Most Global Business Services (GBS) and Shared Services Organizations (SSO) continue to operate with the management philosophies of the 20th century. It is based on traditional organizational structure, operating model of a command-and-control approach, cost-center thinking, and focusing on efficiency and timeliness.
Going into the 3rd decade of the 21st century, much of the thinking is jaded and outdated. On top of that, the digital technology revolution is disrupting industry after industry.
Given the 2 major forces, GBS and SSO's have no other option but to redefine and reconfigure themselves to become Future-ready.
But how do these organizations transform themselves?
That's where our framework S.C.O.R.E needs to be used for strategic design and right-fit leadership.
Based on some leading industry frameworks and tools, S.C.O.R.E Transformation provides a comprehensive design toolkit
How to design Global Business Services and Shared Services Future Ready
1. Designing
Future-Ready
Global Business
Services
W I T H R A P I D L Y C H A N G I N G W O R L D , G B S O R G A N I Z A T I O N S
W I L L H A V E T O R E - I N V E N T T H E M S E L V E S
F R O M A B A C K - O F F I C E C O S T - C E N T E R T O
A D I G I T A L B U S I N E S S P A R T N E R S E R V I C E S
2. Challenges with Most
Existing Shared
Services Structures
…functional work-style was never replaced
by services culture
…parent functions and retained
organization were never reconfigured
…inadequate operating model for middle
and front office
…business partnership titles in name only
…sub-optimal globally distributed structure
…focused on control, stability and efficiency
…most changes were cosmetic rather than
fundamental
3. …massive imbalance between external and
internal (within firewall) data horizons
…digital native millennials and Gen-Z joining
workforce
…location agnostic talent management
required
…advanced predictive analytics required as
competitive edge
4. As a senior business leader,
How do Organizations
address these 2 issues
Together?
5. Operations and
Organization
Organization Operations
has the Answer
Key Activities, Key Resources and Key
Partners – Also known as Organization
Structure and Operating Model
Services and Products are DELIVERED by
Organization Operations
By changing Organization Structure and
Operating Model configuration:
• New products can be introduced
• Existing services can be enhanced
• Customized solutions can be created
GBS Organizations need to re-evaluate
their existing structures to embrace
rapidly changing world and adopt
emerging technology
Business Model Canvas is a leading organization design tool
6. So How Do I Change
the Organizational
Structure?
7. Introducing
S. C. O. R. E.
Strategic
Future-Ready
Design
Competing
Values
Oriented
Operating Model
Globally
Optimized
Reconfigured
Organization &
People Structure
Exponential Technology
and
Digital Tools
™
Transformation Principles for Future-Ready Business
A 5-Element Principle to Reconfigure Your
Organization Structure and Operating Model
And Create
Digital Business Partner Services
8. Strategic Future-Ready Design
• Directed by Value Drivers
Skills, Costs, Location, Technology
• Organizational Commitments
Continuity of transactional support but creating new
focus on business enabling role
• Organization Constraints
Designed with constraints in mind
• Aspirations
Driven by future aspiration of innovation and agility
• Transformation
Big-Bang vs Incremental, New Culture, Change
Resistance
Strategic Design Competing Values Operating Model
People and
Organization
Exponential
Technology
9. Competing Values
• Based on model developed by Kim S. Cameron and Robert E.
Quinn
• Based on two Competing Values
Internal vs External Orientation
Stability vs Flexibility
• Shared Services are usually in “Red” Hierarchy box
Command-and-Control construct
Focused on Efficiency and Timeliness
Idea of stable operations
• Aspirations
Innovation needs “Create” competing value
Flexible departmental culture best suited for “Compete”
• Transformation
Split Operating Model for different competing value services
Strategic Design Competing Values Operating Model
People and
Organization
Exponential
Technology
10. Operating Model Globally Optimized
• Deconstruct existing shared services based on competing
values
• Continue Traditional Shared Services
Transactional and Administrative
Primarily back-office centered
• Create Data enabled services
Big Analytics and Market Intelligence based on external data
Combine internal and external data for Predictive Analytics
• Innovation Culture
Separate business-techno unit for experiments (Shared
Services as a Collaborator)
• Collaboration
Strategic Outsourcing to create competitive edge
SaaS Partnerships for scalability
Strategic Design Competing Values Operating Model
People and
Organization
Exponential
Technology
11. Reconfigured Organization & People Structure
• Rethinking the entire organization structure across the
globe
CXO’s office, Regional, Local, Global Centers, Shared Services,
Outsourced Services, Center of Expertise (CoE), Strategic
Partnerships,
• Future Skills
Scarcity, Localization, Strategic Partnerships
• Global Constructs
CXO’s office, Global Virtual Teams, Strategy Teams, CoE, Global
Central Teams
• Regional
Strategic Project Roll-Outs, Compliance and Audit, STaLL
(Statutory, Tax, Legal, Language) and Competitive Edge
• Business Partnership
Strategic Business Enabling, Business Escalation, Interventions
Strategic Design Competing Values Operating Model
People and
Organization
Exponential
Technology
12. Exponential Technology and Digital Tools
• Foster Collaboration
Multi-functional Enabling Tools for collaboration
• Artificial Intelligence Enabled
Leverage AI-Enabled Tools wherever relevant especially for
Big Data Mining including market intelligence and analytics
• Internet-of-Things
Developing Deep Insights through IoT devices about
consumers and businesses
• Cloud-Computing
For flexibility, scalability and global collaboration
• Culture of Experiment
Encourage and Incentivize employees
Strategic Design Competing Values Operating Model
People and
Organization
Exponential
Technology
14. ✓ Easy creation of new services to
enable marketing and sales
organization through analytics and
market intelligence
✓ Rapid emerging technology and tools
adoption to create competitive edge
with AI, IoT, Blockchain and VR
✓ Independent unit to foster innovation
for superior UX/CX (User Experience
/Customer Experience) through
experiments and fast-fail tests
✓ Open lucrative opportunities for
collaboration with strategic partners
on SaaS and Digital Platforms
15. GBS Leader
Growth
✓ Developing deep understanding
of sales and marketing
dynamics
✓ Ability to leverage tools and
technology to address relevant
and meaningful business
problems
✓ Insights on customer and user
behavior, comprehension of
buyer levers
✓ From a back-office cost-center
custodian to a true business
partner