Global Business Services

A game changer for CFOs and the finance function?

Deborah Kops Jamie Lyon

Peter Moller

The global body for professional accountants

Why the interest in GBS?

The global body for professional accountants

 Transformation continues to be a significant issue on the CFO agenda to drive the efficiency and effectiveness of the finance organisation. Many of our students and members globally are involved in significant finance transformation programmes and projects. Global business services has got everyone talking. It arguably has enormous potential, but like all major change programmes its hugely challenging. We want to deep dive on what it truly is, and look at some of the challenges and opportunities.

But whats it all about?

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 Defined as an organisational construct that aggregates business support function deliveryfinance, HR, IT, procurement, property, legal, marketing-- across the enterprise under single leadership Can deliver through shared services or outsourcing, or a hybrid Shares locations, management, administration, customer interface and sourcing methodologies Has a unified governance and performance management structure Has primacy of process over functioncombines processes end-to-end, aligning such processes as finance and procurement in source to pay, or onboarding staff with payroll

GBS Integration Framework

Geographical Scope Degree of Automation Degree of Value Add Functional Scope Degree of Functional Integration

Local Limited automation Transactional One Function Little sharing

Customer Interaction Governance Service Management Continuous Improvement Process Ownership People Development Culture Systems & Master Data

Regional Medium automation

Global Maximum automation

Transactional and Advisory

23 Functions Sharing of tools & processes Co-location Multi-Function Full Integration

Customers

Myriad of customer interaction tools Governance by/in function Different models per function/BU CI specific to function / BU Informal process networks Specific to centre and/or function Different culture at each centre Multiple systems & decentralised master data Separate functional centres In-house and outsourcing, not aligned

Universal customer interface supported by standard toolset Single over-arching governance with one GBS lead, often C-level Consistent Service Management Framework Enterprise-wide CI with common budget & tools

Governance

End-to-end Global Process Owners

GBS competency model & training curriculum Strong GBS culture & brand One integrated platform, centralised Master Data Management Co-location into multi-functional centres

Operations

Location Sourcing

Managed Services blending captive and outsourcing solutions

The business case?

The global body for professional accountants

The Eight GBS Efficiency Levers

Eliminate Simplify Automate

Standardise
Consolidate Offshore

Outsource
Continuously Improve

How Can GBS Deliver Business Value?

Diverse maturity of centres and outsourcing across functions Global Business Services integrated network of delivery

Globally optimised:

Locations Governance

Service Management Process Excellence

Global Integration
Sites Labour pool Operations
Economies of scale Low cost locations Maximise arbitrage Optimise strategic and operational roles Standardise use of enabling technology Standardise processes

Value creation Data analytics

data - improving global insight, consistency and reliability of
GBS enabled integration of Gillette in 15 months vs. 3-4 years, saving $4m per day

Growth platform

New markets - expediting expansion into emerging markets Mergers & acquisitions - enhancing PMI capability - generating business value across a widened scope of
India analytics centre provides market leading commercial insight

Process value
end to end processes

Achieved significant process savings across O2C and P2P

Commercial focus
markets

- significantly freeing up commercial capacity in

Innovation

- leveraging skill and deployment ability to drive innovation

Implementation: critical success factors

The global body for professional accountants

ACCA report asks important questions

The global body for professional accountants

Questions CFOs should ask about GBS

Can my organisation achieve significantly more value beyond stand alone finance transformation? Is it a priority given other business imperatives? Should CFOs lead GBS? Do finance professionals have skills gaps if they move to GBS? How does GBS affect finance career paths? Are there implications for governance and control? Does GBS change the finance technology landscape?

Does GBS redefine the value of finance to the organisation?

Key takeaways

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