In recent years, we are seeing more Financial Shared Services Centre (FSSC) setups. Organizations adopt FSSC model to attain economies of scale by centralizing finance & accounting processes in a services hub. It aims to achieve Finance Operational Efficiency, which means to deliver higher volume of quality work but with lesser effort required.
Letโs explore some key factors to ensure successful transition to a new FSSC.
๐) ๐๐๐ข๐ง๐ญ๐๐ข๐ง ๐๐ฎ๐ฒ-๐๐ง ๐ ๐ซ๐จ๐ฆ ๐๐๐๐๐๐ซ๐ฌ๐ก๐ข๐ฉ To embark on a new shared services delivery model, leadership must have clearly defined objectives and guiding principles on how the FSSC would operate within the organization. This may include the desired workplace culture, team structure and scope of services. Throughout the transition, it is critical that leadership continue to play an active role in reinforcing the vision of transformation to wider organization as well as participating to make key decisions. ๐) ๐๐๐จ๐ฉ๐ ๐๐ง๐ ๐๐๐ฉ๐๐๐ข๐ญ๐ฒ ๐๐ฅ๐๐ง๐ง๐ข๐ง๐ During the FSSC transition planning, it is important for both FSSC and the incumbent business team to align on roles and responsibilities; and to identify, discuss and agree on the job scope to be migrated to FSSC. This may cover:
โ Detailed review of current activities to define scope of work for the FSSC
โ Assess complexity of the tasks
โ Identify volume of transactions
โ Alignment on the timelines for transition (e.g. knowledge transfer, parallel run, hyper care support etc.)
๐) ๐๐๐๐๐๐ญ๐ข๐ฏ๐ ๐๐ก๐๐ง๐ ๐ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ A change management plan needs to be integrated with the transition plan. This is to ensure there is a deliberate consideration of how the organization will be able to win the support and participation of their organizationโs employees on the change.
Effective communication is essential to inform all stakeholders or to keep them updated about:
โ Why: reasons for the change
โ Whatโs in it for you: benefits of successful implementation for the employee and organization
โ When / Where / How: details of the transition plan
๐) ๐๐ญ๐๐ค๐๐ก๐จ๐ฅ๐๐๐ซ ๐๐๐ญ๐ข๐ฌ๐๐๐๐ญ๐ข๐จ๐ง โ
Teamwork in the workplace is an essential part of any businesses. Therefore, FSSC employees need to work closely with the business team to understand their needs and wants. Doing so reduces the time spent for both teams on non-impactful activities and saves overall transition planning and implementation time.โ
On top of that, by proactively engaging with the business, FSSC may also identify opportunities to improve and improve efficiency of processes.โ
๐) ๐๐จ๐ง๐ข๐ญ๐จ๐ซ ๐๐ง๐ ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐ ๐๐๐ง๐๐๐ข๐ญ๐ฌโ
FSSC has four key characteristics โ Centralization, Standardization, Automation and Continuous Improvement. To assess how well the transition is progressing, the performance for each of the process delivered is measured through Key performance indicators (KPIs) on a periodic basis.โ
KPIs should cover the key targets of:
1. Internal process quality
2. Customer satisfaction
3. Financial performance index (e.g. efficiency, effectiveness & improved governance)
๐๐จ๐ง๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง Achieving successful transitions enables the organization to be able further leverage the strengths and accelerate the ability of FSSC to integrate and provide more value-added services; that is supported by system / process automation and framework for continuous improvement and performance management.
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