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Presentation for 11th GCC Shared Services Centers and e-Services Quality Excellence Conference 29-Jan-2013 ANIRVAN SEN ([email protected] ) LinkedIn: ae.linkedin.com/in/anirvansen/

Shared Services Strategy in Emerging Markets/GCC

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This presentation was shared at the 11th GCC Shared Services event in Dubai. Focuses on how to manage shared services in emerging markets

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Page 1: Shared Services Strategy in Emerging Markets/GCC

Presentation for

11th GCC Shared Services

Centers and e-Services

Quality Excellence

Conference

29-Jan-2013

ANIRVAN SEN

([email protected])

LinkedIn: ae.linkedin.com/in/anirvansen/

Page 2: Shared Services Strategy in Emerging Markets/GCC

Emerging Markets - Overview

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Page 3: Shared Services Strategy in Emerging Markets/GCC

Emerging Markets - Overview

As per Wikipedia: Nations with social or business activity in the process of rapid growth and industrialization

Definition

Categories

Attributes

• Rich in mineral resources (countries in Africa, Latin America, Russia),

• Rich in human resources (China, India, Philippines)

• Rich in financial resources (countries in the Middle-East).

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• Autocracy and/or long deliberation periods

• Archaic regulation…legacy from imperial times

• Limited exposure to MNC culture

• Cultural limbo…traditions vs. western values

• Emotions and collective societal mind-set

• Inconsistency across country infrastructure

• Geo-political situational impact

• Integrity and compliance definition challenges

• Personal interpretation on process standards

• Strong emphasis on relationship management

• Power of position

• Aspirations often monetary based

• Sub-scale volume of transactions

• Preparedness on Regulatory changes

Page 4: Shared Services Strategy in Emerging Markets/GCC

Strategy

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Page 5: Shared Services Strategy in Emerging Markets/GCC

Trans-

actional

Accounting, GL

Accnt Payables

Acct Rec.

Payroll

All Other

Knowledge

Based

TAX / VAT Monthly Taxes

Annual Taxes

Fin. Reports

Stat. Books

Stat Returns

Product

Seamless integration with Stat & Tax…

Adaptation: Small mandatory presence

Establish “organization-culture” footprint &

controls

Rigorous on-boarding process

Emphasize on organization values

Aggregation: Sub-scale operations

Consolidate into hubs for key processes

Create cross-functional experts at hubs

Arbitrage: Mature / Value add centers

Achieve economies of scale

Transfer work to LCC

Automate / standardize Processes

Attract, Develop & Retain talent Big 4 skill set… impact on org culture

Special structure to manage critical talent

Accelerate systems consolidation Leverage and implement global standard ERPs

Strong focus on IT infrastructure

Emerging Markets – Model Strategy

Page 6: Shared Services Strategy in Emerging Markets/GCC

Employee Strategy

• Dissonance on benefits

• Lack of clarity on career path

• Work-Life balance importance

• Relationship over merit

Aspirations

Organization Culture

Training

• Transparency on salary variation

• Education on career options

• Balance and set expectations up-front

• Awareness on meritocracy examples

• Presence of autocracy

• Lack of clarity on goals

• Organization values visibility

• Western vs Eastern work culture

• Regular awareness on Organization values

• Manifesto of organization values

• Cultural sensitization of approaches

• Mismatch b/w education and skills

• Lack of attention on behavioral skills

• Unclear requirements for career growth

• Definition consistency on Integrity and compliance

• Comprehensive training schedule

• Highlight importance on behavioral skills

• Demonstrate importance and retribution on compliance

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Page 7: Shared Services Strategy in Emerging Markets/GCC

Operations Strategy

• Talent expectation vs. job content

• War for talent

• Cohesiveness of teams

• Job satisfaction

In-house Talent Management

Talent Sourcing

Leadership

• Ensuring right talent in right job

• Acquiring and retaining “Critical” talent

• Setup “Real” job excitement and expectations

• Foster innovation and collaboration

• Long periods on recruitment

• High Attrition

• Lack of standards and discipline

• High cost of personnel

• Creation of shared services

• Acquire competency through outsourcing

• Leaders created to manage staff

• Aggregation of goals up to managers

• Lack of ingenuity

• Create leaders rather than managers

• Assign special set of goals for leaders

• Dedicated special short-term assignments

• Significant focus on behavioral skills

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Page 8: Shared Services Strategy in Emerging Markets/GCC

Process Strategy

• Personal interpretation of guidelines

• Ad hoc approach on execution

• Multiple manual touch points

• Manager intervention

Standardization

Measurement

Quality

• Well-written policies

• Demonstrate policy adherence

• Standardization and automation

• Limited performance management

• Emotions vs. factual

• Lack of baseline standards

• Repeat issues

• Implementation of KPIs/Key metrics

• Structure to mitigate under-performance

• High levels of inefficiency

• Dependent on personal effectiveness

• High amount of re-work

• Setup quality/process improvement cells

• Create a culture of continuous improvement

• Leverage global methods like 6-sigma, LEAN

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Page 9: Shared Services Strategy in Emerging Markets/GCC

Technology Strategy

• Large nr. of approvals

• Absenteeism of approving authority

• Lack of records for verification

• Lack of reporting mechanism

Automation

Infrastructure

ERP

• Implement workflow tools

• Rationalize approval structures

• Inconsistent Connectivity

• Challenge with outside office hour support

• Lack of discipline with access rights

• Create a separate structure for critical processes

• Infrastructure IT policy and guidelines

• Excel spreadsheet proliferation

• Implemented ERP not effective

• Outside processing possibilities

• Importance of choosing the right ERP

• Leverage Software as services

• Mandate 100% system usage

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Page 10: Shared Services Strategy in Emerging Markets/GCC

Questions and Answers

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Page 11: Shared Services Strategy in Emerging Markets/GCC

THANK YOU

ANIRVAN SEN ([email protected])

LinkedIn: ae.linkedin.com/in/anirvansen/

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Page 12: Shared Services Strategy in Emerging Markets/GCC

Anirvan Sen

Industry expert worked in several Fortune 500 companies across the globe. Experience derived from cross-functional roles involving large scale transformation using LEAN six-sigma, Talent Management, Shared Services, IT and Sales. - Ran global delivery model setup for BPO vendors, strategy for shared services in the Middle-East and Africa region and prior to that ran the Quality organization for EMEA operations of Shared Services. He also ran initiatives in China, ASEAN, ANZ, Brazil and US. - Cross-pollinator of ideas and result-oriented. Specializes in successfully leading "cost-neutral" initiatives (ROI: 2-3 years) - Regular speaker, chairperson and panelist at various Shared services, Quality and Technology conferences. Regular contributor to Shared Services publications - Behavioral Skills: Myers-Briggs Type Indicator - E.N.T.J. - Born Leader (Field Marshal) Specialties: • Business Strategy and Transformation; BPO/Shared Services • Project/Program Management Office (PMO), Process Excellence, Change Management • LEAN six sigma (Master Black Belt, certified Black-belt), Theory of Constraints (TOC) • ERP/Technology Implementations: Oracle, Siebel, SmartStream Financial

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