Shared Services Trend Workshop Timothy Ho 20 July 2017

Transcription

1 Shared Services Trend Workshop Timothy Ho 20 July 2017

2 Future of Operational Finance The future of operational Finance is the establishment of a Finance factory; a fully automated control centre with process visualizations tools Transactional processes fully automated and organized in a Finance factory. Controls on the inflow of external data is managed, but also the exceptions during process execution are monitored and solved. The future is todays challenge! Monitoring of processes on a continuous basis to provide insight Process Automation to drive greater productivity and quality Platforms enable profound integration between different processes and parties Increase of technological changes, the disrupters and the availability of external and unstructured data 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 2

3 Shared Services Role Moving from Doing Things Better to Driving Positive Change Standardization Optimization Driving positive changes Yesterday Today Tomorrow Scope Reduce work complexity to improve productivity End-to-end processing efficiency Define rules performed by robots Focus One size fits all designs End-to-end simplification Identifying routine steps Driving value added services Potential benefits 10-15% less labor Improved quality Fewer errors 20% less labor Enablers ERP systems with 80% global processes Labor Adherence to standard operating procedures Lean six sigma and other process optimization approaches Continuous improvement skills 30% to 50% labor elimination Robotic process automation tools; Analytics Judgement to resolve nonrule based activities 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 3

4 Benefits and Impact on Operating Model RPA is a major disruptor to operating model decisions $ X Onshore FTE $ 1/3 X Offshore FTE $ 1/9 X Robot 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 4

5 Shared Services Survey Highlights 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 5

6 Scope Traditional back-office functions such as Finance, Human Resources, and Information Technology continue to be the most frequently included in SSCs Shared services are increasingly taking up decision support finance activities Centres of excellence are use to also support specialized finance activities given the complexity of the region 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 6

7 Process Ownership Global Process Ownership helps drive alignment and effectiveness 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 7

8 Process Ownership Global Process Ownership helps drive alignment and effectiveness Given the transaction volumes and scale of global organizations, it is easy for GPOs to be distracted and to underinvest in the strategic aspects of the role. While organizations usually set out with the right vision for the GPO role, we observe that they often don t see the impact they were hoping for Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 8

9 Shared Services Benefits Cost reduction and process efficiency and quality are important benefits. In this region, as companies grow their business, the SSC plays an important role in supporting this growth Where has Shared Services had a positive impact? 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 9

10 Lessons Learnt in a SSC journey Change Management remains a key success factor for SSC implementation 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 10

11 Customers View Cost and timeliness remains important factors for SSC customers On a scale of 1 to 8, in ascending order with 1 indicating highest importance, what is most important to your business unit customers? 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 11

12 Talent SSCs experiencing turnover of 20% and greater more than tripled since 2015 Will RPA help increase the attractiveness of work in SSCs? Will there be a need for new competencies in SSCs? 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 12

13 Talent Shared services talent model will evolve Finance focusing on core functional activities Finance acting as data steward Finance sticks to the business as usual, focusing on key Finance topics such as IFRS, taxes, compliance Finance engages in data stewardship through the provision of financial statements and is a user of analytics for its own purpose Finance in a strategic leadership role focusing on data stewardship and analytics as key priorities for Finance Finance provides statistical as well as business knowhow and integrates analytical capabilities Finance is responsible for ensuring consistency in the decision and investment making processes across the company What this means in terms of required people knowledge, skills, and capabilities New roles are getting increasingly important: Business process consultants, business analysts, technical experts Investing in training and development is key (i.e. job rotation the norm and vital to leadership development) Soft skills matter more than ever Consulting, negotiation, influencing, data interpretation 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 13

14 Data analysis Technical skills Talent Thriving in the Digital Finance era requires talents with a different set of skills Business acumen Storytelling Introducing the purple people Ability to understand the right business questions to ask of the data through to interrogation and modelling to gain the insight to answer them, and then present the insight in a compelling way are important skills to succeed in a digital world. These skills may be all present in a very highly skilled individual or be complementary skills with a team; however professionals who can deliver databacked insights that create business value not just number crunchers are especially hard to find, thus building this capability internally is as important as acquiring it Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 14

15 SSC Enablers and Change SSCs continue to focus on moving up the process value chain, with over three-quarters of respondents planning to increase the number of knowledge-based SSC processes 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 15

16 Automation Technology adoption is key in driving improvement and automation 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 16

17 SSC Enablers What do you have currently? Incoming Documents (Invoices, T&Es) Document Management and Workflow Issue Management Scanning and Indexing Workflow/Routing Optical Character Recognition Automated Approvals Workflow Case Management Interactive Voice Response E-invoices (OB10) Fax Server Document Mgmt, Retrieval Automated Notifications Automated Call Distribution, Caller ID Response Management System Web Chat Contact Management Knowledge Management Soft Phone Technology ERP Vendor Portal Self Service Internet When implementing Shared Services, often new SSC "roles" must be created and existing roles need to be revised to be consistent with new splits of responsibility Service Center Performance Management Workforce Management Employee Portal Self Service Service Center Metrics Dashboard Quality Monitoring System Indicates must-have for off-shore Shared Service Centers Indicates good-to-have for off-shore Shared Service Centers Customer Survey Tools SLA Dashboards 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 17

18 Speaker Timothy Ho Timothy is a Partner from Deloitte Consulting, leading the Finance Transformation practice in SEA. He has led in various finance transformation programs and initiatives for consumer business, life sciences and manufacturing clients, including finance strategy, organization review, business process and operating model improvements, M&As and end-to-end shared services implementation across the Asia Pacific region. Timothy also has had prior experience in financial systems implementation. Timothy is a Chartered Accountant (CA) 2017 Deloitte Southeast Asia Ltd Southeast Asia CFO Vision 18

19 About Deloitte s CFO Program The CFO Program brings together a multidisciplinary team of Deloitte leaders and subject matter specialists to help CFOs stay ahead in the face of growing challenges and demands. The Program harnesses our organization s broad capabilities to deliver forward thinking and fresh insights for every stage of a CFO s career helping CFOs manage the complexities of their roles, tackle their company s most compelling challenges, and adapt to strategic shifts in the market. Please visit to find out more. About Deloitte Southeast Asia Deloitte Southeast Asia Ltd a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises. Comprising 290 partners and over 7,400 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities. This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the Deloitte network ). None of the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte Southeast Asia Limited