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Why are shared services becoming a secret weapon for business growth? Should we implement them as well or not? To find the answers to those questions, we need to dig deeper to separate fact from fiction. Before that, let’s know a little more about shared services.
What are shared services? Shared service is a strategy that is centralized within an organization to reduce costs and improve productivity. What is a shared service about? Shared services are neither very simple nor very complex; they are about centralizing business functions like HR, IT, customer support and finance, sharing common administrative functions to improve functionality, and service quality to free up resources to focus on core business activities.
In this article, we will delve deeper into the strategic implementation of these shared services to transform your business.
Table of Contents
Secrets to make shared services successful
Building shared resources is not difficult, but implementing them while minimizing disruption is a tough row to hoe. Fret not: with our guidance, you can make your shared services a golden ticket to streamlining your organization’s full potential. Follow our tips to embark on a successful shared service journey.
Organisation’s Objective
The most important step for implementing shared services is to define your organization or centralisation objective to managers or employees. Discuss its benefits and potential risks with them. Exchanging ideas with each other can facilitate better progress. Once you have completely defined your objective, you can take the next step by setting up mechanisms to monitor and track progress records.
Change Behavior to win employee
Be polite to your employees. Reward them handsomely if they make valuable contributions to your projects. Maintain strong communication with your team and strive to foster a sense of security with them. It is true that individuals tend to experience a sense of sincerity when they feel they are part of a supportive organization.
Clearly define role and ownership:
Establish a clear agreement with the shared service center to prevent any dispute. Clearly explain the agreement quality standard and expected time response to all the stakeholders or employees. Furthermore, keep open lines of communication throughout the whole process.
Effective Communication
Communicate with them wisely and clearly outline their role in shared service and what benefit they can get from it. Remember, communication is the cornerstone of any organization, and any misunderstanding can ruin the whole team’s progress.
Organization culture
Foster a collaborative culture inside your organization. Ask your team about their preferences. What changes did they want to make? What values can they provide to the organization? After listening to their preferences, introduce them to the idea of implementing shared resources. Assure them that these services can facilitate their growth and advancement.
Long term plan
Always establish a long-term plan. Review and revise your plan wisely while staying mindful of the current market trends as well as future trends.
How to build a strong relationship foundation in shared services
Entrepreneurs often wonder How they can build strong relationships between shared service organizations. Building relationships among shared services organizations is crucial in every aspect, from implementation to progress. We are at your service to introduce some proven tips to build a strong relationship between the best-shared services centers.
Understand the concept
Understand the concept of building strong relationships. Question yourself about what changes you are desiring. Start by sharing your mindset or reasoning about shared services with your team. Remember not only to discuss positive scenarios about these shared services but also to share risks and other challenges they can face in future as well.
Understand your partners
If you want to earn the trust of your partner and be seen as trustworthy in their eyes. You will need to adjust your behavior. To achieve common goals, try to understand your partner’s perspective so that they, in return, can also feel the same towards you. Stay open to trusting others and always have clear communication to avoid any misunderstanding.
Understand the opportunity
Once you have set all objectives for leveraging shared services, bring all decision-makers and teams together to reach a consensus. Because it is not necessary to share the same goals if you are aiming at the same destination. Each stakeholder has their perspective, so it is important to acknowledge everyone’s ideas and appreciate them respectfully.
Set A Target
Set a clear target for your achievement, aspirations and goals in a written plan. It is similar to making a plan before going on a trip. Write both the advantages and disadvantages by analyzing the situation you may encounter in the future and outline their solutions as well. Once you achieve your goals, be sure to reward them as you promised.
Benefits of shared services
Now. we will broaden the horizon of the best-shared services by understanding their benefits.
- Reduces service costs
The most important benefit of the best-shared services is that your service cost will be reduced. But How does this work? For example, if you encounter any issue in your software management, you can ask your IT team. Similarly, if you encounter a payroll-related issue, your HR will readily handle this issue. This will save you costs for outsourcing external services.
- Better Controls and Insights
Service-shared organisations can easily handle any unfavorable situation by controlling and improving analytics and strategies. Furthermore, Exchanging insights with each other will be the best approach to drive effective business growth.
- Improves productivity and increases functionality
Introducing automation tools within shared services can save time and enhance the productivity of your company services.
- Improved Communication
The most important benefit of this centralisation is effective communication among the team. Additionally, This collaboration can foster trust among team members and enable the introduction of new ideas through open communication.
Conclusion
Shared services are globally implemented and developed tools for increasing company efficiency by reducing costs. However, the effectiveness of those shared services in every company is not guaranteed. The failure of their effectiveness may be because of complexity, misunderstanding and weak communication. So, Follow our guidelines to build successful shared services and learn How to communicate effectively. Furthermore, it is advisable to make a thorough plan before the creation of the center to avoid any risks.