sharedserviceslink.com - How to sustain performance excellence when you near of offshore

DSG international plc

How to Sustain Performance
Excellence When You Near or Offshore

Ian Duffield

© Copyright DSG international plc 2006
DSGi plc Confidential

DSGi plc

Contents:

1. DSGi structure and history
2. SSC/Client structure & relationship
3. SSC location selection criteria
4. Why training and education?
5. Training elements
6. Education elements
7. Considerations
8. Questions?

18/03/09 © Copyright DSG international plc 2006

DSGi plc

DSGi plc
Dixons Store Group International trade through 1,450 stores and
online stores
2006/07 turnover was £7.4 billion
Spanning 28 countries and employing 40,000 people

3

DSGi plc

DSGi Shared Service Centre
UK accounts payable operations moved into a UK Finance
Transaction Centre in Hemel Hempstead in 2006.
Shared Service Centre went live in Brno, Czech Republic in
August 2007. UK & French AP operations relocated to Brno.
Nordic AP operations relocated to Brno in 2008.
Additional functions also now handled:
- Customer Credit Agreements
- Transactional Credit Control
- Transactional Customer Service/Customer Operations
- Cashiers for BACS/Cash in store payments
- Some central and inter-company finance functions

4

DSGi plc

Client structure & relationship
Tier - 1
Local Centre Responsibility:
Tax, regulatory, legal, country
specifics, decision support,
business facing etc.

Tier – 2
Regional Centre Responsibility:
Language, Credit control, Tax,
regulatory, SSC overflow &
cover.

Tier – 3
Group SSC Responsibility:
Transaction processing, low level
queries, report preparation, day-
to-day operations.


DSGi plc

Selection criteria: Why Brno?
“Location!, Location!, Location!”

Central Europe with it’s own airport with direct links to the UK.
Less than 3 hours from the UK.
Less than 2 hours from 3 other cities with UK-linked airports:
Vienna, Bratislava and Prague.


DSGi plc

Selection criteria: Why Brno?
Demographics – young population, several universities.
Good language skills.
Accessibility, (you have got to get your trainers and support staff in
and out).
Existing Finance SSC presence, (experienced staff available).
Presence of other big companies, (skills and culture already
embedded).
Good investment support, (Czechinvest prepared to financially
support training and education).


DSGi plc

Why Training and Education?
Bok’s Law: “If you think
training is expensive, try
ignorance”.
Objectives:
To support a world class
Shared Service Centre by
providing high quality training
to the staff.
To produce excellent
professionals through systems,
process and procedures
training; education and
understanding; and business
and operational knowledge.

DSGi plc

Why Training and Education?
In order to produce excellent staff who are able to give the standards
of service required they must understand:

1. What to do - Training
2. How to do it - Training
3. Why they are doing it – Education

No 3. is just as important as 1. and 2.
If you wish to automate you must have systems which are designed
to deal with correct transactions. In addition to processing the
correct transactions the staff need to know how to deal with the
incorrect transactions.
If they know WHY they do what they do, then they will know how to
deal with those problems when they arise.


DSGi plc

AP Training Elements
Primary Systems: Support Systems:
- Ledger Microsoft Office
- Invoice matching system applications?
- BACS payments system Telephone system
Secondary Systems: Locally operated databases
- Sales order entry system Warehouse systems, (e.g.
- Alternative payments method, short shipment notifications)
(cheques) Buying systems, (e.g. order
cancellation records)
Returns systems, (e.g.
Return to manufacturer
authorisations


DSGi plc

Primary Systems Training Elements
Ledger: Invoice handling:

Supplier account creation & Invoice processing, (speedkey)
maintenance Merchandise invoice matching
General expense coding
Day-to-day account
management Exception handling
Invoice & GRNI cleardown
Payments processing
Reporting
Reporting


DSGi plc

Primary Systems Training Elements
Payments system:

User and account
maintenance
BACS Payments


DSGi plc

Secondary Systems Training Elements
Sales Order Entry systems Alternative Payments:

PO inquiry Automated, pre-printed
Receipts inquiry cheque production
Recognising directs/alternative CHAPS and wire
delivery addresses transfers through Group
Recognising cancellations Treasury


DSGi plc

Education Modules
Corporate and divisional structure
Local/divisional business model variances
Accounts Payable functions and principles
Purchase to Pay process
Customer Service
VAT legislation
UK Contract Law


DSGi plc

Training Considerations
Who is your training team?
Do you need trainers from multiple divisions/businesses?
Do you need to train other non-operational staff, e.g. Managers.
Do you use local experts or do you use external trainers?
- If experts can they also do their day job while training?
If local experts do you need to train the trainers?
- Just because they are experts doesn’t mean they can train.
Do you bring in trainers from your systems providers?
Do you bring the trainees to you or do you send the trainers to
them?
- Beware of exporting inappropriate culture.


DSGi plc

Other Considerations, Examples:
Do common terms and conditions of purchase exist across all
aspects, (i.e. group/division/subsidiary). If not do you seek to
implement them, or at lest align them as much as possible?
If not already, do you seek to apply common legal jurisdiction
over legal disputes with suppliers?
If not, do you need to become familiar with contract law in other
countries if you want to roll out contract law training?
Do you need to consider moving controls, e.g. do you need to
devolve your controls down to cost centres instead of your AP
team?
Do you need to train your cost centre managers or other invoice
approvers?
- Purchase to Pay operations and principles.
- Contract law and negotiation, (or just pain common sense).


DSGi plc

Local Experts
Do you keep local support experts in place?

Be careful about “fire and forget”.
Consider keeping a small team of experts who understand how
the business runs and are able to understand when and how
operational changes take place.
Have your local experts engage in added value activities and let
the Shared Service Centre deal with the transactional work.
Be prepared to provide continuous support, training and
education.


DSGi plc

Any Questions?

?

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