Nokia’s procurement shared services story and its ‘3C formula’ for success
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Transcript of Nokia’s procurement shared services story and its ‘3C formula’ for success
1 Copyright ©2011 Nokia
The 3C formula
Procurement SSC :
for success
Shekar Ramamurthi
Agenda
About Nokia
Background
Evolution of SSCs
The P2P Organisation
Some statistics
Lessons Learnt
The 3C formula
Current State
Q&A / Wrap up
COMPANY
CONFIDENTIAL
Nokia’s mission is simple,
Connecting People.
Our strategic intent is to build
great mobile products.
Our essence is to provide
more of life’s opportunities
through mobile - helping
billions of people everywhere
to connect to opportunity
everyday.
ABOUT NOKIA
Background (till 2008)
• Rapid growth & Globalisation
• Great Results, undisputed leader
• Empowered Business Units
• GLOCAL = formula for success
• Geograpically dispersed entities
• Local, in-country people + process
Concept of Shared Services a distant dream
Evolution (2008)
• OPEX Pressures
• Define ”Support” roles.....
• Look Outside (benchmarking)
• Core versus Context
• Search for better support
models
Shared Services a real and probably only option
Lessons Learnt
9
Lesson # 1
There are 66 words in the lord’s prayer-most people know it, there are 179 words in the Ten commandments – many people can recite them, there are 282 words in the Gettysburg address-a lot of Americans talk about it and there are 26,911 words in the US government regulation on sale of cabbage – and nobody cares. - James Humes
11
Lesson # 2
12
SIMPLICITY
The key ingredient for
compliance
The 3C Formula
14
1. Connect
Personal Connections
& networking work
better and faster than
SOPs
15
2. Controls
Balance Customer Service with Compliance
– embed enough controls to get an early
warning of something not working. Dive into
detail once in a while.
16
3. Culture
Culture is NOT making an Indian speak like an
American. Its building a DNA across the team that
strives for excellence in execution.
Simplicity
+ Service
Standard SLAs
Scorecard / Dashboard
Engagement Models
Tighter Compliance
External Benchmark
Harmonised Processes
Current State
In Summary…..
• Cost reduction through SSCs is not a great vision in
itself
• Compliance comes only with simple Processes &
Policies
• Change the process to suit the tool (not vice versa)
• Connecting people virtually is a big service enabler
• Create a culture of Excellence & thirst for winning
• Controls and audit are essential health check
mechanisms
Q & A
Thank you