Ten markers that say you are in the right organization

Recently, I took the pulse of the industry, asking GBS and shared services leaders why they would consider moving companies. By far, money was not the enticement; almost a third of our very thoughtful colleagues cited “company commitment to the model” as the key determinant. Coincidently, I subsequently had a chat with Eric Simonson of Everest Research who posed a follow-on question: What are the markers that indicate an enterprise is committed to a GBS model?

Some pundits call the current talent market context “the great resignation.” Sure, with COVID-19 almost in the rearview mirror, executives of all stripes now feel comfortable examining their professional and personal priorities. And it’s not all about the benefits of working from home: flexible hours, avoiding a commute, or being able to work virtually in perpetuity. These headlines have masked the fact that commitment to a global business services model – in whatever form is right for the enterprise – is the key reason leaders choose to build their careers in a company.

What indicates that your enterprise wants to embed GBS into the operating model – let alone go the distance? Behind the platitudes, what are the markers that GBS and shared services professionals should look out for?

Here’s my checklist:

1. Growth has been in the cards.

If the operation is small or hasn’t scaled quickly, GBS or shared services are perceived as nothing more than a corporate hobby. If the corporate environment is conducive to scale, it’s not only easy to constantly look left and right (full credit goes to Liz Evans of KPMG for this nugget), absorbing adjacent processes but also placing larger bets by bringing new functional towers into the mix. This is not to say GBS organizational growth can’t be jump-started after a long slumber; however, it’s hard for organizations to switch speeds suddenly and successfully.

2. The enterprise imperative trumps business desires.

You know you’ve got a corporate commitment when CXOs as a group have your back, getting the message out to the businesses and functions that GBS is not a nice to have, but an imperative for enterprise resiliency. In this scenario, internecine politics are not tolerated; geos or business units can’t successfully plead “I’m special” in an effort to opt out of the platform. If your delivery footprint looks like Swiss cheese, ostensibly for no reason, be alarmed. If it has a few minor gaps for good reason, your enterprise is likely committed.

3. Reporting is close to the top of the house.

True confession: I’ve never really been fussed about how high in the org GBS reports, believing that having a strong, supportive and understanding leader beats hierarchy every day. But colleagues who think otherwise have finally altered my opinion. Unless GBS is part of a CXO’s portfolio, it won’t get air – air cover, airtime, or be considered air worthy. While we all aspire to be part of the CEO’s cabinet, any top table role with the clout to push the GBS agenda works, depending on the current focus of the organization – Chief Transformation Officer, CIO, COO or CFO are generally best bets.

4. GBS holds up the transformation agenda.

We’ve all seen the movie – leadership establishes a transformation office that is on another astral plane from the GBS organization, causing initiative clashes, battles over measurement, lack of clarity as to what the tenets of change actually are, and most importantly: who is responsible for spearheading it. You know you are part of a committed enterprise when transformation and GBS are mentioned in the same sentence. Conversely, if the transformation officer only speaks to you when s/he wants data or resources, GBS is truly only seen as an implementation arm.

5. You are the star of stage and screen in executive leadership meetings.

Out of sight, out of mind rings true here. If your enterprise values GBS, it is always exploiting the proposition – getting more value out of a merger, expediting entry into new markets, harmonizing and standardizing processes beyond finance and accounting. If the platform is seen as integral to the success of corporate initiatives, you have a seat at the table when key decisions are being made, and are a critical part of the team.

6. You get to buy sophisticated kit.

More and more, GBS is about enabling business, not just transactional delivery. If the corporate coffers won’t open up sufficiently to allow you to buy kit that moves the dial on performance and value creation – such as service management tools, collaboration platforms, analytics widgets or other – that’s a signal that the enterprise doesn’t perceive the opportunity for greater and greater return on investment in the model over time; that it’s fundamentally not investment-worthy. In short, the company can’t see beyond the cost reduction that labor arbitrage delivers…and moving the dial is difficult.

7. There are defined career paths both in and out.

GBS should optimally be positioned as a talent nurturing ground for the enterprise. Where else can an up-and-coming professional master the concept of global, learn to be agile, and gain purview across the enterprise? But nothing says second class corporate function as much as career pathing contained solely within the GBS organization. If career rotations are hard-wired through GBS, or succession planning encompasses GBS leaders, you are golden; if separate but (un)equal is the organizational construct, the enterprise commitment could be termed questionable.

8. Skills, capabilities and titles are aligned.

As a corollary to fluid career paths, nothing says second class citizen like special job content and designations for GBS roles. Sure, each function has some need for its own role nomenclature and skills content, but intercompany career fungibility comes when they align. Nothing good comes from the concept of separate but equal in corporations; when there is no role parity, it’s easier to downgrade a role, constrain compensation, or put up barriers to mobility. Does your job description reflect those of other leaders at your same level? Is an FP&A analyst job description in the GBS team a replica of one in finance? Tick the box and the enterprise sees GBS talent as part of the ecosystem. Not the case? GBS could be the graveyard of career ambition.

9. You can bring in outsiders.

Too many GBS organizations are used as homes for staff who are not perceived as good bets in operating or functional management roles, or parking lots for loyal colleagues to whom the enterprise believes they owe a job. When these loyalists occupy roles that aren’t a good fit for their skills, and GBS leadership is told they are off limits, it sends a powerful message about the value of GBS. But when executive management understand that assembling a team of the best and brightest is an imperative for the model’s success, and experienced external talent is welcomed, you know your organization is committed to creating the right equation.

10. You can invest in make-it-happen roles.

Increasingly, GBS organizations are becoming much more than transaction factories. With “make-it-happen” or enabling capabilities such as program, change and service management, as well as digital design and resource management in short supply across the enterprise, GBS organizations are being called upon to contribute or export critical expertise to other initiatives. If GBS is seen as a taproot for vital enabling talent, the enterprise is sending a strong positive message that its capabilities are valued…and that it’s the best locus – not to say breeding ground – for future-ready skills.

What’s the story line here? To some extent there is a simple theme…and fundamentally what we’ve been saying in headline statements for years: sponsorship drives enterprise commitment. But investment, and the ability to create career paths and the right talent equation are becoming increasingly more important.

How many markers did you check off? Is your enterprise committed to GBS?