For every organisation that enters into a shared services or outsourcing journey, rightly one of the key concerns is the impact on the people. The situation is always a difficult one, with important considerations at each stage of the lifecycle.
The key balance at each stage of the lifecycle is between having enough certainty and information about the future, communicating next steps which are not always clear and keeping the management credibility.
One of the key factors to consider at every stage is the culture of the organisation, and the guiding principles that define the company. An organisation should not deviate at all from the principles that have developed its brand and reputation, and project risks and issues need to be managed with this in mind.
Finance, HR and Procurement Director(s) are not always experts in communications therefore on any shared service or outsourcing project, it is key to engage with internal HR and communications early in the timetable.
The four key stages I would recommend are
- Feasibility
- Design
- Transition Planning
- Transition
Stage 1: Feasibility
When first embarking on the shared services journey, there is very little information to share with staff. However, to be able to accurately develop the series of options required for shared services, outsourcing or other, the management team does need the input of senior team members in the relevant functions.
- Communicate to senior functional lead staff members early with regards to the objectives of the Feasibility stage. Ensure that the buy in and privacy of the project at the senior functional lead level (ie CFO and direct reports) is secured.
- Engage with senior internal HR and communication leads
- Once a decision has been reached on the option that will be developed - inform functional supervisors that the organisation will be moving onto the next stage.
Stage 2: Design
After deciding which option to progress, the design of the option is carried out. It is at this stage that the solution will be designed (including the process and technology solution), that the target operating model will be defined and that the business case prepared. To do this effectively requires engagement with the supervisor level.
- Communicate to senior functional leads and supervisor levels what will be required for the design phase of the project.
- Once a final decision has been reached that the organisation will migrate to shared services or an outsourcing provider, initiate staff communications for the functions in scope.
Stage 3: Transition Planning
Following on from the design of the solution, target operating model and business case, a detailed phase will be required to develop detailed timelines and plans, understand the opportunities for improvement, the detailed technology dependencies, and update the solution and business case as required.
- Communicate to staff in scope the initiation of the transition planning phase
- Ensure transparent and frequent communication with staff
Stage 4: Transition
The transition is the most sensitive stage of the lifecycle. This phase will include the transfer of knowledge from existing to future staff members and can involve work-shadowers arriving from an offshore location to learn how to carry out activities from staff that may not be employed by the organisation in the future state.
- Communicate to staff in scope the initiation of the transition phase, and the expectations of each of them during the phase
- Communicate to staff in scope the kick off of work-shadowing (if applicable)
- Ensure transparent and frequent communication with staff
Tags: Communications, Design, Feasibility, Transition
