Presentation challenging audience to understand the limitations upon innovation when implementing shared services

2. Haven’t
we already
innovated by adopting
shared services ?
2

3. So why is the
industry still talking
about
innovation
3

4. It appears
we are
looking for
something
more !!!
4

5. Can we find the
Holy Grail
of innovation?
5

6. Or are we
kidding
ourselves
6

7. Is it even possible given that the mission
of shared services is to provide
control, consistency
and manage risk
7

8. Or is it all down to the way we approach
innovation
8

9. Is Tom Peters right?
9

10. Maybe
we don’t have a
good… or
common…
definition…
10

11. Is it merely process
improvement, doing more of
what we already do only
better, faster and cheaper
and under one umbrella
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12. Or should it result in
fundamental disruption
of the way we work
12

13. 13

14. 14

15. Perhaps it’s time to ask ourselves why
shared services isn’t a hotbed of
innovation .
15

16. Look what we have going for us
 Purview across the enterprise
 Laboratory for business change
 “Captive” market
 Low expectations beyond cost reduction
 Limited competition from providers with their own
challenges delivering innovation
16

17. But good shared
services delivery is
defined by NO!
17

18.  No uncertainty! — Manage risk
 No disruption! — Maintain control
 No noise! — Keep stakeholders happy
 No customization! — Standardize
 No red on the dashboard! — Meet service levels
 No investment! — Do more with less
 No new/different talent — Deploy what you have
 No change! — There’s comfort in continuity
 No mandate — Make it happen on your own
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19. Not a recipe for
out of the box
thinking
19

20. … which deters innovation
20

21.  Fear of unintended consequences
 Unimaginative approach to talent
 Control freakiness
 First rate technology with second rate application
 Obsession with managing every risk imaginable
 Inability to think outside the box
 Slavery to customer satisfaction
 Lack of scale and scope
 Rigid and intransigent service level agreements
 The approach aka “all things to all people”
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22. Barriers to innovation
start the day we design shared services
22

23.  When we map processes… then only tweak them
 When we take skills templates… then replicate them
 When we say we need new capabilities… then make
rewarding loyalty the basis for hiring in the new organization
 When we aim to create enterprise value… then sell our
customers on the same, better, faster and cheaper
 When we decide the customer rules… then force them to
accept a one size fits all
 When we say it’s all about the customer experience… then
hide behind service levels
 When we say we want dramatic change… then strive for zero
defects
23

24. No
No Be a slave
to 6 SIGMA
No
No
No
{
Better,
Faster, What’s a
Start Shared Services
Cheaper
Here leader to do?

25. So what can we do about it?

26. So you want to be
innovative!!!
{

27. How do you get
started
27

28. First, understand
what innovation means for you
personally
28

29. Moving out of your comfort zone Being willing
to fail … in an organization that accepts failure
embracing ambiguity Focusing on customer success
not satisfaction IMAGINING Accepting less
than zero defects Risking Your career
Obsessing about change Employing misfits
Destroying rank Thinking out of the box
29

30. clean sheet
Then take out a
of paper and list what
shared services could
look like
30

31.  Self service! (Most) everything is done on the web
 Virtual Shared services centers go the way of the dinosaurs
 Never satisfied customers Customers always demand change
 Team of rock stars Talent is entrepreneurial
 Technology first, then people Organization is designed based
on apps, not FTEs
31

32.  Data-based, not data bases Workflow delivers insights
 Big sucking sound Navigators suck data from disparate sources
 New relationships Manufacturers and retailers combine their
accounts payable
 Social media-savvy Twitter or Chatter messages advise
customers of payment
 Seat at the table Shared services leaders at the top of the house
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33. Develop a
Roadmap
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34. Stages in a Shared Services Innovation Roadmap
Incremental Improvement
1 Seizing the opportunity to make existing
functions/processes the best they can be
through simplification, new technology
Applied Innovation
Looking across the portfolio of 2
processes to apply improvements
to other functions/processes
Disruptive Innovation
3 Redefine the relationships between
functions/ processes and their
stakeholders/ customers
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35. You get the innovation you plan for
Modest Moderate Major
80% 70% 40%
18% 20% 45%
2% 10% 15%
Incremental Applied Disruptive
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36. Rethink your
organization
36

37. Team of Rock Stars
 Flat
 Deviant
 Entrepreneurial
 In-a-hurry
 Dis-”loyal”
 From the outside
 Unusual backgrounds
 Tech-savvy
 Inter-generational
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38. Change your mindset
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39. It starts with you
 Connect the dots in new ways
 Create a shared services experience – design a vision for
new business delivery, rather than build a better mousetrap
 Promote customer success rather than customer satisfaction
 Embrace technology
 Say what you stand for – create a shared services brand with
a vision
 Earn the right to charge for your outcomes
 Temper your expectations of career security
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40. 40

41. Yes No
 Depth of experience  Hide bound by deal SLAs
 Commercial  Factory approach
 Scale to leverage investment  Falling margins limiting
 Key to marketplace investment
differentiation  Not attractive to innovative talent
 Greater agility  Lack of integration with the
 Ability to create aligned business
compensation models  Client resistance to gain-sharing
 Focus on rules-based work
41

42. Deborah Kops
deborah.kops@sourcingchange.com
What’s
Your
Vision
Thank you
42