Can a shared service center be better, i.e. more efficient (quantitative aspects) and more effective (qualitative aspects)? How can performance be measured? What is the gap between our shared service center and the best ones?
Did you know that the most enterprises manage their shared service centers in form of cost centers, while a profit center model would be better for them in terms of delivering of the value added for the whole enterprise, customer orientation, operative cost cuts and shorter period of amortization? And although such instruments of continuous improvement as six sigma and total quality management (TQM) contribute to increased productivity and process standardization, only a few companies can successfully use them. The most shared service centers have relative big potential of improvement regarding the process and service standardization. Companies also experience problems with implementation of a complex internal control system, which could support them to transparently measure the performance and to deliver relevant information for strategic and operative management.
But: over 50 per cent of shared service centers use benchmarking as the instrument to measure performance. There are some performance measure tools available online, which deliver the gap analysis between our shared service center and the best in the class.
As the findings of a current study of The Hackett Group show, 65 per cent of companies could cut the costs of the finance function by minimum 21 per cent implementing the shared service organisation model. In some cases the cost reduction was up to 60 per cent. The Hackett Group expects the use of shared services to grow in the coming three years by 50 per cent.
For a shared service center to be successfully implemented, good leadership is needed. The reason why shared service center projects can fail is among others not sufficient support offered by the top management.
Six sigma, leadership for shared services, centralisation within decentralisation, the question of efficiency and effectiveness, profit center vs. cost center, process and systems harmonization, shared services vs. outsourcing and many other interesting topics will be presented in form of presentations, round-table discussions and case studies during the event “Financial Shared Services 2009” organized by Axiom Groupe and held on 17-18 September 2009 in Barcelona, Spain.
Why not learn the way to zero-defect quality and prolong the summer, spending a few days in Barcelona?
Magdalena Szarafin has immense knowledge of the outsourcing sector and is one of the authorities in shared services and outsourcing industry analysis. Her research interests include insourcing and outsourcing in connection with the value chain. She is an author of many publications dealing with outsourcing, knowledge management and total quality management (TQM).
Magdalena lives in Frankfurt, Germany and she works as an International Management Accountant in a big multinational group, dealing with preparation of financial statements under IAS/IFRS and local GAAP. In her leisure time she prepares a PhD dissertation focused on shared service centers.
Contact her to leverage her knowledge and in-depth BPO and shared services industry penetration experience.
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