Recent research conducted by global management consulting firm Kearney shines a spotlight on Malaysia, positioning it as one of the world's premier destinations for shared services centers, alongside India and China. Among the diverse pillars catered to by shared services, finance shared services emerge as a standout, closely followed by information technology, procurement, and facilities management.
How does a new start-up Shared Services Centre transform successfully?
The establishment of a successful Shared Services Centre (SSC) involves navigating through several pivotal factors to ensure a seamless transformation. By consolidating financial processes and services, these centres capitalise on economies of scale, standardisation, and cost efficiency. This transformative journey demands meticulous planning, spanning from defining objectives to selecting the right technology and talent.
Outlined below are the FIVE strategies for the successful execution of a new start-up Shared Services Centre (SSC):
1) Importance of Leadership Buy-In:
Leaders play a critical role in reinforcing the transformation vision and making key decisions. Clear objectives and guiding principles are established to outline how the SSC will operate within the organisation. This includes defining the why we are implementing the SSC, laying out a desired workplace culture, team structure, and scope of services. Throughout the transition, active leadership involvement is crucial in reinforcing the transformation vision and making pivotal decisions.
2) Vital Scope and Capacity Planning:
This foundational step ensures that roles, responsibilities, and job scopes are clearly defined and aligned between the SSC and the countries it is servicing. There are inherent risks in “breaking” a process in a country and transfer some of these activities to an SSC. By meticulously assessing complexities, transaction volumes, and timelines, the SSC team and its stakeholders can navigate the transition with confidence, minimising disruptions, and maximising efficiency.
“The key towards a seamless transfer is to have a robust discussion and agreement with the country managers, utilising best practises as a guide in determining the activity to be housed within SSC or retained within the country.”
3) Stakeholder Commitment:
Close collaboration between SSC employees and country managers fosters mutual understanding, streamlines processes, and identifies opportunities for improvement. This involves detailed reviews of current activities, assessing task complexity, identifying transaction volumes, and aligning transition timelines. This partnership not only accelerates the transition but also lays the groundwork for long-term success through sustained engagement and teamwork.
4) Effective Change Management:
Change management guides organisations through the transition process. A well-developed change management plan ensures that employees understand the reasons for change, the benefits of successful implementation, and the details of the transition plan. It also needs to be layered by a fast action communication activities. In a period of transformation, people need accurate information – fast for best results. By fostering clear communication, managing resistance, and providing support, organisations can navigate change more smoothly and increase the likelihood of successful outcomes.
5) Monitoring and Measuring Benefits through Key Performance Indicators (KPIs):
Effective monitoring and measurement of benefits through KPIs are paramount for utcomes.
gauging the impact and effectiveness of the implementation process. This data-driven approach empowers decision-makers with actionable insights, ensuring that the SSC delivers tangible value to the organization.
“By tracking internal process quality prior to move to SSC, customer satisfaction, and financial performance, organisations can course-correct as needed and drive continuous improvement.”
Conclusion
The keys to unlocking success in the implementation of a Shared Services Centre are not hidden secrets but rather fundamental principles. Strong leadership commitment, effective communication, collaboration between teams, and a relentless focus on continuous improvement form the foundation for success. By addressing these factors head-on, organisations can navigate the complexities of transition and unlock the full potential of centralisation, standardisation, and automation in their financial operations. Embracing these principles paves the way for enhanced efficiency, agility, and ultimately, sustainable growth in today's dynamic business landscape.
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