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Furthermore, the actual definition of GBS does vary, although there tend to be
common elements. Some centers have a GBS sign above the door and define
themselves as operating globally, across regions and operating units. Others
focus more on a mix of internal and external sourcing solutions. Some, perhaps,
share a technology platform and determine this to be the defining characteristic.
Many point to global process ownership and end-to-end processes as key. So,
definitions vary, and even consultants usually don’t always agree.
Barbara Hodge
Global Editor
The Shared Services and Outsourcing Network (SSON)
barbara.hodge@ssonetwork.com
As Barbara says, however, this is often easier said than done. Such
alignment doesn’t always exist. Numerous challenges such as By striving for a level of
internal politics, functional silos, multiple technology platforms, ‘globalization’, you can
bureaucratic decision-making, resource limitations, and opposition
to cross-location and cross-business unit process ownership, can all improve services and
stymie GBS’s ability to reach full potential or, indeed, gain traction. business engagement in
These challenges can emerge at any stage of transformation,
making it more difficult to propose, represent, and implement GBS a way that is practical,
operations. This all goes a long way towards explaining why such a relevant, appropriate
small percentage of SSOs currently identify themselves as GBS
organizations. and achievable.
However, the thing to note is that even if a “fully implemented” GBS
model is not achievable or even suitable for your organization, many
of the benefits of moving towards a GBS model can still be realized;
for example, through the development of common processes,
policies and procedures, standardized documentation, use of core
technology (including ERP), aligned objectives and leveraging of
enterprise-wide relevant best practices across all centers.
Phil Searle
Founder & CEO
Chazey Partners
philsearle@chazeypartners.com
While digitization has been bandied about for nearly a decade, its
true meaning still eludes most organizations. However, driven by
the promise of Intelligent Automation (often still referred to via the
more limited nomenclature of ‘RPA’) digitization is suddenly coming
into vogue again. Its success hinges on ‘globalized’ processes
though. In other words: digitization and Global Business Services
go hand in hand.
80%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
Partially Implemented GBS Fully Implemented GBS Total
Source: SSON Analytics – Evolution of Global Business Services to 2017: The Story So Far
This growth is explained by the multiple advantages of the GBS model, namely,
that it supports standardization of services globally, one individual as the process
owner for all service delivery, and streamlined technology implementations in
support of more effective services support. The benefits, apart from like-for-like
support across global operations, include the ability to leverage best practices;
analyze global transactional data for optimal resource allocation; and improve
decision-making.
And yet, for many businesses, GBS is not the right solution. Even though
enterprises may want to target “the best”, the truth is that “just short of the best”
may be absolutely good enough.
One of the most significant advantages of the GBS model is the ability to manage
global processes and leverage technology in the same way, around the world.
“More specifically,” explains Phil Searle, Founder and CEO of Chazey Partners,
“this means globally standardized system solutions; global service management
standards; global policies aligned to enterprise needs; global enterprise-wide,
relevant best practices; global governance; and global measures and metrics.
This all then links with and supports global teams and globally consistent talent
management and development.”
As management thinking has evolved along with a wider appreciation of the value
of data analytics, there is now, more than ever, a more pronounced need and
demand for better quality data insights, increasingly globalized and consistent
support structures, lower cost delivery, and more holistic, enterprise-wide
decision-support. Indeed, it is the ability of GBS to integrate and globally deploy
additional value adding capabilities that really characterize the power of the
GBS model, Phil points out. “Through its global, integrated operating model, GBS
is able to drive transformational initiatives and own enterprise-wide strategic
projects,” he says. “Effectively the operating model is what puts the ‘G’ in GBS.
Given the infrastructure, deep process understanding, quality of talent, cross-
business relationships, and project management and continuous process
improvement expertise that characterize GBS, it is also a powerful enabler and
driver of change.”
As mentioned above, to some extent the approach and strategy of both models
is similar as each offers an effective route to achieving the triple benefit of lower
costs, improved service levels, and a tighter, more efficient control environment.
This is usually achieved by leveraging a range of enablers including a robust
customer interaction framework, economies of scale, automation, organizational
realignment, labor arbitrage (now augmented and even replaced by what we
call “robotic arbitrage”), implementation of best practices and true “end-to-end”
process optimization. “The difference here,” says Phil, “between traditional Shared
Services and GBS models, is that the latter does this more comprehensively and
‘globally’, driving more significant benefits across the enterprise.”
Achieving world class GBS effectively marks – at least currently – the final
destination in the Shared Services journey. GBS is identified with best
practice processes, location selection and leverage, service delivery, use of
technology and sourcing options, and prioritizing global governance to ensure
standardization, consistency and control. GBS, at this level, is also often
established as a separate business unit and/or legal structure, on the same
footing as operational Business Units. Top quartile and leading practice Shared
Services organizations are often either already characterized as being GBS, or
are at least some way to achieving it. Note the phrase “current final destination,”
because, as with all best practices and trends, these change over time and target
destinations move accordingly.
A mature GBS model provides consistent global delivery, leveraging internal and
external capacity and expertise, with highly trained, motivated and developed
teams. These teams employ or engage with global process owners, utilize
enabling technology, and provide data and analytics back to the business. A single
and unique GBS “leader” usually acts as the conduit between the service unit and
the business, and liaises directly with the C-suite. “While the actual particulars
of the organization may take many forms, it is this form of leadership,” says Phil,
“that, most likely, ultimately identifies and defines a true GBS.”
While it is sometimes assumed that GBS covers multiple support services, this
is not necessarily the case. In practice, many organizations find it beneficial
(and easier) to – at least initially – stand up a single function GBS, which avoids
the complex decisions around ownership faced when trying to move to a
multifunctional model early on.
ANDREW JACKSON
HEAD OF GLOBAL SHARED SERVICES
ANGLO AMERICAN PLC
CHRIS GUNNING
GLOBAL SHARED SERVICES (GSS) FINANCE OPERATIONS LEAD
VEON
GEORGE CONNELL
VP STRATEGY - FINANCE OPERATIONS
ROYAL DUTCH SHELL
How do you define Global Business and enables collaborative working with these could be data analytics, data
Services? What distinguishes our business partners. mining, high end finance processes and
GBS from Shared Services business operations; some of our more
Organizations? According to SSON Analytics recent non-Finance areas include: Real
data only 5% of all SSOs are have Estate Services, Communications, and
We don’t operate what you may refer adopted the GBS model. Why do you Legal Services.
to as a ‘traditional GBS structure’ in think this number is so low?
Shell. We operate a functional Shared Do you standardize processes first?
Services model, where each function I believe people want to work in their Or lift & shift?
in the Centers reports directly through functional teams and arguably there
their functional line. So, for Finance are limited synergies between many Generally, in FO, we lift and shift – using
(the area I work within) this reports of the functions. Where there are the scale of the Centers to improve
to the CFO, IT to CIO, Customer intersects, then this connection and processes. These improvements can
Services to Commercial Operations interface can be achieved via such be simple changes to parts of the
and so on. The locations are named: governance as process councils. process, or more structural changes
Shell Business Operations (SBO) in the end-to-end process using our
and the team that operate these act Do you have Global Process Owners? continuous improvement capability
as a ‘landlord’ – providing common What are they responsible for? supported by proven techniques and
infrastructure support such as offices, protocols.
facilities, IT infrastructure, health and Yes, in Finance & Data Operations (FO)
safety, HR and communications. we do have Global Process Owners. Considering the increased
These roles hold holistic responsibility automation in transactional
In the model that Shell operates, for process design, operation and processing, do you think offshore
the SBO organisation do not have continuous improvement. We are still has a significant role to play in
responsibility for operational increasingly seeing more Process overall service delivery? And where
performance. The direct reporting line Owner responsibility in the Center do you stand on outsourcing?
for process performance is through locations, as process and controls
the ‘tenants’ – the functional lines. penetration responsibility increases. I believe that offshore absolutely needs
Where functions need to collaborate to be a collaborative business partner
(e.g. Finance and Procurement) for How does your model develop as there are business proximate
the Requisition-to-Pay process, this and leverage talent? Are leaders activities that won’t be ‘offshored’. In
is achieved through the meeting of generally recruited internally? the FO, we continue to operate a fully
Process Councils. integrated captive model and have no
Within FO we have in place a structure intention at this time to outsource.
I believe that the functional Shared to recruit and nurture the best
Services model supported by a ‘tenant/ talent in the industry. Across all the How do you know that you are
landlord’ arrangement provides SBO locations in which we operate, delivering what your customers truly
Finance, and all functional areas, FO develops people and creates need? Are you aligned with their
with the best support and liberates opportunities to enable us to recruit requirements?
the tenants to focus on process line manager/senior manager positions
performance. from within. When required we would Within FO, we talk about our
also recruit from the external market to ‘customers’ as internal business
How would you describe the overall supplement our internal pipeline. partners and have shared objectives
value of your GBS to the enterprise? measured by KPI metrics where
What are some of the newer relevant. In saying that, it’s also
The functional Shared Services functions that are being brought into important we have our own
model supported by a ‘tenant/ the model? Which functions might responsibilities and deliverables
landlord’ arrangement Shell operates you consider in future? delineated and that we should avoid
is fundamental to our delivering world ‘grey’ areas of shared/duplicated or no
class, end-to-end process performance Talking from a Finance point of view, responsibility!
JAN NIKUS
GLOBAL SHARED SERVICES DIRECTOR
(OPERATIONS AND TRANSFORMATION)
ELTEL NETWORKS
CAREER PROGRESSION
Many of the most admired practitioners Services and GBS are often touted
in Shared Services hold GBS titles. as talent incubators, indeed are
And yet, the role of GBS head is near recognized as such, the opportunities
the top of the corporate pyramid. The at the top of the pyramid are certainly
question therefore arises: what are the more limited. One GBS head told us
career options beyond GBS? that, up to senior or director level, it's
fairly easy to move back to the retained
For many practitioners the most organization in an added value role;
lucrative solution remains building up but at the top level it becomes more
GBS, running it for a few years, and difficult. The GBS model
then moving on to a new organization
to leverage their expertise all over On the other hand, a successfully run differentiates
again. Although opinion varies, to date GBS is no different to a successfully itself from its
there have been few examples of GBS run business unit, in terms of
leaders moving on to significant C-suite responsibilities and objectives. To that
Shared Services
roles, or heading back into the business extent it is certainly a hope reflected cousin by the
to take on senior leadership positions. by many GBS leaders, that moving into
Filippo Passerini was corporate CIO as the business in an MD role is an option.
“G”. This single
well as President of GBS at P&G prior denominator is
to his retirement, but those kinds of
examples are still quite rare. Generally,
Indeed, some organizations have set
up people development committees at
all important;
you see these kinds of moves at the various levels of seniority specifically and complex, as
more junior level – someone moving
from GBS to become a local area CFO,
to retain GBS leadership, staff and
knowledge for the enterprise.
it turns out.
for example. And although Shared
KAI-EBERHARD LUEG
HEAD OF BUSINESS PROCESS SHARED
SERVICES AND FINANCE SHARED SERVICES
SIEMENS
How do you define Global Business Do you standardize processes first? Siemens we have implemented a
Services? What distinguishes Or lift & shift? detailed, automated Quality Cockpit
GBS from Shared Services where our internal customers also have
Organizations? In most cases the traditional approach direct access. We measure process
is Lift-Drop-Change. This allows labor and service quality, cycle times, input
For me, personally, the definition of arbitrage savings, better transparency and output KPIs. And we constantly
GBS is very simple: a multi-tower of the bundled processes and – most measure customer satisfaction. This is
Shared Services organization serving importantly – an economically feasible the foundation, but key is to frequently
not only one Function, but the whole and also culturally well supported basis align with internal customers and
Business (that is the ‘B’) – with a for the subsequent improvements and to listen carefully to what is really
global delivery footprint (that is digitalization of the bundled processes. important to them. Meet and speak.
the ‘G’). The multi-functional setup In my eyes this logic remains principally In many cases their main topics are
allows infrastructure synergies, valid, but increasing digitalization not about cost only, but about quality,
presents a platform for innovation and possibilities now allow for a more simplicity, speed and/or flexibility.
service culture, as well as for sharing individual approach. In some cases,
technologies, and supports e2e Shared Services expertise can support What are the career options for a
process improvements. improvement and digitalization of GBS leader? What capabilities are
processes on the customer’s side emerging and which no longer matter
How would you describe, in one first, before possible further bundling so much?
sentence, the overall value of your activities.
GBS to the enterprise? Shared Services experience is a very
Considering the increased good foundation for further career.
One sentence: We drive process automation in transactional You learn a lot about international
innovation and digitalization, in Shared processing, do you think offshore structures and teamwork, people
Services and beyond. still had a significant role to play in management, process improvements
overall service delivery? and about process digitalization. It’s
Long version: Labor arbitrage is our
a great basis for further roles in other
traditional foundation, but the value we Yes, offshoring will continue to play functional or business areas. In former
provide goes much beyond. We improve a role. Very simply, as long as many times the exchange did not always
and we simplify processes, we develop activities are performed manually, go so well because Shared Services
innovative solutions and we drive offshoring will remain important. Not structures were regarded as remote
digitalization – within Shared Services only from a location cost perspective, and transactional, but the role and
and beyond. I see Shared Services in a but also with regard to bundling reputation of Shared Services have, in
triangle relationship: with our profound effects, transparency, and – in my my eyes, changed significantly over the
process management knowledge eyes the most important factor – last years. We have delivered, we have
(and, at least equally important, our because Shared Services typically earned the trust of our customers,
strong innovation culture) we are the have invested many years in a culture and we have been the driver for
link between corporate IT and our of change and innovation. This is a many successful innovations. Shared
customers, which can be functional or great basis for further improvements. Services has become a respected
business organizations. And fragmented automation is much member of the community.
costlier than automation of bundled,
How does the GBS encourage and
standardized activities. But having A GBS leader has, in my eyes, to
support innovation?
said that, in my eyes the key for Shared be, firstly, very people oriented,
Innovation is at our very heart and Service’s future successes lies less international and communicative. He/
one of our core competencies. We in the area of further bundling, but she has typically the responsibility for
very much encourage innovation, the in the area of consequently utilizing a high number of employees in many
biggest lever to improve quality and the gained expertise in process locations and has many interfaces to
performance further. But Shared management and in consequently internal and external stakeholders.
Services typically not only SUPPORTS driving digitalization. Secondly he/she also needs to be
innovation, it has to DRIVE innovation. curious about changes and actively
How do you know that you are embrace and drive change – in
International networks, process
delivering what your customers truly processes, in structures, in technology
management expertise, dynamic
need? and by digitalization.
organizations, and the innovation and
cooperation spirit you typically find in I believe full transparency is the
Shared Services structures – these absolute foundation for customer
combine to form a solid foundation to alignment and customer trust. In
foster innovation.
RODNEY N. BERGMAN
SENIOR VICE PRESIDENT, GLOBAL BUSINESS SERVICES (GBS)
CELESTICA
How do you define Global Business GBS representatives on continuous Considering the increased
Services? What distinguishes GBS improvement. Given the breadth of our automation in transactional
from Shared Services Organizations scope in GBS, almost every part of the processing, do you think offshore
generally? organization is represented on one/all still has a significant role to play in
of these. GBS service delivery?
GBS is the enablement arm of our
organization, providing services Do you have Global Process Owners? We will always need some people
in support of the strategy of the Does the GBS manage the end-to- supporting the processes, and others
organization and its operations. It end process in its entirety? will require exception management and
operates end-to-end processes (e.g. problem solving. We do not consider
Source-to-Pay or Acquire-to-Retire’) on We do have Global Process Owners.
offshoring a ‘strategy’. Celestica is
a global scale. Process teams are led They are responsible for end-to-end
a global organization with a global
by Global Process Owners and work for processes, albeit they, and their teams,
footprint and GBS needs to mirror this.
the global enterprise is supported via a don’t perform the entire process.
That said, offshoring still remains a
GBS Global Delivery network. viable option for most organizations.
How does the GBS develop and
What is different compared to leverage talent?
How do you know that you are
more traditional Shared Services
We have an internal learning program delivering what your customers truly
Organizations is that we are organized
for all GBS employees that includes a need and that you are aligned with
by processes, which cross traditional
series of training modules. In addition, their requirements?
functional lines; we deliver from a
we have a career framework, which
global network to a global set of We have a ‘voice of the client’ process.
allows people to grow on managerial
clients; we have common support After each transaction, we give the
or technical paths with clear rules for
teams (“shared within shared”); and client an opportunity to provide
moving around the various process
we leverage technology to provide a
teams. feedback through a series of questions.
professional client experience.
Our third tier of governance provides
What are some of the newer us a forum to speak with clients about
How would you describe the overall
functions that are being brought into how we are doing and what we can
value of GBS to your enterprise?
the GBS? Which functions might you do better. And each year, as part of
We have established a horizontally consider in future? our planning process, we conduct
integrated GBS organization to drive functional focus groups to hear from
More recently, a portion of the IT
quality, speed-to-outcome, flexibility, our clients. We are well aligned with
organization transitioned to GBS.
responsiveness and a consistent and them, albeit there is always room for
This is in addition to work that has
enhanced client experience. improvement.
transitioned to GBS from the Finance,
According to SSON Analytics data, Human Resources, Supply Chain, front What are the career options for a
only 5% of all SSOs have adopted end and Operations organizations.
GBS leader?
the GBS model. Why do you think this
What is the GBS’s global location
number is so low? GBS leaders have broad skill sets that
strategy? What’s the advantage of
position them well for future career
Many companies lack the vision and each location?
opportunities. Given the size and
willingness to manage this degree of magnitude of our GBS organization,
There are two types of locations
change. Without executive support, it leaders have the opportunity to grow
within our GBS network: 1. Satellites:
will not happen. within the organization. In addition,
where we have people at each site in
How does your model work? What is our network performing work for the deep process, functional, analytic and
the GBS reporting structure? particular site at which they reside (e.g. continuous improvement skills make
desktop support); 2. Hubs: The vast GBS leaders great candidates for
GBS reports directly to the COO. majority of our people reside in ‘hubs’. positions within the functions that we
We have three levels of governance: These hubs provide support for the provide services to.
The highest governance structure region in which they reside or for the
includes the CEO and his direct entire company. We have 11 of these The ideal profile for a GBS leader
reports (I present to them quarterly). sites: 1 in North America, 1 in Europe includes a mix of functional knowhow,
Each process has a Process and the rest in Asia. Each site is set up process discipline, an ability to
Advisory Board with cross-functional differently: some perform aspects of empower, tech savviness and a spirit
representation, which acts as a all processes, while others have unique of entrepreneurship. The experiences
Steering Committee for the process. skillsets. All but two of our locations gained make GBS leaders extremely
Lowest levels of governance include are cohabited with our manufacturing valuable assets to many parts of the
users of the process who work with operations. organization.
MARCEL ANGST
EXECUTIVE VICE PRESIDENT, GLOBAL BUSINESS SERVICES
SWAROVSKI
How do you define Global Business What is different about our GBS is that from a business as we speak.
Services? we also embed local business services
into our organization, so beyond our We also included master data
In defining GBS we followed a best hub-and-spoke model, the retained management from the start, and are
practice guide in identifying five organization in some instances certainly thinking about analytics in
“Multis” and seven “Commons”. The provides local business services terms of loss prevention in retail stores
Multis referred to: multi functional that also report into GBS, under our for the future.
in scope, multi-business support, governance structure. Examples of
multi-locational setup, multi-regional this include legal, compliance, or other What is the GBS global footprint?
support, and multi-sourced. In other specialized requirements for business What’s the advantage of each
words, emphasizing the cross regional proximity. We try to keep this at a location?
and enterprise wide capabilities while minimum, however.
allowing for optimal sourcing. We run our main hub in Poland, which
Do you have Global Process Owners? we just set up a year ago, and two
The seven Commons we leveraged Do they sit in- or outside the GBS? spokes, one in Malaysia launching
are: Common governance, common this quarter, and one in Costa Rica
leadership, common service We are at the early stage of recruiting launching early next year, for APAC
management, common location/ GPOs right now. These will sit within and the Americas, respectively. That
technology/infrastructure, common the GBS and report straight into me. presents our global footprint. Our
talent development model, common They can sit in the hub, the spoke, or at assumption is that we can do anything
approach to continuous improvement headquarters – that is not so relevant. out of the hub. Where we find, however,
and common end-to-end process. This What is important is the skill set we that due to language, time zone, or
ensures that we have one consistent are looking for. As this is a brand-new other proximity issues we need a more
approach for global service delivery. role there is no one in-house who has regional approach, we shift services
actually “done it” before. The profile to the spokes. So, for example, record-
This framework effectively guided calls for strong lateral leadership to-report or master data management
our design and definition of GBS. I skills – probably the most important is done at the global, hub level. On the
report directly into a member of the characteristic I am looking for. Of other hand, much of order-to-cash
executive board who is responsible for course, I expect process affinity and or procure-to-pay will be done in the
all services across the enterprise, so at functional experience but what’s key spokes, for Asia and the Americas. We
a high C-level position. is to find someone who won’t shy away also run more than 1400 own stores,
from digging deeper. which of course have specific language
What drove your organization to requirements. So these are serviced
GBS? How would you describe One could argue that GPOs are from the spokes or even from local
the overall value of GBS to the effectively ‘Tigers without teeth’ – they retained operations.
enterprise? are accountable for the results and
continuous improvement but they are What are career options for a GBS
We have just changed our operating not directly responsible for delivery. leader?
model towards a GBS. We decided This does present a challenge! At the
to go straight for GBS, not the same time, they need to represent the Right now I am leading the GBS
traditional regional/functional Shared corporate side: the strategies, policies, transformation as well as GBS
Services route, first. We believed and controls that corporate expects. organization, so am effectively wearing
that GBS would give us the biggest We are positioning these GPO roles at two hats. It’s still early days – the
benefit for the future. We had started a high level, reporting directly to me, GBS organization has been official for
with a multifunctional decentralized to provide the proper context of their just about a month, after 16 months’
organization already, although not importance within our organization. transformation effort.
having Shared Services centers, GBS
provided the commonality to drive us What are some of the newer In any organization, the higher you get
forward successfully. functions that are being brought into the fewer options there are, but I think
the GBS? that the experience gained in GBS
We could have moved to a functional across operations and execution, as
Shared Services model first, but that We started from a multifunctional well as in transformation management
would have been a setback for us, as basis, which reflected the previous and leadership, are tremendous assets.
services were already reporting to one structure of service provision across I believe they serve GBS leaders well in
leadership. GBS optimizes the end- Swarovski’s enterprise and businesses. terms of providing future options within
to-end process model for us, and the So, from the start, we included business operations, such as sales or
hub-and-spoke model we decided on functions like HR, Finance, Controlling, supply chain.
also prevents autonomous regional Procurement and transform to order-
models from evolving, which would be to-cash, procure-to-pay, record-to-
a backwards shift. GBS means that report, hire to retire… We are now also
we can run our processes at the global considering legal, IT and even customer
level. service, which is already transitioning
BOBBY ABRAHAM
EXECUTIVE VP & GLOBAL HEAD OF FINANCE SSCS
VODAFONE GROUP PLC
How do you define Global Business Do you have Global Process Owners? which shifts the perception of a GBS as
Services? What distinguishes GBS Does the GBS manage the end-to- a sweat shop of transactional activities
from Shared Services Organizations end process in its entirety? to adding value and solving business
generally? problems. There are no sacred cows
Yes, we adopted the Global Process and there is no function that cannot be
I believe both have common design Ownership model three years ago operated from the GBS. Serviceable
principles in operating processes, and it has helped us tremendously activities range from sourcing to
people and technology. GBS is to standardize processes across marketing to data management to
intended to be the refined cousin of our 21 markets. The GPOs currently analytics and business intelligence –
Shared Services – originally set up operate from the GBS itself as it besides HR, Finance, Technology etc.
with the intent of owning and operating offers the advantage of understanding
a multi function, multi location, multi any variations in the processes and Do you standardize processes first?
geography, multi language paradigm fixing them at source. The GPOs Or lift & shift?
operation in a fully owned, captive own the process roadmaps and
environment. Some vary in ratio of capex investment in technology that I would go with a hybrid approach.
outsourced manpower vs. fully badged aims to deliver beyond world class Considering that GBS has the best
inhouse employees and most have a productivity and safeguard the controls view of the process today and a
centralized reporting line structure of environment across risk management strong operational excellence team,
hierarchy, either into the Group CTO or measures. it is best suited to lift & shift, and
Group COO or Group CFO functions. then transform. That way you are
How does the GBS develop and taking control of the ‘as is’ process
What drove your organization to leverage talent? Are GBS leaders and then making the necessary
GBS? How would you describe the generally recruited internally? changes to ensure it is lean and
overall value/advantage of your GBS standardized across countries. Most
to the enterprise? Yes, developing and retaining talent times, we operate with the principle
within the GBS leadership is a key that “no cost is better than low cost”
Vodafone’s Shared Services was built focus area and a critical objective to which drives the thinking around
on a solid foundation of a globally leverage internal talent. Recruiting Intelligent Automation over headcount
common platform ERP (SAP), globally internally means leadership are aware transferred to Shared Services.
common Procurement (Vodafone of the internal ways of working and
Procurement Company, Luxembourg) can better manage both internal and How is the GBS reward structure
and globally common processes (core external stakeholders. Vodafone designed?
business model) that paved the way deploys an intelligent location strategy:
for globally common people (Vodafone all our 7 GBS centers are based in Reward structures have come a long
Shared Services) to operate these countries where we have a leadership way since Shared Services were
processes. This led to being defined as position in our mainline telecoms set up. Today, GBS are expected to
Hackett World class within 7 years of business (eg., Hungary, Romania, Egypt manage outcomes rather than just
set up and investing over 1 billion Euros and India). This helps in attracting input measures, and focus more on
in the transformation program across senior leaders from the front end of the results than on effort. Operations
HR, Supply Chain & Finance. The business, which supports the business & technology lines have blurred and
value generated is in the range of 300 understanding required to operate the rewards are based on end-to-end
million Euros and on track to deliver GBS effectively. results around customer experience/
value savings in excess of 1 billion net promoter scores, overall data
Euros by 2020 (value is a measure How does the GBS encourage and security and compliance measures,
of productivity savings, innovation support innovation? and a strong and robust set of financial
roadmaps and Intelligent Automations). statements; as well as delivering on the
An integral part of sustaining GBS corporate social responsibilities of the
According to SSON Analytics is ensuring a robust idea generation mother ship.
data only 5% of all SSOs are have process. Currently, we have a thinkbox
adopted the GBS model. Why do you concept, where issues are identified What are the career options for a
think this number is so low? and the central operational excellence GBS leader?
team looks for a permanent fix using
It requires massive senior management Lean Six Sigma tools. GBS leaders that stand out are those
commitment and continuity at that understand technology and
executive levels to set a big vision What are some of the newer operations and the infinite possibilities
and ruthlessly execute that vision to functions that are being brought into that can be delivered through
time, cost and quality measures. Many the GBS? disruptive, agile, cross functional teams
start with this intent, but lose focus to solving day-to-day business problems.
burning business needs. It is a vicious The focus for any GBS should be to
cycle. migrate end-to-end process cycles,
Note: Bobby Abraham has left Vodafone since
sitting for this interview.
SANJAY PATEL
GROUP HEAD OF GLOBAL BUSINESS SERVICES
BRITISH AMERICAN TOBACCO
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