csc news Realização____ Uma empresa do grupo _______ FRIDAY February 11th 2011 YEAR 2 | No 19 5 Resolutions Every SSO Professional Should Make And Keep - in 2011 By: Barbara Hodge, Online Editor, SSON ssonetwork.com Ten easy steps to compiling a compelling business case. How to Build a Business Case for Shared Services As you look at your 2011 objectives and labour over next year’s budget, we’ve compiled five goals to help you stay current with your customers’ demands and maintain a successful shared services programme for the year ahead. But this year, we’re not just providing you with goals - we’ll be helping you keep them too.... page 3 The Next Big Wave in Supply Chain BPO By: Stuart Hearn, Partner, plusHR Consulting ssonetwork.com When to use this guide: • My organization is considering moving to a shared services structure for one or more of its support functions • Our current back-office processes are not effectively supporting our business • The running costs of one or more of our support functions is too high • Our current back-office structure may not be best suited to meet the future needs of our business page 2 By: Niamh Byrne, Online Editor, SSON ssonetwork.com SSON speaks to Johannes Giloth, Global Head of Supply Chain Networks, Nokia Siemens Network about the next big market wave in Supply Chain BPO for 2011 page 4 Centro de Serviços Compartilhados e Business Process Outsourcing (BPO) By: Niamh Byrne, Online Editor, SSON ssonetwork.com Entre os anos de 2003 a 2008 estive bem envolvido em projetos do crescente mercado de Terceirização ou BPO. Dentre esses projetos, meu ponto de partida foi a Criação de um CSC e é por esse tópico que começarei esse artigo. page 5 How to Build a Business Case for Shared Services By: Stuart Hearn, Partner, plusHR Consulting, SSON ssonetwork.com 10 steps to building a business case for shared services Shared services centers (SSCs) are becoming increasing popular as a means of effectively providing support services to the business, particularly in HR, Finance and IT. They may be based on- or offshore, and may be part of the organization or outsourced. Regardless of what the end solution might look like, a solid business case will need to be built, and this guide summarises 10 key steps in this process. 1. What are the ‘drivers’ for shared services? In simple terms, why would the business benefit from shared services? What business issues would a shared services structure address? Common drivers for SSCs include compliance, efficiency, future scalability, flexibility, cost reduction, speed of delivery and reducing the administrative burden to enable managers to focus on value adding tasks. 2. Gain supporting evidence Once you have established your drivers, you will need to gain clear evidence as to why your current structure and processes do not effectively meet those drivers. You might consider carrying out an audit of your structure and processes, looking at areas such as compliance, efficiency, cost of function, response times etc. The results can then be benchmarked externally to gain further evidence as to how effective your current function is. 3. Assess likely future business needs It is important not just to look at current business requirements, but also what the business needs will be in say 2-3 years time. Will the business be growing, leading to a larger number of transactions? Are acquisitions anticipated, meaning that flexibility and speed of response will become important? Think about how effectively the current structure will be able to meet those needs and compare this against a shared services approach. 4. What is the ‘burning platform’? A ‘burning platform’ is a business-critical issue or risk that could cause significant damage to the business if not addressed. During steps 1-3 you will have gathered a number of reasons why the business may benefit from a move to shared services. Identification of a ‘burning issue’ amongst this evidence will be important in order to gain buy-in from the Board for the need to change. An example of a burning platform for a recent European SSC implementation I managed was meeting Sarbanes-Oxley compliance – this had to be done, and it would not have been possible to achieve this cost-effectively without a shared services structure. 5. Document the scope and successful outcomes You won’t know at this stage exactly what the end result will look like (where the SSC will be located, how large it will be etc.) but you will need to define the scope of the SSC activities in order to be able to create an estimated budget. Think about what tasks or activities will be in and out of scope for the SSC. At this stage you should also document the anticipated successful outcomes of the SSC. You will have already established the drivers for the project, but in order to sell the concept to the Board, you will need to turn these into positive outcome statements. For example: “The shared services structure will… be 100% legal-compliant; have lower operating costs per employee; bring a reduction in headcount due to more efficient processes” etc. 6. Consider your project resources Implementing shared services is a significant and timeconsuming project which will require dedicated and skilled people. Do you have these resources internally, or will you need to hire in external consultants? This will have a significant impact on the up-front costs. 7. Assess the technology situation Many SSCs are set up with the intention of bringing efficiency savings due to enhanced processes. However, enhanced processes are usually dependent on having appropriate IT systems in place and this is a factor that is often overlooked at the business case stage. Assess what systems are likely to be required for your SSC and compare this to the level of technology you currently have in place. Implementing new IT systems and even customizing existing ones can be extremely expensive and this must be factored into your estimated budget. 8. Calculate estimated implementation costs There will be a number of one-off costs to implement your shared services solution which may include: • Project team and consultants’ fees • New building acquisition and setup • Technology implementation and/or customization • Recruitment of new staff • Training of new and existing staff • Redundancy payments • Retention / project bonus payments • Travel (if SSC is to be located overseas) • Contingency 9. Calculate estimated annual savings and pay-back period Whilst the key driver for shared services is not always cost savings, it will be important to demonstrate an annual cost saving once implemented in order to pay back the up-front www.institutodegestao.com.br 2 costs. Costs savings may come from reductions in headcount, cheaper salaries and building running costs as well as reductions in error rates and legal issues. Centralised and consistent processes can also reduce the costs associated with auditing. Once these savings have been estimated, the pay-back period for the implementation costs can then be calculated. 10. Calculate costs of not implementing shared services To supplement the cost savings in step 9, it is useful to think about what costs would be incurred by the business if it does not move to shared services. This is especially important when shared services is being considered in order to meet future business needs or changes. Think about what would need to be done in order to meet the drivers from stages 1 and 3 under the current structure and how much this might cost. Compare this to the anticipated cost of meeting these drivers via shared services and calculate the cost saving. Next steps… The business case produced at this stage will have many assumptions and some of the cost and savings estimates will be unsubstantiated. If approval is given in principle to the project, then the next stage will be to undertake a full feasibility study and produce a second, more detailed, business case based on real costs. Avoid the temptation to move straight into planning and implementation. Typical outcomes from building an effective shared services business case: • The drivers and benefits of shared services along with the ‘burning platform’ will be fully understood by the key stakeholders • The implementation costs, annual cost savings and payback period will be transparent and made clear from the outset • If the business case makes commercial sense, approval to proceed is likely to be granted. • If shared services is not the appropriate solution, this will be apparent, saving significant wasted future investment. Points of Discussion Shared services centers (SSCs) are becoming increasing popular as a means of effectively providing support services to the business, particularly in HR, Finance and IT. This article gives 10 steps to do so effectively, such as Step 7, ‘Assess the Technology Situation.’ 5 Resolutions Every SSO Professional Should Make And Keep - in 2011 By: Barbara Hodge, Online Editor, SSON ssonetwork.com Time to get real... Whilst diet fads and short-lived exercise programmes fade fast, the ideas we’ve outlined below: “5 Goals Every Shared Services & Outsourcing Professional Should Make - And Keep - in 2011” will last … and last! Companies are finding themselves on a sounder financial footing today; global markets are stabilizing – if slowly; and business operations are more transparent, more accountable, and leaner than ever. In addition, the sell-side has stepped up to offer more flexible BPO solutions which many organizations took up as a quick step to cost cutting. But your clients are also savvier today. So, faced with smarter clients, under constant pressure to up the ante, what do we recommend? Here are 5 goals every BPO executive should set themselves: 1. Hopefully the supply side can start spending 90% on innovation and improvements and 10% on marketing versus the other way around 2. Put a penny in the keepsake jar for every time the buy side says the words “you dont’t understand, we are different” – I’ll be able to retire early 3. The buy side needs to limit their SLA spreadsheet to only 1 page long versus the 20 pages today (of which only Π page is meaningful) 4. Sell side needs to resolve to never promise that they can do something they can’t, especially if they don’t even understand the question 5. Buy side needs to understand that being able to scan something and e-mail it doesn’t necessarily mean that they have “state of the art automation” employed 1. Surely we have missed a few?! If you could three more stages, what would they be? 2. When building the business case – you need to gain evidence and reasons for implementing shared services – can you share any tips on the best way to do so? www.institutodegestao.com.br 3 The Next Big Wave in Supply Chain BPO By: Niamh Byrne, Online Editor, SSON ssonetwork.com JG: There is a specific triangle to follow: • Capable; Highly flexible and be able to react to volatile demands and customer specific requirements • Reliable: Stick to promises, remain proactive in communication and provide transparent end -to-end information • Lean: in term of process efficiency and inventories SSON: Johannes can you describe your main role at Nokia Siemens Network? SSON: What immediate value will outsourcing your supply chain add to an organisation? Johannes Giloth: I am heading the Supply Chain and Logistics side which is comprised of 2,500 employees working in 130 different countries. I run 8 different local and regional hubs - its more or less end-to-end operations without the manufacturing and component purchasing. JG: Firstly, through outsourcing, we managed immediate cost reduction on our supply chain. Cost pressure is something we should not forget. My target was finding a deal in 2010 and secure a cost reduction. We have a longterm contract with CapGemini and return on investment has become visible in 2010. SSON: What’s been ‘ the big market -wave’ for Nokia Siemens Network in 2010? JG: The telecommunication industry has changed significantly in the last couple of years, so we are suffering from significant pressure in this competitive environment, such as the arrival of Chinese competitors and the consolidation of many big players in the market. Traditional telecommunication companies like Nokia Siemens have had to reshape completely and that was the biggest change in the environment leading us to a very costcompetitive set-up, so we moved production on these services to a lower cost location through our partner, CapGemini. In addition, we also established competitive product areas, but that is only one side of the medal. The other difference is the industry is moving away from ‘box’ business to service business - meaning customers are more interested in getting entire solutions and even outsourcing their network to a network supplier. This requires a much more end-to-end understanding of the entire value chain of our customers. In that arena, cost-cutting and pressure on one side and trying to understand the customer needs on the other side - that business process outsourcing has to be understood. The idea was not to just ‘lift and shift’ the existing shared service centre to lower costs, but to move towards ‘transformational outsourcing ‘. This should on the one side make the entire supply chain much more efficient. And on the other side, the idea was to really focus on the core competencies with the customer, so it is an end-to-end logistics optimisation where a part of that chain is outsourced to an external partner using their IT Process redesign capabilities to accelerate the transformation. Secondly - we cannot underestimate the benefit we have gained from them in terms of process expertise and process re-engineering from their IT background, demonstrating that a BPO partner brings in process and IT knowledge which helps us to accelerate the transformation. Thirdly - we look at the ‘ catalyst’ function - it takes huge change management to get those processes industrialised and standardised and that is basically the target we are shooting for. An external partner with a firm contract measured on KPI can be used as catalyst to make that happen. SSON: What do you see as the biggest opportunity for Supply Chain Outsourcing as an industry in 2011? JG: Transformational outsourcing will grow faster than classical outsourcing, I have seen how well it has worked in our case, but I think the time has come to take the next step, to really let the customers focus on their core competencies Traditional outsourcing is done in many cases when you consider IT, Finance, HR and now the question is what is next? I think the transformational outsourcing market is very small still but the growth rate will be higher than in traditional outsourcing - so it will not be a significant chunk of the outsourcing cake next year, but it will be a growing segment. SSON: Can you define what an effective Supply Chain BPO should look like? www.institutodegestao.com.br 4 Centro de Serviços Compartilhados e Business Process Outsourcing (BPO) Por: Márcio Silva administradores.com.br Entre os anos de 2003 a 2008 estive bem envolvido em projetos do crescente mercado de Terceirização ou BPO – Business Process Outsourcing. Dentre esses projetos, meu ponto de partida foi a Criação de umCentro de Serviços Compartilhados (CSC) e é por esse tópico que começarei esse artigo. Em 2003 quando residindo em Londres, fui convidado para integrar um time que seria responsável pela estruturação e implantação de um Centro de Serviços Compartilhados (CSC) Europeu. Naquela época, ainda não estava muito familiarizado com o conceito de CSC, contudo, entendia de processos de controladoria e sabia falar português, inglês e espanhol, logo estava apto para integrar a equipe do projeto que cuidaria dos países Ibéricos. A multinacional que me contratava, um gigante no segmento de artigos de higiene pessoal, tinha como objetivo, unificar os processos de 17 entidades Européias (unidades comerciais) distintas e pertencentes a Holding em um único local (Londres). Para um contador por formação, recém chegado no Mundo da centralização de serviços, a idéia parecia aceitável, no entanto não muito “compreensível”. Com o passar dos primeiros dois meses e já atuando nas entidades da Espanha, Portugal, França e Itália, como Workshadower (nome dado aqueles que mapeiam os processos e documentam as atividades) comecei a compreender melhor os por quês daquele grandioso projeto. Embora a Marca da empresa fosse um dos seus principais ativos e transmitisse uma imagem global de solidez e qualidade dos seus produtos, a realidade com relação aos processos financeiros não era bem assim. Cada país tinha suas regras, o aspecto cultural contribuía com muitas discrepâncias. Eram 17 empresas totalmente diferentes, com personalidades próprias, apenas fabricando e comercializando os “mesmos produtos” (não exatamente). Enquanto uma entidade tomava crédito no mercado para cobrir o saldo devedor bancário do dia, outra entidade dormia com altas reservas em seu caixa. Um simples exemplo como esse de desalinhamento de fluxo de caixa mostrava que algo estava fora dos eixos. Nesse momento, comecei a entender que os objetivos do movimento de criação do CSC eram bem maiores: entender a empresa, harmonizar os processos, adotar as melhores práticas, garantir que recursos (financeiros e humanos) fossem utilizados de forma total, prestar serviços a clientes internos e obviamente, reduções de custos, expressivas reduções de custos. Passaram-se 1,5 anos e o CSC foi totalmente implementado. Aproximadamente 200 novos colaboradores poliglotas integravam o CSC em Londres. Juntos eram responsáveis por diversas funções de back Office (contas a pagar, a receber, bancos, despesas, contabilidade financeira, dentre outros) para todas as 17 entidades. Team Leaders e Process Especialists garantiam a realização das atividades conforme níveis de serviços acordados entre os clientes internos (entidades) e o CSC, além das ações diárias de padronização, adoção de melhores práticas, ganho em escala e documentação dos processos que ocorriam em paralelo. O CSC funcionava a todo vapor! Durante esse início de operação, o desafio maior foi o de garantir a aceitação da existência do CSC por parte das entidades (filiais comerciais) clientes. Antes, cada entidade liderada pelos seus diretores e gerentes tinha liberdade e autonomia para fazer as coisas do seu jeito. Com a criação do CSC a história mudava e tinham que seguir as novas regras e procedimentos estabelecidos. O descontentamento com a criação do CSC por parte das filiais comerciais era fundamentado não somente pela perda de poder e autonomia, mas também pelo ressentimento compartilhado com aqueles muitos colaboradores locais com anos de empresa que foram desligados no processo de criação do CSC. Diante desse contexto, os dias eram bem desgastantes. Reuniões entre as filiais e CSC para alinhamento, prestação de contas, validação dos níveis de serviços (SLA’s) e níveis de operação (OLA’s) aconteciam semanalmente de forma bem hostis, contudo, aos poucos as coisas se ajustavam e com isso, o CSC ganhava corpo e se mostrava como uma estrutura sólida, autônoma que garantia a unificação dos processos, melhor entendimento da operação, o conceito de uma empresa única sob controle e eficiente financeiramente e operacionalmente. No final do 2º ano de existência, num ambiente jovem e multicultural, onde processos haviam sido quebrados em pequenos pedaços e pessoas trabalhavam num ambiente automatizado, porém um tanto “Taylorista”, a diretoria do CSC preparava-se para um novo passo. Aquele que levaria a empresa a um novo patamar, que garantiria foco total no core business, melhores níveis de serviços e principalmente, consideráveis reduções de custos. Iniciava-se o projeto de BPO – Business Process Outsourcing – rumo à Índia. Editores Conselho Editorial Rodrigo Lang Thaissa Lemos Vanessa Saavedra Caio Fiuza Eduardo Saggioro Vitor Marques Diagramação Gabriel Almeida Contato: pesquisas@institutodegestao.com.br www.institutodegestao.com.br 5