Global Business Services
Solutions to optimize the delivery model, improving the service level and reducing costs
GBS structures, also known as Shared Service Centers (SSC), are centrally-managed cells that provide services to Business Units in a standardized way, with a focus on process optimization and financial results generation.
What are the main signs that a SSC structure is a good model for my business?
The need for a SSC structure for your business can be perceived through two sources:
1. Signs arising from the execution of activities in a decentralized manner
• Multiple offices running common activities;
• Administrative activities in plants or operations;
• Non-standard processes among locations
2. Ambitions and business goals
• Challenge to reduce SG&A;
• Interest for more governance, compliance and service level;
• Having the ability to grow the business without inflating back-office structures, creating a “plug and play” SSC structure
What are the main steps in implementing a SSC structure and what are the main challenges in each of them?
1. SSC strategy and ambition
In this phase, the division of processes between corporate, units and SSC is defined, as well as the potential location of the future structure, which will serve as the basis for the preparation of the financial feasibility study for the implementation. At the end of this phase, a detailed implementation plan is created, considering all the other initiatives already under way within the company, such as new software implementations.
Main challenges: Clearly demonstrate the SSC scope, role and value proposition for the company, getting aligned with senior management for support throughout the implementation process.
2. Design of the operational model
This phase will define the SSC structure's entire operating model and its business relationship model. The main milestones are the design of future processes, service level agreement, performance indicators, quantification and design of the organizational structure, preparation of governance mechanisms that ensure the optimal connection between SSC and its internal clients, as well as the entire change management strategy.
Main challenges: Redesign the company's processes so that the new model brings improvements in the service levels and obtain alignment of the business areas regarding the new organizational structure, considering roles and responsibilities and reporting lines.
3. Construction and preparation for implementation
In this phase, the plans drawn up during the design phase leave the paper, so the SSC structure actually begins to be implemented. The main actions carried out at this moment are the workforce transition, conducting of training, mitigation of organizational impacts, preparation of the SSC infrastructure and corporate communications on the service model changes.
Main challenges: SSC implementations are events that change the dynamics in the company's day to day. With that, it is essential to ensure that the implementation process is well communicated within the company, aiming to guarantee the alignment and support of all those involved.
4. Post go-live stabilization and monitoring
After the SSC go-live, the stabilization phase structures the command center to monitor risks and impacts, ensuring the closure of all open ends to avoid disruption in the operation. During this period, performance indicators are also monitored to ensure that the agreed service level is being met by the organization.
Main challenges: Establishing a good performance baseline to objectively measure process performance after the implementation of the SSC structure is a key component to having concrete data in governance forums with the corporate structure. Also important is the agility in solving the risks and issues raised by the command center.