A shared service center is an organizational model striking a balance between local services and “commoditized” practices and activities. Successful implementations balance economies of scale and standardization with the deep relationships with and knowledge of the customer’s unique attributes. Many different models can generate excellent financial and organizational benefits. A variety of implementation options can and do occur within these models:
Shared Services should generate cost savings and higher service quality. Unfortunately, that doesn’t always happen. Why not? Our experience shows that you need an effective design and change management method to successfully implement shared services. We’ll illustrate a design method that reduces cost and delivers higher quality services in our next newsletter.