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Unlock value in shared services
As global in-house centers continue to scale, organizations will need to consider a new operating model to generate exponential strategic value from their investments. The GRID provides a framework for global in-house centers to go beyond “better and faster,” fostering collaboration and innovation among all players in the extended shared services network.
- Beyond “better and faster”
- Key considerations
- Service delivery insights
- Join the conversation
- Related topics
Beyond “better and faster”
It is becoming increasingly difficult for global in-house centers (GICs) to deliver incremental value back to the parent solely through labor-cost arbitrage and process improvement. For many organizations, the next wave of exponential value creation will likely come from tapping the capacity for innovation that exists within their extended shared services networks.
This shift demands more connectivity and collaboration between the parent and each of its centers as well as among the centers themselves—even extending to the third parties with whom the centers engage. Since the traditional hub-and-spoke operating model doesn’t support the connectivity and synchronization needed for GICs to drive innovation and service excellence, organizations need to consider a new operating model. The “GRID” provides an integrated framework for unlocking the latent value existing within the global shared services network.
A GRID operating model can be visualized as an interwoven array of disparate nodes, which are networked for collaboration and synchronized through a common governance structure and value-based methods of measurement. The nodes of the GRID not only include GICs and shared services organization (SSOs) but also third-party service providers, product vendors, and universities, among others.
The main characteristics of a GRID operating model are:
- Global centers with “global” talent pools, global process ownership, and financials that are competitive around the world
- Responsiveness via adoption of enabling technologies and application of predictive analytics
- Integration into a global delivery network based on collaboration and interaction with other “nodes”
- Dynamic through on-demand service delivery, value-linked measurement systems, and faster, empowered decision-making
A GRID operating model provides a unique framework through which GICs can work together in unison to provide high-value services back to the parent as well as to drive innovation and service excellence within their own ecosystems.
What to consider before moving to the GRID
- What value can our GIC deliver beyond labor-cost arbitrage?
- How can we drive business impact vs. simply saving a certain amount of money for each role that we move from a higher cost location to a lower cost one?
- What type of changes will we need to make to do things astutely and innovatively, and not just better, faster, and cheaper?
Adopting a “GRID” model requires executives to consider where they stand now, and what investments they might need to make, in five key enabling areas:
- Service delivery
Organizations have made substantial investments in scaling up their GICs. To drive greater returns from those investments they’ll need to create a networked, collaborative operating model that enables GICs to innovate and drive value creation.