In our last post, we started discussions on how to implement a Shared Services model. Today we will get into some of the challenges and benefits organizations may face when implementing Shared Services internally or outsourcing.

An organization may experience some challenges when implementing Shared Services internally, including the ability to both clearly define boundaries between the roles and responsibilities of Shared Services and support staff, and identify skilled resources to operate the Shared Services organization. However, retaining Shared Services internally makes sense when Federal or state regulations preclude an agency from allowing a third party to deliver the services, or when the organization’s internal capabilities are appropriately staffed with efficient and effective resources at a competitive cost.

Outsourcing Shared Services support functions to contractors may mean that the organization retains less control over the processes. However, the benefits outweigh this concern when the organization faces certain challenges. These challenges may include the lack of an existing internal capability to offer the services needed in a cost-effective manner, difficulty in hiring and retaining skilled staff capable of achieving the requisite service levels, or rapidly changing requirements or standards.

Regardless of the decision to outsource or retain certain Shared Services processes, organizations experience significant benefits from Shared Services when the model is properly designed and implemented. These key benefits include:

• Cost reduction--The standardization and simplification of streamlined processes results in increased efficiency and transparency of information.
• Better customer focus--Enhanced frontline service delivery creates higher customer satisfaction, and resources are committed to the achievement of Service Level Agreements (SLAs).
• Performance-driven metrics--A dedicated team that measures key success factors will drive the continuous process improvement. You can read more about metrics in my blog, “Shared Services: Tracking Performance/Performance Metrics—What Doesn’t Get Measured Doesn’t Get Done.”
• Focused leadership--A Shared Services model lightens the workload on directors, division chiefs, and leadership across program offices and frees them to focus their energy on strategic planning and leading the organization instead of tactical, day-to-day operations.                                 

Coming up next

Join us next time as we the importance of business process reengineering (BPR) in the implementation of Shared Services.

Jennifer Lotkowski is a Senior Managing Consultant with IBM Global Business Services and possesses more than 10 years experience in human capital management across the Federal Government and Commercial Sectors. The breadth of her work includes shared services design and implementation, organizational design and development, workforce analysis, competency development, training, change management, and communications. Ms. Lotkowski is an experienced project manager and a Certified Senior Professional in Human Resources (SPHR).

Jennifer Lotkowski (lotkowski@us.ibm.com)

Adam Jelic has over 18 years of Business Transformation and Information Technology experience. He has deep expertise across several industries including financial, industrial, communications, and the public sector. Mr. Jelic has led large and complex programs including Strategic Business planning, Shared Services, Enterprise Infrastructure, Supply Chain, Human Resources, and Customer Relationship Management.

He has an excellent track record of delivering successful programs for Fortune 50 firms and government agencies in the United States and Canada.

Adam Jelic (ajelic@us.ibm.com)

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