Shared-service models aren’t just all the rage with enterprises and mid-sized companies.
Count government agencies and nonprofits among the organizations experimenting with shared services and the benefits they afford. Still, some wonder how they amplify the business process overhaul process.
A shared-service model operates similarly to a centralized service. It can take on certain business tasks so organizations can turn their eyes toward more mission-critical responsibilities.
But there are differences. Centralized services often spin out of a larger company and perform types of work required throughout the enterprise (e.g., transaction processing). Meanwhile, shared services aid “customers” as defined by stakeholders, department decision makers, and heads of organizations. And like businesses, shared-service models work under a defined set of services and static pricing structure.
Why are shared-service models the better option? One word: flexibility. No matter how a company evolves, the model can adapt and continue to provide value. To see those impacts, keep these four things in mind when applying shared services to your business process overhaul:
1. Build the model you want. Ideally, your shared-service setup takes its lead from your industry’s best practice frameworks. These elements can help inspire the future look and design of your business.
Once you’ve done that, connect those practices to individual roles within your organization. See how they influence distribution and communication channels; attempts at improving customer experience; and your application, systems, and IT teams.
2. Define and document your objectives. Don’t take planning for granted. Shared-service models become that much more effective when done intentionally.
Always begin by defining your organization’s strategy and objectives. Then, follow up by defining and attaching relevant process efficiency KPIs to your goals. Determine what your priorities are, decide on best practices, and move forward from there toward your transformation goals.
3. Continually assess your performance. How are your business and IT getting along? Are they working together and performing the way you designed them to run?
You need to gather facts to get insight into your operations. If they aren’t running the way you designed them, they aren’t helping your organization.
Ask yourself how different departments or roles are meeting their KPIs. What’s working and what isn’t? What needs to change? Never stop asking these questions when a shared-service model is involved.
4. Transition to the new model. Visualize your process performance in how you want and need it to look. Then, communicate with department heads about the business outcomes you’ve visualized and bring it all to life.
This step ensures the necessary changes to personnel, systems, and training programs are standardized. Furthermore, it allows everyone to understand your reasoning and get more on board.
When performing business process optimization, look to shared-service models to add value to your processes by doing a top-to-bottom evaluation so your organization can continually work in service of its transformation goals. Learn more about how next gen growth can help drive your business here.