According to the latest report by Statista, as of 2021, finance was one of the most popular functions that leveraged shared service centers with 90% of operations performed, followed by IT & HR at 57%, Procurement at 53%, Customer Service/Contact Center at 45% and so on.
What does that tell you? That times are changing, and maybe it's time for your company to adopt this technological solution as well. But why? What are shared services? Why invest in shared services? What can a shared service solution possibly do for your company? Let’s find out.
What are Shared Services?
Simply put, shared services are the centralization of back-office operations that are used by several divisions or departments of the same organization, helping eliminate redundancy.
Here are a few good reasons to invest in shared services:-
- Lower and more transparent costs
- More efficient sourcing, which means streamlined HR
- Better quality services (QMS)
- Higher customer satisfaction ratings
- An integrated "total solution" approach to business problems
- Eliminate service duplication and business unit silos
Now that you understand how extremely beneficial shared services are, let's move on to what you need to keep in mind while implementing one.
The Ideal Approach to Shared Service Implementation
- Measure the Costs or Service Levels
Ranging from reducing costs and increasing efficiency through driving business transformation, shared services can perform a host of functions. However, these gains are often overshadowed by the inability to assess the full impact of the shared service center before implementation.
In a rush to transform digitally, organizations often skip the basics. This can lead to money leakage and unsuccessful execution, which ultimately means that you'll not be able to meet the quality demand and efficiency levels your customers are expecting. This is why it is imperative to measure existing service levels and operating costs BEFORE beginning the implementation.
- Document Processes and Work Streams Prior to Implementation
Metrics tell a story of how well the tasks are carried out. However, if the system lacks proper documentation and clarification of who's entitled to do what, everything will be haywire. And that means you'll not get accurate information about employees' responsibilities or whether your services are operating correctly or not.
So before you start setting up a shared service center, get an idea of how all the pieces of this shared services puzzle fit together.
- Focus on the Transition Period
In a perfect world, the shared services or rather any other software comes into place after approval from the management. That's right; things in the corporate world move at the click of the management's finger. However, this is not a perfect world, and even with the most powerful shared services, there's a series of inevitable transition challenges. After all, not everyone is comfortable with change.
And most organizations spend their time designing a plan and dealing with flawless execution and forget about the people who this change will impact. This is where you need to stay on your feet. Mistakes will be made; delays will be inevitable and financial benefits may get wrecked. However, this is why, to promote broader adoption of the shared services model, you must focus on the transition period, get a lay of the land, speak to your employees about this change, address their concerns, and assure them that they'll have your full support during this period.
- Have a Robust Project Plan in Place
Never begin the implementation until you have a strategy on paper.
Some wise person once said this, and it meant everything to the business world. Curating a solid, very granular project plan that outlines every last detail you and your team will need to understand their responsibilities is key. It will not only save you a plethora of hassles down the line but also ensure smooth implementation.
Simply put, a robust project plan will save you the tears down the line, making the implementation all the more smoother and the success all the more sweeter.
FiveS Digital - Your Trusted Shared Service Partner
FiveS Digital, a technology solution provider, offers shared services that are easy to accommodate and integrate with your existing regime. Be it an HR shared service center or an IT shared services; FiveS focuses on the customer's perspective to simplify your complex processes. By leveraging the latest technologies in the book, the shared service centers FiveS Digital aim to make your non-core activities as efficient as possible.
So if you are striving to implement a flawless shared service center, FiveS is the only way to go. Get in touch with a FiveS expert TODAY and integrate your transactional and strategic departments.
