Choosing Shared Services? Here’s Your Five-Point Cheat Sheet
A business would be better if everything is kept simple. When operational costs start to grow but the productivity rate remains low, it’s time to think of strategies that would give the organization a vibrant metamorphosis.
Shared services model is the answer to that dilemma. It is a business model where the resources of a business are pooled together into a single unit. Here, the chargeback is not centrally divided but is computed based on the actual services used. It is a cost-efficient mechanism of doing business, eliminating the risks of wasting resources.
Shared Services Model – Cheat Sheet
1. Goal – What is the goal of the business in trying alternative ways of doing business? Is it solely based on cost-saving? Perhaps you want to improve the working conditions or to better the services? Whatever the reason, the goal to implement a shared service unit should always be results-driven. Analysis is the key to finding out if this kind of model would benefit all the players.
2. Team Decision – The decision to implement a shared service center is not shouldered by the higher-ups alone. The whole team should be involved in the decision-making, as everyone will be affected by any drastic business shift. This way, all sides will be considered, especially the ones who will need to adjust to accommodate the changes.
3. Time Frame – Time is crucial when implementing new projects. As far as shared services is concerned, a feasibility study should always be considered. This includes discussions on transitioning, training, and procurement of necessary resources. After all, for a shared service center to succeed, all things should run in unison.
4. Target Discussion – When the rudimentary procedures are settled, it’s time to explain the target to the team. This includes discussions on the output, the best practices, various approaches to take when handling the task, grievance procedure, and the goal of the organization. The involvement of each team member is important, as they’re the ones to decide as to what is essential and what is counterproductive.
5. Performance Monitoring – It is crucial to monitor the team right from the start of the operation. This is to gauge the capacity of each member to handle important tasks, avoiding any hindrances that would defeat the purpose of the shared service center. Leadership and delegation of tasks are improved in this setup, but it is necessary to consistently check if the management of the team is indeed efficient.
A shared service model is an advantage if you have a feasible strategy in place. Whether you’re a start-up or established corporation, consider this option if you want to maximize productivity and streamline operations.