Deloitte Shared Services, GBS & BPO Conference Managing a Big Bang Transition to GBS: How to Create a Recipe for Success

Transcription

1 Deloitte Shared Services, GBS & BPO Conference Managing a Big Bang Transition to GBS: How to Create a Recipe for Success Stig Christian Rutving, Lundbeck September 2015 Berlin, Germany

2 MANAGING A BIG BANG TRANSITION TO GBS - HOW TO CREATE A RECIPE FOR SUCCESS September 2015

3 Lundbeck Mission We want to improve the quality of life of people suffering from psychiatric and neurological disorders 700 million people worldwide live with brain diseases

4 Lundbeck in brief We are a specialized pharmaceutical company engaged with developing and commercializing new and innovative treatments for brain diseases , bn 2 nd founded by Hans Lundbeck in Denmark employees worldwide DKK revenue in 2014 (EUR 1.8bn and USD 2.0bn) largest pharmaceutical company in Scandinavia and number 42 in the world

5 LUNDBECK BUSINESS SERVICE CENTER 1 YEAR AFTER GO-LIVE Multifunctional center started in highly autonomous organization Moving fast took us far Build the right structure Start with org. maturity

6 Late starter but fast mover we skipped evolution to kick start our journey Changing market conditions in Europe, trigger focus to drive down costs BSC is started in a multifunctional European scope One culture One operating model One user experience BSC Head 130 FTE SCOPE Finance Procurement IT Service Desk HR Operations Process Excellence Spring14 Jul14 Oct14 Jan15 May15 Sep15 Jan/May16 Prepare & Onboard HQ Pilot AU AU W2 AU W3 AU W4 AU W5 30 Affiliates New BSC model applied to Affiliates operating with high level of localization

7 BSC program is core in Lundbeck s Global Support Platform strategy BSC Program focus Process & Structure Business Partners Best practice standard Drive needed business decisions Standardization & process excellence Strong control & compliance Business Support Cost effective support structure Reduce dependency on key employees IT Platform Transparency & ease of use Automation & system agility

8 We have achieved our success criteria If you build trust you can move fast Roadshow Workshops Lync meetings Detailed planning for migration Ready for migration Reference go-live Share experiences show that it works Gap & Business Impact Assessment workshop Hyper-care/ stabilisation Build the needed trust! Prepare & guide the journey Build on the first movers Cook book

9 We have done many things right Key drivers behind success could be Secure management support set expectations right, something will fail Strong project team key roles essential Show that it works use pilots Go standard but listen to requirements Stay resilient it will be hard Build the needed trust! Prepare & guide the journey Build on the first movers Cook book

10 STATUS 1 YEAR POST GO-LIVE This is what needed to change

11 We started out with enabling projects in each function but quickly realized that one program was needed System Implementation Outsourcing Partner Finance Procurement One program HR

12 We achieved faster results through clear focus than by speed alone HQ live July14 3 months Pilot countries live Oct14 Country wave 2 Jan15 Started with quarterly waves Changed to bigger 4 month intervals Now 6 months intervals considered! Operation Projects BSC staff members hold many simultaneous roles Stabilization Migration Efficiency improved by focusing team staff on migration or operation Stabilization BSC A2R Operational team Operation Projects BSC A2R Migration team Migration

13 Cross functional processes & organizational maturity main challenges when kick starting the journey Record 2 Report Source 2 Pay Hire 2 Retire IT Service Desk Payed on time Quality of Service Operational Efficiency!!! Cross functional lack of ownership & missing action Ambition vs license to operate Knowledge management Org. maturity!!! HQ not ready to follow standard process Local mgt. paradigm challenged by global standards

14 Original organization was not effective and did not support the intention to build One BSC Functional Mgr. (Finance) Functional Mgr. (Sourcing) One culture One operating model One user experience Functional Process owner Functional Process owner HQ BSC Functional projects Head of BSC Functional projects BSC Finance Function BSC Sourcing Function Head of BSC out of operation Cross functional alignment weak

15 From functional focus to process orientation and clear accountability & ownership Go live 2014 One year after change to ensure: Head of Finance Head of Procurement Head of HR Head of GBS Process owner Process owner Process owner HQ Finance projects Procurement projects HR projects Global Process Owner Globalization Program Head of BSC BSC Head of BSC S2P S2P S2P HQ BSC Finance Procurement HR IT E-2-E process ownership and needed actions Setting aligned expectations to stakeholders Stronger handover - Process/Project/Operation

16 Many S2P pains from high sourcing ambitions leading to issues in meeting basic requirements Focus on upstream value ambition, taking focus from basic operation Ambitions lead to overselling sourcing roles causing staff turnover Users do not easily understand PO process and system This has resulted in -Huge effort on escalation handling -Lost training efforts, from staff turnover -Low service levels & long handling time -Resource gaps leading to backlog Focus now on license to operate -Hire the needed profiles -Simplify process and use cases -Improve knowledge management -Constant attack on any backlogs -High validation of process performance

17 Missing unhappy-flow documentation and insufficient focus on maturing organization Now We need to reduce the workarounds step step step step step step step step step Experience Documentation Workaround Source 2 Pay process needs stronger training & documentation

18 Globalization challenges local management values standard process does not match local paradigm Trust Control Accountable step step step Self driven Responsible Assistant Consequence Corrections CoE Management Paradigm Local Management Paradigm

19 Other valuable learnings Great stuff - for fast success Learnings requiring changes Country coordinator one focal point Clear benefit drivers what s in it for.. Let BSC take responsibility early on Build one team across processes, projects & operation Process excellence results achieved fast Keep it simple, or it will not help you - eg. governance model, business case Make all benefits tangible - prove your case or risk a full stop One model does not suit all - eg. documentation & migration model

20 WE HAVE SUCCEEDED ON SCOPE WITH NO MAJOR BUSINESS DISRUPTIONS AND HAVE BEEN ASKED TO MOVE FORWARD The issues addressed in S2P and organisational maturity do not stop us from entering new scope

21 BSC is needed to support new business requirements in Lundbeck we are ready to move on Major restructuring to regain profitability and ensure value creation Valby, Denmark, :42 CEST (GLOBE NEWSWIRE) -- Lundbeck is initiating a restructuring program which will reduce the total cost base by approximately EUR 400mn - with full effect in 2017 New geographic reach New functional depth Business Partner Global administration and support: A new reduced global support structure at headquarters, further reduction of support functions in affiliates, and investigating the possibility of expanding the geographical reach of the Business Service Center in Poland. This will require something new Global Business Partner standard Global BSC organization Service catalogue enhancement Re-think collaboration model

22 Take away Moving fast took us far It worked for us to skip evolution and make a controlled jump into GBS Build the right structure We would have benefitted from right structures and the needed cross functional responsibilities from beginning Start with org. maturity If what you really want is a Global platform with Global standards and benefits: take the maturity battles up front and drive needed adjustment through implementation

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