Five mistakes that damage the effectiveness of Shared Services and how to avoid them - Part 2

Note: This is Part 2 in a 5-part series.  You can read Part 1 here.

2.  The vision for Shared Services is not clear and compelling

Once a comprehensive strategy has been developed and the role of the Shared Service Organization in that strategy has been defined, it's essential to craft the vision of the captive service organization.  Too many companies move directly into the execution phase without clearly defining the vision around Shared Services.  A clear and compelling vision will paint a picture of the future, provide a high-level direction for change and create a reason for people to engage in behavior that will enable the achievement of that vision. 

An engaging Shared Service vision is one that is ultimately desirable for the company and its major stakeholder groups, even if it involves short-term sacrifice.  The vision should be realistic and concrete enough that people understand the goals of Shared Services.  The vision should be easily communicated to and understood by disparate stakeholder groups.

Without taking the time to create a clear and compelling vision of the future, it will be difficult to motivate people to commit to the change necessary to be successful.  It's essential that the Executive Sponsor of the initiative create a sense of urgency for moving forward.  People need to understand that there will be some short-term pain for long-term gain, but that the sacrifices are necessary to better position the company in a competitive market.

Harvard professor John Kotter sums it up well in his book Leading Change.  He identifies six attributes for an effective vision:

• Imaginable: Conveys a picture of what the future will look like
• Desirable: Appeals to the long-term interests of employees, customers, stockholders,and others who have a stake in the enterprise
• Feasible: Comprises realistic, attainable goals
• Focused: Is clear enough to provide guidance in decision making
• Flexible: Is general enough to allow individual initiatives and alternative responses in light of changing conditions
• Communicable: Is easy to communicate; can be successfully explained within five minutes

By creating a clear and compelling vision for Shared Services, the business case can be effectively communicated to all relevant stakeholders.  This increases the probability of successfully achieving the goals of the Shared Service Organization.