Planning and Launching Shared Services Boot Camp

Workshop D10.00 am : 12.30 pm3.40 pm : 6.00 pmMonday 24th May, 2010

Planning & Launching:Prepare for Shared Services and Outsourcing

Week with your own Shared Services boot camp

European Shared Services &

Outsourcing Week 2010

1

2

Purpose of this Workshop

Need to get up to speed on the basics before you can fully embrace the main sessions?Perhaps you’re in the early phases of your journey and want to ensure that you are headed in the right direction?Have you been disappointed with shared services so far and feel like a change in direction or even a turnaround plan is required?Or maybe you’re completely new to shared services and would like a crash-course in the fundamentals?

Designed to take both complete beginners and less mature practitioners through the key decision points and critical success factors for any Shared Services implementation this session will include: definition,scope, technology, location, resourcing, process reengineering and realignment, insource vs. outsource, the business case and project governance and control.

3

Agenda Broken Down

IntroductionsWhat exactly is Shared Services?Vision and CharterCritical success factors for any Shared Services implementationProject scope (depth and breadth)Critical importance of the “customer”People and organisation structuresSystems/technology and ERPProcessesConsideration of outsourcing as a possibilityThe location decisionProject approach (resourcing, timelines, etc)Cost-Benefit Analysis/ROIConsidering the role of benchmarkingCompliance considerations when internationalising Shared ServicesPossible next stepsSome Additional Tips and Tricks

4

Agenda Broken Down Into Time Slots

10.00 am to 11.00 amIntroductionsWhat exactly is Shared Services?Vision and CharterCritical success factors for any Shared Services implementation

11.10 am to 11.30 amBreak

11.30 am to 12.30 pmProject scope (depth and breadth)Critical importance of the “customer”People and organisation structuresSystems/technology and ERP

12.30 pm to 3.40 pmGeneral Session and Lunch

5

Agenda Broken Down Into Time Slots

3.40 pm to 4.40 pmProcessesConsideration of outsourcing as a possibilityThe location decisionProject approach (resourcing, timelines, etc)Cost-Benefit Analysis/ROIConsidering the role of benchmarking

4.40 pm to 5.00 pmBreak

5.00 pm to 6.00 pmCompliance considerations when internationalising Shared ServicesPossible next stepsSome Additional Tips and Tricks

6

Introductions

7

What Exactly is Shared Services?

8

Definition and Goal of Shared Services

Shared Services…is the organisation that provides non-core Services to the business, employing a specialist team, geographically unconstrained, and focusing on the requirements of the customer. This involves a philosophy and approach totally unlike traditional Corporate-driven centralisation.

The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself.

Shared Services achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, standardized end-to-end processes and best practice.

The Shared Services Story to Date

Shared Services Concept started in late 1980’s/early1990’sStarted with Finance Transaction ProcessingConcept driven by MultinationalsMultinational SSC Hubs in Europe –Amsterdam, Manchester, Scotland, DublinLate 1990’s early 2000’s expansion to – HR, IT, etc Now being adapted widely in Public SectorOffshoring, Nearshoring, BPOSSC moving up the Value Chain

9

Why is Shared Services different to Centralization?

Demarcation

Another corporate function

Rare

Cost reduction and central control

Corporate

Centralization

PartnershipResponsibility

An independent unitClassification

WidespreadService Partnership Agreements

Service excellence and continuous improvement

Key Performance Targets

Business unitAccountability

Shared ServicesAttribute

11

Shared Services• Philosophy and approach totally unlike

traditional centralization of services.• Focus on service to the customer.• Requires collaboration.• Achieves its goals through:

• leveraging economies of scale• technology• organisational realignment• best practice• end-to-end process re-engineering

Centralization

• Focus on cost savings.

• Decision making is concentrated in a specific area or group.

• Less focus on meeting service needs of customers/clients.

Shared Services vs Centralization

12

The Benefits

When implemented, managed and controlled properly, Shared Services can achieve the “triple benefit” of:

1. Improved service levels2. Delivered in a more efficient manner3. And supporting an enhanced control environment

Additional Benefits;• Standardization of processes which supports centralization and

automation (including ERP deployment)• Ability to really look “end-to-end” at processes to eliminate

redundancy, duplication, handoffs, loop backs, etc• Empowering the Shared Services team to learn new things and work

in a dynamic and exciting environment• Engendering a culture of continuous improvement and recognition of

performamce• Improves quality and integrity of data which supports faster and better

decision making

13

14

The Potential Scope of Shared Services

Shared Services

InformationTechnology

EmployeeServices

Finance &Accounting Legal Real Estate

& Facilities

The “Core” Business

Customers:Business Leads

Field OrganizationEmployeesCustomersSuppliers

Regulatory Authorities

CustomerSupportLogistics Consulting

Services

15

The Potential Scope of Shared Services

Human Resources– Payroll– Travel & Expense– Compensation Administration– Benefits Administration– Records Management– Training & Development– Relocation Services– Evaluation Planning/Review– Policies & Procedures– Labor Relations– Recruiting/New Hire On-

boarding– Headcount Reporting– Succession Planning– Employee Recognition

Systems

Information Services– Desktop Support– Application Maintenance– Telecommunications– Hardware & Software– Application Development– Data Center Operations– Standards– Technology Planning &

Development– Acquisition Support– IT Security

Finance– Accounts Payable– Billing/Accounts Receivable– General Ledger– Consolidations– External Reporting– Planning and Budgeting– Treasury/Cash Management– Internal Audit– Tax – Foreign Exchange– Business Support Analysis– Financial Reporting– Project Accounting– Cost Accounting– Lockbox Services– Records Management– International Accounting

Supply Chain Management– Procurement– Transportation & Logistics– Strategic Sourcing– Warehousing– Inventory Management– Vendor Management

Customer Service– Call Centers– Credit & Collections– Order Management– Returns Processing

Legal/Corporate Affairs/Administrative Services/Other

– Travel Services– Real Estate– Facilities/Site Services– Fleet Management– Security– Communication Services– Environment, Health & Safety– Regulatory Compliance– Public Affairs/Media Relations– Litigation Support &

Coordination– Insurance– Mailroom– Grants Management– Health Clinics/Day Care

Centers– Corporate Brand Compliance– Engineering– Subsidiary Management– Emergency Management

Source: Scott Madden & Associates

16

Shared Services Moving Up The Value Chain

Shared Services is moving up the “value chain” from the traditional more transaction based Shared Services up into the provision of professional and technical support services.

An Example for Finance & Accounting:

Transactional/Administrative

• Consolidations

• Inter-company Accounting

• Credit

• Collections

• General Ledger

• Fixed Assets

• Accounts Payable

• Sales Reporting

• Accounts Receivable

• Claims Processing

• International Accounting

• Cost Accounting

• Indirect Tax/VAT Administration

Professional/Technical

• Corporate Purchasing

• Revenue Accounting

• Management Information

• Treasury

• Trade Compliance

• Corporate Tax Planning

• Indirect Tax/VAT Planning

• Planning & Analysis

17

Critical Success Factors for any Shared Services Organization

18

Critical Success Factors

What are some of the main critical success factors and constraints:

Senior management supportKey stakeholders/steering committeeWhat is the overall governance model for the project? Project resource availability (internal and external)Team experience, training, motivation, recruiting &retentionAnticipated timelineOrganisational designBudgetAbility to meet all local, legal, statutory and tax requirementsAbility to comply with all employment legislation in all impacted jurisdictions, etcBusiness perception of the initiativeCurrent technology footprintAcquisitions

See chart at next slide

19


Customers

Technology Processes

People


20


Customers

Technology Processes

People


Service orientation in placeStructured way of dealing with customersCustomer satisfaction levels understoodSLAs in placeReality versus perceptionAccount management

Processes documentedStandardized, controlled & repeatable activityRecharging methodologyBenchmarking capability –internal/externalMetrics: (i) Control Based(ii) Efficiency & Effectiveness

ERP implementedDocument Scanning SolutionWorkflowAutomated PaymentsElimination of Side SystemsSelf services toolsAutomated Score Cards Skilled Leadership in place – do not compromise on competencies

Team shape & stability – process shaped/spans of control/staff – perm v tempsTeam members – culture, values & behavioral competencies assessed Team morale, reward & retentionWorking environment conducive to team working

21

Project Scope

22

Project Scope

What functions and services are "in scope" or possibly "in scope" at this stage?What legal entities are “in scope” or possibly "in scope" at this stage?What countries are “in scope” or possibly "in scope" at this stage?Which business units will be affected by the project?What key assumptions should be made around scope (e.g. is there a “hard and fixed” end date, has the project been “sold” internally yet?)Are there any details on current banking structure that support the operations (e.g. do you have one global banking partner or a number thereof?)Is there any information on the tax structure of the group and how inter-company transactions flow between group companiesIs outsourcing an option, even if in just selective areas? (see later slides)

23

Critical Importance of the Customer

24

Critical importance of the “Customer”

Who is our “customer”, both internal and external?How do we define customer satisfaction?How do we currently measure customer satisfaction today?What are the potential key benefits to our customers of Shared Services:

– Higher levels of service (faster/better)– Lower cost of service (cheaper)– Tighter control environment (control)

Do we understand customer requirements?How do we interact with the customer today, and how do we plan to do so under Shared ServicesDo we have any Service Level Agreements (SLAs) in place today?What are the hurdles that we need to overcome in introducing a customer focussed Shared Services Organisation, that meets the needs of the Business?

25

Example Shared Services Delivery Framework

BalancedScorecard

Creation of SLAs

Delineation of roles and responsibilities

between SSO and other functions/ local regions / businesses

Standardised processes and sub-processes across all functions

26

Example Customer Communication Mechanism

Communication Mechanism

External Customer / Supplier Survey

(Annual)

Regional/Customer

Forum (Monthly)

Internal Customer Survey

(Bi-Annual)

StrategicReview Forum

(Quarterly)

Regular Customer

Calls(Weekly)

27

Service Partnership Agreements

SPAs to cover following key areas :Fundamental Operating Principles

Communication ChannelsOwnership of Process, System and DataAvailability of Service ProvisionCharging MechanismSpirit of Co-operation

Performance reportingIssue resolutionOperating metrics (including targets)Process/Sub process –Definition/breakpoints/dependency/criticality

28

People and Organisation Structures

29

People & Organisation Structures

Who are the project’s key sponsors?What is Executive Management’s view of the project?How will the new Shared Services organisation be structured (e.g. will it be a separate BU, Legal Entity? (see next couple of slides)What will the communication plan be and how will we involve other groups (e.g. involvement of HR, Legal, IT etc.)?Current organisational design for in-scope functionsIf a separate BU or Legal Entity how do we plan to charge for services?What is the anticipated end-state headcount?Have we done any benchmarking to determine desired end-state (organisations, reporting lines, headcount and costs)What are the Company’s current HR policies in regards to redeployment, relocation, redundancy etc?What are the main Change Management issues and requirements (internal to project team and external to impacted groups)

30

Shared Services StructureOption 1 - All support functions consolidated into a single support services business unit

AdvantagesEasier to promote a service culture and consistent service levels Improved visibility and management of service offeringsReduces risk of service groups working in silos, focus is on supporting end to end processes for each operational BUService costs in a single pool promotes clear decision making for operational BU’s as to what services they want and do not want

DisadvantagesChange to existing Corporate structureMay increase management structure if corporate and shared services split too finely

31

Shared Services StructureOption 2 - Retain existing Corporate structure but adopt shared services philosophy and perhaps chargebacks

AdvantagesNo significant change to existing Corporate structureWill improve service culture and visibility of service costsWill improve overall control environmentSome economies of scaleFaster implementation

DisadvantagesNot so easy to adopt consistent service levels across all support groupsLess leverage for economies of scaleLess visibility and management of total service offeringsRisk of service groups operating in silos and not supporting end to end processesTotal support costs and opportunity cost of one service versus another not as clear

32

Systems, Technology and ERP

33

Systems & Technology

What is your main ERP Platform today?Is the current ERP platform an enabler for Shared Services?How many instances are there of your main ERP platform?How many other main systems are there supporting the operation?How are these integrated/interfaced?What is the current assessment of IT hardware and communication links?What is the level of systems expertise and understanding in the organisation?How good is the training regimen?How good is the workflow technology?What is the overall level of automation of processes?How is management reporting carried out both in the centre and in the field?Will required IT resources be available for the project?

34

ERP Defined

The term enterprise resource planning (ERP) was coined by Gartner Group in the 1990s.

Enterprise resource planning (ERP) software places its focus on integrating an organization’s departments (i.e., finance, HR, warehousing, etc.) and functions onto a single integrated computer system that aims to serve all those different departmental needs.

Source: Koch, 2002

35

ERP & Technology Enablers and Barriers to Shared Services

ERP systems are the most important enabler for Shared Services “with 92 percent describing them as important or very important”Source: October 2006 Shared Services Centre Survey, Conducted by SharedXpertise

Conversely, according to the SharedXpertise 2006 F&A Transformation Survey, “the most significant barrier to F&A transformation is technology”.Source: December 2006 F&A Transformation Survey, Conducted by SharedXpertise in association with HP

36

Benefits of ERP

Fully integrated and enables powerful reportingOffers international functionality (multi-lingual, multi-currency, multi-level reporting capability)

Enables visibility of dataActs as a platform to facilitate mergers & acquisitions integration

Built around standard rule-driven best practice business processes

Can significantly cut run-rate operating costsCan significantly reduce application maintenance and licensing costs)

Helps an Organisation to move towards real Employee Self Service for employees, any time and any place.

37

Other Potential Technology Enablers

Imaging/Document Archive and Retrieval TechnologyOptical Character Recognition Software (OCR)E-Invoicing networksElectronic Funds TransmissionEvaluated Receipt Settlement (ERS)Electronic Data Interface (EDI)Interactive Voice Response (IVR)Vendor Managed Inventory (VMI)Web Invoice Enquiry & ApprovalWeb Portals“Packaged Solutions” (ERP Technology Partners)The emergence of “Middleware”.

38

Processes

39

Processes

Importance of an end-to-end process viewSystem sits on everyone’s desktop and mirrors everyone’s specific daily work routineActivity based data is captured by customer, work and categories of rework dimensionsLeaders set targets for unit of time, transaction volumes and backlogs. Unit cost and total cost establishedMembers of the teams record actual data as they do the workOutput generated provides individual and team based balanced scorecard informationData essential for supporting improvement initiativesSuccess of initiatives can be tracked over timeUse of process improvement tools such as Six Sigma, ABC, etc

40

Procure-to-Pay Process

Receive Goods orServices

Approve Purchase

Requisition

RaisePurchase

Requisition

Receive PurchaseInvoice

PostPurchaseInvoice

Approve PurchaseInvoice

Pay PurchaseInvoice

Raise &SendPO

PostReceipt to

GL

41

Collect Cash

Post to Inventory

& AR

Ship ProductOr

Deliver Service

ReceiveSalesOrder

RaiseSales

Invoice

AuthoriseCustomer

Credit

Post to AR & Cash

Schedule Delivery

Order to Cash Process

42

Raise JobChange

Requisition

RegularlyAppraiseEmployee

RecruitEmployee

Raise Employee

Requisition

Set up onBenefits& Payroll

AuthoriseEmployee

Requisition

Approve JobChange

Requisition

AdjustBenefits& Payroll

AdministerBenefits& Payroll

Post to General Ledger

Fire orRetire

Employee

Hire to Retire Process

43

RunManagement

Reports

Integrate withData

Warehouse

CloseReporting

Period

CaptureData

ReconcileAccounts

Post to GL&

Cost Centre

RollReportingPeriods

RunTrial

Balance

ProduceExternal Reports

Data Capture to Report Process

44

Business Process Outsourcing

45

Is Outsourcing something that should be considered?

The provision of BPO services is a rapidly expanding market

Any “non-core” service can in theory be considered for outsourcing

Can achieve short term “quick win” in terms of “solving a problem” and reducing costs quickly, but be careful of losing control and giving away future margin potential to a third party.

The “attitude” to outsourcing also depends on other factors as well such as Company culture, risk sensitivity and the level of development and maturity of any existing shared service functions

Outsourcing can be used as a “lever for rapid change” and can help meet regulations such as TUPE where employees are transferred to the third party

Outsourcing can also help you achieve “flexibility”, but be careful of thinking that this means you do not have to think about the provision of these “mission critical” non-core services

46

Is Outsourcing something that should be considered? (cont.)

Outsourcing can allow you to get the benefits in terms of reduced costs by “offshoring to a third party”

Be careful of “outsourcing a mess” to achieve perceived very rapid short term cost savings

Transaction based services are generally easier to outsource than services further up the value or risk stream, although this is changing

Negotiation and finalisation of the contract and service levels with the third party is absolutely critical

Many of the same considerations related to offshoring also apply (e.g. political stability, timezone, language skills), as well as other considerations such as security of information, sharing of saving down the track, ability to flex up and down with volumes, etc.

47

Location Decision

48

Location

What are the possible locations for any Shared Service Centres (local vs regional vs global)What are the key criteria regarding location (e.g. accessibility, language skills, education, employment laws, telecommunication links, political or other risks, government grants)?Are there any preferences for Greenfield vs Brownfield Determine the economics of short-listed locations (e.g. labour costs, real estate costs, telecoms costs, tax impacts)What are the key internal considerations affecting any location decisions?Are there any relevant tax considerations affecting or influencing these location decisions?What assessment have we done regarding local Employment regulations and the movement of roles across borders?

49

Project Approach

50

Example Shared Services Roadmap

StrategySetting

BusinessCase

Design Build Migrate Stabilise Optimise

Timeline

Key Deliverables•Vision, goals and expectations•Project scope•Critical success factors•People and organisation structures•Systems/technology•Processes•Locations•Project approach (resourcing, timelines, etc)•Cost-Benefit Analysis•Identification and discussion of key risks to the project and how to mitigate them•Go/no go decision point

•Detailed implementation plan•Detailed change management plan•Effective project management•Steering Committee and Governance •Develop Service Delivery Framework• Instigate customer user forums• Design and introduce SLA discipline•Pricing and chargebacks•Marketing and “selling”• Drive and deliver SOX 302 and 404• Roll out and train on SAP• Pursue decommissioning of legacy systems• Roll out document management and imaging • Improve operational functionality• Establish team communication framework• Build and develop leadership team• Reshape team environment •Develop programme office and reporting mechanism

3 months 3 to 15 months 15 months +

ExpandScope

•Post go-live support•Optimise process structures•Continual training•Leverage technology enablers•Expand scope

51

Project Team

SAPConfigurationTeam

BusinessProcess Owners

& Customers

Business ProcessIntegration

Team Platform/Project &Change Mgt

Transaction/Service

Transition/Testing/Training

Key attributes :1) “Just enough”

consultation2) Rapid implementation3) Working to

predetermined template4) Wide, Fast, Effective

Communication5) Think global, act local

52

Cost Benefit Analysis/Return on Investment

53

Cost-Benefit Analysis

What is the anticipated budget?Is there any budget available from existing budgets?What are the key benefits anticipated to be derived from the project? (Hard and Soft. Cheaper - Faster – Better)Can we put a $ amounts on these?What other benefits are there that are difficult to put a monetary value on at this stage?How would we assess the current infrastructure and control environment in terms of effectiveness, efficiency and scalability?What have been the conclusions and questions resulting from any cost-benefit analysis carried out for the initiative to date?What other qualitative drivers are there for Shared Services?What is the baseline against which to assess the success of the project?What is the Group’s cost of capital?Do we have target paybacks, ROIs, etc?How do we currently measure service levels?

54

Do We Want to Benchmark Externally?

55

Key Strategies to Address Compliance

56

Definition of Compliance and Other Business Services

Compliance… is the requirement to meet all rules and regulations, relevant to the enterprise, that are imposed and enforced by external bodies, and apply across all jurisdictions and across the full scope of operations

Necessary Business Services…covers the people, processes and activities that are deemed necessary to support ongoing business operations, other than those required to meet legal or other compliance requirements.

Business Support Services…covers the people, processes and activities that are not mandatory, but are paid for, resourced and provided to support and add value to the business.

57

“Compliance” Examples

Group External Reporting ComplianceInter-Company Revenue/Margin/Cost AccountingPublic Filing Requirements (e.g. NYSE, NASDAQ, London Stock Exchange etc.)International Reporting Compliance (IAS, IFRS)Company Secretarial WorkLocal Statutory Compliance and ReportingLocal Company Tax Compliance and ReportingLocal Indirect Tax (VAT) Compliance and ReportingLocal Trade Compliance and ReportingLocal Payroll Tax Compliance and ReportingLocal Employment Law Compliance and ReportingHealth and Safety

58

“Necessary Business Support” Examples

Accounts PayableAccounts ReceivableCreditCollectionsClaims AdministrationTreasuryPayrollBenefitsExpense ProcessingSupply ChainLogisticsCustomer ServicesSite ServicesSecurity

59

“Business Support Services” Examples

Financial Planning and ReportingAnalysis and Decision SupportStrategic Tax PlanningStrategic Real Estate PlanningDirectors & Officers InsuranceEmployee Communications & DevelopmentCompensation PlanningCorporate Purchasing

60

Key Compliance Strategies:(i) Understand the Requirements

Understand the real issues (be wary of “smoke & mirrors”)Engage local controllers and ask for their inputArrange workshops where compliance related matters are discussed and documented and solutions agreed there and then or for follow up laterConsider working with external “expert” to verify and address local requirementsTalk to others who have done this beforeMake an assessment of risk in each case

61

Key Compliance Strategies:(ii) Use of Local Compliance Checklists

Location of financial books and records forStatutory requirementsTax authorities’ requirements

Format of financial books and recordsBookkeeping – details of information/accounts required to be maintainedLedger requirements – organisation and official approval requirementCharts of accounts (COA)Maintenance of financial books and records in local currency

Financial statementsTax returnsOutput invoicesPurchase orders and payments

Official language requirementsStatutory retention periods for books and records

Statutory requirementsTax authorities’ requirements

62

Key Compliance Strategies:(ii) Use of Local Compliance Checklists

Reporting requirementsFinancial reporting – form of statements and filing deadlineSpecial reporting requirements (where applicable)Corporation tax returnsVAT returnsIntrastatEC Sales Lists

Documentation of computer systemData ProtectionStatutory audit requirementsPayment methodsSoftware audit

Software audit requirementsAudit trail

Supplier invoice formatRecharging costs HR issues

63

Key Compliance Strategies:(iii) Local Legal, Statutory and Tax Requirements

Are there local document retention and filing requirements? Understand what these are on a country-by-country basisAssess real risks and possible mitigation approachesWork with local experts as necessary

Many local statutory differencesHarness your ERP system's flexibility to provide multi-level reportingCarry out risk assessment and adapt approach to meet each local entity and region’s specific requirements (“think global, act local”)Need to ensure full understanding of compliance is incorporated into the new system and process designGlobal Chart of Accounts may need to be augmentedUse of ERP Fixed Asset and local Indirect Tax functionalityPossible use of Special Purpose Ledger (SAP)Use of foreign language character sets

64

Key Compliance Strategies:(iii) Local Legal, Statutory and Tax Requirements

Do we operate in a multi-language environmentUnderstand what these are on a country-by-country basisEnglish is not always an optionSkills base at Shared Service Centre needs to include fluency in key local languages (e.g. English, French, German, Italian, Spanish, Mandarin, Japanese, Korean)Leverage SAP or other ERP Foreign Language Character sets to allow local language characters to be used to meet local requirements (e.g. for Japan, China and Korea)

65

Key Compliance Strategies:(iv) Other Strategies

Within Asset Accounting have a country specific Chart of Depreciation to meet Group, Statutory, Tax and Reporting Currency requirementsAdapt paperwork flow and storage to meet different local requirementsTalk with and get specified agreements from local regulatory bodiesMake sure that local company addresses and VAT registrations allow you to meet compliance regulations, while still moving to a Shared Service modelHire targeted “in-house” experts and put in a program of detailed training for SSC employees (e.g. in AP and Expenses)

66

Possible Next Steps

67

Possible Next Steps

Next steps after approval to proceed should involve a full scoping, blueprinting and business case. This would include:

– Sitting with and presenting to key stakeholders– Mapping current state, “as is” processes, opportunities,

challenges and anticipated future state– Identifying and clearly stating key assumptions and critical

success factors and how they should be tackled– Identifying and finalising resourcing requirements and costs

(internal and external)– Highlighting and finalising key functions, services and

processes to be included in-scope– Identifying and finalising regions, people and legal entities that

are likely to be impacted by the project– Mapping anticipated “end-state”– Completing a revised and finalised cost-benefit analysis– Drafting an overall project plan including scope and timelines– Moving forward with implementation

68

Some Additional “Tips & Tricks”

69


1) Senior level Executive sponsorship is key. Make sure that key executives understand and support the roll-out.

2) It is really important to distinguish between “solutions” vs “quick fixes”.

3) A culture of innovation and continuous improvement is critical. A passion for value ensures success in the longer term.

4) Proper base-lining and a clear business case is key. Budgets need to be set and managed to.

5) Do not underestimate the change management required for any such initiative, including a turnaround.

6) Carry out regular communication with all relevant stakeholders. 7) Assign your best resources and people to the project. 8) Remember that training is key.

70


9) Remember, an ERP system is an “enterprise” system for use by the business. It is not a technology solution owned, or to be used exclusively, by the IT department.

10) Make sure that service delivery requirements are clearly understood. Then map these to the Shared Services organization and your chosen ERP system’s configurable processes. Do not simply replicate current state processes – be requirements focused and stick to best practice.

11) Follow what I call the “80/20 rule for Shared Services ERP”when deciding whether to use “vanilla” ERP functionality. If your core ERP can provide you with 80% of the functionality that you require as standard then you should go with this every time.

12) Have regular, meaningful Steering Committee meetings of key stakeholders. This should be an active Committee and not just a chore to get through unscathed every week.

71


13) Try to cleanse the data as much as possible before each main cut-over or clean-up. The quality and volume of data should be worked on early in the project and not left to the last minute.

14) Engage targeted expert outside help. Neither abdicate responsibility for the project to a third party consulting firm nor try to do the whole thing “on the cheap”.

15) Make sure your team includes regional and local expertiseand be prepared to travel to meet and work with users. Do not think that you can run the whole project from Head Office.

16) Remember always that the project does not end with “Go Live”. There needs to be adequate support post go-live and also continual training and re-training.

17) Keep working towards your goals and be relentless in pursuit of them. Shared Services initiatives are a significant commitment both in terms of resources and energy.

72

Questions and Any AdditionalThoughts or Comments

Phil Searle

+ 1 408 460 0785+ 44 7779 714 573

[email protected]

David O’Sullivan

+ 353 86 384 8573

[email protected]

Education

Planning and Launching Shared Services Boot Camp