Why It's Essential to Consider More Than Just Cost Efficiency When Promoting Your SSC/GBS

When establishing a Shared Services Center (SSC) or Global Business Service (GBS), cost savings undeniably hold a central role. The concept of cost efficiency, as defined in an article by GEP, focuses on optimizing processes, products, or services to save resources and enhance organizational quality. While cost efficiency remains a crucial aspect that promotes the SSC/GBS model, it is essential to acknowledge that other factors should also be considered when communicating its benefits.  

Stakeholders need to recognize that an emphasis on cost efficiency alone may hinder the potential to realize more significant benefits from the model. That being said, this paper will expand on actions that leaders can take to effectively promote their SSC/GBS to stakeholders.

Initially, most corporations set up SSC and GBS to pursue cost savings and increase efficiency. However, as these organizations become established, it can become difficult for leaders to transition from this initial mindset to one balancing the initial objective and the delivery of added value. If this is not corrected, stakeholders can begin to acquire a skewed view of the organization. 

Factors to consider when implementing an SSC/GBS

Balance the narrative

It is essential to explain to stakeholders from the start, other important elements of value that the SSC/GBS model brings (for example how it increases the organization control levels, how it can become a digital transformation engine, or how it prepares and facilitates the integration of new acquisitions, among other important drivers), so that they have a clear understanding of all aspects and changes that the organization is undergoing. This approach will also help the organization balance its narrative and focus across multiple areas, preventing an overemphasis on one aspect at the expense of neglecting others. 
 
Early focus in customer perception

Everyone has heard of the watermelon effect. That common situation where your scorecard is all green but when you ask your customers how they feel about your services, you get more reddish answers. That is because there is a disconnection between what the GBS thinks the customer expects and that of what the customer perceives as true value. Most SSC or GBS get designed from the inside out, far from the ever changing needs of the businesses they serve, and you should start early having a more customer centric view on how you design and deliver your services, so you can balance the need to have a strong efficient process vrs ensuring a good client experience provided by your services. 
 
Build and nurture a strong network with stakeholders

One of the most common fears from the business when implementing a SSC/GBS is losing control of their support processes, and the lack of trust that someone else will do a better job. And because of this, during the implementation and early phases of the GBS you put a lot of attention to change management ensuring you have a successful deployment. But soon after the go live, you inevitably start focusing on the day-to-day operations and forget to maintain closeness with your stakeholders. Building credibility and a strong close rapport with your different stakeholders, play a major role on the perceptions they have of the GBS organization, so taking proactive actions to nurture these networks should always be on your GBS leadership team top priorities and there should be a strong focus on it during the different stages of evolution of your GBS. 

The Solution

The solution lies in starting early on the GBS journey by selling and demonstrating the benefits of having the model implemented beyond cost savings. The GBS model has other great attributes such as leadership, business focus, performance systems, and foundational scale leverage that all play a major role in implementing a successful SSC/GBS. 

As in most models, over-focusing on one aspect and neglecting others is not encouraged. Therefore, it is essential to be clear in understanding how the different benefits of the model beyond cost savings fit with the needs of the customers. Furthermore, be sure to prioritize taking advantage of small successful projects that demonstrate how the GBS generates value beyond efficiency and productivity.

Now, of course, understanding the solution and actually implementing the solution are two very different matters. That being said, one cannot rely on a singular action to focus on transformation going beyond cost savings. There are multiple different actions and departments that all play a role in making sure that the SSC/GBS is capable and up to speed on all fronts.

Keep in mind these characteristics to be sure the organization goes beyond cost savings: 

• Prioritize establishing a strong relationship and communication framework with stakeholders and customers at all different levels (operational and strategic as well with customers and users).
• Be intentional about the messages that are being conveyed to the stakeholders, employees, customers, and be sure they correctly match the specific aspects of the organization's goals, values, and benefits.
• Ensure that there is a unified discourse within the GBS itself, so that employees are clear on where they contribute value beyond cost savings. 

Conclusion

In conclusion, it is clear that the pursuit of cost savings is the root of an SSC/GBS. However, focusing solely on cost savings could lead to problems not only within the organization itself, but also with how the stakeholders and customers perceive the value of the GBS.   In every phase of SSC/GBS maturity, it is essential for leaders to have a clear understanding of where GBS contributes value beyond cost savings. They must also ensure a unified discourse within GBS to maintain clarity across all employee levels and establish a robust engagement model across different organizational tiers. By doing this, the foundation will be set for promoting the GBS organization beyond cost savings.