Making The Leap From
Shared Services To Global Business
Services:
The Kimberly-Clark Journey
Rolando Alvarez Kimberly-Clark Corporation GBS Latin America Leader March 12, 2019
•
•
•
•
• Last year, only 36% of survey respondents had started GBS. This year, 63% of respondents claimed they had.
• The percentage of respondents that have no plans to implement GBS fell by half, from 38% to 22% over the year.
Source: Shared Services in North America 2019: Workforce Strategies, GBS Objectives, Key Measures of Success ww.sson-analytics.com
What are the stages of GBS evolution?
4
CONFIDENTIAL For K-C Internal Use Only 5
Stages of GBS evolution
Global Business Services
Global Service Management
Global Delivery Network
Global Process Owners
Integrated Business Services
Integrated Service Management
Integrated Delivery Network
Global Service Owners
Service Innovation
IT IT
Regional
Lead
Common Service Management
HR HR
FIN FIN
IT
HR
FIN
Regional
Lead
Regional
Lead
Discrete Shared Services Regional / Functional
Shared Services
Global and Functional
Shared Services
Integrated Business
Services
Functional transactional excellence
Business service excellence
Enterprise strategic enablement
FIN HR IT NA APAC LAO EMEA
Account to Report
Hire to Retire
Order to Cash
Procure to Pay
2010-2015 2015-2016 2016-2020 Proposed: 2021
The market is moving fast with many competitors moving up the curve in 2-3 years. With investment and focus, companies can catch up versus competitors.
NA APAC LAO EMEA
NA APAC LAO EMEA
IT
HR
FIN
Regional
Lead
Employee Services
Supplier Services
Customer
Financial Services
Consumer
To
da
y
5
Evolving from regional shared services to Global Business Services
EXPAND
Knoxville Est. 1989
San Jose Est. 2007
Brighton Est. 2001
Kuala Lumpur
Est. 2011
Krakow Est. 2018
DOWNSIZE
EXPAND
EXPAND
EXPAND
Noida Est. 2007
Genpact
Bucharest Est. 2007
Genpact
K-C
GBS Est. 2016
EXIT 2019
EXIT 2019
6
GBS structure to deliver strategy
Global Business Services VP
Global
Process
Owners
Automation
Governance
with IT
Migrations
Project
Management
Office
Change
Management
Continuous
Improvement
Center Leaders San Jose
Brighton
Knoxville
Krakow
Kuala Lumpur
Ops Reporting & Quality
Assurance
Enterprise Financial
Reporting
Vendor Relationship
Real Estate and
Facilities
Management
(REFM)
Travel, Expense
and Meetings
(TEM)
Vendor
Relationship
Strategic HR
Business
Partner
Overall GRP
Integration
and
Reporting
Global Delivery Network Managed Services Strategy and
Automation
GBS
Restructure Service Mgmt.
Transformation
BPO Integrated FM
7
Real Estate and Facilities Management
8
GBS service catalog today
Record to Report (RTR) Procure to Pay (P2P) Order to Cash (OTC)
General Ledger Accounting
Statutory Accounting
Tax Accounting and Reporting
Fixed Assets
Project Accounting
Intercompany
Financial Reporting
Supply Chain Accounting & Reporting
External Audit Coordination
Consolidations
Enterprise Financial Reporting
Procurement Operations
Invoice Sorting & Scanning (Local Clerks)
Accounts Payable
Payments
Issue Resolution / Help Desk
Procurement Card Administration
Travel and Expense
Order Management
Customer Service
Billing
Credit
Accounts Receivable
Cash Application
Dispute Management
Pricing and Rebates
Sales Controlling
Master Data Management Treasury Operations Commercial Services | HR
Vendor Master Data
Customer Master Data
Product Master Data
Material Master Data
Plant Maintenance
Cash forecast
Cash balance
Net Hedging
Regulatory Reporting
Insurance Management
Marketing Operations
Licensing Management
Payroll
Expanded breath and depth of services and implemented global COEs
8
CONFIDENTIAL For K-C Internal Use Only
What capabilities make a GBS world-
class?
9
GBS transformation strategy – our roadmap
Our Ambition To consistently deliver
exceptional services and
solutions that enable profitable
growth for K-C
Our
Aspirations 1. Operate like a successful
business
2. Be a growth enabler for our
Business Partners
3. Be a strategic partner by
providing insights and ideas
4. Become a talent pipeline and
talent destination
How We Deliver Value
The 5 C’s
Deliver 2019 • Drive Value
• Execute GBS Growth Plans
• Stabilize And Expand In Krakow
• Maintain Stable Operations
Our Priorities DELIVER FOR OUR CUSTOMERS • Ensure exceptional customer experiences
• Deliver competitive, well-controlled services
• Optimize service delivery models
• Execute planned migrations with excellence
TRANSFORM THE WAY WE DO BUSINESS • Eliminate, simplify, standardize, and automate
• Expand where there is opportunity to add value
• Execute programs & priority projects that deliver intended
benefits and savings
EXECUTE AS ONE GLOBAL TEAM • Demonstrate integrated approach to execution
• Build expertise in Signature Capabilities
• Attract, develop and retain great talent
• Strengthen engagement and enablement in GBS and K-C
What we Want To Be Known
For SIGNATURE CAPABILITES
10
Understand how to drive value beyond cost
11
11
End-to-end oversight of processes with appropriate control measures
enables better transparency and early indicators
Creating the economies of scale and leveraging labor arbitrage to drive
lower cost
Creating capacity through stream-lined processes to allow for organic
business growth focused on their core mission
Investing in continuous improvement and technology transformations to
streamline processes and optimize value
Building a lean and agile, high-performing organization that creates
value, improves efficiencies, builds service-excellence capabilities, and
aligns with Kimberly-Clark core values
5 C’s
COST
CAPACITY
CAPABILITY
CULTURE
CONTROL
11
Establish foundational capabilities during transition
Signature Capabilities
Continuous
Improvement
Project
Management
Change
Management
Migration
Methodology
Control &
Compliance
These capabilities enable GBS to deliver business results
12
Implement a migration methodology to transition work to GBS • 7 Tollgate (TG) Methodology / Project Plan
• Mutual sign-offs – “Three in the Box” (PMO / Sending / Receiving Organizations)
• Transition resource support including Internal Audit and Internal Controls
• Track savings rigorously
• Accountable GBS project leads
• Change management and communications roles and standard deliverables
• Builds capability for business and GBS
Based on lessons learned and industry best practice; validated by partners
13
How to successfully move your organizations from a mature SSO to a GBS?
14
GBS models take different paths to reach their target state (i.e., one model does not fit all)
Few rules causing increased complexity & costs
• Scalable and adaptable operating model
• Cost focused
• Consolidation driven
• Onshore/ Near shore preferred
• Functional silos still in place
• Insightful and actionable metrics
• Regional and local models dominate
Tightening the framework & Business starting to believe
Few custom solutions with Business buy-in
• Push end to end process management and enterprise ownership
• Drive standardization and advanced (plug-and-play) technology
• Expansion of multi-functional scope (e.g., HR, IT, Procurement and Order to Cash)
• Increase Global Process Owner accountability to drive enterprise standards and transformation
Reduce complexity,
drive efficiency Operational excellence, efficiency,
value focus and visibility
Maximize effectiveness and
continue to drive value
Ke
y s
tra
teg
ic c
ha
lle
ng
es
• Global vs. Regional models emerging
• Automation & Transformation focused
• Expand resource options to low cost geographies or outsource
• Optimize controls
• Global Process Owners and GBS Leaders established
Where does K-C stand on the GBS maturity journey?
15
Enable global platforms and processes
16
T&E
Treasury Operations
ERP
Accounts Payable
SAP is global but four different instances
Taulia – global vendor portal
Quantum – global Treasury Management System
Concur - global expense processing application Oversight for audits
Accounting Blackline – global account reconciliation application
Continue maximizing value and visibility
17
Optimize Delivery
Network
Achieve Operational
Excellence
Deliver Business
Outcomes
Enable Enterprise
Transformation &
Analytics
Valu
e a
nd v
isib
ility
Improve cash conversion cycle, advise on tax strategies,
drive revenue opportunities, reduce COGS
Create global policies, processes and platforms; leverage
automation; provide business insight
Be great at what is routine; continuously improve; earn the
privilege to bring in more advanced work
Drive to a service placement strategy based on capability,
capacity and cost, and migrate the work with meticulous rigor
Recent challenges that face GBS organizations and how to overcome them?
18
How to improve the relationship between GBS and Business?
19
Governance
Partnerships
Time
Qu
ality
of
rela
tio
ns
hip
• Business Outcomes
• Insights
• Sharing Talent
• New Opportunities
• Standard Metrics
• Transactions
• Employee Engagement
• Process Improvement
Governance Is Foundational
Partnerships Are Transformational
How to run GBS like a Business to be a better business partner
20
Talent
Top Line
Product
Customers
Investments
Allocating costs Driving value
Developing great
leaders
Managing entry-level
employees
Crucial importer &
exporter of talent
GBS invests in
GBS
Business invests in
regional SSC Business invests in GBS
Business &
Functional leaders Functional leadership
Simplification and
standardization
Low-cost
transaction processing Insights
Regional SSC GBS EVOLUTION
Cross-functional
leadership team
Global economies of
scale
Top three key takeaways 1. Create value for the company
2. Run GBS like a business
3. Drive global strategy, organization & platforms