Loughborough University Introduction Dr Andrew Rothwell, Kathleen McLoughlin School of Business & Economics Presentation contents A brief introduction to the Centre for Global Sourcing and Services A brief introduction to the Shared Services Research Project and our Forums Mission The Research Centre for Global Sourcing and Services The centre is dedicated to carrying out both academic and ‘focus on practice’ high impact internationally renowned research on how organisations source and manage business and IT services in a global context. 3 17/07/2015 Our Expertise and Areas of Interest Cloud Services Offshoring Offshore Outsourcing Service departments Business unit 2 Operating units Service departments Operating units Onshore Outsourcing Captive Shared Services Back-sourcing Head Office Business unit 1 Nearshoring Business unit 3 Service department Operating units Conventional Divisional structure Head Office Business unit 1 Business unit 2 Business unit 3 Operating units Operating units Operating units Shared service centre Shared service centre structure Figure 1. Moving to a Shared Service Centre Model 4 17/07/2015 Leading the charge POSTED BY CIMA ON WED, 23/01/2013 - 11:27 Faced with huge demands for cheaper and more efficient support services, the Ministry of Defence is undergoing a ground-breaking transformation programme. FM discovers that finance is at the forefront of the change “Cynics will argue that MoD customers have no effective choice of supplier. But because we are now involved in pitching for work to other government departments, the discipline of preparing bids and benchmarking ourselves against competitor offerings creates a marketing mind-set that permeates the whole of DBS.” The CIMA Research Projects Originated in investigation of changing Finance function 2008 to 2011:1st phase complete – 12 cases presently Finding a very varied picture But many common issues Some emerging themes Redesign of the multi-divisional corporation Definition of the model and terms Creation of intellectual property Selling the concept and performance internally Interwoven with ERP and New Working Practices Implications for individual careers and professional territory How it started – a ‘typical’ example?? 2013: Taking Shared Services Research to the next level Developing our Research Profile Case Study organisations include: Academic Publications Aggregates, Boots, DEFRA, DHL, DWP, E-on, FXPlus, Hewlett Packard, Practitioner Publications Network Rail, RCUK, Rolls Royce, Conferences Shell……… Developing our Research Capability Consultancy partners include Hackett, Further Funding KPMG, PWC…… Research Students Further Fora Developing International Collaboration 2012: Glasgow, Manchester, Johannesburg, Loughborough, Wroclaw 2013: Singapore, Kuala Lumpur, Manchester, Loughborough Working directly with employers, eg. Ministry of Defence – Defence Business Services Health Service Northern Ireland/NI Ambulance Service – collaboration with Glasgow City Council Northern Ireland Civil Service SSC Fora: Statement of Aims To provide a forum to share experiences on the operation of shared services in a confidential and mutually supportive manner. For all participants Chatham House Rules. The world-famous Chatham House Rule may be invoked at meetings to encourage openness and the sharing of information. The Chatham House Rule reads as follows: When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. SSC Fora: Topics Numerous business disciplines Recent themes: Workflow management and monitoring software Talent management Integrated support functions Identity and branding Speakers – consultants, academics, industry professionals Discussion and sharing best practice – emerging themes Considering Shared Services - Traditional View (KPMG) Costs Critical mass to develop and sustain skills Higher productivity, Lower cost location, Reduced working capital, Reduced expenses, Reduced systems infrastructure costs. Strategic Quality Improved service supporting the business (e.g. higher quality of information for decision making), Increased controls, standards compliance Reduced error rates - quality at source. Enable new business models, Support growth, Achieve process and systems standardization, Accelerate merger & acquisitions. “The biggest driver of Shared Services is cost reduction and service efficiency, in addition there are some strategic benefits associated with Shared Services”. SSC Emerging issues? Customer choice in an internal monopoly? Customer service levels? SLA’s? One front door? Terminology – customer/business partner? Deinstitutionalisation of MA role? Deprofessionalisation of the MA role? Displacing work back to front line staff? Issues with related systems: Manager self-service – ‘feeding the beast’ Hollowing out the corporation? Core competencies can become core rigidities? All the problems of call centres in-house? SSC Emerging issues? Who owns a problem? Business, call centre or centre of excellence? Remoteness from business over time? Time zoning Too much of a ‘business’? What happens when ‘honeymoon’ of transferred staff wears off? ‘champion’ leaves? Performance – a case of only measuring ‘what you see’? HR Issues: Staff Retention? Talent Management? Branding and Marketing the SSC? SSC Emerging issues? SSC merely a ‘paper factory’? SSC – ‘island of stability’ or new bureaucracy? OK for time decoupled tasks but what about real-time, mission critical ones? (e.g. IT). Depersonalised but global business is? What do end users think? Is this just centralisation by another name???? The myth of the KBE? - higher level work undertaken in low wage economies, bringing home the transactional processes Sustaining professional knowledge in the ‘hollow’ orgn. Potential issues? Employee relations issues around TUPE? Retained functions? Internal expectations of service and responsiveness will drive up standards of customer relationships – single front door for eg. Lack of funding inhibits development and innovation? Financial pressures drive organisations down the cost saving route without thinking through the long term For eg. Health, Public Utilities, HEI’s, taking Local Government as the reference point – is it still appropriate? Whom do we partner with? Thinking creatively – eg. Police forces and emergency services have terrific expertise in call handling What we (Loughborough) have and what we are not……… We have 10 years experience of research into Shared Services Dealing with a very diverse range of organisations, Globally connected Experience of running practitioner fora Experience of brokering relationships between practitioners Range of professional and research expertise Dissemination profile We are not Focused on ‘selling’ courses about shared services Focused on one sector – eg. education, local government, finance Promoting a particular methodology or philosophy Uncritical – or dogmatically critical, either! Thank You! Observations? Points for discussion?