Nokia’s procurement shared services story and its ‘3C formula’ for success

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1 Copyright ©2011 Nokia The 3C formula Procurement SSC : for success Shekar Ramamurthi

Transcript of Nokia’s procurement shared services story and its ‘3C formula’ for success

Page 1: 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

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Agenda

About Nokia

Background

Evolution of SSCs

The P2P Organisation

Some statistics

Lessons Learnt

The 3C formula

Current State

Q&A / Wrap up

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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

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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

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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

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Lessons Learnt

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Lesson # 1

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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

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Lesson # 2

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SIMPLICITY

The key ingredient for

compliance

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The 3C Formula

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1. Connect

Personal Connections

& networking work

better and faster than

SOPs

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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.

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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.

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Simplicity

+ Service

Standard SLAs

Scorecard / Dashboard

Engagement Models

Tighter Compliance

External Benchmark

Harmonised Processes

Current State

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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

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Q & A

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Thank you