Financial Shared Services aligning to Business Objectives

Why is there a need for Financial Services?


What do we do?What do we do?

How do we implement?How do we implement?

What are the benefits & risks involved?What are the benefits & risks involved?






Open & hidden objectivesOpen & hidden objectives

FSS role in StrategyFSS role in Strategy

Themes of Shared ServiceThemes of Shared Service

Principles

Corporate

ObjectiveFSS Role

& Objectives

Structure

Resources

Leadership

Person

Striking a

balance

Striking a

balance

Facing Structural complexity

Leads to

C O

M P

L E

XI T

I E

S

Results

Difficult to achieve growth aspirations

New Markets

DecentralizedDecentralized

Acquisitions






What we doWhat we do

FSS ObjectivesFSS Objectives

Alignment: Service StructureAlignment: Service Structure

• Financial analysis for M&A• Receivables and Payables• Tax & Accounting• Financial Reporting• Currency conversion hedging• Budgeting & Forecasting• Treasury services

Cost reduction, Efficiency, Agility, Fast Copy

Consistency, Analysis, Value creation, customization

Process improvement, service innovation, secondary KPIs, internal customers

Direct Business Impact, primary KPIs, external customers

Direct Business Impact, primary KPIs, external customers

AP, General Ledger, B/S analysis, Accounting, Fixed Assets, AR, Facilities

Budgeting, Reporting, Financial Analysis, Forecasting, Tax, Legal, Treasury

Systems, Standardize, Benchmarking, ERP, Streamlining, Automation, Governance

Market Leadership, Competitive Differentiation, Business model, M&A, CSI

Corporate Center

Financial Shared Services

One Internal Customer

One Internal Customer

Multiple Internal

Customers

Multiple Internal

Customers

External & Internal

Customers

External & Internal

Customers

In-sourcing

Co-sourcing

Joint-Venture

BPO






Evolution of FSSEvolution of FSS

Think Global Act Global + LocalThink Global Act Global + Local

Fundamentals of SuccessFundamentals of Success

Source: Bramante, Jim, Gregor Pillen and Doug Simpson. “CFO Survey: Current state and future direction.” IBM Global Business Services

Build in balance – Implement a three-tiered organizational model for Finance that is specifically designed to provide both stability and flexibility

Source: IBM Institute for Business Value analysis

“We’ve seen that a global approach to internal standard-setting is the best way to optimize the cost/benefit point of a given sub-process activity…Clearly there are real differences between countries, but prior to standardization, the global process owner engages with the local finance management team and explains the benefits of coming onto the common practice... The process owner decides which concerns are unfounded and which are valid.”

– Global Accounts Payable and Asset Accounting, Executive, Global Technology and Service Firm

1. Develop Service Level Agreements, KPIs and Operating Level Agreements

2. Choose Leaders Wisely3. Benchmark, Benchmark and then

Benchmark Again4. Determine the Appropriate

Implementation Approach

Implementation of shared services typically introduces a wide range of benefitsto the company, to name just a few:Cost savings through consolidation, standardisation and process redesignService improvement, increased control through increased transparency and VisibilityTimely response to resolving problems, resulting in improved service levels and customer relationshipsAbility to focus on core business objectives and competencies

Corporate Objectives

FSS-level BSC

CustomerWho do we define as our

customer?How do we create value

for our customer?

CustomerWho do we define as our

customer?How do we create value

for our customer?

Employee Learning and

GrowthHow do we enable

ourselves to grow and change while meeting

ongoing customer needs

Employee Learning and

GrowthHow do we enable

ourselves to grow and change while meeting

ongoing customer needs

Internal Process

To satisfy customers while meeting

budgetary constraints, at what business processes

must we excel?

Internal Process

To satisfy customers while meeting

budgetary constraints, at what business processes

must we excel?

FinancialHow do we add

value for customers while

controlling costs?

FinancialHow do we add

value for customers while

controlling costs?

FSS Strategy





What are the benefits & risks involved?

What are the benefits & risks involved?

Notes, Problems, Issues

• IBM institute for Business Value• Blog of Kenny Ong, CNI• Other websites for secondary

research

Education

Financial Shared Services aligning to Business Objectives