Companies often lack the required resources to develop important administrative and support processes to support sustainable growth. In other instances, business functions act alone and fail to provide a convincing cross-functional linkage to operations, marketing or other important functions. Other times, functions focus too much on their own operational efficiencies, instead of their contributions to broader corporate objectives.
To accelerate business benefits such as lower cost of operations and improved business processes, organisations centralise some functions into shared services and outsource various others to third-party service providers.
However there are reported cases where centralising some functions into shared services, remains siloed and poorly integrated into corporate strategies, leading to functional operating efficiencies with little alignment within the organisation.
The biggest challenge confronting functional leaders and service providers with limited experience in collaborating, is assessing their collective opportunities.
Find new ways to increase operational flexibility and lower costs by focusing on shared services capabilities.
Drive efficiencies, productivity and innovation
Looking at things through The Shared Purpose Lens, enterprises bring their functional leaders under a single operating framework to establish, internally and with their external service providers, transformational objectives that take into account gain sharing and leverage innovative, best in class solutions.
The Shared Purpose Lens focuses stakeholders on the potential benefits, the opportunity costs of these decisions, and the factors that can make execution successful.
Leveraging the expertise of an external provider will deliver significant cost benefits, consistent management approaches and well documented processes for effective execution.
The administrative shared services delivery model should look to improve operational results (quality and timeliness), while relying on the service provider’s expertise, infrastructure and economies of scale to improve flexibility and reduce costs.