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13 Start-Up Strategies and the Positive Outcomes You Can ExpectOutcomes You Can Expect

Shared Services 101 WorkshopShared Services 101 WorkshopMarch 22, 2010

Contact: stposton@scottmadden.comWorkshop Excerptdutley@scottmadden.com

bdement@scottmadden.comsbmanning@scottmadden.com

Copyright © 2010 by ScottMadden. All rights reserved.

Shared Services 101 – OutlineShared Services 101 OutlineIntroduction

— Facultyy— Attendees— ScottMadden

13 Start-Up Strategies

Copyright © 2010 by ScottMadden. All rights reserved. 11

Shared Services 101 – 13 Start-Up StrategiesShared Services 101 13 Start Up Strategies

DecideDecide DesignDesign BuildBuild ImproveImprove

Understand what shared services is and is not

Have a detailed definition of the future state

Leverage a PMO approach from Day 1 through

Develop a rolling two-year improvement plan

DecideDecide DesignDesign BuildBuild ImproveImprove

and is not

Have a relevant shared services strategy that supports your

future state delivery modelDetermine if technology is a driver or an

bl

Day 1 through improvementDetermine the pace and scope of rollout

improvement plan

supports your corporate strategy

Know your current state true costs and customer

enablerDetermine which components of the infrastructure must be in place Day 1

Redesign processes and provide thorough trainingMand customer

satisfaction

Understand the organization’s capacity for

be p ace ayAlign your people strategy with your change strategy

Measure progress and track your savings/value return from implementation on

capacity for change

Copyright © 2010 by ScottMadden. All rights reserved. 2

Shared Services 101 – 13 Start-Up StrategiesShared Services 101 13 Start Up Strategies

DecideDecide DesignDesign BuildBuild ImproveImprove

Understand what shared services is and is not

Have a detailed definition of the future state

Leverage a PMO approach from Day 1 through

Develop a rolling two-year improvement plan

DecideDecide DesignDesign BuildBuild ImproveImprove

and is not

Have a relevant shared services strategy that supports your

future state delivery modelDetermine if technology is a driver or an

bl

Day 1 through improvementDetermine the pace and scope of rollout

improvement plan

supports your corporate strategy

Know your current state true costs and customer

enablerDetermine which components of the infrastructure must be in place Day 1

Redesign processes and provide thorough trainingMand customer

satisfaction

Understand the organization’s capacity for

be p ace ayAlign your people strategy with your change strategy

Measure progress and track your savings/value return from implementation on

capacity for change

Copyright © 2010 by ScottMadden. All rights reserved. 3

DecideDecide DesignDesign BuildBuild ImproveImprove

1. Understand What Shared Services Is and Is Not

Shared Services Is . . . Shared Services Is . . .

h b i lid t it t f tiwhen a business consolidates its support functionsto serve the corporation and its business units,

operating as a business within a business,utilizing a well-defined infrastructure to enable utilizing a well defined infrastructure to enable

higher-value service delivery.

Copyright © 2010 by ScottMadden. All rights reserved. 5

Shared Services OverviewShared Services Overview

SHARED SERVICES

DECENTRALIZED CENTRALIZEDS i C ltDECENTRALIZED CENTRALIZEDService Culture

Efficient Delivery Model

Best PracticesRedundant UnresponsiveUnresponsive

D t h d fD t h d f

CustomerFocused

Economiesof Scale

Independent EntityInefficient

Non-Standardized

Detached from Detached from BusinessBusiness

InflexibleInflexible

Business Intelligent

StandardizedProcesses

Metric Driven

Infrastructure

Combines the best of both worldsCombines the best of both worlds

Copyright © 2010 by ScottMadden. All rights reserved. 6

Benefits of Shared ServicesBenefits of Shared ServicesReduce Expenditures

Eliminates duplicate processes

Eliminates redundant labor and systems costs

Aligns labor skills and costs with specific

Leverage Information

Improve Operations

g ptask typesCreates awareness of true costs for internal services, shaping usage behaviorReduces costs by 20% to 50%

Information Operations

Raises service levels by standardizing processes to achieve world-class results

Allows collection and analysis of standardized data across the organizationC t bilit th Identifies and eliminates

non-value-added processesFocuses efforts of shared services staff on providing cost-effective, high-quality serviceImproves qualitative customer satisfaction

Creates comparability across the organization, with effective reportingEnables better decisions to be made based on better informationAdapts easily to growth, contraction

and quantitative service measuresImproves ability to measure performanceEmphasizes continual process improvement

Provides one-stop shoppingfor employeesEnsures higher degree of complianceFocuses on demand management

Copyright © 2010 by ScottMadden. All rights reserved. 7

To learn more about our start-up strategies for shared services, contact us:

Doug UtleyPartner

919-781-4191dutley@scottmadden.com

Brad DeMentPartner

404-814-0020bdement@scottmadden.com

Sam PostonSenior Vice President

919-781-4191stposton@scottmadden.com

Scott ManningPartner

404-814-0020

2626 Glenwood Ave.Suite 480

3495 Piedmont Rd, Building 10Suite 805

sbmanning@scottmadden.com

www.scottmadden.com

Raleigh, NC 27608919-781-4191

Atlanta, GA 30305404-814-0020

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