Global Business Services · As technology has advanced, the need for physical centres is...

Global Business ServicesDriving further value from GBS

January 2018

“The traditional cost reduction outcomes targeted by shared service back office functions have almost become second nature, and are embedded in the DNA of most global companies.

Now organisations are looking to gain more value from their GBS operations.

The ability to bring in middle (and even front office) activities to scale up the GBS model provides a platform for the organisation to focus on key business drivers such as growth and profitability.

The organisations who are more evolved along the GBS journey have not only taken advantage of the efficiencies on offer, but provide the business with more specialised services and are more agile in responding to latest market conditions — these are characteristics that our clients are increasingly looking to capitalise on.”

Ross Lacey Partner, EY Advisory Services

Contents 1. Executive summary 1

2. GBS: A broken promise? 3

3. Maximising the value of GBS 5

4. What a leading GBS organisation looks like 10

5. Achieving high performance 13

6. Next steps 17

We live in an increasingly competitive economic and politically unstable environment. Wider variation in market performance, greater market volatility and ceaseless pressure on margins has compelled organisations to intensify their focus on operational agility and cost competitiveness. To help achieve this, organisations have for many years transferred activities into Shared Service Centres (SSCs) and more recently into Global Business Services (GBS) — which are now very much part of the fabric of leading organisations.GBS is an integral part of any global* organisation — it’s fundamental remit is to deliver transactional and specialist services effectively and efficiently to the business, with robust governance procedures in place to ensure consistent quality standards are met. Services are delivered on a global scale across all geographies and business units through a blend of specialist centres, captive centres and outsource partners to optimise scale and capability.

As a GBS model evolves, it is moving away from being seen purely as a ‘back office’ function, organisations are increasingly looking to generate more value from GBS, through the incorporation of specialist and ‘Centre of Excellence’ activities such as analytics and innovation, which can be executed at scale and do not need to be within close proximity of business operations.

Organisations with high-performing GBS capability are considerably better placed to handle the uncertainties of today’s market place and deliver better results for shareholders.

In order to improve performance there are a number of levers a GBS organisation can pull:

Strategy1

People Empowerment3

Process Optimisation & Integration5

Digital & Innovation7

Governance & Controls2

Organisational Agility4

Technology Core6

Customer Service8

Achieving high performance across these areas can feel daunting. The first step is to really understand how the GBS operations are performing today against a simple set of criteria that determine the opportunities a business has to rapidly improve performance, flexibility and value-add. Our rapid assessment methodology provides organisations with the foundation for making a step change in performance and establishing a GBS model that is best positioned to support the business in overcoming the challenges they are faced with today.

*Note: The definition of ‘Global’ in this paper can be applied not only in the geographical sense and to Global organisations, but also across an entire enterprise that operates on a national or international level

Executive summary1

Global Business Services Driving further value from GBS 1

Global Business Services Driving further value from GBS2

Many organisations have failed to deliver the benefits case they set out to achieve through the implementation of shared services or GBS, which is often as a result of the misconception of its role and purpose. GBS should be viewed as a journey to

a revolutionised operating model that focuses on customer experience and business outcomes, and not just as a back-office network that delivers marginal productivity improvements.

GBS: A broken promise?2

There are six key challenges organisations need to overcome to really drive value from GBS:

Organisations are increasingly looking to move from functional shared services to a GBS model, but they fail to revolutionise their operating model into the suite of end-to-end business services that deliver real value-add benefit, instead remaining functionally organised and focusing on cost reduction of out-dated processes.

Functional design

As technology has advanced, the need for physical centres is diminishing, yet organisations have a continuing attachment to setting up these physical centres in low cost locations. These offshore centres are often more difficult to control, integrate, and can erode the quality of service provided to the business.

Location focus

The aim for GBS is too often focused on the financial business case; delivering cost reduction of back-office services. Organisations often ignore the customer experience and the business perception of the GBS brand suffers as a result. They need to break through these siloes and link resources, information and systems in new ways to develop on demand, context-specific services that provide a seamless customer service.

Customer experience

Most mature GBS organisations are now grappling with Intelligent Automation, but they focus on the automation of low value activities that are already performed off-shore at low cost. Robots and other automation technologies should be deployed alongside the automation of re-designed end-to-end processes, pushing the boundaries beyond simple transactional tasks.

Automation

Relationships with outsourcers are still seat based, contractually rigid and extremely slow to innovate. There is a real opportunity to reap value from a flexible ecosystem of partners, provided the GBS organisation can develop the capability to evaluate sourcing decisions and drive better value through contracts and ‘plug and play’ third parties in an agile, responsive manner.

Rigid outsourcing

There is an ever-increasing availability of data from suppliers, customers and consumers. GBS has unique access to the entire corporate data set, but frequently fails to unleash the power it possesses. Organisations need to think about how they harvest, structure and present this data to provide and offer insight when the business needs it.

Big data

Identifying, addressing and solving these challenges is the first step in driving real value from GBS.


Organisations are looking to maximise the value they get from GBS:

Managing business performance in uncertain times

Businesses today are facing a constant dilemma. How can they contain costs in stagnating, developed markets whilst exploiting the potential of high-growth emerging markets? There are risks and uncertainties inherent in achieving both of these conflicting objectives, which only the most agile of businesses will successfully mitigate.

Global economic and political uncertainty, with Brexit as a prime example, has risen to record levels and this is feeding through into lower levels of business confidence, with growth expected to slow down during the course of this year, leaving 2018 and 2019 looking weaker at growth rates of 1.2% and 1.5% respectively1.

Remaining competitive, growing the business and building a foundation for less uncertain times in the future is a huge challenge. The characteristics of businesses most likely to succeed in this environment are:

1. Flexibility Can quickly exploit new market opportunities and effectively integrate these into existing operations.

2. Leanness Operate at high efficiency, ensuring that revenue delivers the greatest possible profit.

3. Scalability Able to change the size of business operations up or down at speed, in the face of downturn or recovery, divestments or acquisitions.

GBS offers one way for organisations to support these objectives. The consolidation of activities and visibility of performance they offer make it simpler to reduce costs, make more of the cost base variable and allow for a faster response to changes.

Emerging technologies offer further value-add opportunities

Whilst traditional shared services provide some degree of flexibility, leanness and scalability, it is the evolution of GBS alongside emerging technologies that generate increased opportunities to maximise the value that is generated.

There are four priority areas that GBS leaders should focus on2:

1. Next-generation automation Deploying robotics to automate transactional process, and in-turn free up capacity within GBS centres.

2. On-demand customer experience Developing on-demand content-specific customer-centric services that are digitally enabled for greater simplicity, quality and compliance.

3. Insight as a service Harnessing the ever-increasing data that is available to an organisation, and using analytics capability to turn data into meaningful insight that enable the business to make better decisions.

4. Organisational agility Challenging the existing partner ecosystem to drive better value through contracts and ‘plug and play’ third parties in an agile, responsive and demand-led way.

Advanced GBS organisations are set up in a way that enables them to take advantage of the opportunity areas above; They execute standardised end-to-end processes across a broad functional and geographical scope, continuous improvement initiatives have buy-in across the organisation, and they operate within a partner ecosystem to bring in the required skills. In most cases these components do not just fall into place, they are part of the GBS journey.

1 EY ITEM Club Spring Forecast 20172 EY Digitising Global Business Services paper 2016

Maximising value from GBS3


The GBS journey

The move towards advanced GBS is a process of evolution for most organisations. Over the past 20 years organisations have taken advantage of cost and quality efficiencies through process optimisation, economies of scale and wage arbitrage by making use of shared services and outsourcing. They are now looking to maximise the value they get from GBS in other ways.

Advanced GBS models are set up to drive further value; they are organised by services or end-to-end process as opposed to functions, services are fully integrated into the global enterprise, more value added and analytical services are brought into scope, and the Head of GBS is part of (or directly reports into) the C-suite. These are all enablers for a continuous improvement mindset to maximise the value GBS provides to the rest of the organisation.

1

Functional Shared Services

2

Multifunctional Shared Services

3Global Business Services

(GBS)

Perf

orm

ance

Fina

nce

CFO

HR

CHRO

Proc

urem

ent

CPO

IT

CIO

‘Level 1’

Maximising value from GBS

Fin

HR

Proc.

IT

Fin

HR

Proc.

IT

Fin

HR

Proc.

IT

Functional Shared Services

‘Level 2’

Americas EMEIA APAC

‘Level 3’

SalesIT

Procure.HRFin

CoE

Americas EMEIA

Regional/divisional CoEs

SalesIT

Procure.HRFin

SSC

Global

Global Shared Services

Divisional centric services

Functional centric services

► Multi-functional shared services with a global consistent service management framework

► Regional Centers of Excellence providing knowledge and skill based services

► Global Process Ownership implemented

► Extend service scope but service management still done per function

► Functional services report into one GBS leader

► Two or more functions combined in regional Shared Services centers

► Functions reporting into regional SSC leads

► Continuous improvements measured and reported

► Service management frameworks in place

► Individual functions managed in discrete country Shared Services centers

► Each shared center reporting through function lead


3Global Business Services

(GBS)

5

Digital GBS

4

Advanced GBS

Maturity


‘Level 3’

SalesIT

Procure.HRFin

EMEIA APAC

Regional/divisional CoEs

SalesIT

Procure.HRFin

Global

Global Shared Services

Divisional centric services

Functional centric services

SSC

Sales

IT

Procure.

HR

Fin

CoE

Americas EMEIA APAC

Functional CoE services

‘Level 4’

Hire to Retire

Procure to Pay

Record to Report

Order to Cash

Global

Head of Global Business Services

Process centric services

‘Level 5’

SSC

Use

Cas

e

Use

Cas

e

Use

Cas

e

Use

Cas

e

Use

Cas

e

Global

Head of Global Service Unit

Reporting & compliance

Customer insight

Automation

Analytics

CoE

Context Driven Services

Customer centric services

► Multi-functional shared services with a global consistent service management framework

► Regional Centers of Excellence providing knowledge and skill based services

► Global Process Ownership implemented

► Extend service scope but service management still done per function

► Functional services report into one GBS leader

► Organized by services / end-to-end processes and no longer by functions

► Services are fully integrated into global enterprise processes and business

► Head of GBS is a part of or reports directly to the C suite

► Processes are orientated around customer experience and delivered in seamless non-functional way

► CoE outputs are either pushed out based on predictive need to pulled based on self-service requirement

► Location becomes increasingly agnostic as automation replaces both need for knowledge/expertise and manual interventions


The shift from cost minimisation to value-add

As shared services have become increasingly sophisticated, organisations have explored simplification, standardisation and automation, in addition to offshoring and outsourcing activities that tend to be more transactional in nature.

Whilst the results have been largely impressive; improved performance at a lower cost than at pre-shared service operations, this approach is now considered standard for most GBS organisations.

Leading GBS organisations are shifting from the traditional cost minimisation focus of transactional processes, which can be eliminated altogether with the advancement of Robotic Process Automation (RPA) technologies, to the integration of value-add activities such as analytics and innovation services.

Note that these examples are based on a broad range of GBS models to give an idea of activities that could be in scope — every organisation is different and therefore the actual activities for consideration in scope for GBS will vary.

Finance

Business Performance Analytics

Statutory and Regulatory Reporting

Information & Analytics

Risk Management

HR Analytics & Reporting

HR M&A & Restructuring

IT Information Security

Treasury Operations

Purchasing Performance Analytics

HR Policy

OnboardingIT Research and Innovation

Tax Planning & AccountingSupplier Relationship

Management

Compensation & Benefit Policy

Talent Sourcing & ManagementIT Knowledge Management

Tax Compliance & Reporting Category Management

Global Mobility Services

Learning DesignIT Services and Solutions

Development

General Accounting Demand Management Performance Management IT Supplier and Contracts Admin

Accounts ReceivableProcess Purchase Orders Payroll Processing

Legacy System Maintenance

Management Reporting Query Resolution Policy Inquiries and ResolutionIT Service Levels

Customer BillingPurchase Order Tracking Training Admin

IT Helpdesk

Project Accounting Compliance and Monitoring Employment ChangesDeploy IT Services and

Solutions

Credit & CollectionsSupplier Master Data

MaintenanceEmployee Master Data

Maintenance

Contingent Worker Management

Fixed Asset Accounting Disputes and Query Management

Recruitment, Assessment & Selection Admin

Maintain IT Services and Solutions

Accounts Payable

Exit Management

Cash Allocation & Bank Recs

Intercompany AccountingProcess Requisitions Benefits Admin

Enterprise Data Management

Travel Expense Reimbursement

HR Helpdesk

Procurement HR IT

Valu

e ad

d ac

tiviti

esTr

ansa

ctio

nal a

ctiv

ities

Example candidates for GBS integration:



Determining candidate activities for GBS

Many organisations have maximised the potential breadth of transactional activities that are included within the scope of GBS, across the different functions, geographies and business units.

Activities that require some level of specialist skills or are judgemental in nature but can still be executed at scale and are location agnostic can also be considered for the scope of GBS.

Note that the end-to-end process in which these activities sit should be considered when assessing their suitability for GBS.

► Non customer facing

► Routine, repeatable, rule-based, consistent, high volume

► Low value add

► Non customer facing

► Repeatable, consistent, medium-high volume

► Specialist and/or judgmental

► Negative overhead growth

► Continuous improvement

► Compliance to agreed service levels/KPIs

► Support business growth/profitability

► Continuous improvement

► Compliance to agreed service levels/KPIs

Goa

ls

Cost minimisation

Char

acte

ristic

s

Value add

The case for RPA

A global survey amongst GBS professionals in 2017 evaluated whether RPA was already being deployed to deliver transactional processing — almost half already had or were planning on using robotics for this purpose.

Looking forward this will mean that as transaction processing becomes less dependent on headcount, the business case for centralised, offshore centres becomes less compelling.

Where organisations are looking beyond the benefit of cost savings from RPA, they are increasingly using the freed-up capacity within their GBS centres to deliver more value-add activities — a prime example being housing Robotics Centres of Excellence (CoEs) within the GBS structure, enabling a consistent approach to be taken across the organisation to drive further value.

36%

Source: SSON Analysis, 2017

52%

Multi functionGBS

12%

Yes

Plan to

No

Marketing

Marketing Analytics

Market Research & Insight Revenue Management Modelling

Sales & Commercial Analytics Supply & Demand Management

Media & Campaign Marketing Service Management

Broker & Distribution Management Product Performance

Assessment

Social Media Marketing Price & Promotion ManagementProductions & Materials

Strategies Discovery Research

Agency Management Promotion Processing Distribution & Logistics Ops Product Launch Coordination

Programmatic Media Buying Customer Care Master Data Maintenance Product Master Data Maintenance

Sales & Commercial Supply Chain R&D



GBS strategy is aligned to business strategy, with C-suite level sponsorship to drive engagement.

Global Process Owners (GPOs)/Global Solution Owners (GSOs) are housed in GBS, with SLAs/KPIs in place to track and improve performance whilst operating at arm’s length from the business.

People capability building programmes in place to maximise performance in GBS, with recognition and incentive plans to boost retention.

Able to flex up operations to integrate processes quickly into GBS post acquisition.

High performance in GBS

Leading GBS organisations align their strategy to that of the business, focus on executing standardised transactional processes across the entire organisation’s operations whilst extending their scope to include higher value offerings, and have the agility to flex up or down operations in line with latest business conditions.

1 2 3 4

► Customer Experience to create a customer service culture with the business, including on-demand customer experience.

► Process Integration & Optimisation to integrate, re-design, standardise and automate end-to-end processes, whilst bringing wider scope of processes in house.

► Digital & Innovation to provide data analytics and insight as a service and embed continuous improvement initiatives.

► Technology Core to standardise and consolidate technology platforms, systems and applications across the organisation.

GBS Strategy

Governanceand Controls

PeopleEmpowerment

OrganisationalAgility

ProcessIntegration &Optimisation

TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8

What a leading GBS organisation looks like4High performance can be characterised by the following core components:


Continuous improvement teams in place, using robotics to automate processes, freeing up capacity to take on further activity.

Master data governance owned by GBS and consistent across processes and the organisation.

Innovation teams housed in GBS are responsible for testing and implementing digital technologies, Intelligent Automation, Chat Bots, Cognitive Computing etc.

External customer facing operations run out of GBS, for example eCommerce.

5 6 7 8

► GBS Strategy to define the service proposition, including functional and geographical scope, which aligns with the organisation’s overall strategic direction.

► Organisation Agility to flex up or down operations in line with market or business conditions (for example through an acquisition or divestment), including the use of ‘plug and play’ third-parties.

► Governance & Controls to measure performance and drive improvements, whilst embedding controls to manage risks effectively.

► People Empowerment to build capability and attract, develop, rotate and retain resources to keep attrition rates down and ensure high staff morale.

GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8

What a leading GBS organisation looks like


Capabilities that a high-performing GBS organisation should build

In addition to the eight areas that have been identified to drive improvements in performance, GBS organisations must also have strong capability across the following three areas:

1. Management & Enabling Capability

2. Operational Capability

3. Innovation & Improvement Capability

Management capability provides the overall governance to the GBS organisation to ensure it is operating in line with it’s strategy and that of the business, and meeting the expected standards as agreed with the business.

Operational capability is the ability to execute the processes and services that are in scope in the most effective and efficient manner.

Innovation capability ensures that the GBS organisation is not standing still, but has the structures and protocols in place to drive year on year improvements.

Illustration What good looks like Example

1. Management & Enabling Capability

GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8 ► Robust governance and service management protocols in place to ensure quality of service delivery to business (both captive and outsourced).

► Global Process Owners (GPOs) ensure end-to-end processes are executed in the same way across all regions with and to the agreed standards.

► Agile organisation structure in place to ensure able to react to peaks in demand (e.g., internal flow teams).

Global Alcoholic Drinks Manufacturer: strong governance structures in place with monthly service management reviews, performance dashboards visible across organisation and GPOs responsible for driving process improvements.

2. Operational Capability GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8 ► Execution of standardised end-to-end processes across all geographies.

► Transactional activities either automated/carried out in the lowest cost location/outsourced.

► ‘Value add’ capability part of GBS model, these include more judgmental/specialist activities executed at scale.

Global FMCG: have outsourced most transactional activities to two partners, with some retained activities being carried out in off shore location by the GBS organisation.

3. Innovation & Improvement Capability

GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8 ► Continuous improvement culture embedded and dedicated teams in place to drive further efficiencies.

► Innovation teams set up to ensure maximising use of latest advances in process/technology (e.g., through Robotics, development of mobile apps).

► Analytics teams provide business insight to support better decision making.

Global FMCG: have a dedicated project management function sitting across the three GBS centres, who focus on process improvement projects as well as business integrations such as acquisitions and divestments.

Achieving high performance


5

► Create a customer service culture with the business.

► Enable on-demand customer experience to provide real time data and reporting through mobile and tablet apps.

► Identify middle and front office activities that can be executed centrally for further integration of services in GBS

► Take advantage of RPA and intelligent automation to optimise processes and free up capacity to take on further value add activity

► Embed continuous improvement teams within GBS, who are dedicated project resources.

► Create dedicated Digital teams whose remit is to upgrade current operations.

► Consolidate ERP systems and instances to ensure consistent platform across the enterprise.

► Take ownership of data management across each process, providing better insight to the business.

GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8

Practical and pragmatic steps can be taken to drive greater value from GBS

Each of the components present different opportunities for driving further value. A GBS organisation that is targeting a step change in performance should be evaluated against each lever and the opportunities prioritised based on which best support the business’ overall strategy.


Case study 3:Robotics Process Automation (RPA) implementation: Global Consumer Products Company

► EY led process assessment workshops across GBS finance functions in the EMEA and APAC service centres to identify suitable processes for RPA

► Designed and implemented an end to end automation platform across three of these finance processes over a 12 week period

► FTE benefit of 50–60% on 120 in scope FTEs derived from automation of transactional tasks, freeing up GBS resource to focus on high value-add activities

► Additional benefits include the increased accuracy of master data, reduction in business SLA’s and reduced compliance risk due to automatic maintenance of complete audit trail


► Ensure C-suite level sponsorship and global visibility of GBS strategy

► Align GBS with that of the business so that GBS is a key enabler

► Shift in focus from transactional processing to middle & front office support

► Set up internal ‘flow’ teams to support operations during high demand periods.

► Have call-off contracts in place with preferred third parties to supplement flow team as required.

► Ensure management incentive plans are aligned to the overall GBS strategy.

► Report globally on a small set of KPIs that drive business value.

► Implement recognition and incentive plans for all staff based on KPIs and achieving strategic aims.

► Put in place mandatory rotation schemes to help develop individual’s skills.

GBS Strategy


PeopleEmpowerment



TechnologyCore

Digital &Innovation

CustomerExperience

GBS Component

1

2

3

45

6

7

8


Case study 1:Centre of Excellence set up within GBS: Global Consumer Products Company

► EY led the design and implementation of an end-to-end global cost allocation process and the creation of a CoE in the GBS organisation to manage it

► Existing process carried out on spreadsheets for €4.5Bn of global costs across 100+ countries annually

► Stood up a CoE of 20 FTE quickly to manage the end-to-end process, freeing up business resource to focus on more value-add activities

► Additional benefits included greater accuracy in cost allocations through the standardisation and management of the process centrally, improved documentation and traceability on costs charged in line with BEPS guidelines

Case study 2:GBS current state assessment and future strategy definition: Multi-national Retailer

► EY led a current state assessment of the GBS organisation to identify performance gaps and improvement opportunities

► Defined the future vision, design principles, organisational structure and service catalogue across 10 functional areas to identify where GBS can add further value across the whole organisation

► Conducted a review of the KPIs in place and Service Management Framework to identify opportunities to improve ways of working with the business

► Created the roadmap for transition to the future GBS organisation


Our GBS rapid assessment provides leadership with the information required to drive change fast

Understanding your current situation and the options you have to improve quickly is the first step. EY’s five week GBS Rapid Health Check delivers this. Highlighted outputs are:

An accelerated approach

Our GBS Rapid Health Check is supported by tools that enable a fast yet deep assessment of existing performance. Our best practice and case study database enables real, tangible options for change to be presented and considered by the GBS leadership team.

Rapid independent assessment of the current state mapped against our maturity framework

Prioritised opportunities for change

1

2

Alignment of GBS leaders on the required next steps

Pragmatic, action orientated 1-month, 3-month and 6-month plans

3

4


Next steps6

Rapid assessment Diagnostics workshop Action plan

Phase 1 Phase 2 (Workshop 1–2 days)

Stra

tegy

& S

cope

Strategy

► Strategy review: determine alignment of business and GBS strategies.

► Scope analysis: document full scope and compare to potential scope (regionally and functionally).

► Org. Assessment: compare structure to leading practice, including partner ecosystem.

► People pulse check: review retention plans, churn rates, exit interviews and incentive schemes.

► Functional assessment: interview functional leaders to assess appetite for change.

► Value-add assessment: identification of the value add/judgemental activities that should be brought into consideration for the scope of GBS.

► Financial case: develop directional financial case for expanding the scope of GBS, including the use of automation technologies to free up capacity to fund this.

Attendees

► Executive Stakeholders

► GBS leadership Team

► EY Rapid Assessment Team

Objectives:

► Assess GBS strategic objectives vs. those of the broader business

► Define the future GBS vision and catalogue including additional value-add activities and automation strategy

► Agree key issues and opportunities, focused on the eight levers

► Agree prioritised next steps

Actions:

► Present key finding and opportunities

► Discuss and align on the main issues and opportunities

► Determine critical next steps

Action plan:

► Document future GBS vision and catalogue

► Prioritise transformation initiatives, validate with executive stakeholders

► Develop 1, 3 and 6 month action plans

► Design long term roadmap for transformationPeople

empowerment

Organisational agility

Use

rs &

Per

form

ance

Process integration and

optimisation

► Process scope assessment: validation of the functional scope of the GBS model, including from a geographic and business unit lense.

► Governance review: compare KPIs/SLAs and governance approach to best practice.

► Voice of business: capture objectives and requirements of the business through interviews with sample stakeholders.

► Process automation assessment: Provide a view on the potential automation opportunities across the functional scope of GBS.

Governance & controls

Customer experience

Tech

nolo

gy &

D

igit

al

Technology core ► Interview GBS staff: understand issues,

opportunities and in-flight programmes.

► Understand current technology landscape: determine whether improvement opportunities exist.

► Continuous improvement: assess scope and quality of continuous improvement teams.

► Digital assessment: understand current digital initiatives in place and provide view on what others are doing in the sector.

Digital & innovation

Rev

iew

find

ings

aga

inst

Mat

urit

y m

atri

x

3-4 Weeks

Next steps


Rapid assessment Diagnostics workshop Action plan

Phase 1 Phase 2 (Workshop 1–2 days)

Stra

tegy

& S

cope

Strategy

► Strategy review: determine alignment of business and GBS strategies.

► Scope analysis: document full scope and compare to potential scope (regionally and functionally).

► Org. Assessment: compare structure to leading practice, including partner ecosystem.

► People pulse check: review retention plans, churn rates, exit interviews and incentive schemes.

► Functional assessment: interview functional leaders to assess appetite for change.

► Value-add assessment: identification of the value add/judgemental activities that should be brought into consideration for the scope of GBS.

► Financial case: develop directional financial case for expanding the scope of GBS, including the use of automation technologies to free up capacity to fund this.

Attendees

► Executive Stakeholders

► GBS leadership Team

► EY Rapid Assessment Team

Objectives:

► Assess GBS strategic objectives vs. those of the broader business

► Define the future GBS vision and catalogue including additional value-add activities and automation strategy

► Agree key issues and opportunities, focused on the eight levers

► Agree prioritised next steps

Actions:

► Present key finding and opportunities

► Discuss and align on the main issues and opportunities

► Determine critical next steps

Action plan:

► Document future GBS vision and catalogue

► Prioritise transformation initiatives, validate with executive stakeholders

► Develop 1, 3 and 6 month action plans

► Design long term roadmap for transformationPeople

empowerment

Organisational agility

Use

rs &

Per

form

ance

Process integration and

optimisation

► Process scope assessment: validation of the functional scope of the GBS model, including from a geographic and business unit lense.

► Governance review: compare KPIs/SLAs and governance approach to best practice.

► Voice of business: capture objectives and requirements of the business through interviews with sample stakeholders.

► Process automation assessment: Provide a view on the potential automation opportunities across the functional scope of GBS.

Governance & controls

Customer experience

Tech

nolo

gy &

D

igit

al

Technology core ► Interview GBS staff: understand issues,

opportunities and in-flight programmes.

► Understand current technology landscape: determine whether improvement opportunities exist.

► Continuous improvement: assess scope and quality of continuous improvement teams.

► Digital assessment: understand current digital initiatives in place and provide view on what others are doing in the sector.

Digital & innovation

Rev

iew

find

ings

aga

inst

Mat

urit

y m

atri

x

Take

act

ion

1 Week 1-2 Weeks

Next steps


Conclusion

GBS is widely recognised as an excellent way to reduce costs and improve performance of the back-office across the enterprise. Many organisations have not fully embraced this delivery model and are not maximising the returns on their investments, nor are they realising the potential to expand the scope of the GBS model to include higher value add activities which traditionally sat in the middle or front office.

More than ever, GBS is crucial to helping businesses ride out current economic and specific market challenges. They can deliver greater value through enhanced scope, investing in digital technologies and driving innovation across the organisation. Businesses should revisit their GBS strategies to ensure that they are utilising them to the greatest advantage in order to increase business value.

Why EY?

EY has a strong track record of supporting client’s organisations move to leading class standards. We believe that the following differences are a main driver for our project successes:

► Client centric account organisation that helps to tailor project approach around client needs.

► Global network of GBS practitioners and an established team with continuous knowledge exchange with leading companies.

► Detailed expertise across different GBS functional areas (including Finance, HR, Procurement, IT etc.) through a network of Subject Matter Resources.

► Sector-specific expertise including market-relevant case studies and examples.

► Strong focus on alignment within the team and stakeholder change management within all areas of our approach.

► Specific GBS methodology to move clients to the next performance level.


The authors of this report and key contacts for more information are listed below:


Ben CastellPartner

T: + 44 7770 995 905E: [email protected]

Dom HollisDirector


James MeaderPartner


Ross LaceyPartner


Julian RubbinoSenior Manager


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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

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