Introduction
Following our recent webinar on Setting Up a Modern Shared Service Center, we received several questions about the importance of strategic planning—what we referred to as the foundation—before diving into the specifics of operations. To further elaborate on this, we’re diving deeper into why strategic planning is crucial and how to implement it effectively.
For those who weren’t able to attend the webinar, here’s a quick refresher. Strategic planning ensures that your Shared Services Center (SSC) is built on a solid foundation, aligning with organizational goals and setting clear objectives. Think of strategic planning as the foundation of your house, ensuring everything is built on solid ground.
Why Strategic Planning is Crucial
Before diving into the operational specifics, organizations need to ensure their strategic plan is clear, structured, and aligned with their overall goals. Strategic planning:
- Provides Direction: Establishes a clear vision and goals for the SSC.
- Ensures Alignment: Aligns the SSC with the broader organizational strategy.
- Defines Scope: Clearly defines the scope of services to be centralized.
- Builds a Business Case: Develops a comprehensive business case outlining benefits, costs, and risks.
- Secures Commitment: Gains leadership commitment and secures key roles for successful implementation.
Now that we’ve covered why strategic planning is essential, let’s break down the key elements you need to get it right.
Key Elements of Strategic Planning for SSCs
To build a strong strategic foundation, follow these structured steps:
- Define Clear Vision and Goals: Laying the Blueprint Just as a house needs a detailed blueprint, an SSC requires a clear vision and specific, measurable objectives. These goals might include cost reduction, improved service quality, or enhanced scalability. The blueprint guides every decision, ensuring that the SSC is built to meet the organization's needs and expectations.
- Align with Organizational Strategy: Ensuring Structural Integrity Aligning the SSC with the broader organizational strategy is like ensuring the house's foundation is solid and integrated with the surrounding landscape. The SSC should support enterprise priorities such as customer experience, digital transformation, or geographic expansion. This alignment ensures that the SSC is not an isolated entity but a cohesive part of the organization's overall strategy.
- Set the Scope of Services: Defining the Rooms Identifying the processes and functions to be centralized in the SSC is akin to defining the rooms in a house. Each room has a specific purpose, and together they create a functional living space. Similarly, the scope of services should be clearly defined to ensure that the SSC operates efficiently and meets the organization's needs.
- Build out a Comprehensive Business Case: Constructing the Framework Developing a robust business case is like constructing the framework of the house. This framework outlines the benefits, costs, and risks associated with establishing the SSC. It includes a detailed cost-benefit analysis and a clear value proposition, providing a solid structure that supports the entire initiative.
- Gain Leadership Commitment and Secure Key Roles: Assembling the Construction Team Securing strong commitment and support from top leadership is essential, much like assembling a skilled construction team to build the house. Leadership commitment ensures that the necessary resources and backing are available for the initiative. Additionally, establishing the role of Global Process Owner for each key end-to-end service in scope is like appointing a project manager for each critical aspect of the construction.
Conclusion: Building for the Future
Strategic planning for an SSC is a meticulous process, much like building a house. By defining a clear vision, aligning with organizational strategy, setting the scope of services, building a comprehensive business case, and securing leadership commitment, you can create a strong foundation for your SSC. This foundation will support the organization's goals and drive long-term success.
At K&B Global, we’ve helped organizations worldwide establish high-performing SSCs, ensuring strategic alignment and operational excellence from day one.
By following these best practices, organizations can ensure their shared service centers run smoothly, efficiently, and at scale—delivering the cost efficiencies and operational benefits they set out to achieve.
Ready to build a resilient and cost-effective Shared Services Center? Let’s talk about how K&B Global can help.