Services, GBS & BPO Conference - Deloitte UK · PDF fileServices, GBS & BPO Conference...
Transcript of Services, GBS & BPO Conference - Deloitte UK · PDF fileServices, GBS & BPO Conference...
Deloitte Shared
Services, GBS &
BPO Conference
Managing a Big
Bang Transition to
GBS: How to Create
a Recipe for Success
Berlin, Germany
Stig Christian Rutving, Lundbeck
22 – 23 September 2015
New or existing slides are
easily formatted using built-in
layouts that can be applied via
the Home tab
New or existing slides are
easily formatted using built-in
layouts that can be applied via
the Home tab
MANAGING A BIG BANG TRANSITION TO GBS - HOW TO CREATE A RECIPE FOR SUCCESS September 2015
Lundbeck Mission
We want to improve the quality of life
of people suffering from psychiatric
and neurological disorders
700 million people worldwide live with brain diseases
Lundbeck in brief
We are a specialized pharmaceutical company engaged with developing and commercializing
new and innovative treatments for brain diseases
1915 6,000 2nd 13.5bn founded by
Hans Lundbeck in Denmark
employees worldwide
largest pharmaceutical company in Scandinavia
and number 42 in the world
DKK revenue in 2014 (EUR
1.8bn and USD 2.0bn)
LUNDBECK BUSINESS SERVICE CENTER 1 YEAR AFTER GO-LIVE
Multifunctional center started in
highly autonomous organization
• Moving fast took us far
• Build the right structure
• Start with org. maturity
New BSC model applied to Affiliates operating with high level of localization
Late starter but fast mover
– we skipped evolution to kick start our journey
BSC Head
Finance Procurement IT Service Desk
HR Operations Process
Excellence
BSC is started in a multifunctional European scope
130 FTE
SCOPE
Changing market conditions in Europe, trigger focus to drive down costs
One culture
One operating model
One user experience
Spring14 Jul14 Oct14 Jan15 May15 Sep15 Jan/May16
HQ
Pilot
AU
AU
W2
AU
W3
AU
W4
AU
W5
Prepare &
Onboard
30
Affiliates
IT Platform
Business Support
Process & Structure
Business Partners
BSC program is core in Lundbeck’s
Global Support Platform strategy
Best practice standard
Drive needed business decisions
Standardization & process excellence
Strong control & compliance
Cost effective support structure
Reduce dependency on key employees
Transparency & ease of use
Automation & system agility
BSC
Program
focus
We have achieved our success criteria
If you build trust – you can move fast
Build the needed trust!
• Prepare & guide the journey
• Build on the first movers
• “Cook book”
Reference go-live
Share experiences
– show that it
works
Detailed
planning for
migration
Gap & Business
Impact
Assessment
workshop
Ready for
migration
Roadshow
Workshops
Lync
meetings
Hyper-care/
stabilisation
We have done many things right
Key drivers behind success could be…
Go standard
– but listen to requirements
Secure management support
– set expectations right, something will fail
Build the needed trust!
• Prepare & guide the journey
• Build on the first movers
• “Cook book”
Show that it works
– use pilots
Strong project team
– key roles essential
Stay resilient
– it will be hard
STATUS 1 YEAR POST GO-LIVE This is what needed to change…
We started out with enabling projects in each function
– but quickly realized that one program was needed
System Outsourcing
Implementation Partner
Finance
Procurement
HR
One
program
We achieved faster results through clear focus
– than by speed alone
HQ live
July14
Pilot countries live
Oct14
Country wave 2
Jan15 • Started with quarterly waves
• Changed to bigger 4 month intervals
• Now 6 months intervals considered!
3 months
BSC staff members hold
many simultaneous roles
Projects
Migration
Stabilization
Operation BSC A2R
Operational team
Stabilization
Operation
Efficiency
improved by
focusing team
staff on
migration or
operation
BSC A2R Migration team
Projects
Migration
Cross functional processes & organizational maturity
– main challenges when kick starting the journey
Quality of Service
Operational Efficiency
Org. maturity
Source 2
Pay
Record 2
Report
Hire 2
Retire
IT Service
Desk
!
! !
! ! !
• Cross functional lack of
ownership & missing action
• Ambition vs license to operate
• Knowledge management
• HQ not ready to follow standard process
• Local mgt. paradigm challenged by global standards
Payed on time
Original organization was not effective and did not
support the intention to build “One BSC”
One culture
One operating model
One user experience
Functional Mgr. (Finance)
Functional Process owner
Functional
projects
BS
C
Fin
an
ce
Functio
n
Head of BSC
Functional Mgr. (Sourcing)
Functional Process owner
Functional
projects
BS
C
Sourc
ing
Functio
n
• Head of BSC out of operation
• Cross functional alignment weak
HQ
BSC
From functional focus to process orientation
and clear accountability & ownership
Go live 2014 One year after – change to ensure:
Head of GBS
Globalization
Program
S2P
Head of BSC
S2P
Global Process Owner
S2P
Head of Finance
Process owner
Head of HR
Process owner
Head of Procurement
Process owner
Fin
an
ce
Pro
cure
-
ment
HR
IT
Head of BSC
Finance
projects Procurement
projects
HR
projects
• E-2-E process ownership and needed actions
• Setting aligned expectations to stakeholders
• Stronger handover - Process/Project/Operation
HQ
BSC
HQ BSC
Many S2P pains from high sourcing ambitions
– leading to issues in meeting basic requirements
Focus on upstream value ambition, taking focus from basic operation
Ambitions lead to overselling sourcing roles – causing staff turnover
Users do not easily understand PO process and system
This has resulted in
-Huge effort on escalation handling
-Lost training efforts, from staff turnover
-Low service levels & long handling time
-Resource gaps leading to backlog
Focus now on license to operate -Hire the needed profiles
-Simplify process and use cases
-Improve knowledge management
-Constant attack on any backlogs
-High validation of process performance
Missing unhappy-flow documentation
and insufficient focus on maturing organization
step step step step step step step step step
Now
Source 2 Pay
process needs
stronger training &
documentation
We need to reduce
the workarounds
Experience Documentation Workaround
Control
Assistant
Globalization challenges local management values
– standard process does not match local paradigm
Trust
Self driven step step step
CoE Management Paradigm Local Management Paradigm
Accountable
Consequence
Responsible
Corrections
Great stuff - for fast success
Country coordinator – one focal point
Clear benefit drivers – what’s in it for..
Let BSC take responsibility early on
Build one team across processes,
projects & operation
Process excellence results achieved fast
Learnings – requiring changes
Keep it simple, or it will not help you
- eg. governance model, business case
Make all benefits tangible
- prove your case or risk a full stop
One model does not suit all
- eg. documentation & migration model
Other valuable learnings
WE HAVE SUCCEEDED ON SCOPE
WITH NO MAJOR BUSINESS
DISRUPTIONS
– AND HAVE BEEN ASKED TO
MOVE FORWARD
The issues addressed in S2P and
organisational maturity do not stop
us from entering new scope
New
functional
depth
New
geographic
reach
BSC is needed to support new business requirements
in Lundbeck – we are ready to move on
Major restructuring to regain profitability
and ensure value creation Valby, Denmark, 2015-08-19 07:42 CEST (GLOBE NEWSWIRE) --
Lundbeck is initiating a restructuring program which will reduce the total
cost base by approximately EUR 400mn - with full effect in 2017
Global administration and support:
A new reduced global support structure at
headquarters, further reduction of support
functions in affiliates, and investigating the
possibility of expanding the geographical reach of
the Business Service Center in Poland.
Business Partner
This will require something new
• Global Business Partner standard
• Global BSC organization
• Service catalogue enhancement
• Re-think collaboration model
Take away
Moving fast took us far It worked for us to skip evolution and
make a controlled jump into GBS
Build the right structure We would have benefitted from right
structures and the needed cross functional
responsibilities from beginning
Start with org. maturity If what you really want is a Global platform
with Global standards and benefits:
– take the maturity battles up front and drive
needed adjustment through implementation
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms,
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
its member firms.
Deloitte LLP is the United Kingdom member firm of DTTL.
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
circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material
in this publication.
© 2015 Deloitte LLP. All rights reserved.
Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street
Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.
23 Deloitte Shared Services, GBS & BPO Conference 2015