Implementing Shared Services for a Global Organization

Transcription

1 [ Implementing Shared Services for a Global Organization Jay Cheedella, MillerCoors Bernhard Fischer, SAP AG

2 [ Learning Points Confirm Organization s Shared Services (BPO) Strategy Understand the key aspects of outsourcing Prepare for a smooth transition to achieve the strategy 2

3 [ Best Practices An inefficient process should be remedied before moving it to Shared Services Start with routine and repeatable processes for transition to Shared Services, stabilize them before contemplating moving complex and core transactions Evaluating organization impact and ensuring buy-in and readiness of the organization is very critical before embarking on Shared Services 3

4 Value [ Evolution of Shared Services Standalone IT platforms by function Transactional Standardization Regional Shared Services Consolidation Transactional Automation Unit Cost Reduction Focus Function Centralization Service Management Implementation Knowledge COE s BPO & Managed Services Outsourcing Unit Cost Reduction with Service Value Focus Multi-functional Service Orchestration using Technology Platform Service Management Centric Global COE s Automation led transformation Unit Cost Reduction with Service Value and Business Value Focus Value Driven Service Driven Function Driven Maturity Stage 4

5 [ 7 step process BPO Strategy Vendor Selection Contract Terms Transition Planning Governance Steady State Organization Maturity Model 5

6 [ About SABMiller Plc Europe North America Asia Africa Latin America South Africa SABMiller is one of the world s largest brewers, with more than 200 beer brands and some 70,000 employees in over 75 countries. We are also one of the world s largest bottlers of Coca-Cola products. 6

7 [ BPO Strategy SABMiller has been exploring the potential to use external business process outsourcing after establishing that BPO vendors are capable of supporting SABMiller back office processes at a global level Outsourcing was identified to provide potential benefits in: Achieving higher productivity improvements Lowering implementation risk given extensive vendor ability to set up Shared Service Center (SSC) operations Providing the ability to quickly ramp up / down to support ongoing business needs (e.g. time to hire, train etc) Providing better service quality given vendor s focus on process improvement / excellence 7

8 [ Vendor Selection Process Long list (27 vendors) * Initial short list (10 vendors) RFP short list (6 vend-ors) Short-list 2 vendors * Answer key strategic questions Global versus regional vendors? Best of breed versus generalist? Integrated (i.e.., ADM & BPO) vs. BPO specialist? 4 months Apply targeted elimination criteria Clear evidence of strength in back office BPO Evidence of BPO delivery capability Experience of executing BPO on SAP platform Evaluate RFI Regional depth; Functional expertise Process improvement capability SAP capabilities; Ability to set up a SSC 8

9 [ Vendor Selection Process.. Contd The two shortlisted vendors were provided a data room to understand the scope of work Both presented their solution approach including methodology, timeline, sequencing of business units and type of transition i.e. fix then ship vs. ship then fix A cross-functional global panel with clear guidelines for evaluation continued to work with both vendors Due diligence by vendors at three internal SSCs provided them with enough background about the nuances, exceptions, culture, volume of transactions and number of FTEs performing work Solution robustness, Vendor capabilities and Commercial attractiveness were the factors used to determine the finalist was chosen as the Global BPO Partner for SABMiller 9

10 [ Business Case Considerations As-Is FTE cost (include ALL costs) Outsourced FTE costs Decoupling between BPO centers Retained Organization Structure Technology Costs (Hardware and Software) Other Business Benefits i.e. productivity gains from outsourcing Process Improvement Benefits identified by the Vendor e.g. Working Capital Others 10

11 [ Contract terms Key points to consider Global framework contract that is overarching Statements of Work for each tower Generic exhibits like definitions, governance Specific exhibits like Service Descriptions, SLAs, KPIs Tools, licenses, ARC/RRCs Pricing, inflation, gain share to be part of global agreement Local country / business unit services agreement Country specific amendments e.g. tax provisions, HR, legal and other regulatory requirements 11

12 [ Transition to BPO Partner Change Management very, very important Technology very key and should be integral part of the team connectivity, sand-box/ training environment, access Transition team Clear roles and responsibilities, agreed and understood methodology Manage it like a project Determine fix then ship or ship then fix based on agreed upon criteria At SABMiller, SAP Global Template initiative took advantage of Genpact s strength in process improvements A team of subject matter experts provided recommendations on best practices in end-to-end processes for incorporation into the SAP solution Genpact tools were integrated into the SAP solution 12

13 [ Governance Governance framework should be developed before transition starts Two-in-a-box concept works very well Responsibility is on both parties; not just the vendor Plan agenda, cadence, escalation, attendees ahead of time SABMiller instituted Country, regional and global governance Process owner meetings to discuss process improvements, sharing learnings across business units 13

14 [ Governance Model 3 Tier Governance Structure Built on Virtual Captive Model - Engagement at ALL Levels Strategic Steering Committee Review relationship health & performance Explore Additional Services / Scope Level 3 Global Controller SABMiller Business Leader Genpact (Bi Annual) COO Genpact Management Committee Define & review mid to long term goals and Transformation initiatives Review business demand and optimize current scope of services Arbitrate key issues Service Delivery Committee Review progress against agreed goals / priorities Review the Operational Performance Drive continuous improvement initiatives, Best Practices / Benchmarking Level 2 Level 1 Finance Directors SABMiller (Quarterly ) Genpact Global Relationship Manager Global Operating Leader Regional Service Delivery Leaders Global Transition Leader Quality / HR/ IT / Training Genpact Global Operations Leader (Monthly) 14

15 [ Steady State Organization Very critical to plan for steady state even before starting transition Steady state cannot happen immediately after transition! Need to give time for stabilization Understand and plan for complexities SABMiller rebadged South Africa s SSC to Genpact very successfully Transition to Genpact for another business unit along with new SAP solution go-live was a challenge Needed hand-holding for a number of months before the situation turned around and stability was restored 15

16 [ Maturity Model Purpose of BPO should be more than a commercial business case. The following should definitely be considered: Strategy for BPO maturity Improved efficiency and effectiveness of processes Productivity gains at BPO centers Role of retained organization e.g. involved in more value-add activities, focus on analytics instead of routine processing 16

17 SAB Genpact partnership journey 2007 Re-engineering projects Process improvements / understanding SAB business Building mutual trust 2009 Rebadging / Outsourcing Operations management Driving efficiencies Cultural exposure & understanding Building right expectation Offshoring Low operating cost Business insights Controllership edge Sustenance Implement Operational framework Review and improve collaboratively Business impact of $51 MM with process improvement ideas

18 Value [ Evolution of Shared Services Standalone IT platforms by function Transactional Standardization Regional Shared Services Consolidation Transactional Automation Unit Cost Reduction Focus Function Centralization Service Management Implementation Knowledge COE s BPO & Managed Services Outsourcing Unit Cost Reduction with Service Value Focus Multi-functional Service Orchestration using Technology Platform Service Management Centric Global COE s Automation led transformation Unit Cost Reduction with Service Value and Business Value Focus Value Driven Service Driven Function Driven Maturity Stage 18

19 [ Service delivery without orchestration Sample Finance process - Parked Invoice query from Vendor Receive call Verify identity Create ticket Access the parked invoice document Create response & spell check/format Respond to the ticket & categorize Update the backend system Evaluate self performance & generate management report Communication System * SAP Study Finance Ticketing System Document System Text Editor Total Time Spent - 10 minutes Outlook Excel Power Point Cumulative Time (seconds)

20 [ Orchestrated Service Delivery with SAP Sample Finance process - Parked Invoice query from Vendor Receive call Verify identity Create ticket Access the parked invoice document Link business context Respond to the ticket Automatic categorization & update of backend system Evaluate self performance & generate management report SSF FIN BCM Finance Analytics Total Time Spent - 4 minutes Cumulative Time (seconds) * SAP Study 21

21 [ Questions?? 22

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