Getting the retained organisation right
The other half of the shared services battle
Several key factors significantly influence the retained organisation's readiness to help drive value after the shift to a shared services model.
'Transforming the service delivery model for back-office functions such as finance, procurement, human resources (HR), real estate, and information technology (IT) continues to be a top priority for many companies. Such efforts usually aim to achieve several interrelated goals: to increase the function’s strategic contribution to the business, to improve operational efficiency and reduce cost, and to drive global data and process consistency.
One widespread strategy for pursuing these goals is to establish a shared services organisation (SSO) to execute back-office functional processes on behalf of multiple operating units. However, our experience shows that such efforts often fail to yield their intended benefits. Why? One important reason, in our view, is that many companies tend to focus almost exclusively on the processes to be moved into the SSO while paying little attention to the retained organisation’s design and operation.