What “Approved” Really Means in GBS Transformations

For many leaders, approval feels like certainty; a signal that the organization is ready to scale. In reality, it is only an agreement to proceed. We have explored this in our previous article which is Signals of Readiness Leaders Often Overlook Before Establishing a GBS .

This article explores the gap between approval and operational reality, and why that gap is where many GBS transformations begin to break.

“Approved” Is More Than Sign-Off – But Less Than Readiness

Approved means far more than just a simple sign-off on a budget or project charter. It represents strategic intent and alignment at the enterprise level.

However, when the organisations are not ready, they struggle to optimise GBS model and unlock value creation.

Once a business case is approved, momentum builds quickly. Many assume the organisations is ready to scale. But as readiness gaps surface before go-live, leaders often believe these issues can be fixed after go-live.

In reality, those issues are not resolved – they are amplified.

This is where it becomes clear that approval only signals intent, not readiness.

What Approved Really Means

Approval ≠ readiness

Approval does not mean the organisation is operationally prepared to scale or execute the transformation. It shows alignment on intent, not validation of capability.

Approval ≠ capability

Approval does not guarantee operational capability. It confirms commitment of resources, governance attention, and leadership direction.

Approval shapes expectations — early assumptions matter

Approval influenced expectations on people early.

It often embeds people assumptions about operations process and the outcomes.

Approval transfers risk — it does not mitigate it

Approval moves the transformation forward, but it also transfers risk to the business and GBS teams. Without readiness validation, risk visibility remains incomplete.

Approval enables alignment, not execution discipline

Approval is agreement on direction. Execution discipline only emerges when readiness is verified.

Approval should trigger readiness assessment, not bypass it

Approval should initiate rigorous evaluation of process maturity, ownership, change readiness, and value tracking — not replace it.

What Successful GBS Model Looks Like

Many GBS models today deliver cost efficiency. However, sustainable success requires a shift towards value creation.

Organisations that sustain GBS long-term treat approval as a trigger for readiness, not a finish line. They invest early in operational and behavioural readiness before transitioning to the GBS model.

These organisations are deliberate in exploring automation and AI within existing workflows, positioning GBS as an engine room for digital enablement supported by specialised capabilities and stronger data discipline.

As a result, GBS evolves beyond a cost centre into a strategic partner focused on expertise, value creation, and data-driven decision-making.

One Message Stands Above All

Approval confirms intention.

Readiness decides whether the transformation will last.