Driving High Performance through Shared Services

Accenture Capabilities and Qualifications

Shared services has been prominent in the private sector for more than 20 years. In fact, more than 75 percent of Fortune 500 companies report having some form of shared services from accounts payable services to full business services across finance, human resources, supply chain, information technology and many other functions. More recent adopters many public-service organizationshave also had great success with the shared services model. Organizations commitment to process excellence and the technological advancements that continue to re-shape the way the world works have driven the shared services models remarkable growth so far, and spur its trend of continued progression across all industries.
Further advances in Enterprise Resource Planning (ERP) systems, contact management systems, the Internet and other enabling technologies facilitate shared services by automating activities, reducing exceptions and permitting service to be delivered remotely. More organizations than ever now see that shared services not only works, but can work very well indeed. But successful shared services practitioners know that it takes much more than technology to achieve the true potential of shared services. In a recent Accenture survey, less than 10 percent of survey respondents demonstrated shared services mastery.1 Masters demonstrate an ability to use operating models, workforce management techniques, technologies, and industry-recognized leading practices to achieve ambitious shared services objectives. From this platform of shared services mastery, they can drive organizational high performanceachieving dramatically lower-cost operating models, consistency in service, sustainable business momentum and strong market positioning that goes beyond what is possible through reengineering alone. For the others, the potential of shared services that lies beyond basic cost reductions remains just out of reach. These organizations stand on the edge of a divideseparated from the top rewards of shared services by thorny change management challenges that impede their progress. Not surprisingly, many organizations may ask, Is shared services worth the effort? Emphatically, yes. As successful organizations have shown, fully realized shared services may both enable organizations survival during economic downturns and position them ahead of new opportunities for economic growth.2 With its vast potential to impact both efficiency and effectiveness, shared services continues to rise to the top of the business agenda for organizations of virtually every size, in every industry. The pressure on organizations to create additional value from existing investments only adds urgency to the quest for high performance through shared services. The real question is what will it take for organizations to stretch beyond the limitations of shared services as they currently know it?

Experience. Proven experience facing the potential issues and developing the practical options to overcome them. Proven experience finding shared services value in inventive ways that go beyond labor arbitrage. Proven experience grasping the immense possibility of shared services as a platform for organizational high performance. It is experience that few organizations can claim to have within their own organizational boundaries. It is the experience that comes from teaming with Accenture. Accentures shared services experience flows from multiple sources, each of which brings specific benefits to our clients. First, through our shared services consulting, we continuously push the boundaries of what is possible through shared services, building on our numerous implementations to help develop innovations with our clients. Second, by running shared services operations for many clients, we have gained a better understanding of the impact of what we design and deploy. We also have access to the proven tools we use within our outsourcing operations to enrich the shared services value proposition at every stage of the shared services lifecycle. Finally, by running our own internal shared services organization at Accenture, we understand the perspective of being on the receiving end of shared services functions. In fact, we often use our own internal shared services organization as a testing ground for new ideas before bringing them to our clients. Truly, we practice what we preach.

Accenture brings a proven full-cycle methodology that we adapt according to our clients requirements and their industry-specific context. We help define the strategic intent and value proposition of our clients individual shared services implementations. We then help manage the process design, organizational structure, enabling technologies and changing responsibilities across multiple aspects of shared servicesall needed to bring their vision to fruition. We keep a few principles at the forefront: simplify, standardize and manage the change to bring about technology integration, outstanding service delivery, a substantially lower cost of operations and, above all, high performance. Accenture understands the fundamental importance and relevance of aligning the shared services model with the rest of the organization to secure lasting benefits. We begin by helping clients determine if shared services is the right option for them and, if so, which functions should move to shared services. We help develop an appropriate operating model for our clients individual situationswhether in-house, outsourced or a hybrid of the two. By tapping into our experience running shared services, we can also help our clients define the right culture for their own shared services organizations. For those clients already operating shared services organizations but aspiring to greater value, we can help assess their existing centers performance and apply Lean Six Sigma3 and other rapid improvement methods that aid in producing better results, often in a matter of weeks. And finally, for those organizations already operating shared services at near-peak performance, we can help point the way to the next level through bold strategy, smart investment and a rigorous program of continuous improvement.

A wealth of experience and more

For more than 20 years, Accenture has continuously pushed the boundaries of what the shared services operating model has to offer. We help deliver shared services programs that consistently yield outstanding results. Our clients come from both the public and private sectors and operate in a broad range of industriesfrom travel services to biopharmaceuticals to state government. These organizations have teamed with us to help deliver shared services solutions that enable high performance across their entire organization. With more than 500 shared services projects to our credit, Accenture has helped our clients collectively realize more than US$600 million in annual savings over the last five years. Our more than 15,000 shared services and business process outsourcing professionals help transform finance, human resources, procurement, customer relationship management, logistics and IT management operations for clients operating around the world. Moreover, we augment our experience with world-class assets, standardized methods based on industry practices, and a broad program of ongoing research into the latest trends and opportunities in shared services that informs our engagements.

These include: Accenture Shared Services Methods Accentures shared services professionals have the ability to extract, adapt and deploy relevant components of Accentures proprietary methodologies within a specific client context to optimize effectiveness where it matters. Among these shared services methods, we count change management tools, operating model tools and readiness/deployment toolswhich address the typically roughest elements that shared services implementations imply. Our shared services methods and related tools have been captured from the collective thought leadership and experiences of Accentures shared services specialists around the globe. Accenture Shared Services Business Case Tool The Accenture Shared Services Business Case Tool guides our project teams through the all-important processes of confirming requirements, designing business case models, populating the models and building a solid case for change. One key component, Accenture Benchmarking Solutions, encompasses both a standardized data collection tool and formal metrics on cost, headcount, quality, cycle time and volume. It also includes an extensive database of quantitative information on companies of all sizes, across a broad range of industries and geographies. From a qualitative perspective, Accenture Benchmarking Solutions provides access to mastery scales, industry practices and interview guides, which can help generate highly detailed benchmarking comparisons from the planning phase through data collection and results analysis.

Accenture Benchmarking Solutions, in combination with a number of other support tools and external references, makes the Accenture Shared Services Business Case Tool invaluable for generating a robust business case that functions as a touchstone throughout the entire lifecycle of the shared services implementation. Accenture Shared Services Health Check Accenture offers our clients an initial shared services health check: a short, focused analysis of an established shared service center, designed to help identify key opportunity areas, construct an associated business case, and map out the road to change for our clients. Working with our clients, in general, we can complete this initial health check in approximately six to eight weeks (depending on depth of analysis and other requirements), with a follow-on option to develop an end-state vision and roadmap for change in prioritized areas. We can use the Shared Services Health Check to help assess shared service centers of any functional type (e.g., finance, human resources, procurement, etc.). In addition, we can conduct an executive version of the health check as part of a rapid diagnostic for strategic purposes at the highest levels of organizational management. Accenture Shared Services Location Selection Tool The Accenture Shared Services Location Selection Tool gives project teams access to a standard methodology and database of predefined criteria and costs that can assist our clients in making decisions about a shared service center location. This tool

helps create analytical models that compare location cost and suitability data quickly and logically. As with all of Accentures shared services assets and methodologies, the Accenture Shared Services Location Selection Tool draws from Accentures global network and reach.

Shared Services: Operating Lean and Mean with Kaizen, which demonstrates how applying the lean production methods from manufacturing to shared services can lead to significant reductions in cost and response time. Multi-function Shared Services: Insights from an Accenture Research Study, which shows how both the benefits and challenges of multi-function shared services are even greater than expected, and also highlights key success factors in overcoming these challenges. Optimizing Shared Services Performance through Better Service Management, which describes how shared services success correlates with the demonstrable adoption of a complete service management framework. Establishing Trust through a WellDefined Shared Services Governance Framework, which explains how to create a strong governance framework that will establish trust between shared services organizations and their customers, and so help maximize shared services contribution to high performance. These publications, as well as several other insightful Points of View about shared services (and dozens more on other topics related to achieving high performance) are available at www.accenture.com.

Bringing the best of our thinking to our clients and employees

Accenture is committed to discovering the keys that will unleash the potential of shared services. Our thought leadership program combines the insights and experience of our shared services subject matter specialists with an ongoing rigorous program of formal research. Our goal is to help ensure that the best thinking on shared services gets distilled, recorded and disseminated to employees and clients alike, and advances innovation and high performance for the organizations we serve. Some of our more recent shared services thought leadership topics include: Achieving High Performance through Shared Services: Lessons from the Masters, which identifies the characteristics that set shared services masters apart from their peers, and outlines the questions that enterprises should be addressing as they formulate strategies to move their own shared services organizations along the path to high performance.

Let us help you reach for your goals

Accenture works with our clients in ways that range from providing subject matter advice to substantial participation on targeted shared services design, development and implementation activities. No matter the shape our involvement takes, however, Accenture emphasizes the importance of a collaborative approachone that balances myriad issues of people, process and technology within the context of our clients specific needs.

Accenture has been planning and building shared services solutions for more than 20 years. We have deployed global multi-function shared services for our own business and we run shared service centers for our clients around the world. We understand global trends through our High Performance Business research; we apply proven accelerators; we design durable solutions from the outset; and we stand ready to help our clients get the most out of their shared services model. Implementing shared services is no small task. However, with the insight and experience of Accenture to help span the pitfalls, organizations can feel confident reaching toward the potential of shared services as an enabler of high performance.

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 176,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009. Its home page is www.accenture.com. To explore the potential of shared services for your organization, please contact us at fpm.service.line@accenture.com.

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Notes 1 Achieving High Performance through Shared Services: Lessons from the Masters. 2009. Available: http://www.accenture.com/ Global/Consulting/Finance_and_Performance_ Mgmt/Finance_Operations/R_and_I/ Achieving-Masters.htm 2 Ibid. 3 A set of tools, beliefs and a structured framework that combines principles of both Six Sigma (which uses data to drive a disciplined approach that eliminates defects directly linked to bottom-line results) and Lean (which uses simple tools and techniques to eliminate non-value added steps and accelerate cycle time). Combining the advantages of the two approaches into Lean Six Sigma results in a powerful aid to eliminating waste and accelerating process improvements.