Master retail politics to scale shared services and outsourcing

Those of us with a front row seat watching the US elections quickly grasp that, however many Superpac ads flood the airwaves, ultimately, all politics are retail. Just watch the likes of the current crop of Republican presidential candidates, and you’ll quickly see how each one changes the message according to the audience---going to the moon in Florida, gas pipelines in North Dakota, and ethanol subsidies in Iowa.

The parallel with the internal sale of shared services and outsourcing is striking. It’s natural to think that sourcing’s value proposition is obvious; after all, what’s logically not to like about faster, better and cheaper. But we tend to forget that while the first sale is made on a wholesale basis to corporate leadership (through crisp presentations and sexy PowerPoints), scale ultimately comes from a retail pitch to each buyer--business, functional or process owner. While logic is operative when the C-suite thinks through the benefits of adopting a new delivery model, it’s an entirely different ballgame when a shared services leader is sitting across the desk from a buyer. And his/her first reaction is generally:

"What’s in it for me?”

“ You’re telling me my baby’s ugly.” “ You’re nothing but a corporate empire builder.” “ Who are you to say you can do a better than I can? ”

These are just a few thoughts that go through the minds of most internal buyers. If experience holds true, few arguments about enterprise value, standardization, flexibility and even lower overall cost will persuade management to cede control and ownership to a new, central entity.

Shared services as a business model is revolutionary. It transfers ownership of people, processes and technology from the old order to a team of corporate upstarts armed with a corporate blessing (if not a mandate), a bit of money for new technology, and a license to steal. In any revolution, there are losers. The argument that consolidation of rules-based work in a corporate factory allow the retained team to focus on higher value work does not hold water in light of the buyer’s loss of control, headcount, and possibly even career.

What are some of the key ingredients of a retail – or “what’s in it for me” – shared services sale?

Buyer intelligence, understanding the positioning and the career trajectory of the buyer. Buyers game their responses in light of implications for their own careers. Flexible, consultative approach, customizing solutions, to the extent possible, to meet the specific needs or concerns of the buyer. Often making a few tweaks not central to the solution render the sale possible. Peer pressure Ultimately, conformity drives the adoption of most corporate change. Over time, being part of the team generally trumps being part of the loyal opposition. Patience Each business or process may be subject to a different range of corporate pressures or events. Shared services operations do not run on the same clock. Gaming the optimum time to sell based on a range of factors such as market pressures and leadership changes is critical to success. Shared services scales when both enterprise and individual business goals can be met. It’s up to leadership to craft a sales strategy that is both wholesale and retail.