Lead
us well or leave us be!!
Leadership,
SSC, functions, centralisation, strategy and vision, what they all have in
common is the “3P’s” on which all enterprises post core concept are built;
which is People, Process and Profit.
So, with that
in mind, the Shared Service Centre was born in an attempt to increase controls
and operational expertise/effectiveness by region whilst reducing costs through
standardised process design, controls compliance, cost synergies in resources
by region and other benefits through the economies of scale a SSC can bring to
a large regional or global organisation.
A shared
service model is a centralised model at inception and it is assumed that the
key process designs creating the infrastructure will be cost effective,
integrated and lean in construct. A SSC model also assumes returns based on
auxiliary functions being centralised and expertise deepening through “shared
experiences”. Sounding good?? It sure does to me, so where is the problem and
what can we do about it to ensure our business is sustainable into the longer
term whilst supporting our company’s short-term goals?
Leadership - Regional Impact of a multifunctional SSC can be
devastating to a business if the SSC is poorly led at one or more levels.
Impacts from poor leadership can range from service limitations to severe
business disruption as a result of poor SSC leaders. Conversely, well-led SSC’s
can enhance service offerings and unlock value in process efficiencies supporting
business development in ‘entity territories’ that engage the SSC for key
services and functions.
Risk Management – A well planned out SSC will have a plan should
the building burn down, but in truth, many don’t. The risks involved in having
key back office functions in one place are many including loss of access for
staff to fulfil SSC service offerings or indeed the loss of staff themselves
should the building become uninhabitable or destroyed. Even with a well-planned
and rehearsed contingency plan, business disruption is inevitable.
Standardisation – A centralised model runs the risk of becoming
overly bureaucratic often in an attempt to gain more visibility over what
entities are doing and reporting on. What is necessary for one entity may be
redundant for another. However, standardised protocols may create a
bureaucratic attitude and culture that aids stable project management but runs
the risk of dampening innovation.
I could go on,
but the risks defined above merit deep thought and if you come up with scenario
based solutions to these, you will have addressed major downside risks to a
successful SSC operation.
To aid you in
this, the following should be considered in any review:
- ü What are the objectives of the SSC by function, by service, by entity? Is the company engaged in centralised processes or is it totally new as a concept? Are the change management structures in place to handle this change? Will the project unlock or produce value if successful? What are the risks in if partly successful or if it fails? Is scope comprehensively defined bearing the company culture in mind?
- ü Are the services of the SSC clearly thought out, mapped out in the existing structures and considered in terms of value creation from their existing place in entities (or totally new) to a shared service centre environment?
- ü What company culture exists and will it need to change to incorporate an SSC? What leadership practices are preferred in the organisation? Is there a detailed and effective selection process in place to deal with selection of leaders and subsequent employee workplace practices supporting the service level provision of the SSC?
- ü What process management methodologies are being used and are they suitable in practice to fulfil the scope definition set out for the SSC?
- ü What risk management and project management structures are inset with the SSC structure to deal with SSC change management projects along with strategic risk management issues?
- ü Does the SSC have a senior level leader that has reporting relationship with the board (C-Suite)?
- ü Is there a detailed plan balancing service level provision, continuity of service, work place practices and culture along with leadership in place to ensure the SSC is a functional unit that fits into the overall company culture and organisational setting, yet is flexible enough to enact change as a flagship unit of the company?
All good thoughts,
which should factor into key planning sessions and the execution of outcomes
therein. The road to heaven or hell for SSC, client entities, it employees and its
customers will be determined by these outcomes which can create salvation in
sustainability or herald its downfall in the weeks, months and years to follow.
Credits/Sources;
Pics:
Credits:
Very thought provoking article, John!
ReplyDeleteThe progress of technology may ultimately steer most of us to the "SSC" model and the "Cloud". In this sphere the computing power, available services and potential productivity increases are growing rapidly and becoming difficult to match on personal computers.
However, the computing power and storage capacity of personal computers and their peripherals are also growing rapidly. Already personal storage and backup devices are rated in terabytes and their prices are plummeting.
I reserve the right to change my mind, but for now I'll opt for the safety and privacy of keeping control of my own information and programs on my own equipment.
Thanks Ed and great insight! Thanks for the feedback!!...
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