130918 Gbs Presentation Updated

7/27/2019 130918 Gbs Presentation Updated

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The global body for professional accountants

Global Business

Services

A game changer for CFOs and the finance function?

Deborah Kops

Jamie Lyon

Peter Moller


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Why the interest inGBS?


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Transformation continues to be a significant issue on theCFO agenda to drive the efficiency and effectiveness of

the finance organisation.

Many of our students and members globally are involvedin significant finance transformation programmes and

projects.

Global business services has got everyone talking. It

arguably has enormous potential, but like all major

change programmes its hugely challenging. We want todeep dive on what it truly is, and look at some of thechallenges and opportunities.


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But whats it all about?


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Defined as an organisational construct that aggregatesbusiness support function deliveryfinance, HR, IT,

procurement, property, legal, marketing-- across theenterprise under single leadership

Can deliver through shared services or outsourcing, or ahybrid

Shares locations, management, administration, customerinterface and sourcing methodologies

Has a unified governance and performancemanagement structure

Has primacy of process over functioncombinesprocesses end-to-end, aligning such processes asfinance and procurement in source to pay, or onboardingstaff with payroll


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Governance

Systems &Master Data

PeopleDevelopment

ContinuousImprovement

ProcessOwnership

CustomerInteraction

ServiceManagement

Culture

Sourcing

GeographicalScope Local Regional Global

Degree ofAutomation Limited automation Medium automation Maximum automation

FunctionalScope

One Function Multi-Function

Degree ofFunctionalIntegration

Little sharing Full IntegrationCo-location

Degree ofValue Add

Transactional andAdvisory

23 Functions

Sharing of tools& processes

Transactional

Consistent Service Management Framework

Single over-arching governance with oneGBS lead, often C-level

One integrated platform,centralised Master Data Management

Managed Services blending captive and

outsourcing solutions

GBS competency model & trainingcurriculum

Enterprise-wide CI with common budget &tools

End-to-end Global Process Owners

Strong GBS culture& brand

Universal customer interface supported bystandard toolset

Different models per function/BU

Governance by/in function

Multiple systems & decentralisedmaster 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 centresSeparate functional centres

Customers

Governance

Operations

GBS Integration Framework


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The Eight GBS Efficiency Levers

Standardise

Offshore

Consolidate

Automate

Simplify

Eliminate

Outsource

Continuously Improve


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How Can GBS Deliver Business Value?

Global Integration

Value creation

Data analytics - improving global insight, consistency and reliability ofdata

Growth

platform

New markets - expediting expansion into emerging markets

Mergers & acquisitions - enhancing PMI capability

Process value - generating business value across a widened scope ofend to end processes

Commercial focus - significantly freeing up commercial capacity inmarkets

Innovation - leveraging skill and deployment ability to drive innovation

Sites Economies of scale Low cost locations

Labour pool Maximise arbitrage Optimise strategic and operational roles

Operations Standardise use of enabling technology Standardise processes

GBS enabled integration ofGillette in 15 months vs. 3-4years, saving $4m per day

Achieved significant process savingsacross O2C and P2P

India analytics centre providesmarket leading commercial insight

Diverse maturity of centres and

outsourcing across functions

Global Business Services integrated

network of delivery

Globallyoptimised:

Locations Governance

Service Management Process Excellence


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Implementation: criticalsuccess factors


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ACCA report asksimportant questions


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Questions CFOs should ask about GBS

Can my organisation achieve significantly more valuebeyond stand alone finance transformation?

Is it a priority given other business imperatives? Should CFOs lead GBS? Do finance professionals have skills gaps if they

move to GBS? How does GBS affect finance career paths? Are there implications for governance and control? Does GBS change the finance technology

landscape?

Does GBS redef ine the value of f in ance tothe organisat ion?


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Key takeaways


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Documents

130918 Gbs Presentation Updated