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Shared Services as Centres for Excellence:
Beyond Efficiency and Cost Benefits
Oct 22nd 2008
Nigel Coffey
Service Delivery Director
Pfizer GFSS 11
22
Shared Services: Not always fun!!!
33
Our History
�� In 1997, a financial shared services pilot In 1997, a financial shared services pilot was established in Memphis, Tennessee.was established in Memphis, Tennessee.
�� In 2002, a second financial shared services In 2002, a second financial shared services location was established in Dublin, Ireland, location was established in Dublin, Ireland, to service the European markets.to service the European markets.
�� In 2005, the Business Process Outsource In 2005, the Business Process Outsource project was announced as part of the AtS project was announced as part of the AtS initiative.initiative.
�� In 2006, Genpact was named the Business In 2006, Genpact was named the Business Process Outsource provider and Global Process Outsource provider and Global Financial Shared Services was established.Financial Shared Services was established.
44
Where is GFSS?
Americas Shared Services
Location: Memphis, Tennessee, USA
Servicing entire Western Hemisphere
European Shared Services
Location: Dublin, Ireland
Servicing all of Europe, Africa & Middle East
Genpact Processing Center
Location: Delhi, India
Processing Center
Genpact Processing Centers
Locations: Bucharest, Romania;
Dalian, China
Language Centers
Asia Shared Services
Location: Dalian, China
Servicing all of Asia
New York Operations
Location: New York, New York, USA
Operations Headquarters
55
66
230
Permanent
Operations Colleagues
GFSS Europe - Demographics
81%
Previously with a
Multinational
68%
Graduate Degree Educated
40% with an Accounting Qualification
Average Age 29 years old
Gender
Females 53% Males 47%
57% with Second Language
33
Nationalities
55% with previous SSC
experience
Turnover14%
77
GFSS Focus Areas
Proactive collaboration to add value
Foster engagement and satisfaction
Robust environment around financial operation
Optimize cost, quality and effectiveness/efficiency
Centralization and Standardization
88
�� Accelerate transformation across organisation.Accelerate transformation across organisation.
�� Improve quality Improve quality
�� Drivers/facilitators of change.Drivers/facilitators of change.
�� Divisional & Global alignment.Divisional & Global alignment.
�� Rapid response to business changes.Rapid response to business changes.
�� Improved M&A integrationImproved M&A integration
�� InnovationInnovation
�� FlexibilityFlexibility
�� DisciplineDiscipline
�� Credit crunch not all bad!Credit crunch not all bad!
Centralization and Standardization
99
�� Standardisation/Robust processesStandardisation/Robust processes
�� Compliance enhanced, policies/application Compliance enhanced, policies/application of same, SOX, FCPA,SOD etcof same, SOX, FCPA,SOD etc
�� Risks reduced e.g. credit and Risks reduced e.g. credit and collections/revenue recognition/VAT.collections/revenue recognition/VAT.
�� Standardised reporting and transparency.Standardised reporting and transparency.
�� Comparability across divisions/markets.Comparability across divisions/markets.
�� Improved governance. Improved governance.
�� Audit coordination.Audit coordination.
Robust environment around financial operation
1010
�� Expanded staff skill setExpanded staff skill set
�� Migration junkiesMigration junkies
�� Constant challengesConstant challenges
�� High performers shared across businessesHigh performers shared across businesses
�� Centres of excellenceCentres of excellence
�� Process expertsProcess experts
�� MulticulturalMulticultural
Foster engagement and satisfaction
1111
�� One consistent service delivery to clients.One consistent service delivery to clients.�� Customer Relationship Management (MRL’s)Customer Relationship Management (MRL’s)�� Share best practiceShare best practice�� Single source of information/point of contactSingle source of information/point of contact�� Ongoing Training and supportOngoing Training and support�� Reduce Knowledge Drain when staff leave.Reduce Knowledge Drain when staff leave.�� Align service centre and customer goals.Align service centre and customer goals.�� Accelerate BAU after migration.Accelerate BAU after migration.�� Performance metrics/benchmarking help drive improvementPerformance metrics/benchmarking help drive improvement�� Ability to influence upwards and well as downwards.Ability to influence upwards and well as downwards.�� Expanding scopeExpanding scope�� Balance cost reduction with customer experienceBalance cost reduction with customer experience�� “Voice of the customer”“Voice of the customer”
Proactive collaboration to add value
1212
1313
Strategic Value of Shared Services: Beyond Cost Savings and Efficiencies
Process
Centralization
• Consolidate Expertise
• Increase Documentation
• Eliminate Duplicate Job Functions
• Leverage Size for Business & Technology Needs
• Allow Business to Focus on More Strategic Needs
Process
Standardization
• Retain Capability to Meet Business Needs
• Streamline Functions
• Enhance Control Environment
• Provide Consistent and Accurate Information
• Strengthen Business Continuity Plan
• Attain Sr. Leadership Support
Best
Practices
Implementation
• Increase Automation
• Utilize Benchmarking
• Deploy Technology
• Implement Process Improvements
• Leverage Multiple Locations
• Realize Cost Savings
• Enhance Customer Focus
• Share Support for Mergers & Acquisitions
• Provide Risk Mitigation
• Demonstrate Financial Policy Adherence
Benefit
Realization
1414
Challenges Faced
�� Resistance to change.Resistance to change.
�� Lack of trust.Lack of trust.
�� “Perceived” loss of control.“Perceived” loss of control.
�� Different agendas/expectations.Different agendas/expectations.
�� Lack of support from top management.Lack of support from top management.
�� Silo mentality before and after migration.Silo mentality before and after migration.
�� Exposure of performance issues.Exposure of performance issues.
1515
End-to-end Change Management
SYSTEM MIGRATIONS
Improvement of masterdata quality prior to migrations
INTERFACE IMPROVEMENTS
Reduce ARIBA to Oracle Interface errors in Euro
PURCHASING SYSTEMS
Improve ARIBA procurement coding accuracy for Pfizer Spain
WPO PROCUREMENT
Reduce maverick spend with non preferred vendors in WPO
Germany
AP ACCOUNTING
Increase vendor credit note application in GFSS-A
SUPPLIER MANAGEMENT
Increase discount availed from key vendors in Pfizer Germany
WPO FINANCE
Reduce invoices on hold in WPO Italy
VENDOR CONTACT CENTRE
Reduce supplier enquiries to the BPO contact centre
BPO PROCESSING CENTRE
Reduce invoice processing errors
GFSS-E AP TEAM
Improve the quality of vendor masterdata
GFSS PAYMENTS
Reduce the volume of rejected supplier payments
Building Success in the Purchase to Pay process
P2PP2P
1616
Think Long term when planning change!
1717
Questions ?Questions ?Questions ?Questions ?
Thank you for listening