2 minute read 1 May 2019
Business man looking outside from modern office

How Global Business Services can drive value across continents

By

Christian Mertin

EY Global Advisory Solutions Leader – Global Business Services

Transformation leader in Global Business Services with deep knowledge in finance, shared services and other back-office functions. Strong capabilities in supporting technologies and digitalization.

2 minute read 1 May 2019

Introducing the results of a recent study by Prof. Dr. Dirk Klimkeit exploring GBS Target Operating Models.

The Global Business Services (GBS) Target Operating Model (TOM) stipulates that companies create crossfunctional “multi-tower” shared service centers (SSCs) rather than have separate centers for each function. Going beyond pure co-location, this would imply significant collaboration between functions, especially along end-to-end (E2E) processes such as procure-to-pay (P2P) or order-to-cash (O2C) that involve several functions such as procurement and accounting or sales, contracting and accounting.

Geographically, all of the SSCs of the company should also be integrated into one joint shared services organization with one cross-functional GBS leader. Organizationally, the GBS organization would typically be characterized by a global hub for English-language services that can be provided centrally, regional hubs that cater to local language, legislation and time zone and exhibit local knowledge and finally decentralized retained organizations (RO) in the business units. The latter would comprise processes that have not (yet) been moved into a SSC.

Together, the SSCs of the GBS organization form an interdependent service delivery network that is governed by a joint service management framework, comprising especially consistent service levels and key performance indicators (KPIs). According to the GBS TOM, standardization of processes and intensive collaboration and knowledge sharing would take place among this network of SSCs across the world.

Eventually, these elements would put the GBS organization into a position where, far from being the traditional low-cost part of the firm, it can become a transformation engine of the company, driving change and especially the digital transformation in the firm.

Summary

This article and attached pdf reports on select findings of an exploratory qualitative study that was conducted between March and July 2018 in five shared service centers of four select companies in various industries in Asia and Europe.

About this article

By

Christian Mertin

EY Global Advisory Solutions Leader – Global Business Services

Transformation leader in Global Business Services with deep knowledge in finance, shared services and other back-office functions. Strong capabilities in supporting technologies and digitalization.