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The Handbook to Setting Up A Modern SSC provides guidance on establishing a modern Shared Services Center (SSC) by focusing on strategic alignment, service level agreements, location strategies, process standardization, and embracing technology. It emphasizes the importance of integrating SSCs with broader enterprise goals, managing stakeholder expectations, and leveraging automation for efficiency. The document outlines best practices and considerations for organizations looking to enhance their shared services operations.

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0% found this document useful (0 votes)

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The-handbook-to-setting-up-a-modern-ssc

Uploaded by

Adri Roman

Available Formats

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THE HANDBOOK

TO SETTING UP A
MODERN SSC
2 The Handbook to Setting Up A Modern SSC

Table of Contents

The Evolution of Shared Services with Bob Cecil 3

Strategically Align With the Wider Enterprise 5

Establish a Clear Service Level Agreement 7

Consider Your Location Strategy 8

Standardize Your Processes 9

Future-Proof Your Workforce 10

Embrace Technology & Automation 13

In Conversation with the Experts 18

Are You Ready to Set Up a Modern SSC? 23

Take Your Shared Services to the Next Level 24

Beth Brown
Conference Producer & Junior Editor
SSON Digital

The Evolution of Shared Services

Bob Cecil
Partner
Timberstone Partners LLC

Whether you are new to shared services or an The name shared services emerged to reflect the
accomplished veteran looking to expand to a economies of centralization with the service orientation
new environment, I have found it useful to ground of decentralization in this new operating model.
yourself in the fundamentals of what makes shared
services successful. This handbook is loaded with While the foundational elements of shared services
helpful ideas to avoid pitfalls and accelerate your have remained constant since the early days, many
shared services journey. aspects have advanced. In setting up a modern
shared services organization, consider your value
To distill these ideas down to the fundamentals, I like to proposition to support your business strategy. The big
start with the concepts first conceived when pioneering shift in this value proposition moved away from just
companies, including American Express, General achieving transactional cost savings to impacting
Electric, and Hewlett Packard, coined the term “shared business outcomes such as increasing customer
services” in the 1980s. These companies discovered satisfaction, return on equity, and brand power. Modern
they could stop the pendulum swing of moving support shared services organizations look at comprehensive
activities back and forth between centralized Corporate value creation across multiple factors such as user
centers (to get savings and control) and decentralized experience, cost-effectiveness, service performance,
business units (to get higher service and flexibility.) and risk management.

continued

The elements of the shared services operating model for digital transformation. They are outsourcing more
have advanced in concert with the broader value expertise-based services and consistent with the
proposition as listed below: shift in the overall value proposition are holding their
partners accountable for business outcomes.
Scope: Modern shared services have a broad scope
across transactional and expertise-based services. People and Organization: Modern shared services
They also have a broad reach across functions, organizations have strong delivery and enablement roles.
geographies, and business units served. Scope is Among the most critical enablement roles are process
treated as a seamless portfolio that responds to stewardship, service management, business relationship
changing needs and economic conditions. management, change management, and transition
management. Each of these enablement roles is typically
Process: Not only has the scope expanded, but supported by a broader ecosystem of individuals in
modern shared services interconnect processes functions and business units to promote cross-unit
between the front, middle, and back offices. The focus collaboration. Career lattices are deployed across
is on end-to-end process optimization, not just center- delivery and enablement roles, allowing for horizontal and
based processes. vertical career development inside and outside shared
services. Digital fluency is a prerequisite encompassing
Technology and Data: Best practices are embedded data management, analytics, automation, and artificial
in core technologies offered “as a service” allowing for intelligence. This digital capability extends to broader
flexibility at scale. Where gaps exist, process discovery, skills in problem-solving, process design, relationship
optimization, and automation tools are deployed for management, and change management.
continuous improvement. Master data management
is frequently offered as a service that treats data as a Service and Business Engagement Management:
company asset. Shared services organizations often Leading shared services today focus heavily on customer
supply analytic capabilities to the company employing centricity deploying customer relationship management
platforms that enable predictive and proactive tools and methods such as journey mapping. Service
decision-making. governance has its own operating model for managing
internal customer and external partner relationships,
Location: Modern shared services provide including decision rights, committee structures, distinct
boundaryless delivery placing work where it should be governance roles, specific governance processes, and
located whether that be offshore, nearshore, onshore, supporting tools and data. Change management and
or location independent to meet business needs. While communications methods are utilized extensively during
scale is still an important consideration regarding transition and transformation.
center size, automation has reduced the dependency
on scale to achieve benefits. Today, companies are Now that you know the contours of modern shared
establishing more centers mostly driven by the need to services, how do you get started? This handbook
attract and retain talent and build resiliency. provides practical guidance. As the handbook
suggests, begin by aligning your shared services
Sourcing: Modern shared services look to their strategy with your individual business strategy and
outsourcing partners less to achieve just labor building out the operating model that achieves the
arbitrage and more to access talent and platforms business outcomes you desire.

Strategically Align With the

Wider Enterprise

When establishing an SSC, the numerous changes Establish clear governance

in leadership, processes, and teams can seem more and communication
disruptive than strategic. As such, any new SSC must
integrate with the wider enterprise strategy to create a Setting up governance that includes SSC and
seamless continuum of work. business unit stakeholders promotes collaboration and
alignment. Examples include developing an Executive
Although the SSC’s focus can vary, from cost reduction Steering Committee to define the strategic direction
and productivity gains to elevated Customer and approve key projects, and an Operational Steering
Experience (CX), the foundation for success is Committee to tackle operational challenges and ensure
strong alignment with the enterprise. As Arindam continuous alignment with business needs. Another best
Mukhopadhyay, Managing Director & Global Head of practice is appointing dedicated SSC liaisons to handle
Finance and Risk Shared Service at Citi, wisely noted: communications with each business unit.

Beyond governance, robust communication channels

“The path forward for the GBS is not to ensure ongoing alignment. This could include monthly
overuse the “world-class service provider” business reviews, leveraging an internal knowledge-
label and make “Success Together” its sharing platform or portal, or conducting regular surveys
defining strategy.” and forums with the people that are now your customers.
From a psychological perspective, many employees find
it difficult letting go of work that they have always been
In fact, according to the State of the Shared Services & in charge of, so changing ownership of the work without
Outsourcing Industry Global Market Report 2024, “the proper communication can result in power-struggles and
target of “seat at the table” is entirely within reach”, as resentment. The 2024 State of the Industry Report highlights
almost 80% of organizations are either moving towards how many SSO/GBS have successfully established
or are positioned as core business support and a “true these channels, as 66% to C-Suite level job titles. Only
business partner.” 11% report to someone below the Managing Director.

Are you moving from traditional, transactional back office activities towards core business
support (driving decision support, end customer facing activity, research/production)?

Yes, this is a We are thinking No, this is not

49% 29% 22%
key focus about it on our agenda

SSON Research & Analytics State of Industry Global Market Report 2024

continued

Promote cross-functional Tackle Resistance to Change

collaboration
Prioritizing strategic alignment also contributes to tackling
To ensure strategic alignment, all GBS teams need resistance to change. It generates common goals,
to be working towards the same goal. So, setting establishes the SSC as a value-add, and helps develop a
your model up to prioritise cross-functional strong partnership between the SSC and the enterprise.
collaboration is vital. Breaking down siloes and
promoting cross-functional collaboration builds Robust change management strategies are crucial
mutual understanding, streamlines processes, and when setting up an SSC as the center will take on
improves overall service quality. work previously executed by local teams. Without the
appropriate communication and reassurance, this can
This could involve leveraging a rotation program to cause concerns around job security. This can then inhibit
allow SSC staff to shadow teams to better understand employee buy-in, making the center’s development
existing processes and challenges. Another example tricky. By building out a strong communication plan
would be regular cross-functional review meetings with that demonstrates the purpose and benefits of the SSC,
both SSC leaders and business managers. By providing organizations can mitigate this risk.
regular touchpoints, both business units can remain
responsive to the evolving needs of the enterprise. By defining roles, promoting collaboration, and
breaking down siloes, the SSC facilitates transparency
Although this is only a couple of examples of cross- and accountability. This ensures the SSC and wider
functional collaboration, its foundation relies on business are aligned through regular updates and
communication and transparency. continuous feedback.

Whom does the shared services/GBS operation report to? Respondents could select multiple answers

CEO 14%

CFO 40%

CIO 5%

Chief Transformation Officer 6%

CHRO 7%

Chief Administrative Officer 3%

Regional/Country MD 5%

0% 50%

SSON Research & Analytics State of Industry Global Market Report 2024

Establish a Clear Service

Level Agreement

When developing an SSC, it is important to recognize or cost reduction. Service targets are also a best
that the wider organization is the customer, and they practice to receive internal stakeholder buy-in, as they
need to be treated as such. So, the SSC must manage increase transparency, organizational alignment, and
expectations by defining exactly the value it will bring accountability.

3
to the organization. By establishing a clear Service Level
Agreement (SLA), and then tracking key metrics, the Stakeholder Engagement
SSC can ensure they are delivering measurable value.
The SLA should outline service scope, standards, and The first year of an SSC can be a tricky one,
responsibilities, setting a foundation for accountability particularly regarding stakeholder management.
and customer satisfaction. Expectations and strong lines of communication need

1
to be set and maintained with internal customers for a
Scope & Objectives strong partnership.

To begin, an SLA needs to define the services the SSC This includes involving stakeholders from the beginning
will deliver, whilst highlighting how this aligns with the to gauge their needs and pain points. Then, regular
wider organization’s needs. This clarification should feedback from internal customers is a best practice,
include expected outputs, service timelines, and levels as it allows the wider organization to review SSC
of support. performance, address concerns, and provide updates
on improvements.
This is increasingly important as there is a current shift
towards extensive scope expansion, as approximately By establishing a clear SLA, the SSC sets the foundation
40% of SSO/GBS have over four centers globally. Beyond for a successful partnership with the broader
this, 85% of organizations noted planning to expand organization, ensuring a shared understanding of
their scope of service and location in 2024. expectations, responsibilities, and value delivery.

2
Effective tracking of KPIs and stakeholder engagement is
KPIs key to a harmonious and productive SSC environment.

Based on the defined scope and objectives, identifying

Key Performance Indicators (KPIs) to track is crucial to
measuring the SSC’s success and displaying its value.
Depending on the SSC’s scope, these metrics can vary
from response time, processing accuracy, or customer
satisfaction levels.

Within the SLA, setting service targets can provide

a more streamlined approach to KPI tracking.
By establishing measurable targets, the wider
organization can identify any added productivity

Consider Your Location Strategy

2024 has seen organizations putting a larger focus

on location strategy. Location strategy has changed
3 Business Climate

somewhat from the inception of the shared services Consider locations offering tax incentives, a
model. Whereas previously cost arbitrage was the top healthy economy, and a supportive regulatory
priority, as shared services become more automated, environment. These factors impact the financial
organizations are substituting bots for low-cost FTEs, viability of your SSC.

4
which presents another dynamic to location decisions.
Location can either push an SSC to success or act as Location Risk
a major obstacle. Organizations need to consider a
range of factors to identify a strategic location, from Assess environmental and political risks. Evaluate
its infrastructure to its talent pool. Candace Dingmann, climate-related threats, such as natural disasters, and
Distinguished Fellow at Avasant and SSON contributor, consider any social or political instability that may be
delved into some of these elements: disruptive.

1 Talent Pool
5 Accessibility

The availability of a skilled workforce is essential. Examining the proximity to major airports, similar time
Locations with strong universities, a high level of zones, and ease of travel is essential for operational
graduates, and skills aligned with your business needs efficiency and ensuring leadership and partners can
are advantageous. access the center smoothly.

2 Competitive Environment
6 Infrastructure

Understanding the demand for talent and regional Select a location with growth potential and
competition helps tailor recruitment strategies and reliable infrastructure, including stable internet
plan resources effectively. A competitive environment and transport links, allowing for future expansion.
can foster growth opportunities and insights for In addition, available office space, with reasonable
workforce planning. real estate costs, is another key consideration.

7 Quality of Living

Choose a location with a good quality of life, where

employees will want to stay long-term and feel
satisfied with wages relative to the local economy.

These are just some examples of the importance

of a strong SSC location. Overall, aligning your
location with business objectives and assessing
the local business landscape should guide your
location strategy.

Standardize Your Processes

The first part of any SSC journey is identifying Target Processes that
the processes that the center will integrate and Support Global Consistency
standardize. Most organizations adopt a “lift and
shift” model, in which they “lift” the process out Processes that need to be consistently applied across
from the local office. Then, once the process has all regions, such as order management, quality
been absorbed into the SSC, it is transformed assurance, or customer support standards, are good
and optimized. But, how else can organizations candidates for an SSC, as centralizing them helps
strategically select processes for the SSC? ensure uniformity. This not only increases efficiency but
also mitigates the risk of legal repercussions for not
Prioritize High-Impact, adhering to regulatory standards globally.
High-Volume Processes
Consider Processes that Benefit
Select processes that have high transaction volumes or from Specialized Expertise
a significant impact on efficiency and cost reduction.
Finance, HR, procurement, and IT support are often top Processes such as data analytics, cybersecurity,
choices, as standardizing these functions can lead to or financial analysis require specialized skills.
substantial cost savings and improved consistency Centralizing them within the SSC enables the
across the organization. organization to cultivate expertise in one location,
fostering high performance and cross-functional
Identify Processes with insights. Sixty percent of organizations noted the
Automation Potential skills and capabilities of people as the most effective
approach to process optimization. Even with the
Processes suitable for automation, such as most advanced automation platforms and
repetitive data entry, reporting, or customer support technology, the human element is crucial to
tasks, are ideal for SSC integration. Absorbing these successful process standardization.
processes into the SSC allows the organization to
introduce technology solutions, such as Robotic By assessing processes with these criteria,
Process Automation (RPA) or Artificial Intelligence organizations can create an SSC that not only
(AI), which can enhance efficiency and reduce streamlines operations but also maximizes efficiency,
manual errors. consistency, and innovation across the enterprise.

Future-Proof Your Workforce

Digital advancements are continuously evolving the 2 Enterprise-Centric

future of work (FOW), particularly in areas such as
finance and digital transformation. Having a skilled, Deborah Kops, Principal and Co-founder at Sourcing
future-ready workforce is key to the longevity of an Change, identified younger leaders’ stronger alignment
SSC’s success. with the enterprise. Rather than viewing GBS leadership
as “external vanguards of a GBS movement as their
Organizations looking to set up an SSC should not only predecessors did”, modern leadership needs to be
look at skillsets to accommodate their center today more focused on enterprise agendas.
but also consider services that may be added 2-3
years down the line. Essentially, organizations should 3 Agile
cultivate a workforce that remains competitive today
and in the future. With business models constantly evolving, as well as
an ever-changing business landscape, leaders should
Leadership be agile, adapting to changes in the market, regulatory
landscape, and organizational needs.

A future-ready workforce begins with strong leadership.

There are a range of skills modern SSC leaders should
possess, including:

1 Digital Fluency

A future-ready GBS leader is a visionary who can

guide the center through ongoing changes in the 1

business landscape. In the digital age, SSC leadership

should have strong digital literacy and fluency
to remain informed about tools and trends. Data
analytics, automation tools, and advanced technology
such as AI mean embracing digital transformation is a
necessity, and leadership should reflect this.

continued

Recruitment experience in digital tools, data analysis, and automation

prepares the SSC for tech-driven advancements.

According to the 2024 State of the Industry Report,

organizations are particularly prioritizing problem-
solving, process design/ continuous improvement,
and data management/ analytics. These skills reflect
the increasing focus on technological adoption to
optimize processes.

When hiring for a future-ready SSC, organizations

should look for candidates with both technical expertise
and soft skills that promote adaptability such as:

1 Digital and Analytical Skills

Roles in finance, IT, HR, and data analysis increasingly

demand technical skills. Prioritizing candidates with

What are the top 3 skills you are prioritizing right now, in terms of recruitment and training?
Respondents could select multiple answers

Stakeholder engagement 26%

Data management/analytics 39%

Problem-solving 52%

Process design/continuous improvement 46%

Leadership 23%

Process Automation 33%

Change management 24%

0% 75%

SSON Research & Analytics State of Industry Global Market Report 2024

continued

2 Adaptability and Learning Mindset management skills prepare employees to take on

leadership roles within the SSC.
Seek candidates who demonstrate a willingness to
learn and embrace change. Employees with growth 3 Customized Career Pathways
mindsets are better equipped to handle the evolving
demands of digital transformation and can be key in Clear, personalized career development tracks aligned
supporting continuous improvement initiatives. with organizational goals motivate employees to grow
within the SSC, increasing retention and ensuring that
3 Alignment with Long-Term Needs critical skills are retained in-house.

Recruit not only for current needs but for future growth 4 Soft Skills Development
areas, such as AI integration, cybersecurity, or advanced
data analytics. Proactively sourcing talent with versatile Training in communication, critical thinking, and problem-
skills prepares the SSC for expansion into new services. solving helps employees adapt to new challenges and
work more effectively in cross-functional teams.
Training & Development
By developing future-ready leadership, recruiting
adaptable talent, and fostering continuous skill
development, SSCs can build resilient teams prepared
to drive digital transformation and add value to the
wider enterprise over the long term.

Futureproofing the workforce also involves continuous

upskilling and creating a learning culture. Effective
training and development programs should include:

1 Digital Training

Regular upskilling in digital tools, like RPA, AI, and

advanced analytics, ensures employees can leverage
these tools to enhance SSC services.

2 Leadership Development Programs

Investing in future leaders is essential. Programs

that build strategic, cross-functional, and change

Embrace Technology & Automation

For a modern SSC, to be future-proof and scalable,

embracing technology is non-negotiable.
Organizations need to identify which processes are
strategic choices to be automated from the get-go.
Beyond this, the development of advanced tools such
as AI and predictive capabilities, which promise high
levels of efficiency, means leveraging automation
is all the more important. The 2024 State of the
Industry Report reflected this increased focus towards
automation, as 41% of organizations noted leveraging
automation as their top objective for the year.

What are your top 3 objectives in 37% 26% 41% 25% 16% 26% 15%
the next year? 50%

Respondents could select multiple answers

Rethinking/shifting our operating model

Leveraging IA solutions
Leveraging automation platforms
Digitizing data
Human/bot workforce optimization (orchestration)
Culture and branding
Redefining workforce strategy
(from recruitment to talent management)

SSON Research & Analytics State of Industry Global Market Report 2024

However, how organizations are undertaking automation is changing. In contrast to their predecessors, modern GBS
have the potential to become truly AI-enabled. Instead of implementing automation as and when needed, modern
GBS should examine its entire operation for AI potential.

continued

Advanced Data Analytics

In today’s data-driven business environment, advanced data analytics is crucial for a high-performing SSC. This
comes as no surprise for GBS leaders as, whilst financial processes still define most shared services activity, nearly
50% of organizations now offer master data management (MDM).

Which of the below listed services/ 43% 35% 50% 39% 71% 63%
functions does your SSO/GBS provide? 75%

Respondents could select multiple answers

Hire-to-Retire / Reward-to-Retire
Benefits Administration
Time-to-Pay / Payroll
Talent Management
(Strategic Workforce Planning, Recruiting and Staffing,
Workforce Development, L&D, Onboarding)
Purchase-to-Pay / Procure to Pay
Order-to-Cash / Customer to Cash

SSON Research & Analytics State of Industry Global Market Report 2024

By employing data analytics, SSCs can enhance One benefit of advanced data analytics is improved
decision-making by analyzing historical data. This customer satisfaction, as it can help identify the
enables SSCs to predict trends, optimize workflows, and specific needs of each department overseen by the
make informed decisions. This allows organizations to SSC. This allows for tailored solutions, improving service
anticipate demand, allocate resources effectively, and delivery and ultimately CX.
drive operational efficiencies.
In addition, robust data analytics allows for
Beyond this, leveraging data analytics can contribute accurate forecasting and resource allocation.
to process optimization. The technology can highlight Predictive analytics allow SSCs to forecast demand
bottlenecks, reveal inefficiencies, and identify areas based on historical patterns, such as staffing
where automation can replace manual work, ultimately requirements or potential system loads. This means
improving productivity. By consistently analyzing they can scale up or down as needed, reducing costs
metrics such as error rates, SSCs can refine processes and increasing responsiveness.
to maximize output with minimal resources.

continued

Evolving AI Capabilities adapt and make independent decisions to enhance

efficiency. Key areas where AI capabilities can be
particularly transformative include:

1 Process Automation and RPA

AI-powered RPA can handle repetitive tasks like

invoice processing, data entry, and reconciliations. By
automating high-volume, low-complexity tasks, SSCs can
free up human resources for more strategic functions,
It is obvious that AI is reshaping how modern SSCs increasing both productivity and employee satisfaction.
operate, and is an important element to consider This is particularly transformative for modern SSCs, as RPA
when setting up a new SSC. Integrating AI goes is the number one technology investment priority of 2024,
beyond simple automation, with applications that can according to the 2024 State of the Industry Report.

What are the top 3 technology investment priorities in the next year?
Respondents could select multiple answers

Chatbots 17%

OCR / Machine Vision / Machine Reading 16%

Artificial Intelligence 30%

Machine Learning (ML) 13%

Robotic Process Automation (RPA) 36%

Generative AI (e.g., ChatGPT) 19%

Analytics tools (e.g. Microsoft Power BI, Qlik, SAP) 30%

Process Mining (e.g. Celonis, Signavio, Minit) 22%

Service optimization tools 13%

Cloud Platform (e.g. AWS, Google Cloud, Microsoft Azure) 13%

Data Visualization Tools (e.g. Tableau) 11%

0% 50%

SSON Research & Analytics State of Industry Global Market Report 2024

continued

2 Intelligent Document Processing (IDP) In fact, customer service has emerged as one of the
most fruitful use cases for generative AI. According
With AI, SSCs can handle unstructured data, like to the 2024 State of the Industry Report, 52% of
handwritten notes or scanned documents, which has organizations were pursuing generative AI-powered CX.
traditionally required manual processing. Natural
Language Processing (NLP) can interpret these Data Integrity & Security
documents, classifying and extracting data for further
use without human intervention.

46% of organizations also note that IDP is a priority

within their SSO/GBS, according to the 2024 State of the
Industry Survey.

3 Predictive Capabilities & Process Improvements

AI models trained on SSC data can detect anomalies

and predict system failures before they happen, As SSCs become more reliant on technology and
ensuring business continuity. AI-driven insights into handle increasingly sensitive data, maintaining data
processes can also identify inefficiencies and propose integrity and security is essential. SSCs must implement
optimizations, constantly refining and improving SSC robust cybersecurity frameworks to protect against
operations. threats, ensure compliance, and uphold trust.

4 Virtual Assistants and Chatbots 1 1. Data Encryption and Access Control

AI-powered chatbots and virtual assistants provide SSCs should employ E2E encryption for all data. Strong
SSC employees and clients with on-demand support, controls ensure that only authorized personnel can
answering queries and resolving issues 24/7. This not access sensitive data, with role-based permissions to
only improves the experience but reduces the SSC’s further minimize risks.
workload by managing routine inquiries and freeing up
human agents for more complex requests. 2 Data Quality

Ensuring data integrity means having strong validation

and verification processes. Automated data quality
checks help maintain data accuracy and consistency,
preventing issues downstream.

3 Regulatory Compliance

As SSCs operate across regions with varying data

protection laws (e.g. GDPR in Europe and CCPA in
the US), adhering to these regulations is essential.

continued

Compliance ensures legal adherence but also cybersecurity measures, including detection systems,
enhances customer trust, as data privacy and security regular security audits, and AI-driven threat intelligence,
are top concerns for organizations. can help mitigate potential risks. Investing in cybersecurity
technology, alongside employee training, ensures both
Due to the global nature of SSO/GBS, particularly as system and human readiness against threats.
many organizations are looking to expand, regulatory
compliance is an increasing focus. In fact, 56% of Incorporating advanced data analytics, AI capabilities,
organizations note compliance as their top strategic and strong data integrity and security measures
target, a 42% increase from the previous year. is crucial for SSCs aiming to remain competitive,
scalable, and future proof. By focusing on these areas,
4 Cybersecurity Measures SSCs can increase efficiency, provide better support,
and foster a secure, data-driven environment that is
SSCs are often attractive targets for cyberattacks, given capable of adapting to evolving technological and
the volume of sensitive data they manage. Advanced regulatory landscapes.

What are your SSO/GBS strategic targets in general?

Respondents could select multiple answers

Cost/efficiency 88%

Compliance 56%

Risk/risk reduction 43%

Effectiveness 66%

Agility (organisational flexibility) 50%

Value (provision) 54%

Customer (view, intimacy) 46%

Service excellence 71%

Insights/analytics 44%

Business decision support / consulting 35%

Other 2%

0% 100%

SSON Research & Analytics State of Industry Global Market Report 2024

In Conversation with the Experts:

Setting Up a Modern SSC
We sat down with industry leaders for their insights on Scalability and future expansion are always big as well.
establishing a modern SSC. From talent management You always want to be able to grow and flourish the
to process improvement, the experts broke down shared services. And then development and growth
their top tips for setting up a modern SSC. All views are always a big one too. Again, it goes back to making
expressed here are personal. We were joined by: sure you have the right talent in place, but sometimes
as you look at these locations, consider close proximity
to your organizational locations, because sometimes
Tom Sterling these employees want to develop outside of the shared
Vice President, Peoples services environment and into the business and do
Solutions Operations other things. So you want to be able to have those
Cox Automotive available to them.

Laura Kennedy

Laura Kennedy Number one is talent availability as you need to

Head of Enterprise Business Services acquire the right skill sets to both start and continue
Aon the maturity journey. Next is cost, including the cost of
talent and ongoing operational costs. Finally, consider
the practicality of the location, including accessibility to
the facility location.
Priyaranjan Jha
SVP and Head of GBS
Iron Mountain

What key factors should be considered when

selecting the location for a modern shared service
center, and how can these factors align with the
organization’s broader strategic objectives?

Tom Sterling

One of them is labor quality and availability. I mean top

talent available at volume - from the professional level
down to the entry-level. That’s very critical. You’re going
to want to make sure that talent supports the right
business needs from a language perspective and from
a time zone perspective to make sure you’re getting the
right employee experience across the board.

continued

Priyaranjan Jha Tom Sterling

Modern SSCs are all increasingly part of the wider There’s so much we need to learn about AI and what AI
company’s strategy, so it’s no longer about cost- and machine learning can do for us. But I do think that’s
it’s about succeeding in the market. So from that one of the most critical from an employee’s experience
perspective, the first factor is talent. When we say perspective- when we start talking about chatbots and
talent, it’s now increasingly becoming increasingly virtual agents.
about digital and AI skills. Then, of course, you need to
consider local legislation: such as business friendliness Another one is robotic process automation, repetitive,
and the stability of the government. You also need rule-based tasks need to be automated through
to think about geopolitical stability because this technology for speed and accuracy. I think that’s very
will become a big part of the global strategy. Many critical to make sure you have that right mix between
companies globally are now looking at emerging the human and the machine.
economies as growth markets, so is this a growth
market for you? Workflow automation tools, real-time monitoring
focused on documentation processes and automating
And finally, you should not get tempted by only them is a big play too. You always want to be able to
considering your current situation. You need to plan take a look at how you’re doing processes- to have
three to five years ahead. By the time the SSC is set up tools in place to monitor them and be able to give
and stabilizes, it will have already been at least 2 years. suggestions on how you can adjust.
By that time, if your business demands have changed,
then you may be set up in the wrong location. Laura Kennedy

Which emerging technologies (e.g., AI, RPA) are The core is still data and how to get all components into
most critical to implement in a shared service digital format to help the transactional and insights sides
center, and how can they enhance efficiency and of the business. From there, Intelligent Automation (RPA
service delivery? and AI evolution) is going to be critical. Organizations must
ask themselves- how can critical points be consolidated
for the workforce to work quicker and more accurately?

Priyaranjan Jha

There’s a lot of hype around new technologies, but, more

practically, Natural Language Processing (NLP) is becoming
very, very important. Conversational AI or Chatbots are
how you can make sense of information and enable the
organization to drive more self-service. AI in general is a
big theme, but we have to break AI into small, manageable
pieces because, as all of us have discovered over the
last couple of years, there isn’t a Big Bang approach to AI
implementation. You have to choose use cases carefully.

continued

What strategies can be used to attract, develop, not only within the shared services but within the
and retain skilled talent in a shared service center, organization itself too. Employee engagement is
especially in competitive markets or emerging big. You want to be able to capture this employee
economies? engagement and you want to be able to measure it
and take actions to improve it. Don’t just collect the
Tom Sterling data, show it. Be action-oriented and act against it.

I’m a big talent person and I believe talent is very Laura Kennedy
critical for shared services. Reputation is big-
companies that have reputations for having taken care People want to feel like they are part of the solution,
of their employees […] Another one is culture. They look not just someone idly pushing buttons. The key is
it up. They want to understand it. training and development- help at the collegiate level,
such as Apprentice programs, and create “on the job”
Next is attracting talent- that’s very key- and fair-based development opportunities. Beyond this, prioritizing
compensation. Everyone wants to make sure that they’re consistent and constant communication creates a
compensated correctly. So you want to make sure that strong culture and collaborative atmosphere.
you’re continuously, year over year, looking at your
compensation and making sure that you’re updating those. Priyaranjan Jha

You need robust training and development programs. You need to generate a strong talent brand in the
You need to be able to make sure that you have the market you operate in. […] Everyone may know your
right skill sets in which they’re learning- not only with products, but from a talent perspective, is this a
the work that they do but also make gigs available company where accountants know they can make
in different areas that they can get involved in to a career? Or data scientists? Digital engineers?
continuously learn. I think the shared services employee Procurement specialists? Now that’s where you need to
of the future is more of a utility player- less constrained be very methodical and conscious.
by one unit within the organization- that can play and
follow the work across a shared service. To do that, the
training and development programs have to be strong.

And then performance management, just like any

other part of the organization. You must have good
leaders to performance manage people. People need
to know what they’re doing right and where they have
opportunities to grow. So they can be able to work on
those opportunities and do better. Sometimes it may
not work out and if it doesn’t work out, most of the time,
it’s best for the employee as well as the company.

Now retaining talent. Going back to culture and how

you attract people, you have to have a good culture,

continued

Make sure that you adopt fair and transparent HR And it’s a full cycle- look at your operating model, look
practices, and that you engage in causes that resonate at your service delivery model, continuously improve,
with emerging talent. Millennial and post-millennial put the right human-technology collaboration in place,
talent is very concerned with social responsibility. All and continue to measure your KPIs.
of this gets bucketed into a talent brand. What does
your company stand for? But that’s not enough to Laura Kennedy
retain them […] you have to live that promise every
day very intentionally to be able to retain them. […] The first step is to identify the proper processes in
Approachable leaders who are listening to their scope, as well as roles/responsibilities between the
younger talent, and are sensitive to what’s happening shared service and business teams. The aim should be
in the world, are becoming especially important. to journey towards accuracy and cost-effectiveness.
To ensure success, clearly outlining the journey over
When first setting up your shared service center, what several years with KPIs agreed upon, and change
do you need to think about from a process perspective management is critical.
to make integration and standardization easier?
Priyaranjan Jha
Tom Sterling
There are two approaches that companies have
I think it’s very critical to be on the same page. That’s taken. The first is to start with the easiest process […]
the only way in which you can identify where work then make a success out of it and over time, go to
lies within these different areas and how you’re going higher-value processes. The other approach is the
to make the most seamless and best employee reverse. Go for the critical, complex, business-sensitive
experience that you can create for your employees. processes. Make them successful in an SSC and then
the world is your oyster […] The second approach is
Next, you need to select the right service delivery my favorite because once you are branded as a low-
model. It’s about meeting those moments that matter end transactional processing shop, people see you as
for our employees and making sure that whatever a call center. The business sees you as a transaction
operating model we set up, we have a very strong shop and then getting higher-order processes is like
service delivery model in place that fits what we need an uphill battle.
to be successful as an organization.
What are the best practices for managing change and
Then I look at continuous improvement- I have a ensuring effective governance when transitioning to a
background in Lean 6 Sigma. I’m a master black belt, modern shared service center model?
so I’m always looking at ways to lean out the process
and make it more efficient and accurate. Continuous Tom Sterling
improvement to me never dies. It’s something that
continues day after day after day. You never quit it. Clear strategy and objectives. We want to make sure
Some of your best organizations have leaders who that they’re tied into the why- understanding what the
have continuous improvement backgrounds as a organization is doing, what the organization’s objectives
skill set and are always looking for ways to make are, and making sure that the shared services have a
something better. strategy that ties to the overall business.

continued

Number two would be, communicate, communicate, along the journey is critical. Need dedicated resources
communicate. I can’t say it enough. You have to to lead the efforts.
be able to communicate. Be very transparent.
Communicate as much as you can and make sure you Priyaranjan Jha
tie everyone in.
A different leader once said “There is no value in
Next is stakeholder engagement, you need to go out begging for a seat at the table. Bring your own
and talk to the stakeholders to see how things are chair.” And you know, I find that valuable in a shared
going. Sometimes we all get blinded, and we think service environment because […] the SSC leader has
things are going great just by looking at our KPIs. to push the door open and get a seat because that’s
But when we go out and interview our stakeholders, the most important way to drive change. It’s also
we can always learn. So the best way to learn is important to intentionally listen to the expectations of
to always capture that feedback, be tied to the the business leaders.
stakeholders all the time, and make sure that we’re
looking at the right things. What is the business struggling with? What are the
challenges ahead of the business over the next three to
And then finally, we need to have a strong training and five years?
support plan in place. We need to be able to adjust that
plan and be able to make sure that we’re always ready A lot of SSCs measure countless KPIs and metrics, but the
for change management and readiness. vast majority of them are not relevant to the business.
So, then what you get is what’s known as a “watermelon
Laura Kennedy effect.” You measure 100 metrics and 95 of them are
green so you think “Oh, wow! We’re doing a great job!”
The key is an open approach with the wider But the 5 that matter to the business are red. So it’s green
business about goals and approaches to reach from the outside, but once you slice it in, it’s red.
them. Organizations need to ask themselves what
change is needed and why is it important. Cadence is And that’s never helpful. So it’s important to listen and
needed to measure success and failures. Storytelling establish a few metrics that matter.

Are You Ready to Set Up a Modern SSC?

Establishing a modern, resilient SSC requires a strategic, standardizing high-impact processes and creating a
forward-thinking approach that embraces both workforce ready to tackle future challenges positions
technological innovation and strong alignment with the the SSC as a robust and adaptive partner within the
broader enterprise. From integrating advanced data enterprise.
analytics to evolving AI capabilities, the steps above
highlight the SSC’s transformation from a cost-saving By investing in technology, cultivating adaptable
entity to a key value driver. leadership, and promoting a culture of continuous
learning, organizations can build SSCs that drive
A well-designed SSC fosters collaboration across efficiency, ensure compliance, and deliver exceptional
departments, aligns closely with the organization’s service. Ultimately, a modern SSC not only supports the
objectives, and provides measurable value through enterprise’s current needs but also prepares it for long-
its SLA. Effective location strategies further enhance term growth and innovation, embodying a future-proof
success by tapping into the right talent pools, model that can adapt and thrive in a rapidly evolving
infrastructure, and regional advantages. Additionally, business landscape.

SSOW 2025MARCH 24 - 27, 2025 | ORLANDO, FL

Do you have an interesting story to tell? VIEW EVENT GUIDE
If you are a shared services or GBS Practitioner and
wish to be considered for a speaking role, please
send an email to [email protected] BOOK ONLINE

Today’s shared services strategies & solutions

lead to tomorrows business growth.
Experience shared services and outsourcing week (SSOW) 2025 - where seven dynamic programs
untite to provide essential insights for GBS and Shared services leaders. Dive into specialized tracks like
Finance Transformation, HR services and Digital Innovation. Highlights include SSOWomens Day, fostering
empowerment and allyship, and the prestigious Impact Awards Gala, celebrating excellence in shared
services. Plus get an inside look at industry-leading practiceswith exclusive Site Tours of top service centers.
SSOW 2025 offers everyhting you need to spark innovation and growth in your organization.

Meet the Trailblazers Taking the Stage

Rod Lindsay
Steve Bandrowczak Carrie Nichol
President, Nokia
CEO SVP and Controller
Business Services
Xerox Cargill
Nokia

Jason Paradowski
Bianca Martinez Amy Rodriguez
Head, HR Service &
Executive Director, Strategy Vice President
Talent Acquisition, Bosch
& Transformation, GBS Finance Shared Services
Americas, Region
Warner Bros. Discovery The Boeing Company
Bosch