Business? • How long did it take? – What was the timeframe and the stages • Who worked on the culture change? Were consultants or specialists used? • Did this require additional resources? How large a team worked on the value creation? • Technology used – what packages or technology did you purchase or use for this purpose? • Were Customers involved in changing or creating the new culture? What was their role? • Did you use your own Branding? What was its impact? What other tools did you use? • Do you use an Improvement Methodology? I.e. Kaizen, Six Sigma, Lean? What part did this play?To implement our strategy of value creation, Global Business Services went through thefollowing phases: • Establishment (~1 year) o Our organization was established in July 2008 to support the Finance and Professional Services organizations. We initially offered six services and operated in two geographies. Our focus in this phase was to drive cost savings by redistributing work to low cost regions. • Growth (~1 year) o In late 2009/early 2010, we implemented a global hub and regional spoke strategy and incorporated Latin America and Asia Pacific-Japan in the organization. We grew our service offerings to nine and continued to grow the organization. Our goal in this phase was to expand GBS’s global footprint and centralize disparate shared services organizations. • Multifunctional (~1 year) o In 2011, we became a multifunctional organization as we expanded our customer base to include the Presales organization. Adding Presales grew the organization even more and increased our service offerings to more than 20. Our strategy during this phase was to become a multifunctional organization by offering new value-add services. • Transformation o The focus of 2012 is to support EMC’s strategy of “Transformation”.  We are partnering with Business Operations (another new customer) to enable our Sales organization to scale with EMC’s double digit growth strategy.  We are major stakeholders in the implementation of a “best in class” SAP ERP system for Finance and Manufacturing.  We launched a program called VCI, which stands for Value Creation + Continuous Improvement. In this phase we are striving to transform process, people and technology to enable scale for our customers and support EMC’s double-digit growth strategy.We use a rigorous project management methodology to govern our organizational changes.The GBS Transition Toolkit is our branded project management methodology that details 7
  • 8. The winning application for “Excellence In Value Creation 2012”the lifecycle of a transition project from assessment to steady state. The five main steps arelisted below. Each of these steps contains defined deliverables and project gates. Assessme Transition Execution / Pilot / Cut Steady nt/ Planning Knowledge Over State Due TransferImplementing our strategy relied on many different constituencies: • EMC Senior Leadership: Senior Leadership (CFO, CAO & COO-Finance) are our corporate sponsors and have named GBS as EMC’s Shared Service Provider of Choice. • GBS Management Team: Our Senior Leadership embrace and drive change throughout our organization. • HR Team: Our HR team are trained experts in change management as well as HR business partners for the organization. • Business Transformation Team: The Business Transformation team is a group of internal consultants and project managers that manage our transitions through the Transition Toolkit. • Employees: Our employees are involved as Subject Matter Experts in transitions, as well as key idea generators in our Lean Six Sigma and VCI programs. • Customers: Many new business opportunities are driven by Customer requests. We partner with our Customer to understand their business needs and create a customized solution to address those challenges. Additionally, we collaborate with customers to drive innovation and transform the business. • Consultants: Third party consultants were used to develop of our service infrastructure (Establishment phase), create our location strategy (Growth phase), and incorporate the Presales team (Multifunctional phase).Our organizational evolution has been supported by different technologies, including: • All GBS functional towers are supported by Oracle ERP (11.03) and CRM (11i) systems. • The Presales and Renewals businesses use These were implemented in 2011 and are designed to help the sales organization better manage the opportunity pipeline. • The LSS and VCI programs are governed using a tool called Power Steering, which allows us to track and review LSS projects and associated cost savings. • The Licensing team uses NetAgent, a case management tool to track and monitor incoming emails and phone calls. • The AP/T&E team globally use Concur to manage our travel and expense program. • The Order-to-Cash processes are supported by EMC’s Document Management System (DMS). • The C&C processes use the GetPaid collections workbench globally. • We provide reporting and analytics leveraging Brio, OBIEE, Diver, and other Business Intelligence tools. 8
  • 9. The winning application for “Excellence In Value Creation 2012”Throughout our history, GBS has focused on creating an identity that resonates withemployees and customers. Concurrent to the organization creation in 2008, we launched acommunications and branding strategy. The intent was to foster open communication withour employees, as well as to build a brand and GBS culture. As the organization haschanged, we have evolved our communications and branding into a comprehensivecommunications and marketing program. We have a team of people that are responsiblefor internal communications, public relations, customer communications, and marketing tothe larger EMC community. We also market outside EMC through conferences sponsored byDeloitte, the Conference Board, Accenture and SSON. Beyond this, we have branded GBSassets such as our Transition Toolkit and a number of GBS HR Programs.The benefits from marketing and communications can be seen through our strongorganizational culture. Employees enjoy working in GBS and in addition to their regularwork commitments, participate in community service programs that benefit the lessadvantaged in each region (i.e., Habitat for Humanity, Dress for Success, Franklin Food Bank)and/or on committees such as the Women’s Leadership Forum, Employee Diversity Circles,or the “GBS Fun Committee” – going above and beyond to improve the internal and externalenvironment. We realize the impact of these efforts with low attrition levels, highemployee satisfaction ratings, and regional recognition like being named an “Employer ofChoice” in Massachusetts, USA; Cork, IRE; and Bangalore, India.Our Improvement Methodology uses the Lean and Six Sigma framework. We also use Kaizenworkshops as a problem solving methodology. Using LSS, we have been able to consistentlydrive 5% year-over-year hard savings. We have also globally (or in the case of newer serviceareas, regionally) standardized many of our processes.LSS is incorporated into our VCI network and will continue to be an important component ofour success. The VCI program is a partnership with our customers, which enables us to lookat end to end processes and collaboratively define value. We also jointly track and reportthe achievements and benefits of VCI programs at the Business Lead level. 9
  • 10. The winning application for “Excellence In Value Creation 2012”Complexity of ChangeHow complex was it to add extra value to the organization? • Was there a resistance to your drive to expand the value you brought to the business? Did you need to expand your services to bring extra value? Which area(s) did resistance come from and how did you overcome it? • How hard was it to add extra value to the wider business? How hard has it been for you to get credit from the business for creating additional business value? • How wide has been the scope of business value creation? How many business, countries, employees have benefitted from the additional value your SSC has created?Our efforts to create value have been met by some resistance, related in some cases toperception (i.e., loss of control) and in others reality (i.e., legal requirements, languageconstraints). In both instances, it was imperative that we partnered with our customers toovercome the hurdles. We addressed the perceived issues through full operational andfinancial transparency. Through high levels of customer service and regular performanceupdates, we increased comfort levels with the new organizational model.Partnering with customers to define globally standard processes has helped us establishcreditability. Customers see us as a trustworthy strategic partner who builds consensus.This relationship is strengthened by our governance model, a framework that commits us tomeeting/exceeding SLAs and providing high levels of customer service. Signed SLAs are inplace with customers for all services. SLAs are annually refreshed and formally reported ona quarterly basis to all customers. Internally, SLAs are part of our balanced scorecard whichis reported to Senior Leadership as a part of our Quarterly Business Review cycle.Having this credibility has given GBS significant visibility. We are invited to participate instrategic Board of Director meetings for EMC. Our CFO often highlights our successes in hispresentations. GBS is thought of as EMC’s Shared Service Provider of Choice. The head ofGBS is a member of the Board of Directors for EMC’s Centers of Excellence, located in ourhigh-growth and high-demand geographies. GBS is often looked to as a cornerstone ofgrowth for these centers. These successes are a direct result of the commitment we maketo our customers as well as the creditability we have worked to establish.Value creation has widened the scope of GBS significantly. We currently perform services onbehalf of more than 100 countries and in support of most of EMC’s 52,000 personworkforce.Our customer base has expanded from Finance and Customer Service to include Presales,Business Operations, Legal, Tax and Education Services. For these customers, we now offermore than 20 services, triple the amount we offered in 2008.We also provide 3rd party support to EMC’s joint venture with Cisco and VMWare, anorganization called VCE. The ability to adapt and support another company is anotherexample of our value creation. 10
  • 11. The winning application for “Excellence In Value Creation 2012”Benefits Achieved/Hard ImprovementsDescribe the impact of the improvement or innovation you made • Give specific examples of how you have delivered value in your organization. • Can you measure value? What do you use? • Examples of KPIs and SLAs that let you focus on and drive value. • What has been the Customer response to the improvement? Please detail any changes in Customer Satisfaction or other measures of feedback including impact of change on the wider organization. • How has the value creation affected the business perception of Shared Services?Throughout our journey, we have achieved the following benefits:Financial Organizational Customer Service Process• Significantly • Grew the • Retained 100% of • Developed over 10 reduced operating organization by our customers new services cost more than 100% • Added Presales • Integrated more• Significantly • Became and Business than 10 reduced cost/head multifunctional Operations as new acquisitions• Reduced • Maintained customers • Provided 3rd party cost/transaction industry leading • Acquired business support to EMC’s metrics to industry attrition levels from a competing joint venture (VCE) leading levels • Scored above EMC BPO provider • Achieved 5% YoY• Maintained average on • Conducted CI savings industry leading employee customer o Trained Black DSO satisfaction survey satisfaction survey Belts, Green• Drove incremental • Initiated a • Held over 10 Belts, and Yellow revenue reorganizational customer focus Belts• NOTE: Specific % shift from geo- groups o Created VCI disclosed to SSON based customer network with but are not being support to • Positioned GBS to made public. functional customer go live with a new focus, allowing ERP in 2012 increased global synergiesWe measure value through different sets of metrics: • SLAs and OLAs: We have formal SLAs and OLAs with all customers. Our SLAs are the commitment we make to our customers and OLAs are the commitment our customers make to us. Efficiency SLAs and OLAs are set for transaction turnaround time (TAT). Quality SLAs and OLAs are set to measure accuracy. • Critical Performance Indicator (CPI): We measure CPIs for our Delivery Centers. These are also TAT and Quality commitments. 11
  • 12. The winning application for “Excellence In Value Creation 2012” • Customer Defined Performance Measures: Customer Defined Performance Measures measure our cost/transaction. We trend these metrics YoY to identify cost savings at the transactional level and benchmark ourselves against other Shared Services organizations. • Adoption Metrics: In the Presales group, we track service adoption by measuring how many people use our services and how many services people use. • Customer Satisfaction: We measure customer satisfaction in our annual survey. For Presales, we also measure satisfaction at the transaction level.Customers have responded positively to the benefits listed above. Existing customers ask usto take on more work. For example, we recently added a new service to manage our SalesOrder contracts, which is an expansion of our order processing capabilities. New customersseek our services. Business Operations is a great example as they approached GBS to betheir strategic partner on the 2012 Global Scalability Initiative.The perception of GBS is that we are EMC’s Shared Service Provider of Choice and manygroups at EMC are eager to strategically partner with us to improve their operations. 12
  • 13. The winning application for “Excellence In Value Creation 2012”DifferentiatorsWhy do you consider this culture creation to be Excellent? • What differentiates your achievement over other organizations?Global Business Services is different from other shared services organizations because wecontinue to grow rapidly and incorporate new and different functions. Our organization hasmastered the ability to deliver exceptional results while dynamically changing. Since 2008our organization has tripled in size, increasing our service offerings from 6 to over 20 andestablishing a presence in all major geographies. We expect to continue growing at thesame pace without sacrificing cost or quality of service.We also have a unique ability to drive change and deliver results. Specific examples include: • Partnering with our customers to free up time so they can focus on core competencies • Continuing to deliver business results on core services • Providing high levels of customer service and exceeding customer expectations • Delivering incremental revenue while reducing cost for the corporation overall • Completing value-creating transition projects on-time and on-budget • Filtering out opportunities where we cannot add value to customers (e.g. not transitioning work without clear process documentation) • Expanding the breadth (creating new services) and depth (enhancing existing services) of our scope • Evolving our organization to include new areas that are not typically associated with Shared Services (e.g. revenue generation, legal contracts, bid preparation, request for proposals) • Reinvesting savings in the business and our peopleOur customers have a choice on their shared services partner. What ultimately sets us apartis the fact that we are known as EMC’s Shared Service Provider of Choice...when customershave the option to choose, they choose GBS.Our value creation also extends to our employees. GBS is considered a Great Place to Workand we have been able to offer many development opportunities as a result of ourexpansion. More than 20% of our workforce had a job change in the last year. This includestransfers in GBS, promotions (10% of organization received promotions in 2011 alone) orrole expansions. We also maintain industry leading attrition rates. This demonstratedcommitment to our people drives our ability to create value for customers. 13
  • 14. The winning application for “Excellence In Value Creation 2012” Don’t forget to apply for an Award yourself. 14