‘Shared services’ typically refers to classic business support functions such as finance and accounting, HR/Payroll, IT and procurement, and in some organisations smaller support functions such as legal services.
Put simply, a shared services approach is usually commissioned with the primary aim of reducing costs by achieving economies of scale. A secondary benefit often quoted is to improve levels of service delivery by creating process expertise.
Whilst a shared services approach can prove to be highly successful, it can also become particularly challenging. From our experience at Reinvigoration, the two greatest challenges that threaten to undermine the success of a shared services model are poor transition execution (as this will put the venture on the back foot before it even starts) and poor management (as it will compound set-up practices).
To be successful shared services operations require careful assessment, planning and management. The seven key principles, or ‘levers’ presented here provide a structured framework for making these assessments and implementing change successfully within the public and private sectors. We hope you will find our infographic helpful and are always available to discuss any challenges you may face.
We have a wealth of experience working with shared services operations both within the private and public sector. Contact our team to discuss how we can help your organisation.MORE BLOGS