how big is the shared services carrot?

LAUNCH PAD: BUILDING A SOLID FOUNDATION

TO PROPEL YOUR SHARED SERVICES JOURNEY

PJ REYNDERS – Financial Controller, Group Payroll: Jumeirah

Group

17 APRIL 2012

“Good day class. Who wants

to work in Shared Services?”

Introduction

How big is the Shared

Services Carrot?

Introduction

Your CV is not complete if

you don’t have Sales on it!

Establishing ROI and winning stakeholder

support

The key in winning

stakeholder support is an

economic argument


support

Case Study


support

Company Profile Before After

United Arab

Emirates

Construction Sector

Staff & Labour

43,500 employees

9 companies, 9 Payroll

Departments

1 Shared Service Payroll Centre

27 Payroll Clerks and Managers 5 Payroll Clerks, 1 Payroll

Manager

Annual CTC: $ 795,000 Annual CTC: $ 327,000

Cost per payslip: $5 Cost per payslip: $1.6

Cost per Annum: $ 2,6 million Cost per Annum: $835k

Employees/Payroll FTE: 1,611 Employees/ Payroll FTE: 7,250

The reverse side of the ROI-

coin: What other synergies

are possible?


support

The reverse side of the ROI-

coin: Additional aspects to

be considered


support


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The Sourcing Cloud®

Understanding and building key

metrics, drivers and prerequisites

Manage what you Measure

You can’t manage what you

can’t measure


Area Before During After

Cost per Payslip $10 $5 $2

Cost per AP-Transaction Unknown $4 $1

AP-invoice Turnaround Time 63 days 30 days 10 days

Average Aging per Invoice 56 days 41 days 21.3 days

Average Cost per Invoice due to

Late Payment

$5 $3.5 $0


-

5.0

10.0

15.0

20.0

25.0

30.0

0 2 4 6 8 10 12 14

Mo

nth

ly P

aysl

ip C

ost

Months

2009 - 2011 Cost per Payslip Comparison

2009 Cost per Payslip



Interweaving flexibility in planning

and implementation stages

Organisational Agility and Project Management

The meaning of

Organisational Agility


The meaning of

Project Management


“Proper Prior

Planning Prevents

Performance

Problems”


Gaining flexibility

and agility


Planning the Shared Services Vertical

Integration Hierarchy

Standard Vertical Integration Hierarchy 1. AR (Accounts Receivable) 2. AP (Accounts Payable) 3. ERP-implementation 4. New-Hiring & HR 5. Performance Appraisal 6. Payroll Outsourcing 7. ESS (Employee Self Service) 8. Data integration / ECM & DCM


Shared Services Vertical Integration

Hierarchy Comparison

Standard Vertical Integration

Hierarchy

Company Specific Vertical

Integration Hierarchy

1. AR (Accounts Receivable)

2. AP (Accounts Payable) 2/3. Accounts Payable

3. ERP-implementation 1. ERP-implementation

4. New-Hiring & HR

5. Performance Appraisal

6. Payroll Outsourcing 3/2. Payroll & HRMS

7. ESS (Employee Self Service) 4. ESS (Employee Self Service)

8. Data integration / ECM & DCM 5. Data Integration ECM / DCM


The issue with

Project Management


Shared Service Integration Agenda

• AR (Accounts Receivable)

• AP (Accounts Payable)

• ERP-implementation

• New-Hiring & HR

• Performance Appraisal

• Payroll Outsourcing

• ESS (Employee Self Service)

• Data integration / ECM & DCM

Shared Service Integration Programme

Proj 1

•AR (Accounts Receivable)

•AP (Accounts Payable)

Proj 2

•ERP-implementation

•HRMS, Employee SS & Payroll

Proj 3 •Data Integration / ECM


Projects & Business

Transformation: IS

NOT our Mess for

Less

Creating solid governance structures

and clear accountability

Governance and compliance

Governance, People &

Standards

Ensuring realised benefits in the

short, medium and long term

Setting KPIs and measuring performance

Planning goals, reaching

milestones, measure KPIs

Conclusion

• ROI

• Shared Service Agenda

• Metrics & Performance

• Project Management

• Governance