Recommendations for Creating Effective Shared Services
Shared services involve the consolidation of the operations of the business, which are in use by various parts in the same organization (Bangemann, 2017). One of the main advantages of shared services is the fact that they are cost-effective, given that the operations in the various departments in an organization are centralized, eliminating cost that would otherwise go to redundant activity. Some of the recommendations for creating an efficient as well as effective, shared service in a business or any company include:
Having a clear road map- having well-outlined policies for shared services that outlines the transition stages clearly in business is essential to avoid confusion by doing each part separately.
Secondly, designing the retained organization- original, as well as fast learning employees who re aware of the business functions, are essential to maintain in business. Loss of key employees, such as key decision-makers, have seen the collapse of large institutions since those employees are the pillars of the business, and they have an in-depth understanding of how to run it (Porter & Kramer, 2019). Hence, when implementing shared services and ensuring it is effective, it is essential to retain the organization while enabling a better outcome of the business.
Thirdly, ensure that the implementation of the shared resource does not expose the business to other risks (Porter & Kramer, 2019). Hence, there is a need to carry out risk exposure analysis to ensure the business is not in any jeopardy.
Finally, maintain or reduce the number of handoffs- the more people are involved in a task in business, the higher the rate of failure, hence, it is essential to ensure that most of the processes in the shared system are autonomous rather than manual (Porter & Kramer, 2019).
However, if the share of services is not done effectively and in the right structure in business, it may lead to unwanted consequences, which may range from complete loss of freedom to loss of critical local domain expertise in some of the business parts. Hence, it is essential to follow the recommendations for setting up an effective, shared service.
References
Bangemann, T. O. (2017). Shared services versus outsourcing. In Shared Services in Finance and Accounting (pp. 34-36). Routledge.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable business (pp. 323-346). Springer, Dordrecht.