14-15 September 2016

Lisbon, Portugal

#DeloitteSharedServices

Deloitte Shared Services, GBS & BPO Conference

Breakout 2: Shared Services and Global Business Services Feasibility

Dorthe Harding Keilberg, Deloitte

Our session today

• Shared Service Centre vs. Global Business Services

• Feasibility study variations

• Key steps

• Tools & techniques

• Benefit realisation

• Stakeholder engagement

Local and

decentralized

Shared Service

Centre

Global Business

Services

Benefits:

• Synergies within function

• Economy of scale

• Salary arbitrage

• Harmonisation

• Standardisation

Benefits:

• All of the SSC benefits x 4

• Synergies between functions

• End-to-end responsibility

• Governance

• Service management

Shared Service Centre vs. Global Business ServicesWhat are the different benefits?

Benefits:

• Local ownership

• Self sustained units

• Respect for local brand

history

• Speed of market adaptation

1

2

3

Opportunity assessment• Lack of vision• Scope is unclear• Need for high-level assessment

Feasibility study• Clear scope • Senior management commitment • Very diverse org and process landscape

Planning• Clear mandate from senior management• Functions and processes in scope clearly defined• Location defined

Feasibility StudyWhy and when is it relevant?

Key stepsWhat is the starting point, which questions are essential to ask and which choicesto make?

What is the strategic

need?

What are the goals

& ambitions?

What capability

& opportunity

do we have?

What is the future model?

How will we deliver

the benefits?

Future model design (To-be)

• Process filtering• Service delivery model incl. sourcing evaluation• Location assessment

Business case

• Benefit estimation• Initiatives to close gaps• High-level roadmap

As-Is process documentation

• Data collection incl. key metrics• Process and system landscape• Maturity assessment (org / process / systems)

1

3

2

Techniques and ToolsWhich are the relevant tools and how to use them?

Techniques and ToolsThe As-is Phase is focusing on current set-up with it’s challenges and opportunities

2,5

2,5

0,5

9,0

14,4

1,5

0,8

0,7

2,3

5,3

0,8

0,4

0,6

0,5

2,3

0,1

0,1

0,2

0,4

0,9

1,1

0,6

0,7

1,0

3,3

0,6

1,3

0,4

0,4

2,6

0,2

0,1

0,2

0,6

1,1

0,8

0,0

1,2

1,2

3,2

0,6

0,3

0,5

0,8

2,2

1,1

2,3

2,7

1,2

7,3

1,4

1,1

1,8

2,0

6,2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Nordic

UK

DE

US

Total

Time distribution per region and sub-process1. Accounts

receivable

2. Accounts payable

3. Travel and

expenses

4. Asset

management

5. General ledger

6. Product costing

and inventory

7. Treasury

8. Retail stores

FTE allocation

Process and system landscape

Maturity assessment

Process and Policies

(Standardisation, documentation, corp. guidelines)

Write your comments here

Organisation &

People

(Division of labour,

education,

competences)

Write your comments here

Governance

(Decision making,

delegation of

authorities, board

structures)

Write your comments here

Information &

Systems

(Tools,

technologies, data

quality)

Write your comments here

SummaryLow Medium High

Current state MaturityFuture state

Current state

Future service delivery risk profile

Techniques and ToolsThe To-be Phase is detailing the vision and the way to allocate responsibilities in the future way of working

Process filtering

Process characteristics

Customer contact

Common / Volume Unique / Knowledge

High /Specific

Low /Generic

Local Service

Activities are restricted to

a specific location by

practical, language or

legal constraints

Business

Partnering

High-value adding

activities, which support

the local business

functions and decision-

makers

Shared Services

High-volume and

standardised activities,

which can be documented

and provided in common

languages

Corporate /

Centre of

Excellence

Complex and high-value

adding activities, which

requires highly skilled

employees. Global

activities

Service Delivery Model

Techniques and ToolsIn the last phase, the business case is drawn up with initiatives and road map showing how to reach the future model

Business case

Realisation Analysis:

• Profit & Loss

• Cash flow

• Investment

• Sensitivity

Assumptions

Knowledge transfer

Recruitment People costRelocationRedundancyRetention

Implemen-tation costs

AssumptionsLegal

assistanceProject

consultantsProject

expenses

SSC/GBS costsSSC/GBS fit-

out costsSSC/GBS set-

up costsContingency

FTE implications

Future SSC/GBS FTE

Future country FTE

Current country FTE

Ongoing Savings

Outsourcing contracts

Future Contracts

Operating costsFuture

SSC/GBS costsFuture country

costsCurrent

country costs

Baseline

from

Feasibility

study

Road mapDesign and build Implement and roll in

Migrations

Work streamsFebruary March April May June July August September October November

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

1 May go-live

1 August go-live

1 Nov. Go-live

1st migration

2nd migration

3rd migration

Major milestones

Project management

Process and document.

Outsourcing

Human resources, communicationand training

Site and facilities

Governance

February March April May

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 221 May go-live

Fit-gap analysis

Planning, reporting, risk handling and benefits realisation

Finalise and update work instructions during work shadowing

New hires start

Publish WI on SharePoint

Set up operations and perform test runsFirst submissions and

evaluations

Other IT elements, e.g., user profiles, mailbox set-up and phone redirect

Foundation training

Prep. work shadowing

Perform work shadowing and track progress Ramp down

Impact analysis and organisational alignment

Office space fit-out

Design and implement SLA, quality board and charge-back model

Hyper care/support

Ongoing coordination with IT projects

Legend

One-time activities

Ongoing/per migration

Benefit planning

Improved support to Global Practices and small entities

Standardisation and best practice implementation

Clear roles & responsibilities

More focused business partnering

Better project controlling

Improved quality, control and compliance

Small scale outsourcing of legal compliance in small entities only – assumed cost neutral

• Improvement in “ease of doing business” for global practices with flexible controller pools

• Small (& new) entities roll onto well establish platform – less dependency on individuals

• Offshoring scope of transactional and administrative processes is approximately 25% of total FTEs

• Large potential for simplifying, standardising and automating project administration processes.

• Centralisation in shared location will drive further scale and efficiency effects (3 year horizon)

• A strong Corporate policy and controlling CoE will align best practice project accounting

• The SSC moreover addresses the issue of segregation of duties in small entities

• A higher degree of specialisation combined with use of controller pools and communities will drive up the qualification and value add of project controllers and project assistants.

• Business controllers and partners are relieved from regulatory and financial controlling tasks freeing up time for business oriented activities

• The drives a clear delineation of roles and responsibilities across the global finance organisation

• The service centre will be a catalyst for driving process standardisation and documentation

• The Controlling CoE will define and implement best practice project controlling and accounting

Efficiency gains

Salary arbitrage

Outsourcing

BENEFITS

Low potential benefit

High potential benefit

INTANGIBLE BENEFITS

TANGIBLE BENEFITS

What are the benefits?

Indirect benefits

Intangible benefits

Direct benefits

• Quality• Simplification • Transparency• Competencies• Capabilities

• Headcount reductions

• Salary arbitrage• Reduction of

locations• Travel expenses

• Productive capacity of work force

• Standardisation• Utilisation of

systems

What kind of benefits will be described in business case?

Rigor approach to

benefit tracking

Benefits should be

measurable, attributable &

traceable

Forecast, Recognize,

Realize

Business case assumptions

serves as check list

Clearly defined baseline

Re-invest

savings

Realisation of the benefitsHow to track and ensure that the benefits in the business case is realised?

Overview & detailed oriented

Open minded

Diplomacy & network

Un-biased

The team is put

together across

multiple

locations and

functions

Key stakeholders in the Feasibility StudyWhat skill sets are needed to manage stakeholders and where in the organisation should the skills be found?

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