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.

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In unity there is strength, as best described in the shared services model; it’s a business strategy where some resources of an organization are combined to cut costs and remove redundant operations. Processes are standardized and resources are optimized, effectively combining the best practices of different teams and strengthening the organization in the long run.


With resources focused on just a single unit, operational costs would greatly decrease. In a normal setup, each department has its own intangible and tangible assets, even repetitive operations, while the shared services model pool valuable resources together to remove menial tasks. Consequently, downtime is lessened and operational costs are reduced.

Efficient and Professional

Reduced downtime enables workers to focus on their tasks. With dedication to only accomplish valuable services, the workers’ training and skills are improved. This promotes the professionalization of their work, making them able to deliver efficient service.

Improved and Standardized Service

A task-driven team is also customer-focused. Once cultivated into a work culture, clients and the business receive services from just a single structure and from a standardized process. There would be no complicated administrative procedures to take, just a streamlined mechanism to quickly and wisely extend services.

Flexible and Focused

There’s the misconception the shared services model is complicated, considering various tasks are juggled by just a single unit. The uncertainty that comes with this is normal, as a shift in business model is coupled with inevitable changes. However, this is resolved as soon as the shared service center is in operation, once the staff knows how to prioritize between processes. Thus, they can control the work flow by managing tasks, as well as strategize procedures based on the business’ and the customers’ needs. With such flexibility, the focus and quality of service is improved.

Indeed, the shared services model is not just a practical means to do business. It is a wise move to improve the overall operations of an organization, all while maintaining a professional workforce and providing optimum service.

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Choosing Your Business Model: Shared Services Over Centralization

Regardless of industry, specialty, or region, business owners know there is always room for improvement within the company. In the fast-paced and highly-competitive markets of today, businesses have to adapt to the surges of demand and supply, adopt the proper business model that propels the company forward.

There’s a variety of possible models to adopt, but two common and popular models stand out above the rest. Your business needs to know: how is shared services model better than centralization?

Shared Service In A Nutshell

In a shared services model, processes are coordinated between independent units and a supervising entity. This relationship is dynamic, with each unit accountable to its own output and efficiency. There’s focus on service excellence, cost-efficiency, performance, and continuous improvement. Customers are treated as customers, with emphasis on service and feedback.

Centralization, Streamlining And Efficiency

Centralization dedicates leadership to an oversight party or headquarters. Consequently, this model benefits the company more than the end user (customer). Usual focus is on operations and management, instead of customer service. Centralization is a traditional business model, and it’s proven advantageous if the goal is to run the company like a well-oiled machine.

The Advantage Of Shared Services Model

To put it simply, shared services offers the business the chance to maximize a dedicated and expert team of specialists to handle a specific operation/project, at a cost-effective price. Meanwhile, centralization is the integration of services to one location, with a clear designation of decision-making to the higher ups of the management. While both models offer a range of benefits, they also have their own unique advantages to offer.

In the shared services model, businesses can expect a strong emphasis on the quality of performance/output from the provider. In centralization, a standard procedure must be strictly followed. The whole structure of the team under the shared services model also make for a way that leaders have a shared responsibility and accountability to deliver the efficient and effective functions required of them.

In contrast, the decisions in the centralized model are made for the benefit of the company rather than the customers. Because the shared services model offers a more flexible and service-oriented approach to accomplish a task/function, the advantage is evident in excellent results and feedback.

Searching for effective solutions to outsourcing? Consider shared services and staff leasing!

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Build Stronger Teams on an Infrastructure of Shared Services

Adapt your business strategies to changing business trends. In a time corporate dynamics is more demanding, there’s always the need to look into ways to improve operations. With that, more and more companies are now built on infrastructure of shared services.

Shared service is a strategy of combining different resources into one operational entity. This is to streamline possible redundancies in the organization, and cutting operational costs. This model is an efficient and effective way of delivering services to both corporate functions and customers. Shared service is more than just a method of lowering costs, it is a dynamic strategy where the value of services is improved with focused operations.

Shared Service Is Focused

It’s feasible to combine company resources like manpower and technology, especially if the goal is to consolidate an organization. United teams work well together, and unity is what shared service is all about.

Some companies combine their operational functions (legal, administrative, accounting, human resources, clerical, and the like) into a single unit. Through a collection of various resources, the resulting structure is a flexible unit. As the cost of shared services is based on the output delivered, better task delegation and financial management are always possible.

Shared Service Is Feasible

An infrastructure of shared services is designed to improve and deliver. Operations are efficient when downtime is reduced, or dedicated to other valuable services. Moreover, by cutting redundancies, services are delivered much faster. Shared services free and make room to the organization, improving the workflow along the way. Who else benefits from this dynamic system but the business, the employees, and the customers?

Shared service is not just a practical way to achieve organization goals, it’s also a proactive response to ever-changing business needs. Just like in budding plants, for a business to grow, cutting some parts within the whole is essential. And when that part blooms, the whole prospers. Shared service is just that – benefitting the whole business without sacrificing the quality of services.

Hire an awesome support staff without the hassle: we offer Staff Leasing Service that’s guaranteed to build your team. Request a quote now!

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