Deloitte Shared Services, GBS & BPO Conference...Deloitte Shared Services, GBS & BPO Conference How...

Deloitte Shared

Services, GBS &

BPO Conference

How Do You Make the

Transition from Shared

Services to GBS?

GBS Consulting Leads, Deloitte (DK & UK)

Jeppe Larsen & Nick Prangnell

Head of Global Business Services, Rio Tinto

Scott Singer

Berlin, Germany

22 – 23 September 2015

Share of World GDP 2000

7.20%

3.64%

2.68%

7.68%

18.50%

23.52%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


7.64%

3.70%

2.76%

7.53%

18.46%

23.20%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


8.11%

3.77%

2.82%

7.35%

18.16%

22.94%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


8.62%

3.89%

2.92%

7.20%

17.69%

22.72%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


9.03%

4.03%

2.98%

7.05%

17.20%

22.47%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


9.50%

4.21%

3.04%

6.93%

16.79%

22.21%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


10.10%

4.40%

3.11%

6.76%

16.46%

21.74%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


10.78%

4.59%

3.20%

6.58%

16.13%

21.15%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


11.40%

4.77%

3.30%

6.37%

15.73%

20.69%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


12.10%

4.97%

3.34%

6.23%

15.26%

20.11%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


12.78%

5.12%

3.37%

6.07%

14.85%

19.68%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


13.42%

5.25%

3.38%

5.94%

14.45%

19.42%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


14.08%

5.40%

3.40%

5.82%

14.07%

19.11%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


14.79%

5.57%

3.42%

5.65%

13.73%

18.73%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


15.52%

5.74%

3.44%

5.48%

13.40%

18.34%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States


11.10%

3.44%

4.20%

11.70%

17.80%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

China

India

Russia

Japan

Euro area

United States

27,8%

US share of

World GDP will

fall from

23,2% in 2001

to

17,8% in 2030

Chinas

share of World

GDP will rise from

7,6% in 2001

to

27,8% in 2030

A global economy under extreme transformation – and this will

require companies to reconsider the delivery of support services

to stay competitive

Or said in another way

In essence this trend will impact businesses in many

ways:

Externally:

New markets, consumers and products

Competitors

Change in culture and values

Internally:

How and where we deliver support services

Cost agility

New processes including robotics

Need to understand data much better

Deloitte Shared Services, GBS & BPO Conference 2015 3

2009

People in middle

income group*:

1,8 bn of which

0,5 nm in Asia

2030

People in middle

income group*:

4,9 bn of which

3,2 bn in Asia

* OECD Year book 2012

If GBS is the obvious enabler, why

does it seem so difficult to achieve?

Deloitte Shared Services, GBS & BPO Conference 2015

1. Definition of GBS

2. Value of a GBS model can bring?

3. Challenges of moving to a GBS model

4. Deloitte GBS Methodology

5. Transition routes

Topics to be covered


Definition of GBS Beyond Shared Services and Outsourcing


“GBS is the deployment of a common approach and the use of common infrastructure and governance to

consistently deliver business support services across geographies, business units, functions and business

processes.”

GBS

Finance

IT

Supply

Chain Operations

HR

• Multi-function in scope

• Multi-region

• Multi-location

• Multi-sourced

• Multi-business

The 5 Multi’s

• Common approach to governance

• Common leadership structure

• Common approach to service management

• Common approach to continuous improvement

• Common talent development model

The 5 Common’s

Organizations today, more than ever before, are faced with severe external and internal forces which are

requiring them to realign their business and operating models.

Value of a GBS model Why are companies moving to GBS?


GBS

Model

External Forces Internal Forces

Value of a GBS model Optimising the footprint


Global optimisation

Diverse maturity of centres and

outsourcing across functions Move to an integrated network of delivery

Fragmented or sub-optimal landscape

Illustrative example of typical ambition

• Economies of scale

• Low cost locations

• Globally optimized

Sites

• Maximise arbitrage

• Optimise strategic and operational Labour pool

• Service management & process excellence

• Standardise use of enabling technology

• Standardise processes & governance

Operations

• Existing centres running separately, with

different levels of service

• Mixed outsourcing contracts and

management of vendors

• Lack of global roles, with duplication

across enterprise

• Lack of power/mandate to make

improvement changes

Value of a GBS model Business Outcomes and Value


Improving global insight through

the use of consistent data

structures and delivery of

enterprise-wide data analytics.

Data Analytics

Boosting talent attraction and

access to a wider pool of skills

as Global Business Services

becomes an increasingly

rewarding career and training

ground

Talent

Leveraging skill and

deployment ability to

drive innovation

Innovation

Freeing up market resource

to focus on driving business

growth by truly removing

distraction of support

services.

.

Commercial Focus

Generating business value

across a widened scope of

end to end processes,

including better customer

service, enterprise cost

reduction

.

Process Value

Supporting company growth:

• New markets - expediting

expansion into emerging markets

• Mergers & acquisitions -

enhancing PMI capabilities,

maximising synergy speed

Growth Platform

Challenges of moving to a GBS model Key elements that make GBS harder than shared services


• Political minefield with different agendas from respective functions and businesses

• Reluctance owing to eroding influence from old (functional) powers

• Different levels of shared services maturity across functions and regions

• Additional design elements and considerations are needed above that of a normal Shared Services

Centre projects.

• Massive scope / boiling the ocean

• Lots of stakeholders – time-consuming decision making

How to think GBS in a strategic context Start to see the GBS as a business within the business


Deloitte’s Global Business Services Methodology

1. Strategy 5. Innovate 2. Design 3. Build 4. Deliver

Customer Engagement

Process

Enabling Technology, Cyber & Data

Service Placement

People & Organization

Service Management & Governance

Leadership Alignment & Change

Program Control

Value Case

Value

Integrated Delivery Model

Alignment & Control

Risk & Compliance

If you consider as a business you need to treat it as a business The GBS strategy is your right to play


GBS Positioning Choices GBS Activation Choices

What are the goals

& ambitions?

1.4. Define GBS’ role

and value

opportunities

1.5. Agree strategic

choices, scope and

mandate

What capability &

opportunity

do we have?

1.6. Assess GBS

baseline

performance and

capabilities

1.7. Assess Function

baseline

performance and

capabilities

1.8. Set opportunity hypotheses and

benefit assessment

What is the future

model?

1.9. Define GBS

‘common’

components

1.10. Define

‘Function’

components

1.11. Define GBS

‘integrated’

components

How will we deliver

the benefits?

1.12. Define

program, projects

and owners

1.13. Finalize and

commit to roadmap

and business case

What is the

strategic need?

1.1. Understand

strategic context

1.2. Understand each

Function’s maturity

and ambition

1.3. Understand view & extent of GBS,

shared services or outsourcing

1. Strategy 5. Innovate 2. Design 3. Build 4. Deliver

Senior stakeholder focus

How to align leadership It is all about eating an elephant in slices!


Governance

Systems & Master Data

People Development

Continuous Improvement

Process Ownership

Customer Interaction

Service Management

Culture

Sourcing

Local Regional Global

Limited automation Medium automation Maximum automation

One Function Multi-Function

Little sharing Full Integration Co-location

Transactional and

Advisory

2–3 Functions

Sharing of tools

& processes

Transactional

Consistent Service Management Framework

Single over-arching governance with one GBS lead, often C-level

One integrated platform, centralised Master Data Management

Managed Services blending captive and outsourcing solutions

GBS competency model & training curriculum

Enterprise-wide CI with common budget & tools

End-to-end Global Process Owners

Strong GBS culture & brand

Universal customer interface supported by standard toolset

Different models per function/BU

Governance by/in function

Multiple systems & decentralised master data

In-house and outsourcing, not aligned

Specific to centre and/or function

CI specific to function / BU

Informal process networks

Different culture at each centre

Myriad of customer interaction tools

Location Co-location into multi-functional centres Separate functional centres

Geographical Scope

Degree of Automation

Functional Scope

Degree of Functional Integration

Degree of Value Add

Customers

Governance

Operations

Efficient and

Strategic

Transition routes There are many options, but see as enablers rather than a

problem!


Focus the journey

path on value and

gaining momentum

Organisation

Scope

GBS Delivery

Model

Processes

Process Ownership

Sourcing Service

Location / Footprint

Technology Systems

• Technology: wait for technology consolidation and enablement or drive adoption

• Leadership: develop a new model or appoint a new leader, switching reporting lines early

• Global Design: single global solution designed and implemented or regional/functional

development

• Functionally led: single global led project or designed and deployed by each function

• Outsourcing: single provider or hybrid/multi-sourced solution

Transition routes Key choices


Transition routes Success factors for starting a successful transition


Clear

Governance

Stakeholder

Support

Align to the

Business

Clear Design

Principles

Explicit

Mandate Realism Stakeholder Support

Align to the Business

Explicit Mandate

Clear Governance

Clear Design Principles

Realism

Closing remarks and questions


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms,

each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and

its member firms.

Deloitte LLP is the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will

depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of

the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific

circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material

in this publication.

© 2015 Deloitte LLP. All rights reserved.

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street

Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.

19 Deloitte Shared Services, GBS & BPO Conference 2015

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