Five mistakes that damage the effectiveness of Shared Services and how to avoid them - Part 4

Note: This is Part 4 in a 5-part series.  You can click here to read Part 1, Part 2 and Part 3.

4.  Comprehensive change management is not a priority.

Creating and sustaining change in any organization is difficult.  Too many companies focus on the mechanics of creating a Shared Service Organization with little thought to the human element.  Companies that have successfully reaped the benefits of Shared Services understand that a comprehensive and consistent change management program is essential to the successful deployment of Shared Services.

An important component of change management is identifying and engaging significant stakeholders early in the process.  When discussing Shared Services, the leaders of the company’s business units must be included.  Without engaging the business units in the change effort, the move to Shared Services will be seen as little more than the centralization of support services with only token input from the business units that will ultimately be the customers of the Shared Service Organization.

Creating a sense of urgency for change is important.  The fact is that the bar for efficient finance processes is being continually raised.  What passed for strong performance in previous years is now considered average performance.  As new offshore centers continue to mature, new opportunities to drive out costs appear.  The truth is that many competitors are reducing their cost structure and there is an urgent need to maintain a competitive cost structure.  As part of change management, it's up to the Project Sponsor and those entrusted with the message to effectively communicate the need and urgency of change.

Another essential component of change management is knowledge transfer.  Much of the knowledge in organizations isn't found in a binder.  It's captured in the minds of a company's employees.  It's critical to establish up front which employees are key to a successful transfer of knowledge and to integrate these key resources into the project.  Programs to establish job shadowing to enable the transfer of knowledge is essential.

While there are many other components of change management, the point is the companies that are successful in transferring processes to a Shared Service Organization understand the importance of the human element and incorporate it as an essential part of the overall program.