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TRANSCRIPT
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Moving From Shared Services to GBS – What Does World-class Look Like?
Penny Weller, PhD, CMA
The Hackett Group
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Moving From Shared Services to GBS – What Does World-class Look Like?
Shared Services is a successful, twenty+ year old concept that has worked exceptionally well for many functions including finance, HR, IT, and procurement. What happens when multiple shared services come together to leverage skills, technology and service management? Organizations can now leverage the shared services benefits within a compelling business case for enhanced savings and strategic alignment in an operating model called Global Business Services (GBS). In this session you will learn:
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
2
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
• The Hackett Group – Advisory services and research Global Business
Services and Shared Services
• 30 year Shared Services executive with Pfizer (formerly Pharmacia)
• Director of Performance Management
• Six Sigma Motorola-certified Black Belt
Penny Weller, PhD, CMA
Global Business Services Advisory,
North America Operations Leader
Phone: 269.345.7240
www.thehackettgroup.com
3
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Contents
• Hackett Overview
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
4
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
86%of the
Fortune 100
93%of the Dow Jones
Global Titans
87%of the
DAX 30
52%of the
FTSE 100
48%of the CAC 40
93%of the
Dow Jones
5
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
• Library of 2,500+ Best Practice Research Perspectives, Books of Numbers, and Hackett Certified Best Practices through the Best Practice Intelligence Center
• Unlimited inquiry access for members to Hackett experts for transformation steering
• Peer-to-Leader 1-2-1 Best Practices sharing, and Best Practices networking events
• Enterprise, functional and process-based performance studies & value accelerators
• “Gold Standard” Benchmark – over 10,000 conducted, the empirical backbone for your transformation at the SG&A Enterprise, Functional, and Process level.
• World-Class, Peer, and Custom Peer comparative metrics and best practices
• Ability to provide multiyear World-Class Program view of performance over time
• Hackett Performance Exchange (automatic accumulation of performance data from Oracle or SAP)
• Finance
• Human Resources
• Information Technology
• Procurement
• Supply Chain and Operations
Membership
Advisory &
Research (Provides insights into
World-Class
Performance)
Benchmarking(Defines World-Class
Performance)Hackett Perspective on World-Class Finance – Accelerating GBS | 9
Peer Group World Class
The World-Class Advantage – FinanceWorld-Class organizations always find a way to get there
IT Cost (per end user Equivalent)
Procurement Cost (% of spend)
Peer Group World Class
23%
$1.7K$2.2K
HR Cost (per employee)
Peer Group World Class
19%
0.59%0.73%$6.0K
22%
2014 Cost of Finance by Process Category (as a % of revenue)
Finance Cost (% of revenue)
Peer Group World Class
1.12% 46%
-59%-46%
-23%
0.60%$7.7K
0.39%
0.21% 0.23%
0.16%0.11%
0.17%
Transacting Control & Risk Planning & Strategy
Practice or
Outcome
Process
Taxonomy
Vision
Dimension
SDM
Component
Capability /
Enabler 1 - Lagging 2 - Achieving 3 - Exceeding 4 - Leading
Current
State
Assessment
PriorityFuture State
TargetAverage Gap
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Degree to which a
sourcing strategy
exists
Sourcing strategy is ad hoc or
nonexistent.
Sourcing strategies reflect and are
aligned with overall business
strategy and objectives, including
high level risk requirements.
Historical spend analyses are
regularly and routinely conducted
by market and across markets -
i.e. by specific commodity, service,
location and business.
Commodity management and
sourcing strategies define
appropriate purchasing and
payment processes and tools.
Contract terms, lengths, and
conditions are defined to drive
optimal benefits to the enterprise;
in terms of total life-cycle cost,
service, and quality.
Sourcing strategy is reviewed and
updated annually (or more
frequently) to reflect direct linkage
to the company's strategic growth
plans, market changes and
product innovations, production
plans and business
M&A/ventures.
2 - Achieving 2 - Medium 3 - Exceeding 1.00
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Breadth of supplier
universe
Supplier selection is based on
historical or personal
relationships; suppliers often
selected prior to Procurement’s
involvement in a project.
Projects are initiated to limit the
total number of suppliers and
bundle the spend volume.
Procurement is involved in the
supplier selection process.
Suppliers are often considered on
a regional or compartmentalized
basis.
Supplier universe is considered
by major commodity or service
area rather than in aggregate.
Suppliers are considered for
bundled and/or extended services
that may extend to multiple areas
of competency.
Supply universe is global and not
limited to traditional commodity
suppliers.
1 - Lagging 2 - Medium 2 - Achieving 1.00
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Degree to which
supplier risk is
measured and
managed within the
sourcing process
Risk not considered as part of
sourcing decisions or supplier
management.
Supply risk is considered as part
of category-specific sourcing
efforts and supplier performance
management processes.
Supply base risk is explicitly
factored into broader business
continuity objectives. Supplier
risk is considered beyond the
specific good or service being
sourced.
Procurement works with other risk
management staff, ensuring
alignment between internal
risk/return preferences, business
objectives, and both general and
specific supply market risks.
3 - Exceeding 3 - High 4 - Leading 0.90
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Degree of
contingency
planning performed
to assure supply
No supply contingency planning
exists.
Contingency plan exists in case of
supply shortage; alternate
suppliers and alternate locations
identified.
Alternative supply sources are
developed in conjunction with
current suppliers for key
purchases.
Back-up suppliers are required for
critical or strategic categories and
items, including formalized
contingency plans to ensure
seamless supplier transition and
application of penalties and
liabilities with supplier(s) at fault.
3 - Exceeding 2 - Medium 3 - Exceeding -0.55
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Degree of supplier
qualification in
place
No formal supplier qualification
process.
Simple processes in place to
register suppliers and inspect
supplier qualifications at time of
registration or category review.
Established supplier training
program on enablement
strategies and buyer’s
technologies. Formal program
exists to identify key qualification
metrics with stratification based
on category criticality and supply
alternatives.
Annual review of at risk suppliers
and suppliers of key categories.2 - Achieving 2 - Medium 2 - Achieving 0.37
Practice
Sourcing and
Supply Base
Strategy
Supply
Assurance
Process
Design
Degree of
effectiveness and
efficiency of price
refresh process
Quoting and price refresh process
is undefined and performed
manually and on an ad hoc basis.
Quoting and price refresh process
is defined and audited manually.
Quoting and price refresh
processes are structured to
minimize enterprise financial
impact to all parties.
Quoting and price refresh
processes are automated, nearly
error-proof,, with appropriate
controls in place..
2 - Achieving 2 - Medium 2 - Achieving 0.46
Practice
Sourcing and
Supply Base
Strategy
Purchased
Cost
Reduction
Process
Design
Level of
rationalization of
supply base size
Large number of suppliers due to
short-term, “one-off” relationships.
Organization has identified the
need to rationalize the number of
suppliers in order to create
leverage.
Supply base rationalization is
complete. Few new suppliers are
needed and an added supplier
typically results in a removed
supplier (equilibrium). Strong
relationships developed with
current suppliers focusing on JPI
in critical or large dollar spend
areas.
Structured process is in place that
benchmarks the marketplace and
ensures continual supply base
assessment.
2 - Achieving 2 - Medium 2 - Achieving 0.50
Practice
Sourcing and
Supply Base
Strategy
Purchased
Cost
Reduction
Process
Design
Maturity of use of
supply market
intelligence
Supply market knowledge is ad
hoc and incomplete.
Process, tools, and sources
established to gather and
organize data on most categories.
Supply market intelligence /
knowledge captured to identify
when a supply strategy needs to
be re-visited.
Supply market intelligence /
knowledge captured, modeled,
and utilized for pro-forma
simulations done during strategic
planning, design, sales, etc.
2 - Achieving 2 - Medium 2 - Achieving 0.66
Strategy &
Business
Transformation(Transforms
Performance into World-
Class)
Service
Delivery
Components
Information
Service
Placement /
Scope
Process
Sourcing /
Location
Strategy
Process
Design
Enabling
Technology
Skills &
Talent
Governance
&Organization
• Enterprise Performance Management
• Shared Services, Global Business Services & Outsourcing
• Merger Integration
• Working Capital Management
• Oracle EPM (Platinum Partner)
• SAP ERP (Gold Partner)
• Hyperion
• Kronos
• Workforce Management
• Application Managed Services
– Functional Application Support
– Technical Application Support
– Cloud and Hosting
– Remote Development
Best Practice
Technology
Enablement(Implements Technology
to enable World-Class)
In
-h
ou
se
Co
mp
le
te
O
utso
urc
in
g
Colo
catio
n
CustomerResponsibility
ProviderResponsibility
Sa
aS
A
pp
lic
atio
ns
6
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
• We are the global leader in operations improvement strategies, implementation know-how, and G&A agility
• We address both efficiency and effectiveness improvements to enable strategic business objectives
• Our insights are fact based, from over 10,000 performance improvement benchmark engagements
• Our Best Practices Intelligence Center™ is a significant differentiator and enabler. It contains:
– 20,000+ performance metrics updated annually
– 1,500+ best practices across 95 business processes
– 1,000+ best practice-based process maps, requirements and configuration guides
– 1,000+ case studies, implementation examples and research
• We deliver results through a global team of senior practitioners using a consistent methodology and best practice-based toolset
7
Hackett Value Grid™
We help companies establish and implement business performance
improvements.
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
EFFICIENCY
Operating cost improvement
Productivity improvement
Quality improvement
Customer service improvement
EFFECTIVENESS
Alignment with corporate and business unit strategic goals
Enterprise agility contribution
Enterprise compliance with financial, operational rules and regulations
Delivery of competitive advantage by reducing operating cost
Competitive advantage through high-quality services
Competitive advantage through business partnering
2X improvements in customer
service productivity93% World-class GBS rate as effective
or highly effective in enterprise agility
What World Class GBS Do Differently:
World-class
GBS
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Contents
• Hackett Overview
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
9
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Operational
Excellence
Strategic Enablement
Complexity
Reduction
Customer
Intimacy
Strategic Choices
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Risk & Controls
Compliance Focus
Cost Focus
World-class KPIs
Operational Excellence
Focus
Quality
Customer Focus
Service Design
Primary & Secondary
Reasons
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Business Unit #1 Business Unit #2 Business Unit #3
Shared
Services
Economies of scale and skill
Improved cost and efficiency
Improved reporting & details
Leveraged technology
Customer-centric focus and controls
PAID
Shared Services
The Basics
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
CONS PROS
CONS PROS
CONS PROS
Shared Services Operating ModelPrevious Back Office Models
Moving Back Office to
Shared Services
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
A Shared Services is a regional or
functional operating model to organize,
deliver, and continuously improve
internal business services.
A Global Business Services (GBS) is a
global operating model used to
organize, deliver and continuously
improve internal business services
provided to support value producing
processes and business units. It
involves removing or coordinating
work activities from business units,
and standardizing and consolidating
the way in which these services are
delivered in order to provide value to
the enterprise and business units in
the form of continually reduced
operating costs, improved cycle times,
more time for core competencies, and
other key performance dimensions.
VALUE
Shared Services
GBS
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Revenue, GM,
OP
EPS, ROE, ROA
Service, Cost
and
Strategic
Enablement
Performance
Motivators
Work Distribution
Sales / Marketing / Operations
Business Strategy
Service Delivery
Service Management
Protection / Performance/ Culture
Enterprise / Portfolio Strategy
BU
SIN
ES
S
UN
ITS
GB
S/S
HA
RE
D
SE
RV
ICE
SC
OR
PO
RA
TE
Leveraging
Tra
nsa
ctio
ns
Kn
ow
led
ge
What Can Be Done In
GBS?
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Sales / Marketing / Operations
Business Strategy
Service Delivery
Service Management
Protection / Performance / Culture
Enterprise / Portfolio Strategy
BU
SIN
ES
S
UN
ITS
GB
S/S
HA
RE
D
SE
RV
ICE
SC
OR
PO
RA
TE
High Volume
Efficiency Focused
Repetitive Activity
High Automation
Easily Measured Performance
Consistent BU Requirements
Cross Enterprise Integration
Common Technology Platform
Enterprise Fiduciary
Strategic
Confidential
Companywide Compliance
Statutory And Regulatory
Customer Intimacy
Innovative
BU Competitive Advantage
Continuous Operations
Analytical Diagnostic
BU Specific Knowledge
BU Unique Processes
Local Market Driven Processes
BU Business Intelligence
High Automation
Leveraged Skills
Project / Issue Driven
High Cost Skill
High Demand Skill
Common Analytics
High Level Analysis
Investor Relations Processes
High Security Processes
High Risk Processes
Transactions Knowledge
What Can Be Done in
GBS?
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Average recurring cost
savings realized by world-
class GBS
Peer = 5%
8%
Average annual rate of
customer service
improvement achieved by
GBS organizations
Peer = 3%
6% World-class productivity
improvement achieved by
GBS organizations
Peer = 4%
8%
Percentage of world-class GBS
rated as “effective or highly
effective” in enterprise agility
Peer = 42%
93%
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2015 and 2016
35% Average initial savings over
baseline costs realized by
world-class GBS (two
years)
Peer = 20%
GBS Value
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Finance Executive & Corporate Services
Human Resources Sales & Marketing
Information Technology Legal, Engineering, R&D
Procurement Real Estate, Facilities
Supply Chain Supply Chain, Logistics
Global
Business
Services
Finance
Human Resources
Information Technology
Procurement
Supply Chain
Functional
Shared
Services
Accounts Payable Cash Application
Fixed Assets Intercompany Accounting
Contact Center Time & Attendance
Travel Expense Payroll
Credit Order Management
Processes
within Shared
Services
Scope of Global Business Services
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Multi-function
End-to-end Process Ownership
Service Management
Enterprise Standards
Technology Integration
Centers of Excellence
Captive Plus Delivery Model
Agility
Innovation
Commercial Profile
Customer-centric Mindset
Function Aggregation
Multi-function Shared Services
Integrated Services
Function
Transactional
Excellence
Business
Services
Excellence
Enterprise
Strategic
Enablement
Single-function
Transactional Standardization
Regional Consolidation
Transactional Automation
Focus
Value
Stage
2
Stage
1
Stage
3
57%
35%
8%
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
GBS – 3-Stage Model
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Function Driven
Complexity Reduction
Decentralized Processes
Centralized Services
Corporate Mindset
Start Here
Multiple Functional Shared Services
Service Driven
Operational Excellence
Year X
Whereareyou?
Value Driven
Global Business Services
Year X
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Contents
• Hackett Overview
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
21
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 22
Inside GBSOutside GBS
Human Resources
Indirect Procurement
34%
48%
Finance
Information Technology
49%
53%
51%
40%
69%
77%
Service Placement
G&A Functions
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
84%
40%51%
25%36%
84%
43%55%
26%37%
84%
41%
59%
22%
48%
77%
40%51%
22%
53%
Finance InformationTechnology
Human Resources Direct Procurement IndirectProcurement
Adoption of GBS model by function (2013-2016)
2013 2014 2015 2016
70% 84% 100%
Stage 1 Stage 2 Stage 3
40% 42% 43%16% 23%
57%37%
65%100%
35%65%
86%
Adoption of GBS model by function and GBS maturity stage (2016)
Service Placement
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
Service Placement
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
GBS Value
Operational Performance
Cost Saving
Customer Service
Employee Satisfaction
Risk Management
Enterprise Value
Stage 3 GBS
organizations have
the capability to
deliver sustained
improvement across
all six value levers
year over year
Stage 1 GBS deliver one-time cost savings and
operational performance improvement through
consolidation, labor arbitrage and functional
standardization
Stage 2 GBS deliver one-time cost
savings and operational performance
improvement by integrating end-to-end
process and significantly improving customer
service and employee empowerment
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 26
Finance
Information technology
Human Resources
Procurement
53% 59% 61%
41%56% 60%
Document scanning& imaging solutions
Workflowautomation
Electronic invoicing
56% 60% 64%
23%
50%41%
Mobile IT solutions Data warehouse &business
intelligence tools
Workflowautomation
45% 52% 55%
21%
55%45%
Document scanning& imaging solutions
Data analysis &resourcing tools
(i.e. spendanalytics)
Electronic invoicing
48%58% 65%
18%
61% 64%
Data warehouse &business
intelligence tools
Self-servicesolutions foremployees
Self-servicesolutions for
managersShared prioritiesDocument scanning & imagingWorkflow automationData warehouse & BI tools
Planned Investments
Highest Savings
Investments Planned
& Expected Savings
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2011
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 27
24%28%
42% 45%49% 48%
65%72% 74% 73% 72%
78% 77%
76%72%
58% 55%51% 52%
35%28% 26% 28% 28%
22% 23%
2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016
Multi Function Single Function
3 2
Median no. of functionsincluded in GBS
World-class Peer
Source: GBS Performance study, 2016Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
Multi-function
Shared Services
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 28
77%
53%
51%
40%
34%
31%
24%
22%
20%
20%
18%
100%
71%
68%
46%
41%
38%
27%
25%
24%
23%
19%
Finance
Indirect Procurement
Human Resources
Information Technology
Customer Contact Center…
Order Management
Real Estate & Facilities…
Direct Procurement
Customer Contact Center
Supply Chain Management
Industry-specific functions
Today Future
Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
GBS Utilization
By Function
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
89%
76%
71%
62%
61%
59%
59%
54%
48%
37%
36%
30%
25%
22%
18%
17%
14%
7%
12%
12%
14%
16%
14%
12%
29%
47%
38%
49%
48%
20%
15%
3%
4%
8%
5%
12%
17%
23%
24%
27%
29%
17%
5%
25%
15%
22%
56%
63%
79%
80%
78%
Accounts Payable
Travel & Expense
Cash Application
General Ledger
Fixed Asset Accounting
Payroll
Intercompany Accounting
Collections
Customer Billing
Credit
Dispute Management
Cost Accounting
Compliance Management
Tax Management
Enterprise Consolidation
Treasury Management
External Reporting
GBS Business Unit Corporate
Source: GBS Performance study, 2016Source: The Hackett Group’s Global Business Services (GBS) performance study, 2016
Finance Example
Service Placement
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Contents
• Hackett Overview
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
30
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Governance consistently applied across
functional shared services
Customer Experience improved while Focusing on productivity, cost, compliance
New capabilities, process standardization, end-to-end process design to enhance business outcomes
Key Focus Areas to
Ensure Success
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Consistent management guidance, setting
cohesive policies and procedures, and
assigning effective decision-rights (RACI)
Governance
Service
Management
Service Delivery
Governance
Getting to the right tables
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Capabilities enabling a GBS to align
and optimize the delivery of work;
strategy, design, transition,
operation, and continual
improvement
Governance
Service
Management
Service Delivery
Service Management
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
GBS Service Management FrameworkService Strategy – Ability to
design a services portfolio that
meets internal customer
expectations demand in a cost
effective manner
Service Design – Ability to identify
design and deliver services that
meet internal customer
expectations demand in a cost
effective manner
Service Transition – Ability to
transition a service from business
unit to GBS causing minimal
business disruption
Service Operation – Ability to
manage customer interaction and
GBS support functions to deliver
services
Continual Service Improvement –
Ability to continuously improve
service quality and operational
effectiveness
Demand
management
Service
portfolio
management
Financial
management
Supply
management
Service
catalog
management
Supplier
management
Service
migration
management
Change
management
Contact center
management
Infrastructure
management
Service
continuity
management
Quality
Improvement
Knowledge
management
Service
Strategy
Service
Design
Service
Transition
Service
Operation
Continual
Service
Improvement
Service Management
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 36
0.35
0.39
0.47
0.53
0.53
0.54
0.55
0.60
0.61
0.65
0.68
0.69
0.73
Client Contact Center Management
Supplier Management
Knowledge Management
Service Migration Management
Service Portfolio Management
Change Management
Infrastructure Management
Service Demand Management
Service Catalogue Management
Quality Improvement
Service Continuity Management
Supply Management
Financial Management
Correlation coefficient
Correlation between capabilities and performanceStrongest
contribution
Weakest
contributionSource: Global Business Services (GBS) Service Management performance study, 2011
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Performance
Measurement
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Work delivered based on best
practices process design and
execution
Governance
Service
Management
Service Delivery
Service Delivery
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Information
Service design
Technology
Organization design
Service partnering
Governance
Culture
Talent
Global
Business
Services
Service Delivery Model
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Contents
• Hackett Overview
• Why so many companies are considering moving from shared services to GBS
• Which functions are most likely to embrace GBS and to what extent
• Why moving to GBS can be so political and how to offset those concerns
• How to build a culture within shared services that will help position your organization to move to a GBS
40
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Continuous Improvement
Service Strategy
Voice of the Customer
Service Management
Service Design
Change Management
Make It Easy To Do Right
End-to-End Processes
KPIs and Measurement
Governance
Celebrating Success!
It’s Really Not a Secret!
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 42
Global Business Services
Service Culture
Flat Structure
Best Practices
Independent Entity
Customer Focused
Business Intelligence
Economies of Scale& Skill
Standardized End-to-End Processes
Key Best Practice Characteristics: Scalable, Cost-efficient Platform – Allows organic and external growth
without adding a proportionate number of staff through scalable processes and technology
Organizational Flexibility – Properly aligns resources to meet changing customer needs with a nimble organization. Responsive to customer requirements; win-win mentality
Plug ‘n Play – Absorbs back office functions of new business acquisitions to increase economic benefits of inorganic growth
Implementing Business Best Practices – Replicates existing best practices through the use of end-to-end, standardized processes
Technology Leverage – Identifies and economically implements technology improvement (e.g. RPA, digitization) is greatly enhanced
Improved Control – Creates environment that facilitates control over policies and processes and thereby leads to better compliance with Sarbanes-Oxley and other regulatory requirements
Enhanced Customer Experience – Enables standardization of processes while segmenting stakeholders where needed to deliver high quality, high value services in a customer-centric environment
Key Best Practice
Characteristics
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Senior business leaders Key stakeholders Operations
Who are your key audiences?What is important to them?Are there some Quick wins?
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Rule #1: If you submit an idea you don’t have to fully develop it….
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Having a Mustang Attitude…
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Ta lent
Less Options for Talent. GBS
organizations offer rebalancing of
talent as well as a path for global
resources and leaders within the
organization; aligning people to
skills & strategy
Ag i l i t y
Lower Agility and Likely
Underperformance:
GBS organizations provide a
foundation for agility – acquisitions,
dispositions, scaling,
standardization and innovation
COST
Lost Cost Savings Are Significant.
Let’s face it, GBS works and hard
data shows 20-35% savings off of
original base. That’s $20-35M in
initial savings for a $10B company
Less Digital Innovation
GBS organizations and COEs are
emerging as the heart of the digital
revolution, incubating pilots on
analytics, robotics, and other digital
areas for the broader enterprise
Higher Cost Compliance:
GBS organizations bring more
standardization, less exceptions and
better control over transactions and
risk RISK
Dig i ta l
Frustrated Customers
GBS organizations consistently
deliver higher quality services and
improved customer experience.
GBS can reduce transactional
responsibility and unleash internal
customers to drive valueCus tomers
Risk of Not
Implementing GBS
GBS means all processes are centralized in a single location
GBS owns and optimizes processes, however, is location neutral; services may be delivered from a global hub, regional center(s), centers of excellence or satellite offices to align with customer needs
Reality:Myth:
GBS Myth #1
GBS means you do everything that anyone wants
GBS is a professional organization that provides exceptional services in a two-way, negotiated relationship focused on what’s best for our company
Reality:Myth:
GBS Myth #2
GBS is a place no one wants to go
GBS is used to groom talent with key capabilities that provide value with transferable skills; such as professionalism and continuous improvement
Reality:Myth:
GBS Myth #3
GBS is a delivery model that only works on transactional processes
Knowledge-based service offerings are already in place for many GBS organizations that have aspired to drive more value for their companies
Reality:Myth:
GBS Myth #4
GBS is well understood and has buy in from key functions
GBS is very political and often misunderstood. It’s challenging for functions to realize that optimizing work outside their function diminishes their value
Reality:Myth:
GBS Myth #5
I cannot impact my work Oh, yes you can
Reality:Myth:
GBS Myth #6
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
Questions or Comments?
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The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 55
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Participants in these studies will:• Learn how you compare with World-class / Top Performers• Receive report with key research findings and assessment of your
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The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
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