How GBS WorksBy Faisal Hoque | Posted 2010-07-06 Print
Management of complex, integrated enterprises may run more smoothly with the establishment of a Shared Services Organization.
In an interview with the BTM Exchange, Passerini explained what makes GBS successful:
“GBS is a shared services organization offering global services and solutions for P&G employees around the globe. Three global service centers around the world allow employees to access the same services 24/7, from Manila to Madrid. GBS also provides value-creating services for business units and functions around the globe.
The GBS business model is unique and progressive. We work with a network of best-in-class strategic partners that give us the capacity and expertise we need to both innovate and operate with excellence. For example, we have transformed our data centers to reduce planned and unplanned downtime from days to just hours. That itself represents substantial savings.
Scale, simplification and business transformation are what GBS is all about. We take core business processes, simplify them and automate them so they are more efficient. We then scale the solution to enable the company to deliver faster, smarter, and more cost-effectively.”
As P&G experienced, and many other companies have realized, the journey to become an optimized SSO requires desire, discipline and the ability to execute a plan. Furthermore, optimizing service delivery is more than simply moving people into one location and giving them one system. It involves a change in mindset and an increased focus on the business. Successful implementations integrate processes, people, information, and technology automation to deliver a totally new set of capabilities.
The Value of Shared Services
Benefits of Shared Services include the ability of an organization to:
- Demonstrate the potential to significantly reduce operating costs up to 50% of existing services
- Increase compliance/control and consistency on a global basis that is more easily achieved through consolidation if a company has fewer sites
- Provide clarity on services and customers with the creation of a service portfolio
- Introduce a much higher capability for innovation, and the adoption of rapid business changes
- Drive higher employee job satisfaction/retention and allow for the sourcing of a “best fit athlete” for the task at hand
- Focus critical and transaction support work with the ability to pool knowledge and critical expertise by keeping their operating, governance, and risk areas, focused on their CORE activities
To get started, an organization must begin by assessing its readiness and business case for creating a Shared Services organization. Following that, a design of the future state business and operating model should be created. This design includes the organization structure, funding, governance, services portfolio and operating processes.
Faisal Hoque is the founder and CEO of BTM Corporation. A former senior executive at GE and other multi-nationals, Faisal is an internationally known entrepreneur and thought leader. He has written five management books, established a non-profit institute, The BTM Institute, and become a leading authority on the issue of effective interaction between business and technology. © 2010 Faisal Hoque
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