The 7 Habits of Highly Effective Shared Service Centers

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 2
The senior staff you meet at the
introductory meeting will be
integral to the project, driving
content and available for your
questions
Operationally delivered and
consulted numerous programs
globally, over the last 25 years in
both public and private sectors
Chazey Partners is a Practitioners-led
Global Management Advisory Business,
specializing in Business Transformation of
Support Functions, including implementing and
optimizing Shared Services & Outsourcing
Operating Models, and targeted Technology
Enablement
 Strategic advice
 Business case development
 Support from concept to
realization
 Project management
 End-to-end implementation
 For new, existing and
mature Shared Services
Organizations
Service Offerings
 Finance & Accounting
 Human Resources
 Information Technology
 Procurement
 Corporate Planning
 Facilities Management
 OfficeAdministrationistration
 Legal
 Tax
 Marketing & Communications
 Other Support Services
Functional Coverage
Our hands-on approach is
delivered by our seasoned
practitioners who have ‘lived and
breathed’ a great number of
projects
Robust knowledge Transfer &
Client-focused approach to
ensure the optimum
sustainability of the solution
Who We Are

Who We Are: Founded 2006 • Global offices headquartered in California • Over 50 full-time and 70 specialist resources
What We Do: Evaluations and Assessments • Strategic Advice • Project Management • Business Continuity
Where We Focus: Transformation of Finance • Human Resources • IT • Procurement • Facilities • Other Functions
The Chazey Difference: Practitioners first • Staff Continuity• Knowledge Transfer • Client Engagement in Transformation

OUR CLIENTS
WHERE HAVE WE COME FROM
Who We Have Worked With

• Form a group of 4 different organizations
• Briefly introduce your current operation/SSC (scope, FTEs, years of operation, etc.)
2 minutes per person
• Share 2 strengths and 2 challenges of your operation
2 Challenges
•Organization
•Client
•Technology
•Processes
2 Strengths
•Organization
•Client
•Technology
•Processes
Introduction
•Business
•Maturity
•Processes
•Employees/FTEs

Level 1
Level 2
Level 3
Level 4
Level 5
Decentralization
•Local needs
•Duplicated Efforts
•Poor central controls
•Multiple platforms
Centralization
•Consistent controls
•Limited scope
•Labor arbitrage
•Lift & Shift
•Single instance of
ERP
SSC
•Client Management
•Process Efficiency
•Standardization
•Improved Controls
•Increased Scope
Global Services
• Governance Model
•End-to-end process
•Multifunctional scope
•Hybrid Model
Integrated
Services
•Value-add
•Analytics
•Data Intelligence
•Business Partner
Operating Model Maturity Level
Saving opportunities can vary from
20-40 % depending on the
implementation and success
of the model adopted

Tendency 7:
Outsourcing
Decentralization
•Local needs
•Duplicated Efforts
•Poor central controls
•Multiple platforms
Centralization
•Consistent controls
•Limited scope
•Labor arbitrage
•Lift & Shift
•Single instance of
ERP
Operating Model Maturity Level
Tendency 2:
Consolidation
Tendency 3:
Labor arbitrage
Tendency 4:
Processes
end-to-end
Tendency 5:
Client
Management
BenefitsAchieved
Tendency 1:
ERP
Implementation
Tendency 8:
Value-added
processes
Tendency 9:
Business
Partners
Tendency 6:
Multifunctional
services
Problem 2:
Inefficient processes
Problem 3:
Lack of customer
focus
Problem 1:
Ineffiicient labor
Problem 4:
High level of
exceptions Problem 5:
Shadow systems
and processes
Problem 6:
Lack of vision and
insight
POTENTIAL
BUSINESS
VALUE
SSC
OPPORTUNITY
SSC
•Client Management
•Process Efficiency
•Standardization
•Improved Controls
•Increased Scope
Global Services
• Governance Model
•End-to-end process
•Multifunctional scope
•Hybrid Model
Integrated
Services
•Value-add
•Analytics
•Data Intelligence
•Business Partner

Consistent
end-to-end
process
Evolution of
services Service internal
customer as if
external client
Technology
Utilization
Skilled
workforce
Flexible
Operating
Model
Continuous
Improvement
+
7 Habits of
Effective SSCs

#1
Procurement
Supply
Management
Master Data
Purchasing
Admin
Receipt of
goods and
services
Invoice
Processing
Reimburse-
ment
Bill
Payment
Client
Management
Period close
and reporting
Establish
policies and
procedures
purchases from
suppliers
Supplier set-up,
cancellation
and
modification
Manage and
administer
supplier
contracts
Receipt of
goods and
services
Receipt and
validation of
invoices
Application and
approval ,
disbursement
and processing
advances
Generate
payment
documents
Support
providers and
internal
customers
Reconciliations
and
adjustments
Approval of the
purchase
request
Master data
review and
maintenance
Creation of
purchase order
Identification
and resolution
of issues
Registration of
exceptions:
urgent/missing
documentation
Submission and
approval of
expenses
Set-up
Disbursement
Manage
internal and
external audit
AP aging
analysis
Negotiation
and selection
of suppliers
Management
reporting
Monitoring and
maintaining
purchase
orders
Periodic
assessment of
supplier
performance
Resolution of
price/quantity
differences
Submission and
control of
advances
Approve
disbursement
Customer
satisfication
review and
management
AP
Reconciliations
Maintenance of
purchase
requisitions
Intercompany
billings
Manage
declined
payments
Intercompany
account
reconciliations

#1
Procurement
Supply
Management
Master Data
Purchasing
Admin
Receipt of
goods and
services
Invoice
Processing
Reimburse-
ment
Bill Payment
Client
Management
Period close
and reporting
Establish
policies and
procedures
purchases from
suppliers
Supplier set-up,
cancellation
and
modification
Manage and
administer
supplier
contracts
Receipt of
goods and
services
Receipt and
validation of
invoices
Application and
approval ,
disbursement
and processing
advances
Generate
payment
documents
Support
providers and
internal
customers
Reconciliations
and
adjustments
Approval of the
purchase
request
Master data
review and
maintenance
Creation of
purchase order
Identification
and resolution
of issues
Registration of
exceptions:
urgent/missing
documentation
Submission and
approval of
expenses
Set-up
disbursement
Manage
internal and
external audit
AP aging
analysis
Negotiation
and selection
of suppliers
Management
reporting
Monitoring and
maintaining
purchase
orders
Periodic
assessment of
supplier
performance
Resolution of
price/quantity
differences
Submission and
control of
advances
Approve
disbursement
Customer
satisfication
review and
management
AP
reconciliations
Maintenance of
purchase
requisitions
Intercompany
billings
Manage
declined
payments
Intercompany
account
reconciliations

#1
SSC Director
P2P O2C R2R Hire to Retire
Advantages Disadvantages
 High efficiency  Difficult to recruit function
leaders
 Promotes standardization  Major change management
 Promotes cross-training and
automation
 Complexity of
understanding customer
 Capture synergies and improves
customer service
Business Unit #1
Business Unit #2
Business Unit #3
Business Unit #4
PaymentsBillsOrdersPurchases
Collection &
Application
BillingCreditsSales Orders
RetirementStaffing
Personnel
Admin
Recruitment and
Selection
ReportsMonthly CloseReconciliations
Journal
Entries
• Integrated model
• Improved processes
• Value-add services due to analytics and
inisght
• More than just cost savings

#2
SSC service offering s are growing beyond traditional “back office” processes and incorporating
Administration, Purchases, Legal, Marketing, Logistics and others.
SSC Tradicional SSC Multifuncional
IT Finance HR
IT
Finance
HR
Purchases
Admin
Legal
Logistics
Marketing
Sales
Effective SSCs:
 Functions
-Stable operations
-Common support areas
 Support of Senior Management
-Executive buy-in
-Mulitple stakeholders
-Big bang vs. evolutionary
 Planning
-Defined Scope
-Single center, Multiple center, Hub and spoke?
-Center of Excellence?
 Organization Model
-Breakdown silos
-New org structure and reporting

Initial Intermediate Advanced
General Services
 Communications
 Legal
 Travel
 Security
 Maintenance
 Event Management
 Graphic Design
 Branding
 Public Relations
 Campaign Management
 Health and Environmental
Security
 Risk Management
Finance and
Accounting
 Payables
 General Ledger
 Fixed Assets
 Accounts Receivable
 Reporting
 Cost Accounting
 Cumplimiento tributario
 Tesorería
 Planning Financiera
HR
 Payroll
 Compensation and Benefits
 Personnel Administration
 Organizational Structure
 Q&A
 Recruitment & Hiring
 Expatriates Services
 Personnel Development
 Medical Services
Information Services
 Helpdesk
 Infastructure Support
 Application Support
 Development
 Telecommunications
 Hardware y Software Acquisition
Customer Service
 Customer Support (local)
 Product Support
 Settlement
 Internet/SupportE-mail
 Customer Support (International)
 Call Center
 Dispatch
Purchasing
 Requisitions
 Purchase Orders
 Indirect Purchasing
 Negotiations
 Inventory Management
 Distribution/Logistics
 Master Data Management
Other Services
 Real Estate
 Facilities
 Fleet Management
 Grants Management
 Disaster Recovery
 Restaurant services
 Health Clinics
 Engineering
 Subsidiary Management
#2

#3
• Form a group of 4 different organizations – Different from the first group
• What are the main challenges faced with internal customers?
• How do you manage customer service?

Without CIF
• Lack of clarity on responsibilities
• Perception vs. reality
• Focus on negative aspects of service
• One-way communication
• Strained relationships with
customers
• Efforts required to
maintain/improve morale
With CIF
• Customer oriented
• Defined delivery expectations
• Peformance measurement and
reporting
• Enhanced service delivery and
efficiency
• Improved customer relationships
Through a formal framework:
The Customer Interaction Framework (CIF) distinguishes a Shared Services
organization from simple act of centralization and fosters a spirit of partnership
between the SSC and its clients.
#3

#3
Account
Management
•SSO to client; via reporting,
interaction, escalation &
communication
Client Contact
Management
•Client to SSO; to manage
and resolve queries and
drive learning/improvement
Service Partnership
Agreements
•SPAs are 2-way agreements
clarifying both SSO services
and client inputs
Client
Feedback
•Client satisfaction
continuously monitored
both informally and formally
Continuous
Improvement
•Mechanisms to identify the
areas for improvement and
to develop solutions
Process Control
Database
•Documents end-to-end SSO
processes; highlights
activity of both SSO & client
Performance
Measurement
•Comprehensive KPIs,
measures and metrics
framework, SSO & client
Performance
Reporting
•Process performance will be
reviewed monthly by SSO
and client
Recharging
Methodology
•Define basis for charging for
SSO services to turn
consumers into clients

• Is a single ERP platform required to run a SSC?
• What technology enablers are used in your SSC?
• How do you use social in your SSC?
#4

ERP
ERP systems under a
single Implementation
help to achieve greater
operational efficiency for
the SSC
TECHNOLOGY ENABLERS
RPA, document
management tools,
electronic billing,
automatic
reconciliations,
case management,
self-service tools
CLOUD COMPUTING
Increases capacity
through a greater
number of applications
and faster
implementations at a
lower cost
SOCIAL MEDIA
provides the SSC with
opportunities to
enhance collaboration
and share best practices,
internally and externally
Technology helps SSC provide effective, efficient service
#4

Fuente: Global Report SSON 2016
#4

• How was your SSC staffed?
• What core competencies have been determined?
• What is your compensation strategy? Industry vs. SSC?
#5

#5
Effective Communicator
• Understands how to effectively communicate with
audience
• Clearly explains information
• Adapts style to situation
Takes Initiative
• Makes good decisions in all situations
• Accountable
• Leader, who can influence others
Adapatable
• Keeps composure in stressful situations
• Open to change
• Can communicate with different personal
Problem Solver
• Solution-oriented
• Able to idnetify pertinent information of the problem
Functional Expert
• Knowledge of required concept (Accounting, HR, etc.)
• Understands processes (P2P)
• Understands tools and systems (SAP, Oracle)
Results Oriented
• Monitors progress against milestones and deadlines
• Motivated to achieve objectives
• Requires quality outputs
Compliant
• Adheres to policies, tasks and procedures
• Encourages other to adhere

Quienes “solucionan Problems”
identifican correctamente los desafíos
mas críticos y desarrollan soluciones
efectivas que agregan el mas High
valor a los clientes
40%
19%
15%
11%
8% 7% 7%
Solucionar
Problemas
Orientación a
Resultados
Comunicación
Efectiva
Experto Funcional Iniciativa Propia Adaptabilidad Cumple las reglas
Problem Solver Results Oriented Communicator Functional Expert Takes Initiative Adaptable Compliant
The ability to correctly identify
challenges and develop effective
solutions are the most valued by
customers.
n: 1.131 empleados de Shared Services
Fuente: CEB Prueba de Talento en Shared Services 2013
Although these skills help minimize
risks, not considered to be as valuable
of those that create value through
developing solutions
Key skills for value creation
#5

0 1 2 3 4
Actitud de Servicio
Comunicación Efectiva
Trabajo Bajo Presión
Cumplimiento de Tareas
Trabajo en Equipo
Solucionar Problemas
Iniciativa Propia
Juan Rodrígues- Gerente/Manager P2P







Escala de Evaluación: 1. -No Demostrado; 2.- En Desarrollo; 3.-Competente; 4.-Experto
Nombre/Name: Juan Rodríguez
Usuario/ID: FADG710123I18
Postulado/Date: 14/05/2015
Reclutado/Recruitment: N/A
% Necesarias/ % Desired: 86.1 %
% Compatibilidad Total/Compatibility %: 83.3 %
#5
Takes Initiative
Problem Solver
Teamwork
Results Oriented
Handles Pressure
Effecitve Communicator
Service Oriented
Evaluation Scale: 1. – Not demonstrated; 2.- In development; 3.-Competent; 4.-Expert

TechnicalSkills
Management Skills
23 32 41
34 32 41
39 32 41
Low Medium High
HighMediumLow
The Competency Model allows a
strategic map of what the skills
required for each
position/employee of a Shared
Services Center to identify
potential risks and establish training
programs.
Knowledge
• Tecnología
• Accounting
• Taxes
• Languages
Behaviors
• Takes initiative
• Service-oriented
• Team-oriented
• Communicator
#5

#5
For key positions, it is important to provide salaries and benefits that competitive
within the SSC market.
It is recommended that compensation ranges are established based on the SSC
market rather than the other operations of the company.
Habilidades 264
Especializadas Básicas E
Actividades I
Énfasis (+ -) +
Relaciones Humanas 3
Solución de Problems 87
Standard D
Complejidad de Análisis 3
Énfasis (+-) +
33%
Responsabilidad 115
Libertad de Actuar D
Énfasis (+-) +
Magnitud 3
Énfasis (+-) +
Impacto C
TOTAL PUNTOS HAY 466
Level PUNTOS HAY MIN 1er.
Cuart
Mediu
m
3er.Cuar
t
MAX Prog Ampl
Min. Prom. Max.
1 305 354 410 12,405 13,500 15,430 16,433 17,20
2
50%
2 411 476 503 13,305 14,204 16,403 17,575 18,90
8
10% 50%
Valuación: Análista de Credits O2C

• What processes have you effectively outsourced to a BPO provider?
• What are the main advantages you have experienced?
• What are the greatest challenges you have experienced?
#6

#6
In House Outsource Hybrid
+
The age dilemma is MAKE OR BUY?
The BPO market has grown significantly in the last decade covering financial , accounting,
certain functions of HR and customer service.
Things to be considered:
 Cost vs. Control
 Level of maturity of processes
 Access to skilled labor
 Contract negotiation
 Time zone and language
 Transaction volume
 Flexibility demanded
 BPO risks
 Geographic coverage
CONTROL
StrategicIMPORTANCEOFPROJECT
COST
Level of INTERNAL SKILLS REQUIRED
EVALUATE
OUTSOURCING
VS SSC
OUTSOURCE
ALL
PROCESSES
ESTABLISH
AGREEMENT WITH
OUTSOURCER
HANDLED
INTERNALLY
IN SSC

#7
Can a SSC really innovate?
• Without disrupting the business! – Maintain process controls
• Without disrupting the customer!—Keep stakeholders happy
• Without exceptions!– Focus on standardized operations
• Without disrupting performance!– Achieve SLA standards
• Without investment!– Enablement and effectiveness
• Without additional resources!– Doing more with less
• Without leadership!– Gaining buy-in and support
With all of these conditions… Is really possible?

#7
What stops the innovation process?
• Fear of the unknown/unintended consequences
• Obsession with risk management
• Lack of scalability and scope
• Focus on customer satisfaction
• Lack of talent and appropriate skills of workforce
• Rigid service level agreements
• Limited use of technology and tools
• Time and capacity restraints
• Inability to think outside of the box

Recognize and
Refine
ImplementPilot
Assess and
Prioritize
#7
Effective SSCs adopt innovation as a process rather within the SSC, this provides several
opportunities and channels to capture new ideas:
INPUT
• Leadership
• Surveys
• KPIs and
Benchmarks
• HR
• Methodology
• Market
research
• Suggestion
box/contests
• Communities
and forums
End-to-end process of INNOVATION
Concept
PMO SSC
OUTPUT
• ROI
• Lessons
Learned
• Improved
Service Delivery
• Internal
customer
satisfaction
• Direct and
indirect impacts
• Review of KPIs
How effective SSCs innovate?
 PMO assigned to SSC to ensure commitment
 Implement ‘quick wins’ to provide credibility to the process
 RECOGNIZE ideas generated and implemented
 Assign BEST FUNCTIONAL MANAGERS to innovation
 Change management and senior management support
 Communicate and celebrate achievements

Questions?

Leverage our Experience for Your Success

Contact us
www.chazeypartners.com
enquiries@chazeypartners.com
www.linkedin.com/company/chazey-partners
@ChazeyPartners │ #ChazeyPartners

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