Post on 17-Apr-2020
Deloitte Shared
Services, GBS &
BPO Conference
How Do You Make the
Transition from Shared
Services to GBS?
GBS Consulting Leads, Deloitte (DK & UK)
Jeppe Larsen & Nick Prangnell
Head of Global Business Services, Rio Tinto
Scott Singer
Berlin, Germany
22 – 23 September 2015
Share of World GDP 2000
7.20%
3.64%
2.68%
7.68%
18.50%
23.52%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2001
7.64%
3.70%
2.76%
7.53%
18.46%
23.20%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2002
8.11%
3.77%
2.82%
7.35%
18.16%
22.94%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2003
8.62%
3.89%
2.92%
7.20%
17.69%
22.72%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2004
9.03%
4.03%
2.98%
7.05%
17.20%
22.47%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2005
9.50%
4.21%
3.04%
6.93%
16.79%
22.21%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2006
10.10%
4.40%
3.11%
6.76%
16.46%
21.74%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2007
10.78%
4.59%
3.20%
6.58%
16.13%
21.15%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2008
11.40%
4.77%
3.30%
6.37%
15.73%
20.69%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2009
12.10%
4.97%
3.34%
6.23%
15.26%
20.11%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2010
12.78%
5.12%
3.37%
6.07%
14.85%
19.68%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2011
13.42%
5.25%
3.38%
5.94%
14.45%
19.42%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2012
14.08%
5.40%
3.40%
5.82%
14.07%
19.11%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2013
14.79%
5.57%
3.42%
5.65%
13.73%
18.73%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2014
15.52%
5.74%
3.44%
5.48%
13.40%
18.34%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
Share of World GDP 2030
11.10%
3.44%
4.20%
11.70%
17.80%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
China
India
Russia
Japan
Euro area
United States
27,8%
US share of
World GDP will
fall from
23,2% in 2001
to
17,8% in 2030
Chinas
share of World
GDP will rise from
7,6% in 2001
to
27,8% in 2030
A global economy under extreme transformation – and this will
require companies to reconsider the delivery of support services
to stay competitive
Or said in another way
In essence this trend will impact businesses in many
ways:
Externally:
New markets, consumers and products
Competitors
Change in culture and values
Internally:
How and where we deliver support services
Cost agility
New processes including robotics
Need to understand data much better
Deloitte Shared Services, GBS & BPO Conference 2015 3
2009
People in middle
income group*:
1,8 bn of which
0,5 nm in Asia
2030
People in middle
income group*:
4,9 bn of which
3,2 bn in Asia
* OECD Year book 2012
If GBS is the obvious enabler, why
does it seem so difficult to achieve?
Deloitte Shared Services, GBS & BPO Conference 2015
1. Definition of GBS
2. Value of a GBS model can bring?
3. Challenges of moving to a GBS model
4. Deloitte GBS Methodology
5. Transition routes
Topics to be covered
Deloitte Shared Services, GBS & BPO Conference 2015
Definition of GBS Beyond Shared Services and Outsourcing
Deloitte Shared Services, GBS & BPO Conference 2015
“GBS is the deployment of a common approach and the use of common infrastructure and governance to
consistently deliver business support services across geographies, business units, functions and business
processes.”
GBS
Finance
IT
Supply
Chain Operations
HR
• Multi-function in scope
• Multi-region
• Multi-location
• Multi-sourced
• Multi-business
The 5 Multi’s
• Common approach to governance
• Common leadership structure
• Common approach to service management
• Common approach to continuous improvement
• Common talent development model
The 5 Common’s
Organizations today, more than ever before, are faced with severe external and internal forces which are
requiring them to realign their business and operating models.
Value of a GBS model Why are companies moving to GBS?
Deloitte Shared Services, GBS & BPO Conference 2015
GBS
Model
External Forces Internal Forces
Value of a GBS model Optimising the footprint
Deloitte Shared Services, GBS & BPO Conference 2015
Global optimisation
Diverse maturity of centres and
outsourcing across functions Move to an integrated network of delivery
Fragmented or sub-optimal landscape
Illustrative example of typical ambition
• Economies of scale
• Low cost locations
• Globally optimized
Sites
• Maximise arbitrage
• Optimise strategic and operational Labour pool
• Service management & process excellence
• Standardise use of enabling technology
• Standardise processes & governance
Operations
• Existing centres running separately, with
different levels of service
• Mixed outsourcing contracts and
management of vendors
• Lack of global roles, with duplication
across enterprise
• Lack of power/mandate to make
improvement changes
Value of a GBS model Business Outcomes and Value
Deloitte Shared Services, GBS & BPO Conference 2015
Improving global insight through
the use of consistent data
structures and delivery of
enterprise-wide data analytics.
Data Analytics
Boosting talent attraction and
access to a wider pool of skills
as Global Business Services
becomes an increasingly
rewarding career and training
ground
Talent
Leveraging skill and
deployment ability to
drive innovation
Innovation
Freeing up market resource
to focus on driving business
growth by truly removing
distraction of support
services.
.
Commercial Focus
Generating business value
across a widened scope of
end to end processes,
including better customer
service, enterprise cost
reduction
.
Process Value
Supporting company growth:
• New markets - expediting
expansion into emerging markets
• Mergers & acquisitions -
enhancing PMI capabilities,
maximising synergy speed
Growth Platform
Challenges of moving to a GBS model Key elements that make GBS harder than shared services
Deloitte Shared Services, GBS & BPO Conference 2015
• Political minefield with different agendas from respective functions and businesses
• Reluctance owing to eroding influence from old (functional) powers
• Different levels of shared services maturity across functions and regions
• Additional design elements and considerations are needed above that of a normal Shared Services
Centre projects.
• Massive scope / boiling the ocean
• Lots of stakeholders – time-consuming decision making
How to think GBS in a strategic context Start to see the GBS as a business within the business
Deloitte Shared Services, GBS & BPO Conference 2015
Deloitte’s Global Business Services Methodology
1. Strategy 5. Innovate 2. Design 3. Build 4. Deliver
Customer Engagement
Process
Enabling Technology, Cyber & Data
Service Placement
People & Organization
Service Management & Governance
Leadership Alignment & Change
Program Control
Value Case
Value
Integrated Delivery Model
Alignment & Control
Risk & Compliance
If you consider as a business you need to treat it as a business The GBS strategy is your right to play
Deloitte Shared Services, GBS & BPO Conference 2015
GBS Positioning Choices GBS Activation Choices
What are the goals
& ambitions?
1.4. Define GBS’ role
and value
opportunities
1.5. Agree strategic
choices, scope and
mandate
What capability &
opportunity
do we have?
1.6. Assess GBS
baseline
performance and
capabilities
1.7. Assess Function
baseline
performance and
capabilities
1.8. Set opportunity hypotheses and
benefit assessment
What is the future
model?
1.9. Define GBS
‘common’
components
1.10. Define
‘Function’
components
1.11. Define GBS
‘integrated’
components
How will we deliver
the benefits?
1.12. Define
program, projects
and owners
1.13. Finalize and
commit to roadmap
and business case
What is the
strategic need?
1.1. Understand
strategic context
1.2. Understand each
Function’s maturity
and ambition
1.3. Understand view & extent of GBS,
shared services or outsourcing
1. Strategy 5. Innovate 2. Design 3. Build 4. Deliver
Senior stakeholder focus
How to align leadership It is all about eating an elephant in slices!
Deloitte Shared Services, GBS & BPO Conference 2015
Governance
Systems & Master Data
People Development
Continuous Improvement
Process Ownership
Customer Interaction
Service Management
Culture
Sourcing
Local Regional Global
Limited automation Medium automation Maximum automation
One Function Multi-Function
Little sharing Full Integration Co-location
Transactional and
Advisory
2–3 Functions
Sharing of tools
& processes
Transactional
Consistent Service Management Framework
Single over-arching governance with one GBS lead, often C-level
One integrated platform, centralised Master Data Management
Managed Services blending captive and outsourcing solutions
GBS competency model & training curriculum
Enterprise-wide CI with common budget & tools
End-to-end Global Process Owners
Strong GBS culture & brand
Universal customer interface supported by standard toolset
Different models per function/BU
Governance by/in function
Multiple systems & decentralised master data
In-house and outsourcing, not aligned
Specific to centre and/or function
CI specific to function / BU
Informal process networks
Different culture at each centre
Myriad of customer interaction tools
Location Co-location into multi-functional centres Separate functional centres
Geographical Scope
Degree of Automation
Functional Scope
Degree of Functional Integration
Degree of Value Add
Customers
Governance
Operations
Efficient and
Strategic
Transition routes There are many options, but see as enablers rather than a
problem!
Deloitte Shared Services, GBS & BPO Conference 2015
Focus the journey
path on value and
gaining momentum
Organisation
Scope
GBS Delivery
Model
Processes
Process Ownership
Sourcing Service
Location / Footprint
Technology Systems
• Technology: wait for technology consolidation and enablement or drive adoption
• Leadership: develop a new model or appoint a new leader, switching reporting lines early
• Global Design: single global solution designed and implemented or regional/functional
development
• Functionally led: single global led project or designed and deployed by each function
• Outsourcing: single provider or hybrid/multi-sourced solution
Transition routes Key choices
Deloitte Shared Services, GBS & BPO Conference 2015
Transition routes Success factors for starting a successful transition
Deloitte Shared Services, GBS & BPO Conference 2015
Clear
Governance
Stakeholder
Support
Align to the
Business
Clear Design
Principles
Explicit
Mandate Realism Stakeholder Support
Align to the Business
Explicit Mandate
Clear Governance
Clear Design Principles
Realism
Closing remarks and questions
Deloitte Shared Services, GBS & BPO Conference 2015
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each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and
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This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will
depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of
the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific
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in this publication.
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19 Deloitte Shared Services, GBS & BPO Conference 2015