Why is there a need for Financial Services? What do we do? How do we implement? What are the benefits & risks involved?

Why is there a need for Financial Services? What do we do? How do we implement? What are the benefits & risks involved? Open & hidden objectives FSS role in Strategy Themes of Shared Service

Principles Corporate Objective FSS Role & Objectives Structure Resources Leadership Person

Striking a balance Facing Structural complexity

Leads to Results Difficult to achieve growth aspirations New Markets Decentralized Acquisitions C O M P L E XI T I E S

Why is there a need for Financial Services? What do we do? How do we implement? What are the benefits & risks involved? What we do FSS Objectives Alignment: Service Structure

Financial analysis for M&A Receivables and Payables Tax & Accounting Financial Reporting Currency conversion hedging Budgeting & Forecasting Treasury services

Financial analysis for M&A

Receivables and Payables

Tax & Accounting

Financial Reporting

Currency conversion hedging

Budgeting & Forecasting

Treasury services

Cost reduction, Efficiency, Agility, Fast Copy Consistency, Analysis, Value creation, customization Process improvement, service innovation, secondary KPIs, internal customers Direct Business Impact, primary KPIs, external customers AP, General Ledger, B/S analysis, Accounting, Fixed Assets, AR, Facilities Budgeting, Reporting, Financial Analysis, Forecasting, Tax, Legal, Treasury Systems, Standardize, Benchmarking, ERP, Streamlining, Automation, Governance Market Leadership, Competitive Differentiation, Business model, M&A, CSI

Corporate Center Financial Shared Services One Internal Customer Multiple Internal Customers External & Internal Customers In-sourcing Co-sourcing Joint-Venture BPO

Why is there a need for Financial Services? What do we do? How do we implement? What are the benefits & risks involved? Evolution of FSS Think Global Act Global + Local Fundamentals of Success

Source: Bramante, Jim, Gregor Pillen and Doug Simpson. “CFO Survey: Current state and future direction.” IBM Global Business Services Build in balance – Implement a three-tiered organizational model for Finance that is specifically designed to provide both stability and flexibility

Source: IBM Institute for Business Value analysis

“ We’ve seen that a global approach to internal standard-setting is the best way to optimize the cost/benefit point of a given sub-process activity…Clearly there are real differences between countries, but prior to standardization, the global process owner engages with the local finance management team and explains the benefits of coming onto the common practice... The process owner decides which concerns are unfounded and which are valid.” – Global Accounts Payable and Asset Accounting, Executive, Global Technology and Service Firm

Develop Service Level Agreements, KPIs and Operating Level Agreements Choose Leaders Wisely Benchmark, Benchmark and then Benchmark Again Determine the Appropriate Implementation Approach Implementation of shared services typically introduces a wide range of benefits to the company, to name just a few: Cost savings through consolidation, standardisation and process redesign Service improvement, increased control through increased transparency and Visibility Timely response to resolving problems, resulting in improved service levels and customer relationships Ability to focus on core business objectives and competencies

Develop Service Level Agreements, KPIs and Operating Level Agreements

Choose Leaders Wisely

Benchmark, Benchmark and then Benchmark Again

Determine the Appropriate Implementation Approach

Implementation of shared services typically introduces a wide range of benefits

to the company, to name just a few:

Cost savings through consolidation, standardisation and process redesign

Service improvement, increased control through increased transparency and Visibility

Timely response to resolving problems, resulting in improved service levels and customer relationships

Ability to focus on core business objectives and competencies

FSS-level BSC Customer Who do we define as our customer? How do we create value for our customer? Employee Learning and Growth How do we enable ourselves to grow and change while meeting ongoing customer needs Internal Process To satisfy customers while meeting budgetary constraints, at what business processes must we excel? Financial How do we add value for customers while controlling costs? Corporate Objectives FSS Strategy

Why is there a need for Financial Services? What do we do? How do we implement? What are the benefits & risks involved?

Notes, Problems, Issues

IBM institute for Business Value Blog of Kenny Ong, CNI Other websites for secondary research

IBM institute for Business Value

Blog of Kenny Ong, CNI

Other websites for secondary research