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Siobhan Riggott – Customer-to-Cash and GBS Advisor, The Hackett Group
Michal Fic – Global COC Process Excellence Manager, Shell
Credit Matters VI – The Deep Dive
Shell’s Customer-to-Cash and SSC JourneyAn interview with The Hackett Group
Key Findings - The Hackett Group’s GBS study
Source: The Hackett Group’s annual GBS performance study, 2017
INCREASING STRATEGIC ACCOMPLISHMENT OF GBS
GBS OPERATING MODEL DEVELOPMENT CHALLENGES
DIGITAL TRANSFORMATION IMPERATIVE
CUSTOMER CENTRICITY
Strategic alignment, cost leadership and compliance focus are the main strategic priorities
Source: The Hackett Group’s annual GBS performance study, 2017
2014 2015 2016 2017
GBS Strategic Objectives,% effective and highly effective in meeting the stated goal
ALIGNMENT
COMPLIANCE FOCUS
COST LEADERSHIP FOCUS
SERVICE EXCELLENCE FOCUS
AGILITY FOCUS
CUSTOMER INTIMACY FOCUS
Current and expected use of GBS model, by function
Source: The Hackett Group’s annual GBS performance study, 2017
GBS use for customer service and direct procurement is set to grow fastest in the next
2-3 years
5%6%6%
11%12%13%16%
25%25%27%29%
38%50%52%
79%
2%3%
5%2%2%
3%8%
5%7%
12%14%
12%11%
13%3%
Government AffairsSales
Research & DevelopmentMarketing
Corporate CommunicationsEnvironmental, Health & Safety
LegalSupply Chain Management
Real Estate & Facilities Mgt.Direct ProcurementCustomer Service
Information TechnologyIndirect Procurement
Human ResourcesFinance
Current 2-3 years (% growth)
u What functions are included within the scope of Shell Business Operations?
u What is the organizational and geographic scope of Shell Business Operations?
u How have the strategic priorities and objectives of Shell Business Operations changed over time?
Discussion
Finance operating model, conceptual viewCorporate CenterFocus: Defines corporate strategy and exercises stewardship
§ Strategic and Financial Planning & Performance Management
§ External Reporting, Tax, Treasury, Mergers & Acquisitions, Internal Audit
Centers of ExcellenceFocus: Supports enterprise-wide stewardship goals§ Tax Management§ Cash Management§ Capital and Risk Management § Compliance Management§ Cost Accounting
Business PartneringFocus: Defines BU strategy and measures performance
§ Planning & Performance Management§ Business Analysis§ Tax, Treasury, § Mergers & Acquisitions, Internal Audit (in
autonomous organizations)
Country/ Entity level (BU)Focus: supports localized strategy execution and activities retained for compliance reasons
§ Business Analysis (focused on sales support)§ External reporting (focused on country/ entity P&L
and fiduciary responsibilities)
Finance Operations Focus: Delivers operational finance services to BUsCash Disbursements§Accounts Payable§Travel & Expenses
Revenue Cycle§Credit §Customer Billing§Collections§Cash Application§Dispute Management
General Accounting
§Fixed Assets§ Intercompany Accounting§General Ledger Accounting§Cost Accounting
Corporate center
Shared Services
BU
Finance operating model, empirical view
Source: The Hackett Group’s annual GBS performance study, 2017
91%87%
83%82%82%80%
77%77%75%
72%60%
50%46%46%46%43%42%
39%24%
63%
5%9%
8%8%9%16%
12%4%
17%21%
32%13%
15%9%
7%22%
12%40%
54%16%
5%4%
8%9%9%4%
12%19%
8%7%8%
37%39%
45%48%
35%46%
21%22%20%
Accounts PayableTravel & Expense
Fixed Asset AccountingIntercompany Accounting
General LedgerCustomer Billing
CollectionsCash Application
Dispute ManagementCredit
Cost AccountingTax Management
Payroll Enterprise Consolidation
Treasury ManagementCompliance Management
External ReportingBusiness Analysis
Planning & Performance ManagementTOTAL
GBS BU Corporate Center
Finance in GBS, organizational model by process (Top quartile)
A significant proportion of O2C fall within the scope of Global Business Services, with
top quartile having taken the model further than peer
u What does Shell’s Customer-to-Cash look like from a delivery perspective as well as from a governance perspective?
u What is the role and accountabilities of the Process Excellence team – is their scope in line with Shell Business Operations or wider than the scope of Shell Business Operations?
u What frameworks and matrix do Shell use to define their operating model and optimise service placement? How does the global delivery model vary for the different processes within the scope of Customer-to-Cash?
u Could you share examples of some of Shell’s most significant Customer-to-Cash optimisation activities; whether they be in relation to service placement, process design, use of technology and automation?
Discussion
Customer experience defined
Source: The Hackett Group’s annual GBS performance study, 2017
Customer experience is the sum of all experiences a customer has with a supplier of goods or services, over the duration of
their relationship with that supplier
Wikipedia definition
“
”
More mature customer experience management leads to higher customer satisfaction
Source: The Hackett Group’s annual GBS performance study, 2015
8,0
9,0
8,0
8,4
8,3
8,2
6,0
6,2
5,9
5,2
6,0
5,9
Finance
Human Resources (HR)
Information Technology (IT)
Indirect Procurement
Direct Procurement
Overall
Customer Satisfaction (10 point scale)
Peer World-class
u How mature is Shell’s Customer-to-Cash organisation in terms of customer experience management? E.g. culture, use of technology, skills and talent, service design etc.
u Do Shell Business Operations undertake customer / stakeholder satisfaction surveys on a regular basis? How are the results of the surveys used to drive customer experience improvements?
Discussion
Half of all GBS have defined a digital transformation strategy, but lack resources and funding to execute
Source: The Hackett Group’s annual GBS performance study, 2017
14%
10%
1%
7%
47%
26%
30%
31%
33%
53%
57%
49%
6%
11%
11%
13%
Digital transformation resource allocation and funding
Digital transformation strategy definition
Understanding of digital transformation enabling
technologies
Digital transformation initiatives definition
Capability levels for aspects of digital transformation in GBS
None Low Moderate High
Low
Low
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Peer
World-class
Digital transformation is expected to contribute most to GBS agility and productivity improvement
Source: The Hackett Group’s annual GBS performance study, 2017
1%
6%
1%
23%
19%
13%
7%
17%
7%
13%
39%
33%
47%
40%
29%
37%
24%
23%
29%
34%
44%
47%
50%
54%
14%
14%
6%
7%
7%
6%
9%
Profitability improvement
External customer experience improvement
GBS operating cost reduction
Internal customer experience improvement
Improved management information
GBS productivity improvement
Improved GBS agility
Expected improvement achieved by Digital Transformation in GBS in 2-3 years
None Low Moderate High Don't know
Moderate
High
Peer
World-class
Moderate
Moderate
Moderate
High
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
u How defined and developed is Shell’s digital transformation strategy from an Customer-to-Cash perspective?
u •Could you please share examples of initiatives included in Shell’s Digital Transformation roadmap that will impact (or are already impacting) Customer-to-Cash?
u What expectations does Shell have in terms of how digital will contribute in terms of agility and productivity improvements?
Discussion
Any questions?
Siobhan Riggott
Customer-to-Cash and Global Business Services Advisor
The Hackett Group
Thank you
Michal Fic
Global COC Process Excellence Manager
Shell
