Deloitte Shared Services, GBS & BPO Conference

Transcription

1 Deloitte Shared Services, GBS & BPO Conference How Do You Make the Transition from Shared Services to GBS? Jeppe Larsen & Nick Prangnell GBS Consulting Leads, Deloitte (DK & UK) Scott Singer Head of Global Business Services, Rio Tinto September 2015 Berlin, Germany

2 A global economy under extreme transformation and this will require companies to reconsider the delivery of support services to stay competitive Share of World GDP US share of World GDP will fall from 23,2% in 2001 to 17,8% in 2030 United States Euro area Japan Russia India 4.20% 5.48% 5.65% 5.82% 5.94% 6.07% 6.23% 6.37% 6.58% 6.76% 6.93% 7.05% 7.20% 7.35% 7.53% 7.68% 2.68% 2.76% 2.82% 2.92% 2.98% 3.04% 3.11% 3.20% 3.30% 3.34% 3.37% 3.38% 3.40% 3.44% 3.42% 3.64% 3.70% 3.77% 3.89% 4.03% 4.21% 4.40% 4.59% 4.77% 4.97% 5.12% 5.25% 5.40% 5.57% 5.74% 17.80% 18.34% 18.73% 19.11% 19.42% 19.68% 20.11% 20.69% 21.15% 21.74% 22.21% 22.47% 22.72% 22.94% 23.20% 23.52% Chinas 11.70% 13.40% 13.73% 14.07% 14.45% 14.85% 15.26% 15.73% 16.13% 16.46% 16.79% 17.20% 17.69% 18.16% 18.46% 18.50% share of World GDP will rise from 7,6% in 2001 to 27,8% in % China 7.20% 7.64% 8.11% 8.62% 9.03% 9.50% 10.10% 10.78% 11.40% 12.10% 12.78% 13.42% 14.08% 14.79% 15.52% 27,8% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

3 Or said in another way 2009 People in middle income group*: 1,8 bn of which 0,5 nm in Asia 2030 People in middle income group*: 4,9 bn of which 3,2 bn in Asia In essence this trend will impact businesses in many ways: Externally: New markets, consumers and products Competitors Change in culture and values Internally: How and where we deliver support services Cost agility New processes including robotics Need to understand data much better 3 * OECD Year book 2012

4 If GBS is the obvious enabler, why does it seem so difficult to achieve?

5 Topics to be covered 1. Definition of GBS 2. Value of a GBS model can bring? 3. Challenges of moving to a GBS model 4. Deloitte GBS Methodology 5. Transition routes

6 Definition of GBS Beyond Shared Services and Outsourcing GBS is the deployment of a common approach and the use of common infrastructure and governance to consistently deliver business support services across geographies, business units, functions and business processes. IT Finance HR Multi-function in scope Multi-region Multi-location Multi-sourced Multi-business The 5 Multi s Supply Chain GBS Operations The 5 Common s Common approach to governance Common leadership structure Common approach to service management Common approach to continuous improvement Common talent development model

7 Value of a GBS model Why are companies moving to GBS? Organizations today, more than ever before, are faced with severe external and internal forces which are requiring them to realign their business and operating models. External Forces Internal Forces GBS Model

8 Value of a GBS model Optimising the footprint Diverse maturity of centres and outsourcing across functions Move to an integrated network of delivery Illustrative example of typical ambition Fragmented or sub-optimal landscape Existing centres running separately, with different levels of service Mixed outsourcing contracts and management of vendors Lack of global roles, with duplication across enterprise Lack of power/mandate to make improvement changes Sites Labour pool Operations Global optimisation Economies of scale Low cost locations Globally optimized Maximise arbitrage Optimise strategic and operational Service management & process excellence Standardise use of enabling technology Standardise processes & governance

9 Value of a GBS model Business Outcomes and Value Growth Platform Supporting company growth: New markets - expediting expansion into emerging markets Mergers & acquisitions - enhancing PMI capabilities, maximising synergy speed Data Analytics Improving global insight through the use of consistent data structures and delivery of enterprise-wide data analytics. Talent Boosting talent attraction and access to a wider pool of skills as Global Business Services becomes an increasingly rewarding career and training ground Process Value Generating business value across a widened scope of end to end processes, including better customer service, enterprise cost reduction. Commercial Focus Freeing up market resource to focus on driving business growth by truly removing distraction of support services. Innovation Leveraging skill and deployment ability to drive innovation

10 Challenges of moving to a GBS model Key elements that make GBS harder than shared services Political minefield with different agendas from respective functions and businesses Reluctance owing to eroding influence from old (functional) powers Different levels of shared services maturity across functions and regions Additional design elements and considerations are needed above that of a normal Shared Services Centre projects. Massive scope / boiling the ocean Lots of stakeholders time-consuming decision making

11 How to think GBS in a strategic context Start to see the GBS as a business within the business Deloitte s Global Business Services Methodology 1. Strategy 2. Design 3. Build 4. Deliver 5. Innovate Alignment & Control Leadership Alignment & Change Program Control Value Value Case Customer Engagement Risk & Compliance Integrated Delivery Model Process Enabling Technology, Cyber & Data Service Placement People & Organization Service Management & Governance

12 If you consider as a business you need to treat it as a business The GBS strategy is your right to play 1. Strategy 2. Design 3. Build 4. Deliver 5. Innovate GBS Positioning Choices GBS Activation Choices What is the strategic need? What are the goals & ambitions? What capability & opportunity do we have? What is the future model? How will we deliver the benefits? 1.1. Understand strategic context 1.4. Define GBS role and value opportunities 1.6. Assess GBS baseline performance and capabilities 1.9. Define GBS common components Define program, projects and owners 1.2. Understand each Function s maturity and ambition 1.5. Agree strategic choices, scope and mandate 1.7. Assess Function baseline performance and capabilities Define Function components Finalize and commit to roadmap and business case 1.3. Understand view & extent of GBS, shared services or outsourcing 1.8. Set opportunity hypotheses and benefit assessment Define GBS integrated components Senior stakeholder focus

13 How to align leadership It is all about eating an elephant in slices! Geographical Scope Degree of Automation Degree of Value Add Local Regional Global Limited automation Medium automation Maximum automation Transactional Transactional and Advisory Efficient and Strategic Functional Scope One Function 2 3 Functions Multi-Function Degree of Functional Integration Little sharing Sharing of tools & processes Co-location Full Integration Customers Governance Customer Interaction Governance Service Management Continuous Improvement Process Ownership People Development Culture Systems & Master Data Myriad of customer interaction tools Governance by/in function Different models per function/bu CI specific to function / BU Informal process networks Specific to centre and/or function Different culture at each centre Multiple systems & decentralised master data Universal customer interface supported by standard toolset Single over-arching governance with one GBS lead, often C-level Consistent Service Management Framework Enterprise-wide CI with common budget & tools End-to-end Global Process Owners GBS competency model & training curriculum Strong GBS culture & brand One integrated platform, centralised Master Data Management Operations Location Separate functional centres Co-location into multi-functional centres Sourcing In-house and outsourcing, not aligned Managed Services blending captive and outsourcing solutions

14 Transition routes There are many options, but see as enablers rather than a problem! Technology Systems Scope Processes Focus the journey path on value and gaining momentum Location / Footprint GBS Delivery Model Process Ownership Sourcing Service Organisation

15 Transition routes Key choices Technology: wait for technology consolidation and enablement or drive adoption Leadership: develop a new model or appoint a new leader, switching reporting lines early Global Design: single global solution designed and implemented or regional/functional development Functionally led: single global led project or designed and deployed by each function Outsourcing: single provider or hybrid/multi-sourced solution

16 Transition routes Success factors for starting a successful transition Clear Governance Stakeholder Support Explicit Mandate Realism Align to the Business Clear Design Principles Stakeholder Support Clear Governance Explicit Mandate Realism Align to the Business Clear Design Principles

17 Closing remarks and questions

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