Is the SSC model right for Your Organization? - the key SSC checklist & factors - main factors to consider -Q&A

Jamie Davies

Finance SSC Manager,

Computacenter

22 years in finance, consulting & SSC practice

And still learning...

• Transactional process 3rd party outsourcing to Accenture

in Prague and Chennai (200 fte)

• First line analysis & Reporting outsourcing to Accenture

in Chennai (150 fte)

• Captive SSC set up in Budapest for EMEA (175 fte)

• Captive SSC set up in Argentina for LATAM (50 fte)

• In sourcing of all Accenture activity to 3 centres

• Evaluation of Global Business Services (GBS) with KPMG

• Captive SSC set up in Budapest for transactional process

& Collections (100 fte)

Last 10 years at BT & CC

Regional /

Functional SSC Discrete

SSC

Multi – Function

SSC

Integrated

GBS

Time

Ben

efi

ts &

Co

mp

lexit

y

Delivery of

discrete back

office

transactional

activity

Regional

delivery centres

typically more

than one

function

Consolidation of

multiple SSCs

into multi-

functional

strategy

Single GBS

function

integrated end to

end process

ownership

Large variety of SSCs versions

Your

Organisational

Goals

Process &

Service

Management

People

processes &

Talent

Defining your strategy & vision

Defining your scope

Developing your operating model

•Current trends in the “industry”

•What are others already doing

•How to engage your customers

•What risks / reward /service balance

do I want to take?

•What skills do I have / need to source

•What is my current level of process &

system maturity

Planning Objective Planning Key Steps Key Questions to ask

Developing a transition methodology

Developing a location and sourcing strategy

Planning overview - basics

As-is process and cost benchmarking

Stakeholder engagement / service impact

Standardisation programme

•How do we benchmark against best

practice in cost and service?

•Do we want to standardise first or after

transition?

•How resistant will our internal

customers be?

Leadership sourcing and role design

Sourcing strategy (experience v develop)

Talent, competency and mindset

•Do we have existing leadership talent?

•Blend of experience & talented

millenials?

•Do we have competency in people

development?

Your strategy sets the tone

•Neutral Exec

•Slow to implement

•High cost

•High SLA

•High negotiation

• High exec engagement

• Business value focus

• Ability to plan

• High service culture

• Medium Speed

• Strong governance

•Rapid

•Cost focused

•Task focused

•Limit negotiation

•Leaders motivated

•Slower to implement

•Exec set policy & direction

•Ability to plan

•Some drive to standardise Central &

BU Negotiated

Mandated to

Country / BU

Country / BU Led

Global Business Service (or MFS)

•Staff overwhelmed

•Passive resistance

•Training gaps

•Service risks

Crisis mode,

Need for Speed or

Functional Pilot

•Lack of

standardisation

•Higher cost

operation

•Low power of SSC

•Unclear SSC culture

Decentralised operations, low

need for rapid change

•Contractual / market

based feel

•Change can take a

long time

Stable organisation,

general consensus, mutually

beneficial

•Organisational

maturity and skills

gap

•Cost to implement

•Governance / GPO

model is not easy

Centralised business decision making,

Customer service focus & long term vision

Adapted from CIMA

Risk Rating

1 2 3 4 5

Latam 24 countries big bang

EMEA 2 country Pilot

Functional

Challenge Process changes risk

System changes & risk

Context

Challenge

Past change success/failure

Business cultural differences

Social impact of loss of people

Team

Challenge

Skills and project team

Active executive sponsorship

Clear and agreed case/scope

No. countries/cultures

and context defines risk

8

So what are the main factors to consider?

We are going to focus on

4 key factors which can be

considered when making a

decision whether to go to an

SSC model

1. are you clear about why you want to do this?

A clear business & strategy case

has to go far beyond cost benefits

- Cost

- Quality of service

- Controls & Audit

- Business Process benchmarks

Leading practice starts with process and service, not just costs. You need

a compelling reason beyond cost to go through the pain of transition and

something you can remind stakeholders when its gets tough. It’s a journey

2. how are you going to take your customers with you?

Your stakeholder will have

expectations of what service will

be provided. If you don’t take

them on the journey, you will start

fast, but regret it later.

If you don’t engage and involve your stakeholders, you will send a

message that service is secondary to cost. Without focus on customer

engagement and service mentality, there is no SSC.

3. how seriously will you take the need for structure and leadership?

Find a solution which can blend the best of tried and tested SSC skills and

experience, together with key talent & business/relationship knowledge

you already have.

Running an SSC is not the same

as running a finance department.

The skills, operating model and

attitude to service is very different

and your new SSC will compete

just to retain talent and skills.

4. are you prepared to invest in change & PM resources and skills

To create a successful SSC, you

need to bring together a great

team, from the business, SMEs,

communication and change leads,

PMs and external advisors.

There is a great temptation to cut out costs when pulling together the

business case, especially for seemingly expensive resources which the

CFO might challenge, stick firm and get external references.

Finally, some personal tips ...by learning through others mistakes

Pilot your first transition to

learn and de-risk

Plan extensive hypercare after

go-live

People and development may be

far higher on agenda than

before

Create the right service culture

from day 1

Don’t try and go to fast, wide or

deep too soon. Better to limit

process and do that well.

Make your new SSC staff feel

they really belong, not out of

sight out of mind

Questions & Feedback