Charging Mechanism

How to use chargebacks in shared services is a significant item for debate and consideration for those planning to set up a new Shared Service Operation, in addition to existing and more mature Shared Services Centres as well!

There are many different way of calculating chargebacks, ranging from simple high level “allocations” through to much more complex pricing, based on service levels agreement levels, volumes, exceptions, preferred technologies etc.

However, the correct mechanism will be unique to your organisational needs and will be highly dependent on the maturity of your shared service centre, the systems and tools currently in place to measure and calculate the proposed charges, the business acceptance to change and ultimately what it is that you want to achieve from your chargeback solution.

Our Approach

Proservartner works in collaboration with their clients to educate them on the true benefits of implementing the correct chargeback solution, we utilise our leading market knowledge to share best practice solutions and assess each client unique needs to determine the best solution and implementation methodology for your organisation.

Our rigorous approach is built on a five step approach:

1. Definition & Research: Define concept of chargebacks and explain the different models and current leading practices / industry trends across the market.
2. Analysis of Current State: Assess current baseline data and case for change through workshops with staff and detailed data capture exercises.
3. Options Assessment: Facilitate workshops to determine the primary objectives for implementing a chargeback solution; understand the different stages required to reach the optimal solution and define the criteria required to assess the options.
4. Recommendation & Roadmap: Identify the future state solution and the required roadmap to get to the optimal solution.
5. Change Management: Understand implications on all stakeholders, develop change plan and support with influencing business in new ways of working
6. Implementation: Setup structures, tools, processes for future state solution and train staff to migrate to new ways of working.

Our Proposition

Proservartner’s charging mechanism solution considers the strategic outcomes that the shared service centre wishes to deliver, the tactical outcomes that the cost allocation model needs to support, and the service outcomes that the model should utilise in recharging the shared service centre costs across the business. We will support your Finance function to be viewed as a business partner and ensure the correct solution is implemented to influence behavioural change across the organisation.