n order to be successful, Shared Services must deliver “high quality” services to the functions and departments of the organization it serves. Adopting a

Customer/Client Relationship Management (CRM) Framework will help the organization to achieve this goal.Focusing on the customer and providing “high quality, customer focused service delivery” differentiates Shared Services from any other centralized service delivery model. Operating with a culture and commitment to service enables Shared Services to be a more effective delivery solution than the more “traditional” centralized or decentralized alternatives.

e Key Elements of a CRM Framework are as follows:

Customer Account Management

is is the framework whereby performance reporting, interaction, escalation & communication channels are defined. It covers the traditional outward facing “Account Management” from the Shared Service Centre (SSC) to its customers/clients. is makes sure that the “voice of the customer” is heard. Customer Account Management is absolutely vital to the successful partnership between an SSC and its customers. e Head of the SSC, and indeed the whole Shared Services team, are responsible for developing this concept and making sure that this operates effectively in practice. is will involve working with designated Customer Account Managers, Process Leads and Process Owners within the SSC and across Departments and Corporate Functions.

Customer Contact Management

Defines the mechanism to manage and resolve customer queries and issues, and to drive learning and improvement.

Service Partnership Agreement (SPA)

An SPA clarifies the relationship and expectations between the SSC and its customers. It provides a framework for performance measurement and process improvement.

What is a CRM Framework for Shared Services?Grant Farrell, Managing Director of Chazey Partners US discusses the Key Elements of a CRM

Framework..

An SPA is a two-way agreement clarifying the services provided by the SSC to its customers and key inputs received from customers. is includes the following two-way commitments:

• A commitment made by the SSC on the provision of service to agreed performance levels that are understood and met

• A commitment made by the Departments and Corporate Functions (the internal customers) to the SSC that upstream input into processes are clearly documented and agreed to through “Input KPIs” and “Operating Level Agreements (OLAs). OLAs cover the agreements made by customers to support the “upstream” process input requirements and to follow agreed policies, procedures and escalation channels.

Customer Feedback

Customer feedback is essential. Developing, monitoring and ensuring compliance with an effective customer communication and feedback mechanism between the SSC, its customers and its key stakeholders will be a key to the success of the goals of the SSC. A customer communication and feedback mechanism needs to be relevant to and adapted to meet Strategic, Operational and Day-to-Day requirements.

Continuous Improvement

No SSC can rest on its laurels. It is important to define mechanisms to identify areas for improvement and to develop solutions. Continuous improvement is key to any SSC remaining effective.

Process Control Database

A CRM Framework clearly highlights the activity split between the Shared Services team and the customers of Shared Services. End-to-end processes are fully documented and managed by the Shared Services team. End-to-end process ownership, roles and responsibilities and hand-offs need to be fully defined.

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Performance Measurement

Under a CRM framework the performance of each process that delivers on customer requirements is measured. Performance is measured on both sides of the service partnership. e performance of the SSC in meeting its agreed commitments to customers on one side and on the other side at the performance of the internal customers in meeting agreed OLAs to support “upstream” process input requirements and to follow agreed policies, procedures and escalation channels. Agreed Input and Output Key Performance Indicators (KPIs) are measured, as well as performance KPIs within the SSC itself.

Performance Reporting

To ensure the SSC is performing to its optimum, process performance should be reported in detail and reviewed by the SSC and its internal customers on a regular basis.

Service Pricing

Service pricing defines the basis for charging of services by the SSC to its internal customers. e method of charging can be adapted and changed over time as appropriate.

A CRM framework distinguishes a Shared Services organization from a simple act of centralization and drives a spirit of partnership between the SSC, its customers, and all key stakeholders.

Diagram showing the contact management process:

Grant FarrellManaging Director United StatesChazey Partners+1 408 767 1285grantfarrell@chazeypartners.com

ABOUT THE AUTHOR

Grant Farrell - Managing Director United States

Chazey Partners

Grant has over 20 years of experience in Finance, Shared Services and Technology implementations. He has managed change programs on the back of Shared Service implementations significantly reducing the cost base, enhancing controls and service levels. Prior to his recent assignments he was the Shared Service Controller for Interpublic.

Prior to Interpublic Grant was the European Operations Director for McGraw-Hill where he was responsible for the set-up and subsequent running of the European Shared Service Centre.

He is well suited to strategic planning and set up but is equally at home focusing on daily operational issues, managing staff at all levels and ensuring a high level of customer service.

Grant is a Chartered Accountant and has a BSc Honours Degree in Engineering from the University of Nottingham.

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