planning and launching shared services boot camp
DESCRIPTION
Phil Searle, Managing Director & David O'Sullivan, Partner, Chazey PartnersPlanning and Launching Shared Services Boot CampTRANSCRIPT
Workshop D10.00 am : 12.30 pm3.40 pm : 6.00 pmMonday 24th May, 2010
Planning & Launching:Prepare for Shared Services and Outsourcing
Week with your own Shared Services boot camp
European Shared Services &
Outsourcing Week 2010
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Purpose of this Workshop
Need to get up to speed on the basics before you can fully embrace the main sessions?Perhaps you’re in the early phases of your journey and want to ensure that you are headed in the right direction?Have you been disappointed with shared services so far and feel like a change in direction or even a turnaround plan is required?Or maybe you’re completely new to shared services and would like a crash-course in the fundamentals?
Designed to take both complete beginners and less mature practitioners through the key decision points and critical success factors for any Shared Services implementation this session will include: definition,scope, technology, location, resourcing, process reengineering and realignment, insource vs. outsource, the business case and project governance and control.
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Agenda Broken Down
IntroductionsWhat exactly is Shared Services?Vision and CharterCritical success factors for any Shared Services implementationProject scope (depth and breadth)Critical importance of the “customer”People and organisation structuresSystems/technology and ERPProcessesConsideration of outsourcing as a possibilityThe location decisionProject approach (resourcing, timelines, etc)Cost-Benefit Analysis/ROIConsidering the role of benchmarkingCompliance considerations when internationalising Shared ServicesPossible next stepsSome Additional Tips and Tricks
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Agenda Broken Down Into Time Slots
10.00 am to 11.00 amIntroductionsWhat exactly is Shared Services?Vision and CharterCritical success factors for any Shared Services implementation
11.10 am to 11.30 amBreak
11.30 am to 12.30 pmProject scope (depth and breadth)Critical importance of the “customer”People and organisation structuresSystems/technology and ERP
12.30 pm to 3.40 pmGeneral Session and Lunch
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Agenda Broken Down Into Time Slots
3.40 pm to 4.40 pmProcessesConsideration of outsourcing as a possibilityThe location decisionProject approach (resourcing, timelines, etc)Cost-Benefit Analysis/ROIConsidering the role of benchmarking
4.40 pm to 5.00 pmBreak
5.00 pm to 6.00 pmCompliance considerations when internationalising Shared ServicesPossible next stepsSome Additional Tips and Tricks
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Introductions
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What Exactly is Shared Services?
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Definition and Goal of Shared Services
Shared Services…is the organisation that provides non-core Services to the business, employing a specialist team, geographically unconstrained, and focusing on the requirements of the customer. This involves a philosophy and approach totally unlike traditional Corporate-driven centralisation.
The goal of Shared Services is to provide high quality, non-core, but mission critical, services (which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself.
Shared Services achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, standardized end-to-end processes and best practice.
The Shared Services Story to Date
Shared Services Concept started in late 1980’s/early1990’sStarted with Finance Transaction ProcessingConcept driven by MultinationalsMultinational SSC Hubs in Europe –Amsterdam, Manchester, Scotland, DublinLate 1990’s early 2000’s expansion to – HR, IT, etc Now being adapted widely in Public SectorOffshoring, Nearshoring, BPOSSC moving up the Value Chain
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Why is Shared Services different to Centralization?
Demarcation
Another corporate function
Rare
Cost reduction and central control
Corporate
Centralization
PartnershipResponsibility
An independent unitClassification
WidespreadService Partnership Agreements
Service excellence and continuous improvement
Key Performance Targets
Business unitAccountability
Shared ServicesAttribute
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Shared Services• Philosophy and approach totally unlike
traditional centralization of services.• Focus on service to the customer.• Requires collaboration.• Achieves its goals through:
• leveraging economies of scale• technology• organisational realignment• best practice• end-to-end process re-engineering
Centralization
• Focus on cost savings.
• Decision making is concentrated in a specific area or group.
• Less focus on meeting service needs of customers/clients.
Shared Services vs Centralization
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The Benefits
When implemented, managed and controlled properly, Shared Services can achieve the “triple benefit” of:
1. Improved service levels2. Delivered in a more efficient manner3. And supporting an enhanced control environment
Additional Benefits;• Standardization of processes which supports centralization and
automation (including ERP deployment)• Ability to really look “end-to-end” at processes to eliminate
redundancy, duplication, handoffs, loop backs, etc• Empowering the Shared Services team to learn new things and work
in a dynamic and exciting environment• Engendering a culture of continuous improvement and recognition of
performamce• Improves quality and integrity of data which supports faster and better
decision making
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The Potential Scope of Shared Services
Shared Services
InformationTechnology
EmployeeServices
Finance &Accounting Legal Real Estate
& Facilities
The “Core” Business
Customers:Business Leads
Field OrganizationEmployeesCustomersSuppliers
Regulatory Authorities
CustomerSupportLogistics Consulting
Services
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The Potential Scope of Shared Services
Human Resources– Payroll– Travel & Expense– Compensation Administration– Benefits Administration– Records Management– Training & Development– Relocation Services– Evaluation Planning/Review– Policies & Procedures– Labor Relations– Recruiting/New Hire On-
boarding– Headcount Reporting– Succession Planning– Employee Recognition
Systems
Information Services– Desktop Support– Application Maintenance– Telecommunications– Hardware & Software– Application Development– Data Center Operations– Standards– Technology Planning &
Development– Acquisition Support– IT Security
Finance– Accounts Payable– Billing/Accounts Receivable– General Ledger– Consolidations– External Reporting– Planning and Budgeting– Treasury/Cash Management– Internal Audit– Tax – Foreign Exchange– Business Support Analysis– Financial Reporting– Project Accounting– Cost Accounting– Lockbox Services– Records Management– International Accounting
Supply Chain Management– Procurement– Transportation & Logistics– Strategic Sourcing– Warehousing– Inventory Management– Vendor Management
Customer Service– Call Centers– Credit & Collections– Order Management– Returns Processing
Legal/Corporate Affairs/Administrative Services/Other
– Travel Services– Real Estate– Facilities/Site Services– Fleet Management– Security– Communication Services– Environment, Health & Safety– Regulatory Compliance– Public Affairs/Media Relations– Litigation Support &
Coordination– Insurance– Mailroom– Grants Management– Health Clinics/Day Care
Centers– Corporate Brand Compliance– Engineering– Subsidiary Management– Emergency Management
Source: Scott Madden & Associates
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Shared Services Moving Up The Value Chain
Shared Services is moving up the “value chain” from the traditional more transaction based Shared Services up into the provision of professional and technical support services.
An Example for Finance & Accounting:
Transactional/Administrative
• Consolidations
• Inter-company Accounting
• Credit
• Collections
• General Ledger
• Fixed Assets
• Accounts Payable
• Sales Reporting
• Accounts Receivable
• Claims Processing
• International Accounting
• Cost Accounting
• Indirect Tax/VAT Administration
Professional/Technical
• Corporate Purchasing
• Revenue Accounting
• Management Information
• Treasury
• Trade Compliance
• Corporate Tax Planning
• Indirect Tax/VAT Planning
• Planning & Analysis
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Critical Success Factors for any Shared Services Organization
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Critical Success Factors
What are some of the main critical success factors and constraints:
Senior management supportKey stakeholders/steering committeeWhat is the overall governance model for the project? Project resource availability (internal and external)Team experience, training, motivation, recruiting &retentionAnticipated timelineOrganisational designBudgetAbility to meet all local, legal, statutory and tax requirementsAbility to comply with all employment legislation in all impacted jurisdictions, etcBusiness perception of the initiativeCurrent technology footprintAcquisitions
See chart at next slide
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Critical Success Factors
Customers
Technology Processes
People
Critical Success Factors
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Critical Success Factors
Customers
Technology Processes
People
Critical Success Factors
Service orientation in placeStructured way of dealing with customersCustomer satisfaction levels understoodSLAs in placeReality versus perceptionAccount management
Processes documentedStandardized, controlled & repeatable activityRecharging methodologyBenchmarking capability –internal/externalMetrics: (i) Control Based(ii) Efficiency & Effectiveness
ERP implementedDocument Scanning SolutionWorkflowAutomated PaymentsElimination of Side SystemsSelf services toolsAutomated Score Cards Skilled Leadership in place – do not compromise on competencies
Team shape & stability – process shaped/spans of control/staff – perm v tempsTeam members – culture, values & behavioral competencies assessed Team morale, reward & retentionWorking environment conducive to team working
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Project Scope
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Project Scope
What functions and services are "in scope" or possibly "in scope" at this stage?What legal entities are “in scope” or possibly "in scope" at this stage?What countries are “in scope” or possibly "in scope" at this stage?Which business units will be affected by the project?What key assumptions should be made around scope (e.g. is there a “hard and fixed” end date, has the project been “sold” internally yet?)Are there any details on current banking structure that support the operations (e.g. do you have one global banking partner or a number thereof?)Is there any information on the tax structure of the group and how inter-company transactions flow between group companiesIs outsourcing an option, even if in just selective areas? (see later slides)
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Critical Importance of the Customer
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Critical importance of the “Customer”
Who is our “customer”, both internal and external?How do we define customer satisfaction?How do we currently measure customer satisfaction today?What are the potential key benefits to our customers of Shared Services:
– Higher levels of service (faster/better)– Lower cost of service (cheaper)– Tighter control environment (control)
Do we understand customer requirements?How do we interact with the customer today, and how do we plan to do so under Shared ServicesDo we have any Service Level Agreements (SLAs) in place today?What are the hurdles that we need to overcome in introducing a customer focussed Shared Services Organisation, that meets the needs of the Business?
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Example Shared Services Delivery Framework
BalancedScorecard
Creation of SLAs
Delineation of roles and responsibilities
between SSO and other functions/ local regions / businesses
Standardised processes and sub-processes across all functions
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Example Customer Communication Mechanism
Communication Mechanism
External Customer / Supplier Survey
(Annual)
Regional/Customer
Forum (Monthly)
Internal Customer Survey
(Bi-Annual)
StrategicReview Forum
(Quarterly)
Regular Customer
Calls(Weekly)
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Service Partnership Agreements
SPAs to cover following key areas :Fundamental Operating Principles
Communication ChannelsOwnership of Process, System and DataAvailability of Service ProvisionCharging MechanismSpirit of Co-operation
Performance reportingIssue resolutionOperating metrics (including targets)Process/Sub process –Definition/breakpoints/dependency/criticality
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People and Organisation Structures
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People & Organisation Structures
Who are the project’s key sponsors?What is Executive Management’s view of the project?How will the new Shared Services organisation be structured (e.g. will it be a separate BU, Legal Entity? (see next couple of slides)What will the communication plan be and how will we involve other groups (e.g. involvement of HR, Legal, IT etc.)?Current organisational design for in-scope functionsIf a separate BU or Legal Entity how do we plan to charge for services?What is the anticipated end-state headcount?Have we done any benchmarking to determine desired end-state (organisations, reporting lines, headcount and costs)What are the Company’s current HR policies in regards to redeployment, relocation, redundancy etc?What are the main Change Management issues and requirements (internal to project team and external to impacted groups)
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Shared Services StructureOption 1 - All support functions consolidated into a single support services business unit
AdvantagesEasier to promote a service culture and consistent service levels Improved visibility and management of service offeringsReduces risk of service groups working in silos, focus is on supporting end to end processes for each operational BUService costs in a single pool promotes clear decision making for operational BU’s as to what services they want and do not want
DisadvantagesChange to existing Corporate structureMay increase management structure if corporate and shared services split too finely
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Shared Services StructureOption 2 - Retain existing Corporate structure but adopt shared services philosophy and perhaps chargebacks
AdvantagesNo significant change to existing Corporate structureWill improve service culture and visibility of service costsWill improve overall control environmentSome economies of scaleFaster implementation
DisadvantagesNot so easy to adopt consistent service levels across all support groupsLess leverage for economies of scaleLess visibility and management of total service offeringsRisk of service groups operating in silos and not supporting end to end processesTotal support costs and opportunity cost of one service versus another not as clear
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Systems, Technology and ERP
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Systems & Technology
What is your main ERP Platform today?Is the current ERP platform an enabler for Shared Services?How many instances are there of your main ERP platform?How many other main systems are there supporting the operation?How are these integrated/interfaced?What is the current assessment of IT hardware and communication links?What is the level of systems expertise and understanding in the organisation?How good is the training regimen?How good is the workflow technology?What is the overall level of automation of processes?How is management reporting carried out both in the centre and in the field?Will required IT resources be available for the project?
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ERP Defined
The term enterprise resource planning (ERP) was coined by Gartner Group in the 1990s.
Enterprise resource planning (ERP) software places its focus on integrating an organization’s departments (i.e., finance, HR, warehousing, etc.) and functions onto a single integrated computer system that aims to serve all those different departmental needs.
Source: Koch, 2002
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ERP & Technology Enablers and Barriers to Shared Services
ERP systems are the most important enabler for Shared Services “with 92 percent describing them as important or very important”Source: October 2006 Shared Services Centre Survey, Conducted by SharedXpertise
Conversely, according to the SharedXpertise 2006 F&A Transformation Survey, “the most significant barrier to F&A transformation is technology”.Source: December 2006 F&A Transformation Survey, Conducted by SharedXpertise in association with HP
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Benefits of ERP
Fully integrated and enables powerful reportingOffers international functionality (multi-lingual, multi-currency, multi-level reporting capability)
Enables visibility of dataActs as a platform to facilitate mergers & acquisitions integration
Built around standard rule-driven best practice business processes
Can significantly cut run-rate operating costsCan significantly reduce application maintenance and licensing costs)
Helps an Organisation to move towards real Employee Self Service for employees, any time and any place.
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Other Potential Technology Enablers
Imaging/Document Archive and Retrieval TechnologyOptical Character Recognition Software (OCR)E-Invoicing networksElectronic Funds TransmissionEvaluated Receipt Settlement (ERS)Electronic Data Interface (EDI)Interactive Voice Response (IVR)Vendor Managed Inventory (VMI)Web Invoice Enquiry & ApprovalWeb Portals“Packaged Solutions” (ERP Technology Partners)The emergence of “Middleware”.
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Processes
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Processes
Importance of an end-to-end process viewSystem sits on everyone’s desktop and mirrors everyone’s specific daily work routineActivity based data is captured by customer, work and categories of rework dimensionsLeaders set targets for unit of time, transaction volumes and backlogs. Unit cost and total cost establishedMembers of the teams record actual data as they do the workOutput generated provides individual and team based balanced scorecard informationData essential for supporting improvement initiativesSuccess of initiatives can be tracked over timeUse of process improvement tools such as Six Sigma, ABC, etc
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Procure-to-Pay Process
Receive Goods orServices
Approve Purchase
Requisition
RaisePurchase
Requisition
Receive PurchaseInvoice
PostPurchaseInvoice
Approve PurchaseInvoice
Pay PurchaseInvoice
Raise &SendPO
PostReceipt to
GL
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Collect Cash
Post to Inventory
& AR
Ship ProductOr
Deliver Service
ReceiveSalesOrder
RaiseSales
Invoice
AuthoriseCustomer
Credit
Post to AR & Cash
Schedule Delivery
Order to Cash Process
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Raise JobChange
Requisition
RegularlyAppraiseEmployee
RecruitEmployee
Raise Employee
Requisition
Set up onBenefits& Payroll
AuthoriseEmployee
Requisition
Approve JobChange
Requisition
AdjustBenefits& Payroll
AdministerBenefits& Payroll
Post to General Ledger
Fire orRetire
Employee
Hire to Retire Process
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RunManagement
Reports
Integrate withData
Warehouse
CloseReporting
Period
CaptureData
ReconcileAccounts
Post to GL&
Cost Centre
RollReportingPeriods
RunTrial
Balance
ProduceExternal Reports
Data Capture to Report Process
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Business Process Outsourcing
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Is Outsourcing something that should be considered?
The provision of BPO services is a rapidly expanding market
Any “non-core” service can in theory be considered for outsourcing
Can achieve short term “quick win” in terms of “solving a problem” and reducing costs quickly, but be careful of losing control and giving away future margin potential to a third party.
The “attitude” to outsourcing also depends on other factors as well such as Company culture, risk sensitivity and the level of development and maturity of any existing shared service functions
Outsourcing can be used as a “lever for rapid change” and can help meet regulations such as TUPE where employees are transferred to the third party
Outsourcing can also help you achieve “flexibility”, but be careful of thinking that this means you do not have to think about the provision of these “mission critical” non-core services
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Is Outsourcing something that should be considered? (cont.)
Outsourcing can allow you to get the benefits in terms of reduced costs by “offshoring to a third party”
Be careful of “outsourcing a mess” to achieve perceived very rapid short term cost savings
Transaction based services are generally easier to outsource than services further up the value or risk stream, although this is changing
Negotiation and finalisation of the contract and service levels with the third party is absolutely critical
Many of the same considerations related to offshoring also apply (e.g. political stability, timezone, language skills), as well as other considerations such as security of information, sharing of saving down the track, ability to flex up and down with volumes, etc.
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Location Decision
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Location
What are the possible locations for any Shared Service Centres (local vs regional vs global)What are the key criteria regarding location (e.g. accessibility, language skills, education, employment laws, telecommunication links, political or other risks, government grants)?Are there any preferences for Greenfield vs Brownfield Determine the economics of short-listed locations (e.g. labour costs, real estate costs, telecoms costs, tax impacts)What are the key internal considerations affecting any location decisions?Are there any relevant tax considerations affecting or influencing these location decisions?What assessment have we done regarding local Employment regulations and the movement of roles across borders?
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Project Approach
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Example Shared Services Roadmap
StrategySetting
BusinessCase
Design Build Migrate Stabilise Optimise
Timeline
Key Deliverables•Vision, goals and expectations•Project scope•Critical success factors•People and organisation structures•Systems/technology•Processes•Locations•Project approach (resourcing, timelines, etc)•Cost-Benefit Analysis•Identification and discussion of key risks to the project and how to mitigate them•Go/no go decision point
•Detailed implementation plan•Detailed change management plan•Effective project management•Steering Committee and Governance •Develop Service Delivery Framework• Instigate customer user forums• Design and introduce SLA discipline•Pricing and chargebacks•Marketing and “selling”• Drive and deliver SOX 302 and 404• Roll out and train on SAP• Pursue decommissioning of legacy systems• Roll out document management and imaging • Improve operational functionality• Establish team communication framework• Build and develop leadership team• Reshape team environment •Develop programme office and reporting mechanism
3 months 3 to 15 months 15 months +
ExpandScope
•Post go-live support•Optimise process structures•Continual training•Leverage technology enablers•Expand scope
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Project Team
SAPConfigurationTeam
BusinessProcess Owners
& Customers
Business ProcessIntegration
Team Platform/Project &Change Mgt
Transaction/Service
Transition/Testing/Training
Key attributes :1) “Just enough”
consultation2) Rapid implementation3) Working to
predetermined template4) Wide, Fast, Effective
Communication5) Think global, act local
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Cost Benefit Analysis/Return on Investment
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Cost-Benefit Analysis
What is the anticipated budget?Is there any budget available from existing budgets?What are the key benefits anticipated to be derived from the project? (Hard and Soft. Cheaper - Faster – Better)Can we put a $ amounts on these?What other benefits are there that are difficult to put a monetary value on at this stage?How would we assess the current infrastructure and control environment in terms of effectiveness, efficiency and scalability?What have been the conclusions and questions resulting from any cost-benefit analysis carried out for the initiative to date?What other qualitative drivers are there for Shared Services?What is the baseline against which to assess the success of the project?What is the Group’s cost of capital?Do we have target paybacks, ROIs, etc?How do we currently measure service levels?
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Do We Want to Benchmark Externally?
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Key Strategies to Address Compliance
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Definition of Compliance and Other Business Services
Compliance… is the requirement to meet all rules and regulations, relevant to the enterprise, that are imposed and enforced by external bodies, and apply across all jurisdictions and across the full scope of operations
Necessary Business Services…covers the people, processes and activities that are deemed necessary to support ongoing business operations, other than those required to meet legal or other compliance requirements.
Business Support Services…covers the people, processes and activities that are not mandatory, but are paid for, resourced and provided to support and add value to the business.
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“Compliance” Examples
Group External Reporting ComplianceInter-Company Revenue/Margin/Cost AccountingPublic Filing Requirements (e.g. NYSE, NASDAQ, London Stock Exchange etc.)International Reporting Compliance (IAS, IFRS)Company Secretarial WorkLocal Statutory Compliance and ReportingLocal Company Tax Compliance and ReportingLocal Indirect Tax (VAT) Compliance and ReportingLocal Trade Compliance and ReportingLocal Payroll Tax Compliance and ReportingLocal Employment Law Compliance and ReportingHealth and Safety
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“Necessary Business Support” Examples
Accounts PayableAccounts ReceivableCreditCollectionsClaims AdministrationTreasuryPayrollBenefitsExpense ProcessingSupply ChainLogisticsCustomer ServicesSite ServicesSecurity
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“Business Support Services” Examples
Financial Planning and ReportingAnalysis and Decision SupportStrategic Tax PlanningStrategic Real Estate PlanningDirectors & Officers InsuranceEmployee Communications & DevelopmentCompensation PlanningCorporate Purchasing
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Key Compliance Strategies:(i) Understand the Requirements
Understand the real issues (be wary of “smoke & mirrors”)Engage local controllers and ask for their inputArrange workshops where compliance related matters are discussed and documented and solutions agreed there and then or for follow up laterConsider working with external “expert” to verify and address local requirementsTalk to others who have done this beforeMake an assessment of risk in each case
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Key Compliance Strategies:(ii) Use of Local Compliance Checklists
Location of financial books and records forStatutory requirementsTax authorities’ requirements
Format of financial books and recordsBookkeeping – details of information/accounts required to be maintainedLedger requirements – organisation and official approval requirementCharts of accounts (COA)Maintenance of financial books and records in local currency
Financial statementsTax returnsOutput invoicesPurchase orders and payments
Official language requirementsStatutory retention periods for books and records
Statutory requirementsTax authorities’ requirements
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Key Compliance Strategies:(ii) Use of Local Compliance Checklists
Reporting requirementsFinancial reporting – form of statements and filing deadlineSpecial reporting requirements (where applicable)Corporation tax returnsVAT returnsIntrastatEC Sales Lists
Documentation of computer systemData ProtectionStatutory audit requirementsPayment methodsSoftware audit
Software audit requirementsAudit trail
Supplier invoice formatRecharging costs HR issues
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Key Compliance Strategies:(iii) Local Legal, Statutory and Tax Requirements
Are there local document retention and filing requirements? Understand what these are on a country-by-country basisAssess real risks and possible mitigation approachesWork with local experts as necessary
Many local statutory differencesHarness your ERP system's flexibility to provide multi-level reportingCarry out risk assessment and adapt approach to meet each local entity and region’s specific requirements (“think global, act local”)Need to ensure full understanding of compliance is incorporated into the new system and process designGlobal Chart of Accounts may need to be augmentedUse of ERP Fixed Asset and local Indirect Tax functionalityPossible use of Special Purpose Ledger (SAP)Use of foreign language character sets
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Key Compliance Strategies:(iii) Local Legal, Statutory and Tax Requirements
Do we operate in a multi-language environmentUnderstand what these are on a country-by-country basisEnglish is not always an optionSkills base at Shared Service Centre needs to include fluency in key local languages (e.g. English, French, German, Italian, Spanish, Mandarin, Japanese, Korean)Leverage SAP or other ERP Foreign Language Character sets to allow local language characters to be used to meet local requirements (e.g. for Japan, China and Korea)
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Key Compliance Strategies:(iv) Other Strategies
Within Asset Accounting have a country specific Chart of Depreciation to meet Group, Statutory, Tax and Reporting Currency requirementsAdapt paperwork flow and storage to meet different local requirementsTalk with and get specified agreements from local regulatory bodiesMake sure that local company addresses and VAT registrations allow you to meet compliance regulations, while still moving to a Shared Service modelHire targeted “in-house” experts and put in a program of detailed training for SSC employees (e.g. in AP and Expenses)
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Possible Next Steps
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Possible Next Steps
Next steps after approval to proceed should involve a full scoping, blueprinting and business case. This would include:
– Sitting with and presenting to key stakeholders– Mapping current state, “as is” processes, opportunities,
challenges and anticipated future state– Identifying and clearly stating key assumptions and critical
success factors and how they should be tackled– Identifying and finalising resourcing requirements and costs
(internal and external)– Highlighting and finalising key functions, services and
processes to be included in-scope– Identifying and finalising regions, people and legal entities that
are likely to be impacted by the project– Mapping anticipated “end-state”– Completing a revised and finalised cost-benefit analysis– Drafting an overall project plan including scope and timelines– Moving forward with implementation
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Some Additional “Tips & Tricks”
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Some Additional “Tips & Tricks”
1) Senior level Executive sponsorship is key. Make sure that key executives understand and support the roll-out.
2) It is really important to distinguish between “solutions” vs “quick fixes”.
3) A culture of innovation and continuous improvement is critical. A passion for value ensures success in the longer term.
4) Proper base-lining and a clear business case is key. Budgets need to be set and managed to.
5) Do not underestimate the change management required for any such initiative, including a turnaround.
6) Carry out regular communication with all relevant stakeholders. 7) Assign your best resources and people to the project. 8) Remember that training is key.
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Some Additional “Tips & Tricks”
9) Remember, an ERP system is an “enterprise” system for use by the business. It is not a technology solution owned, or to be used exclusively, by the IT department.
10) Make sure that service delivery requirements are clearly understood. Then map these to the Shared Services organization and your chosen ERP system’s configurable processes. Do not simply replicate current state processes – be requirements focused and stick to best practice.
11) Follow what I call the “80/20 rule for Shared Services ERP”when deciding whether to use “vanilla” ERP functionality. If your core ERP can provide you with 80% of the functionality that you require as standard then you should go with this every time.
12) Have regular, meaningful Steering Committee meetings of key stakeholders. This should be an active Committee and not just a chore to get through unscathed every week.
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Some Additional “Tips & Tricks”
13) Try to cleanse the data as much as possible before each main cut-over or clean-up. The quality and volume of data should be worked on early in the project and not left to the last minute.
14) Engage targeted expert outside help. Neither abdicate responsibility for the project to a third party consulting firm nor try to do the whole thing “on the cheap”.
15) Make sure your team includes regional and local expertiseand be prepared to travel to meet and work with users. Do not think that you can run the whole project from Head Office.
16) Remember always that the project does not end with “Go Live”. There needs to be adequate support post go-live and also continual training and re-training.
17) Keep working towards your goals and be relentless in pursuit of them. Shared Services initiatives are a significant commitment both in terms of resources and energy.
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Questions and Any AdditionalThoughts or Comments
Phil Searle
+ 1 408 460 0785+ 44 7779 714 573
David O’Sullivan
+ 353 86 384 8573