Shared Service

Objective, Definition, and benefits

This is new management jargon. We can compare it with centralizing the transaction activities. However, is slightly different as it is customers orientated with service mind-set. In highly competitive environment, Shared service may become a competitive tool for cost advantage. Bringing all mindless jobs under one roof make sense. It may help in thinning the processes at optimal level.

Its effectiveness may vary from company to company. It is tough tool to implement and get meat out of it. It also needs some tough decisions. People management and realignment mistakes may cost the organization.

 Types of Terms

Centralization: Bringing decentred operations from various locations to one place

Shared service: Bringing all transactions activities at same place.  

POE (Pocket of excellence) : It is highly specialised work conducted by highly specialised professionals like legal, litigations, or R&D.  

Methodology

Make project plan

List down activity list

Identify Transactions and specialised activities through defined format/framework

Propose model of working for both worlds (Transaction and left-out one)

Collect SOPs or Make SOP – Swim lanes from process owners

Define Escalation matrix / Define governance model

324 thoughts on “Shared Service”

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