5 Steps to Getting a Shared Services Implementation Right

A recognized international executive with over 30 years experience in Outsourcing, Shared Services, Process Improvement, CEO Coaching, and Corporate Strategy, John Kirk is a leading authority in Global Business Management. He honed his results-oriented approach in leadership roles as a Covansys Vice President, a KPMG Partner, an IBM Corporation Principal, and a Dun & Bradstreet Software Senior Manager, and has an established reputation in the field of Global Management Advisory. Here he shares tips on how to implement a successful shared services organization (SSO).

In previous articles I have talked about selecting and justifying (through a business case) the best solution or combination of solutions for your business with regards to Shared Services and Outsourcing. In this article we will discuss the implementation of a Shared Services Center (the next article will discuss the implementation of an Outsourcing solution).

As with most projects, the steps are: 1) Project Startup and Organization, 2) Solution Design, 3) Implementation, 4) Setting up the Managing and Continuous Improvement, 5) Change Management. I have also included my Lessons Learned.

1. Project Startup Project Initiation and Organization – Setting up the Project Management Office (PMO), defining the processes, the reporting, and assembling the project team. Developing the Project Plan – Developing a plan with sufficient details to manage the project such as: tasks, dates, resources, milestones, and deliverables. This plan must include the roll in of processes (flash cutover, roll in over time, etc.). Communications Plan – Developing a communication plan is critical for the success of any project. You must communicate effectively with company executives, stakeholders, employees, and those people who are impacted by the project but may not have a direct role, and your customers and suppliers. 2. Solution Design Strategy – Articulate the strategy for implementing a shared services center and how it fits with your companies’ strategy Process Design – Process standardization and optimization is critical. You do not want to take broken processes into the new center. Everyone must understand the inputs, internal process, and outputs. Infrastructure / Technology – This includes both facilities and technology. Facilities – Decide if you can use existing space, build out in an existing facility, lease space. Building out an existing facility or leasing a space requires considerable detail in your project plan and can be an entire article in itself. I suggest that you consult people who do this as a profession. Technology – Hardware, software, networks, phones, copiers, etc. needed for the new center. Consider what you can transfer from other facilities. People – There are three main areas: staff, management, and reporting structure. Staff – Define the skills and experience required and where to find them (internally or externally). Management – Define your management structure (staff to manager ratio) and the skills / experience required. Also, will they come from inside the company or externally? I always suggest getting the manager from inside the company if possible. Reporting Structure – Defining the reporting structure is critical and can be a point of contention. A clearly defined structure will help the success factor. Do not fall into the trap of having the center report to more than one person (dotted and solid lines). 3. Implementation It’s important that this stage be highly coordinated and managed.

Execute the implementation plan and continue executing the communications plan. Set up the infrastructure / facilities / technology. Transfer, hire and train the management and staff in accordance with your ramp up plan. Implement standard processes. Begin the performance-monitoring program. Initiate the Governance process. Initiate cross billing if appropriate. 4. Managing and Continuous Improvement Performance Measurement – Ongoing performance measurement and corrective action is a vital part of you center’s success. Select Key Performance Indicators (KPIs) that directly impact success. Many times, KPIs are selected that sound good but really do nothing to deliver success. Continuous Improvement – As business conditions change you will need to change your processes. You should continually review and improve your processes. Setting up a Continuous Improvement Program will serve you well. You may consider having your internal customers be a part of this program so that you know you are meeting their expectations. 5. Change Management Setting up a Shared Services Center is a big move and the principals of Change Management must be an integral part of your project.

Lessons Learned Over the years I have implemented numerous Shared Services Centers and have compiled a list of lessons learned. I have paired these down to 10 key success factors :

Executive buy-in Clearly define the Shared Services Center (SSC) vision and charter Fill top roles with Account Manager skills who can build client relationships Clear and consistent communications Processes, systems, data structures should be standardized for all customers and geographies Horizontal integration of business processes in a seamless and end-to-end fashion Automate to achieve "lights out processing" Implement a comprehensive system of measurement Provide comprehensive training to the SSC employees Implement a Governance Program