Making The Leap From

Shared Services To Global Business

Services:

The Kimberly-Clark Journey

Rolando Alvarez Kimberly-Clark Corporation GBS Latin America Leader March 12, 2019

•

•

•

•

• Last year, only 36% of survey respondents had started GBS. This year, 63% of respondents claimed they had.

• The percentage of respondents that have no plans to implement GBS fell by half, from 38% to 22% over the year.

Source: Shared Services in North America 2019: Workforce Strategies, GBS Objectives, Key Measures of Success ww.sson-analytics.com

What are the stages of GBS evolution?

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CONFIDENTIAL For K-C Internal Use Only 5

Stages of GBS evolution

Global Business Services

Global Service Management

Global Delivery Network

Global Process Owners

Integrated Business Services

Integrated Service Management

Integrated Delivery Network

Global Service Owners

Service Innovation

IT IT

Regional

Lead

Common Service Management

HR HR

FIN FIN

IT

HR

FIN

Regional

Lead

Regional

Lead

Discrete Shared Services Regional / Functional

Shared Services

Global and Functional

Shared Services

Integrated Business

Services

Functional transactional excellence

Business service excellence

Enterprise strategic enablement

FIN HR IT NA APAC LAO EMEA

Account to Report

Hire to Retire

Order to Cash

Procure to Pay

2010-2015 2015-2016 2016-2020 Proposed: 2021

The market is moving fast with many competitors moving up the curve in 2-3 years. With investment and focus, companies can catch up versus competitors.

NA APAC LAO EMEA

NA APAC LAO EMEA

IT

HR

FIN

Regional

Lead

Employee Services

Supplier Services

Customer

Financial Services

Consumer

To

da

y

5

Evolving from regional shared services to Global Business Services

EXPAND

Knoxville Est. 1989

San Jose Est. 2007

Brighton Est. 2001

Kuala Lumpur

Est. 2011

Krakow Est. 2018

DOWNSIZE

EXPAND

EXPAND

EXPAND

Noida Est. 2007

Genpact

Bucharest Est. 2007

Genpact

K-C

GBS Est. 2016

EXIT 2019

EXIT 2019

6

GBS structure to deliver strategy

Global Business Services VP

Global

Process

Owners

Automation

Governance

with IT

Migrations

Project

Management

Office

Change

Management

Continuous

Improvement

Center Leaders San Jose

Brighton

Knoxville

Krakow

Kuala Lumpur

Ops Reporting & Quality

Assurance

Enterprise Financial

Reporting

Vendor Relationship

Real Estate and

Facilities

Management

(REFM)

Travel, Expense

and Meetings

(TEM)

Vendor

Relationship

Strategic HR

Business

Partner

Overall GRP

Integration

and

Reporting

Global Delivery Network Managed Services Strategy and

Automation

GBS

Restructure Service Mgmt.

Transformation

BPO Integrated FM

7

Real Estate and Facilities Management

8

GBS service catalog today

Record to Report (RTR) Procure to Pay (P2P) Order to Cash (OTC)

General Ledger Accounting

Statutory Accounting

Tax Accounting and Reporting

Fixed Assets

Project Accounting

Intercompany

Financial Reporting

Supply Chain Accounting & Reporting

External Audit Coordination

Consolidations

Enterprise Financial Reporting

Procurement Operations

Invoice Sorting & Scanning (Local Clerks)

Accounts Payable

Payments

Issue Resolution / Help Desk

Procurement Card Administration

Travel and Expense

Order Management

Customer Service

Billing

Credit

Accounts Receivable

Cash Application

Dispute Management

Pricing and Rebates

Sales Controlling

Master Data Management Treasury Operations Commercial Services | HR

Vendor Master Data

Customer Master Data

Product Master Data

Material Master Data

Plant Maintenance

Cash forecast

Cash balance

Net Hedging

Regulatory Reporting

Insurance Management

Marketing Operations

Licensing Management

Payroll

Expanded breath and depth of services and implemented global COEs

8

CONFIDENTIAL For K-C Internal Use Only

What capabilities make a GBS world-

class?

9

GBS transformation strategy – our roadmap

Our Ambition To consistently deliver

exceptional services and

solutions that enable profitable

growth for K-C

Our

Aspirations 1. Operate like a successful

business

2. Be a growth enabler for our

Business Partners

3. Be a strategic partner by

providing insights and ideas

4. Become a talent pipeline and

talent destination

How We Deliver Value

The 5 C’s

Deliver 2019 • Drive Value

• Execute GBS Growth Plans

• Stabilize And Expand In Krakow

• Maintain Stable Operations

Our Priorities DELIVER FOR OUR CUSTOMERS • Ensure exceptional customer experiences

• Deliver competitive, well-controlled services

• Optimize service delivery models

• Execute planned migrations with excellence

TRANSFORM THE WAY WE DO BUSINESS • Eliminate, simplify, standardize, and automate

• Expand where there is opportunity to add value

• Execute programs & priority projects that deliver intended

benefits and savings

EXECUTE AS ONE GLOBAL TEAM • Demonstrate integrated approach to execution

• Build expertise in Signature Capabilities

• Attract, develop and retain great talent

• Strengthen engagement and enablement in GBS and K-C

What we Want To Be Known

For SIGNATURE CAPABILITES

10

Understand how to drive value beyond cost

11

11

End-to-end oversight of processes with appropriate control measures

enables better transparency and early indicators

Creating the economies of scale and leveraging labor arbitrage to drive

lower cost

Creating capacity through stream-lined processes to allow for organic

business growth focused on their core mission

Investing in continuous improvement and technology transformations to

streamline processes and optimize value

Building a lean and agile, high-performing organization that creates

value, improves efficiencies, builds service-excellence capabilities, and

aligns with Kimberly-Clark core values

5 C’s

COST

CAPACITY

CAPABILITY

CULTURE

CONTROL

11

Establish foundational capabilities during transition

Signature Capabilities

Continuous

Improvement

Project

Management

Change

Management

Migration

Methodology

Control &

Compliance

These capabilities enable GBS to deliver business results

12

Implement a migration methodology to transition work to GBS • 7 Tollgate (TG) Methodology / Project Plan

• Mutual sign-offs – “Three in the Box” (PMO / Sending / Receiving Organizations)

• Transition resource support including Internal Audit and Internal Controls

• Track savings rigorously

• Accountable GBS project leads

• Change management and communications roles and standard deliverables

• Builds capability for business and GBS

Based on lessons learned and industry best practice; validated by partners

13

How to successfully move your organizations from a mature SSO to a GBS?

14

GBS models take different paths to reach their target state (i.e., one model does not fit all)

Few rules causing increased complexity & costs

• Scalable and adaptable operating model

• Cost focused

• Consolidation driven

• Onshore/ Near shore preferred

• Functional silos still in place

• Insightful and actionable metrics

• Regional and local models dominate

Tightening the framework & Business starting to believe

Few custom solutions with Business buy-in

• Push end to end process management and enterprise ownership

• Drive standardization and advanced (plug-and-play) technology

• Expansion of multi-functional scope (e.g., HR, IT, Procurement and Order to Cash)

• Increase Global Process Owner accountability to drive enterprise standards and transformation

Reduce complexity,

drive efficiency Operational excellence, efficiency,

value focus and visibility

Maximize effectiveness and

continue to drive value

Ke

y s

tra

teg

ic c

ha

lle

ng

es

• Global vs. Regional models emerging

• Automation & Transformation focused

• Expand resource options to low cost geographies or outsource

• Optimize controls

• Global Process Owners and GBS Leaders established

Where does K-C stand on the GBS maturity journey?

15

Enable global platforms and processes

16

T&E

Treasury Operations

ERP

Accounts Payable

SAP is global but four different instances

Taulia – global vendor portal

Quantum – global Treasury Management System

Concur - global expense processing application Oversight for audits

Accounting Blackline – global account reconciliation application

Continue maximizing value and visibility

17

Optimize Delivery

Network

Achieve Operational

Excellence

Deliver Business

Outcomes

Enable Enterprise

Transformation &

Analytics

Valu

e a

nd v

isib

ility

Improve cash conversion cycle, advise on tax strategies,

drive revenue opportunities, reduce COGS

Create global policies, processes and platforms; leverage

automation; provide business insight

Be great at what is routine; continuously improve; earn the

privilege to bring in more advanced work

Drive to a service placement strategy based on capability,

capacity and cost, and migrate the work with meticulous rigor

Recent challenges that face GBS organizations and how to overcome them?

18

How to improve the relationship between GBS and Business?

19

Governance

Partnerships

Time

Qu

ality

of

rela

tio

ns

hip

• Business Outcomes

• Insights

• Sharing Talent

• New Opportunities

• Standard Metrics

• Transactions

• Employee Engagement

• Process Improvement

Governance Is Foundational

Partnerships Are Transformational

How to run GBS like a Business to be a better business partner

20

Talent

Top Line

Product

Customers

Investments

Allocating costs Driving value

Developing great

leaders

Managing entry-level

employees

Crucial importer &

exporter of talent

GBS invests in

GBS

Business invests in

regional SSC Business invests in GBS

Business &

Functional leaders Functional leadership

Simplification and

standardization

Low-cost

transaction processing Insights

Regional SSC GBS EVOLUTION

Cross-functional

leadership team

Global economies of

scale

Top three key takeaways 1. Create value for the company

2. Run GBS like a business

3. Drive global strategy, organization & platforms