Appointing a lead for the Shared Service Center

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In a previous post I referred to a Shared Services and Outsourcing Network article on the Top 10 Mistakes When Implementating a Shared Service Center.  I wanted to add my thoughts around the issue of appointing a lead or "head honcho" for the Center early on.  It certainly makes sense to hire a dedicated Director for the Shared Service Center early on in the process.  Doing so has a number of benefits that are as follows:

  1. Dedicated management.  A dedicated lead will devote 100% of his or her time to the task of developing the Shared Service Center.  This involves everything from ensuring a smooth build out of the facility to facilitating a smooth transition.
  2. Personnel recruitment.  Ideally the Director will be able to choose their own team.  This can only occur if the hire is made early on.  The alternative is to let a manager who is not the permanent head of the Center to recruit individuals and then the permanent Director ends up leading a team they didn't choose.  This is not a recipe for success.
  3. Training oversight.  Once a team is on-board, a permanent Director of the Center can ensure that their team receives the proper training.  For off-shore locations, this can also include language training as well as training around the specific functions and activities handled by the Center.
  4. Process design.  An early hire ensures that the Director at least has a hand in the design of processes to be handled by the Center.  Sure there will be the functional experts and potentially outside consultants to handle the details, but the Director should be involved at a high level in the way the processes will be handled.
  5. Transition support.  If a Director is hired up front, they have the big picture and can work to ensure that as technology is configured and processes are tested, that there can be a relatively smooth transition of the activities from the Business Units to the SSC.  They should also have the ear of the Director of the global Shared Service Organization when they need someone to run interference.

Organizations that are serious about setting up a Shared Service Center will make the hiring of a Center lead a high priority.  By doing so, they significantly increase the chances that they will have a successful deployment of the Center.