Shared services the work for the business: Implementing shared service models that realize genuine business benefits
| Published date | 12 August 2007 |
| DOI | https://doi.org/10.1108/14754390980000984 |
| Pages | 28-31 |
| Date | 12 August 2007 |
| Author | Allan Boroughs,Jane Saunders |
| Subject Matter | HR & organizational behaviour |
28 Volume 6 Issue 4 May/June 2007
T’S BEEN OVER A DECADE since David
Ulrich proposed his new model for HR that has
led to an explosive growth in HR shared services
as a means of delivering cost-effective and efficient
HR programs. It has now become routinely
accepted that this will deliver improvements in cost and
service quality and provide a solid foundation for more
effective HR services.
The intervening 10 years have seen many success
stories in HR shared services, but there have been an
equal number of attempts to implement the model
that have failed to deliver the promise and instead
resulted in cost overruns and a lack of benefits. It’s fair
to say that some have had neutral or even negative
impacts on service and have led to ongoing problems
that act as a barrier to the overall transformation
of HR.
So what differentiates the success stories from the
failures? Why is it that programs that are similarly
resourced, funded and managed can end up with
radically different results? Orion Partners’ experience of
helping organizations to re-evaluate the performance of
shared service models, as well as moving towards
shared services for the first time, has allowed us to
establish a clear set of success criteria that we believe
can make the difference between a promise delivered or
a costly step backwards.
What fire are you trying to put out?
Although the drivers may be clear – cost, service and
improved performance – it’s in the focus of many
shared services implementations that the first problems
can occur. Too often, organizations focus the effort and
attention on those areas that have traditionally been
seen as key in change programs of this type:
• Detailed process design.
• Technology functionality.
• The logistical details of the shared service centre itself.
While these areas are important, organizations that
focus solely on them can fall into the trap of ignoring
how shared services fit into the whole HR delivery
model and, crucially, the business itself. Our analysis of
successful versus unsuccessful shared service projects
highlights these five key criteria for success:
• Define the service the business needs.
• Ensure your design is integrated.
• Make intelligent use of technology.
• Manage the change.
• Establish the disciplines to run your service as
a business.
Focusing on the right things will mean the business
case for change is understood, agreed and achieved. It
will ensure that the organization is not oversold in
terms of technical or HR functionality and that,
ultimately, it gets the HR solution it needs.
I
Shared
services that
work for the
business
Implementing shared service models
that realize genuine business benefits
Allan Boroughs and Jane Saunders of Orion Partners
use their experience of implementing shared service
models to identify the critical factors for success and
to highlight the potential pitfalls.
by Allan Boroughs and Jane Saunders,Orion Partners
© Melcrum publishing 2007.For more information visit our website www.melcrum.com or e-mail info@melcrum.com
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