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Shared support services costs - are you transparent - Whats the fix? - EY - Global

Shared support services costs: are you transparent?

What’s the fix?

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There is no “one size fits all” when moving to a next-generation support services delivery model.

Each organization needs to determine the best approach rather than just the traditional centralized support services model.

The new model should:

  • Capture the cost advantages of shared services
  • Deliver improved value of services and control associated with decentralized support functions
  • Pass regulatory scrutiny

The next-generation service delivery model aligns support service groups locally with operating companies but manages them through a matrix management structure.

This delivery model incorporates traditional shared services elements to streamline and centrally perform routine transaction-oriented activities. It also captures economies of scale through common resources and infrastructure.

Centers of Expertise: models for power and utilities transformation

Almost every utility has adopted some sort of shared-services model in connection with its A&G support areas. The key to transforming existing models and implementing a next-generation support services model in the power and utilities sector is found in the concept of centers of expertise (CoEs).

CoEs use a variety of organizational designs to align decentralized and distributed-support resources under a single management structure. CoEs seek to improve the overall load factor of skilled resources and to tap into capabilities, insights and best practices that exist throughout the organization.

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