One of the best ways to learn what are the key elements for shared services success and what things you should watch out for on your shared services journey is to hear how others have already done it. In this session, Shekar Ramamurthi talks about how Nokia’s procurement shared services has evolved over the last three years, from its initial set up to where it is today. Now running a global SSC from India, Shekar will share his journey on: • Engaging with local business units to standardise and not customise your processes • Bringing in visibility to your business to show what is needed rather than what customers want • Tightening user compliance and improving customer satisfaction • Overcoming cultural conflicts between your offshored SSC staff and your business units

1. Procurement SSC :
The 3C formula
for success
Shekar Ramamurthi
1 Copyright ©2011 Nokia

2. Agenda
 About Nokia
 Background
 Evolution of SSCs
 The P2P Organisation
 Some statistics
 Lessons Learnt
 The 3C formula
 Current State
 Q&A / Wrap up

3. COMPANY
ABOUT NOKIA
CONFIDENTIAL
Nokia’s mission is simple,
Connecting People.
Our strategic intent is to build
great mobile products.
Our essence is to provide
more of life’s opportunities
through mobile - helping
billions of people everywhere
to connect to opportunity
everyday.

4. Background (till 2008)
• Rapid growth & Globalisation
• Great Results, undisputed leader
• Empowered Business Units
• GLOCAL = formula for success
• Geograpically dispersed entities
• Local, in-country people + process
Concept of Shared Services a distant dream

5. Evolution (2008)
• OPEX Pressures
• Define ”Support” roles.....
• Look Outside (benchmarking)
• Core versus Context
• Search for better support
models
Shared Services a real and probably only option

8. Lessons Learnt

9. Lesson # 1
9

11. Lesson # 2
There are 66 words in the lord’s prayer-most
people know it, there are 179 words in the Ten
commandments – many people can recite
them, there are 282 words in the Gettysburg
address-a lot of Americans talk about it and
there are 26,911 words in the US government
regulation on sale of cabbage – and nobody
cares.
- James Humes
11

12. SIMPLICITY
The key ingredient for
12
compliance

13. The 3C Formula

14. 1. Connect
Personal Connections
& networking work
better and faster than
SOPs
14

15. 2. Controls
Balance Customer Service with Compliance
– embed enough controls to get an early
warning of something not working. Dive into
detail once in a while.
15

16. 3. Culture
Culture is NOT making an Indian speak like an
American. Its building a DNA across the team that
strives for excellence in execution.
16

17. Current State Standard SLAs
Scorecard / Dashboard
Engagement Models
Tighter Compliance
External Benchmark
Harmonised Processes
Simplicity
+
Service

18. In Summary…..
• Cost reduction through SSCs is not a great vision in
itself
• Compliance comes only with simple Processes &
Policies
• Change the process to suit the tool (not vice versa)
• Connecting people virtually is a big service enabler
• Create a culture of Excellence & thirst for winning
• Controls and audit are essential health check
mechanisms

19. Q&A

20. Thank you