Shared Service Centers (SSCs) have become a cornerstone of modern business strategy, promising efficiency gains, cost containment, and scalability. Yet, reality often falls short of the ideal. Many organizations find themselves caught in a recurring cycle of challenges, from questionable service quality to difficulties retaining talent and unclear governance.
It's a curious paradox: SSCs are often established to solve these very problems. So, what goes wrong? Why do these ambitious initiatives, designed to improve efficiency and effectiveness, often stumble or fail?
In my experience, the core issues often boil down to two critical factors:
- Little to no effective change management: The human element of transformation is consistently underestimated. Resistance to change, whether cultural or economic, can derail even the best-laid plans.
- Lack of a unified view of organizational processes and services: When knowledge is scattered, tacit, misinterpreted, or misrepresented, the foundation of an SSC crumbles. This is especially true when SSCs are set up in geographically distant, lower-cost economies, making seamless knowledge transfer even more challenging.
This fragmented knowledge leads to significant operational hurdles: support teams relying on informal email printouts instead of documented processes, steep learning curves for new hires, and a disconnect between process changes and technology configurations.
So, how do we break this vicious cycle and unlock the true potential of shared service centers? The answer lies in a process-focused approach.
The Power of a Process-Focused Blueprint
Imagine working on a major construction project. Would you start building without a comprehensive blueprint? Of course not. You'd meticulously plan every detail, from the foundation to the finishing touches, ensuring every stakeholder understands their role and how their work connects to the overall vision.
A process-focused approach brings this same level of rigor and clarity to your shared service center's transformation. Instead of relying on fragmented discussions and varied interpretations, it provides a visual, interconnected narrative of your organizational processes and services.
Let's consider a practical example: setting up an IT support SSC in a new location. You've identified the ideal spot – cost-effective with a skilled talent pool. But how do you strategically move services to this new center while maintaining or even improving crucial KPIs like SLAs, transaction accuracy, customer satisfaction, and cost-to-serve?
Traditionally, this involves countless meetings, discussions, and ultimately, a handful of process designs, each potentially described differently depending on who you are talking to. The problems begin early.
A process-focused approach tackles this head-on by capturing these discussions and designs into a multi-dimensional digital plan. This blueprint serves as your single source of truth, much like the plans for a new house or production line. With every dimension of the transferred process meticulously captured, the SSC has a clear, actionable reference point for delivery.
Furthermore, as discussions evolve, KPIs are finalized, and processes are refined; the blueprint can be refreshed dynamically. This ensures the SSC is always working from the latest, accurate information.
The Benefits of a Process-Focused Foundation for SSC
Embracing a process-focused approach helps you avoid common pitfalls and achieve sustainable success for your shared service center:
- Eliminate Disconnected Knowledge: Say goodbye to informal, outdated operational guides. A centralized, visually connected process blueprint ensures everyone is working from the same, accurate information.
- Lower Learning Curves: By providing a clear, comprehensive understanding of processes, you significantly reduce the time and effort required for new hires to become proficient, leading to a faster return on your initial investment.
- Seamless Technology Integration: When process changes are clearly documented and linked to your operational blueprint, fine-tuning ERP/CRM systems to align with these changes becomes a smooth and efficient process.
In essence, a process-focused approach allows your shared service center to operate with precision, clarity, and adaptability. It transforms scattered information into actionable intelligence, minimizes risk, and ultimately, helps your SSC deliver on its promise of improved efficiency and effectiveness.
If you're on the journey of setting up a shared service center, or if your current SSC isn't yielding the expected results, consider how a fortified process-focused approach can be the catalyst for your transformation.
It's not just about documenting what you do; it's about creating a living, breathing blueprint for continuous improvement and sustained success.
Shrikanth Balla, Senior Product Manager at Mavim
Shrikanth has been in Product space for 7 years and specializes in turning around products, product Growth and AI. Likes writing about soul of Product Management in his free time and exploring entrepreneurial problems.