A lack of vision and strategy is hurting shared services and outsourcing capabilities!
Proservartner Point of View
If you were to build a business would it be sensible to do so without a vision, strategy and business plan? Would you focus on providing
a product / service that was the cheapest, best or a balance
between the two? How important would culture
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and brand be for the business, to ensure that you were working as a team with aligned goals?
These are the questions that we should be asking in a shared services and outsourcing context. For too long these capabilities have focused on cost reduction and investments
have been difficult to achieve. For too long has the views of the leads been myopic focusing on short term gain over sustainable long term benefit.
Shared services and outsourcing capabilities should be treated as mini businesses in their own right. They need to justify their existence to the rest of the business, providing value to business stakeholders and indirectly to shareholders.
We should start by considering why these capabilities exist in our businesses, and how they are impacting the business objectives. What is the vision for the shared services and outsourcing capability, how will it inspire staff, the business divisions and
the marketplace. If it is just to provide functional cost reduction then the “shared services and outsourcing business” will have a short lifecycle with the laws of diminishing returns providing the biggest barrier to long term sustainability.
If one has a strong vision, underpinned by a realistic strategy, enabled by a culture that brings
people together and a brand that attracts and retains the best talent, increases the scope of services, and provides true “value” for the firm, then one has built the capability of the future – the Shared Services and Outsourcing business model has to change!