The Change Up--Can We Achieve Innovation Through Shared Services?

2

?

Haven’t

we already

innovated by adopting

shared services

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So why is the

industry still talking

about

innovation

4

looking for

something

more !!!

It appears

we are

5

Can we find the

Holy Grail of innovation?

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Or are we

kidding

ourselves

Is it even possible given that the mission

of shared services is to provide

control, consistency

and manage risk

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Or is it all down to the way we approach

innovation

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Is Tom Peters right? Is Tom Peters right?

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Maybe we don’t have a

good… or

common…

definition…

Is it merely process

improvement, doing more of

what we already do only

better, faster and cheaper

and under one umbrella

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Or should it result in

fundamental disruption of the way we work

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Perhaps it’s time to ask ourselves why

shared services isn’t a hotbed of

innovation.

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Look what we have going for us

Purview across the enterprise

Laboratory for business change

“Captive” market

Low expectations beyond cost reduction

Limited competition from providers with their own

challenges delivering innovation

But good shared

services delivery is

defined by NO!

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No uncertainty! — Manage risk

No disruption! — Maintain control

No noise! — Keep stakeholders happy

No customization! — Standardize

No red on the dashboard! — Meet service levels

No investment! — Do more with less

No new/different talent — Deploy what you have

No change! — There’s comfort in continuity

No mandate — Make it happen on your own

Not a recipe for

out of the box

thinking

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out of the box

thinking

out of the box

thinking

out of the box

thinking

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… which deters innovation

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Fear of unintended consequences

Unimaginative approach to talent

Control freakiness

First rate technology with second rate application

Obsession with managing every risk imaginable

Inability to think outside the box

Slavery to customer satisfaction

Lack of scale and scope

Rigid and intransigent service level agreements

The approach aka “all things to all people”

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Barriers to innovation start the day we design shared services

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When we map processes… then only tweak them

When we take skills templates… then replicate them

When we say we need new capabilities… then make

rewarding loyalty the basis for hiring in the new organization

When we aim to create enterprise value… then sell our

customers on the same, better, faster and cheaper

When we decide the customer rules… then force them to

accept a one size fits all

When we say it’s all about the customer experience… then

hide behind service levels

When we say we want dramatic change… then strive for zero

defects

{

Start

Here

Better,

Faster,

Cheaper

Be a slave

to 6 SIGMA

What’s a

Shared Services

leader to do?

No

No

No

No

No

So what can we do about it?

{

So you want to be

innovative!!!

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How do you get

started

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personally

what innovation means for you

First, understand

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Moving out of your comfort zone Being willing

to fail … in an organization that accepts failure

embracing ambiguity Focusing on customer success

not satisfaction IMAGINING Accepting less

than zero defects Risking Your career

Obsessing about change Employing misfits

Destroying rank Thinking out of the box

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Then take out a clean sheet

of paper and list what

shared services could

look like

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Self service! (Most) everything is done on the web

Virtual Shared services centers go the way of the dinosaurs

Never satisfied customers Customers always demand change

Team of rock stars Talent is entrepreneurial

Technology first, then people Organization is designed based

on apps, not FTEs

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Data-based, not data bases Workflow delivers insights

Big sucking sound Navigators suck data from disparate sources

New relationships Manufacturers and retailers combine their

accounts payable

Social media-savvy Twitter or Chatter messages advise

customers of payment

Seat at the table Shared services leaders at the top of the house

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Develop a

Roadmap

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Incremental Improvement

Applied Innovation

Disruptive Innovation

Seizing the opportunity to make existing

functions/processes the best they can be

through simplification, new technology

Looking across the portfolio of

processes to apply improvements

to other functions/processes

Redefine the relationships between

functions/ processes and their

stakeholders/ customers

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2

3

Stages in a Shared Services Innovation Roadmap

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Modest Moderate Major

80%

18%

2%

70%

20%

10%

40%

45%

15%

Incremental Applied Disruptive

You get the innovation you plan for

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Rethink your

organization

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Flat

Deviant

Entrepreneurial

In-a-hurry

Dis-”loyal”

From the outside

Unusual backgrounds

Tech-savvy

Inter-generational

Team of Rock Stars

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Change your mindset

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Connect the dots in new ways

Create a shared services experience – design a vision for

new business delivery, rather than build a better mousetrap

Promote customer success rather than customer satisfaction

Embrace technology

Say what you stand for – create a shared services brand with

a vision

Earn the right to charge for your outcomes

Temper your expectations of career security

It starts with you

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Hide bound by deal SLAs

Factory approach

Falling margins limiting

investment

Not attractive to innovative talent

Lack of integration with the

business

Client resistance to gain-sharing

Focus on rules-based work

No Yes

Depth of experience

Commercial

Scale to leverage investment

Key to marketplace

differentiation

Greater agility

Ability to create aligned

compensation models

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What’s

Your Vision

Thank you

Deborah Kops

deborah.kops@sourcingchange.com