A Stakeholder View of the Shared Services Journey of SwissRe… and lessons from other SSC/GBS implementations

Peter HämmerliJayanth Poorna

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Introductions

Peter Hämmerli

Peter has been connected to offshoring since 2001 when his portfolio as reinsurance accountant was offshored to India. After roles in different functions, he was the head for the SSC in Slovakia during its initial growth phase.

He heads Swiss Re GBS’ Managed Services provided out of Bangalore and Bratislava serving all regions and most business units through 600 re-/insurance professionals.

Jayanth Poorna

Jayanth leads the Leadership Alignment and Change for SSC/GBS, as well as the Technology Adoption practice for Deloitte UK.

He specialises in helping clients manage change effectively for BPO, shared services, outsourcing and technology-enabled business transformation initiatives.

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Have you heard any of these statements before?

Leadership Global Process Owners

SSC Team

Business Partners

"They are incapable of going off-script and thinking outside the box“

"They think this saves money – it doesn’t! Where is the value added?"

"You need to explain everything a hundred times, and they still do

everything wrong" "Good work is never appreciated but mistakes are

always highlighted“

"Our external (clients) are more reasonable than our

internal stakeholders"

“We are not building a nuclear power plant. Let’s

just go and do this”

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A Stakeholder View of the Shared Services Journey of SwissRe

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• 150+ years of experience in providing wholesale re/insurance and risk management solutions.

• Highly technical

• Small -12,000 FTEs

• Global - 60 offices

• Strong government and NGO relationships

About Swiss ReSwiss Re is a leading and highly diversified global re/insurance company

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Services provided out of the Business Solution Centres

• Technical Accounting

• Claims Administration

• Finance Operations

• Business Services

• Sourcing Support

• IT

• Asset Management

• Analytics

• Finance Reporting

• Business Services

• Knowledge & Records

• IT

• others

Business Solution Centres… continue to expand in size and scope

774

970

363

0

500

1,000

1,500

2,000

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16.7

Bangalore Bratislava Genpact Total

FTE

SLA model

Extended Team Model

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The Journey2,000 employees (650 direct reporting) serving all Swiss Re business units and all locations

Wage arbitrage

Process improvement

Changing the game

Initially: Wage arbitrage

Lower compensation costs

Centralized economies of scale

Extended global work times

Extended capacity

Building process knowledge

Then: Processimprovement

Developing expertise

Strong KPI focus

Standardized & simplified processes

Focused training

Building process knowledge

Now: Optimization

Responsible for "how" with direct client interactions

Specialized COEs - more value-add "expert" or "technical" work being transferred

Talent pipeline & career paths

End-to-End process focus

Continuous quality improvement focus

Next gen innovation

"Run it like our own business"

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The JourneyOver a 5 year period significant cost savings were achieved

Run rate, annually recurring reduction from initial wage arbitrage

Location cost comparison

Average of High Cost

Location

Average of

Bratislava &

Bangalore

Compensation cost (E band)

-52%

Average of

Bratislava &

Bangalore

Average of High Cost

Location

Infrastructure cost (Employee support, workplace)

20122011until 2010 2016201520142013-74%

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The Journey2 perspectives combined!

Left brain

KPI’s

Operational planning

Business alignment

Define & deliver Value

Think strategically

Right brain

Emotional resilience

Social perceptiveness

Coach leaders on meaning of «noise»

Build trust

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Key success factorsFrom 2010 to 2016

Business alignment People

Flexible engagement

Skin in the game

Strategic build

Empowerment

Responsibility

Initiative & Ownership

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Lessons from other SSC/GBS implementations

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In summary …

• Change Management is one of the most misunderstood terms

• Change Management planning should start early in the process

• A well articulated vision provides focus and drives extraordinary engagement

• Global Process Owner – All 3 words are equally important

• A well designed Change Network with the right people is one of the most important success factors

• Stakeholder engagement is not just about managing resistance, it is about building a better shared services model

• There is no such thing as too much communication

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