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Nokia’s procurement shared services story and its ‘3C formula’ for success

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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

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Nokia’s procurement shared services story and its ‘3C formula’ for success

  1. 1. Procurement SSC :The 3C formulafor successShekar Ramamurthi1 Copyright ©2011 Nokia
  2. 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. 3. COMPANYABOUT NOKIA CONFIDENTIALNokia’s mission is simple,Connecting People.Our strategic intent is to buildgreat mobile products.Our essence is to providemore of life’s opportunitiesthrough mobile - helpingbillions of people everywhereto connect to opportunityeveryday.
  4. 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. 5. Evolution (2008) • OPEX Pressures • Define ”Support” roles..... • Look Outside (benchmarking) • Core versus Context • Search for better support modelsShared Services a real and probably only option
  6. 6. Lessons Learnt
  7. 7. Lesson # 19
  8. 8. Lesson # 2There are 66 words in the lord’s prayer-mostpeople know it, there are 179 words in the Tencommandments – many people can recitethem, there are 282 words in the Gettysburgaddress-a lot of Americans talk about it andthere are 26,911 words in the US governmentregulation on sale of cabbage – and nobodycares.- James Humes11
  9. 9. SIMPLICITY The key ingredient for12 compliance
  10. 10. The 3C Formula
  11. 11. 1. Connect Personal Connections & networking work better and faster than SOPs14
  12. 12. 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
  13. 13. 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
  14. 14. Current State Standard SLAs Scorecard / Dashboard Engagement Models Tighter Compliance External Benchmark Harmonised Processes Simplicity + Service
  15. 15. 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
  16. 16. Q&A
  17. 17. Thank you

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