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Deloitte Shared Services Conference 2018Decision support lab: practical steps to establish centralised decision support capabilitiesCharlie Wanbon, Hannah Parrott and Chris Rees, Deloitte

Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 2

Your presenters for today’s session

Introducing the team

Charlie Wanbon

Director

Hannah Parrott

Senior Manager

Chris Rees

Manager


What we would like to cover with you today

Agenda

Topic Content

1. Introduction

• Why many organisations are setting up a centralised Decision Support capability today

• What we mean by “Decision Support”

• Where are you in your Decision Support journey?

2. Why Decision Support is an opportunity for SSC/GBS leaders

• What SSC/GBS have in common with a centralised Decision Support capability

• Case studies that we will be drawing on throughout the day

3. Key building blocks • Key building blocks to establish effective decision support

4. Practical next steps

• The key steps to establish a centralised decision support capability

• Specific considerations worth highlighting for Decision Support

• Additional lessons learned

5. Over to you: Questions, thoughts? • Exchanging questions, experiences and learnings with us and your peers

Decision Support: “Provision of information, insights and analytics to aid decision-making. A successful decision support capability will

improve the speed, focus and outcome of business decisions.”

4© 2018 Deloitte MCS Limited. All rights reserved Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities

Introduction


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We are keen to get your insights as input into this session


The business is asking for…

Rapid and forward-looking insight

Several factors are leading businesses to demand more decision support

Why many organisations are setting up a centralised Decision Support capability today

Support with larger

quantities of dataGreater data quality & trust

Consistency & comparability of

information for group, regions

and countries

Support from functions to deliver

additional efficiencies & fund the

business growth agenda

Freeing up Business Partners’ time

to drive more value


We see clients adopting different definitions based on their specific objectives. The below shows common Transactional, Decision Support and Business Partnering activities.

What we mean by “Decision Support”

TransactionalDecision Support

Business PartneringBasic analysis and commentary Insight

Exam

ple

servic

es

Routine transactions e.g. journal postings, payroll, completion of references

Standard report production and distribution

Data reconciliation and rules-based maintenance of data

Basic analysis e.g. variances between actual, forecasted and budgeted performance

Writing basic performance commentary e.g. on monthly performance results vs. forecast, workforce measures and KPIs

Ad-hoc report production

Data and information governance

Detailed analysis e.g. gross margin, price volume mix analysis, HR lifecycle analysis

Decision support focused analytics e.g. pricing, business cases, strategic workforce planning

Generating forward-looking insights e.g. using external, non-financial data

Advising the business, by analysing insights not running reports

Influencing decision-making through engagement, communication and negotiation skills

Transactional activities Knowledge-based activities

Decision Support may include two different “types” of activities – one of which is often closer to

existing Shared Services/GBS activities than the other.


Are you currently exploring, have you started, are you implementing or live?

Where are you in your Decision Support journey?

1. Haven’t started thinking about our Decision Support journey yete.g. today is the first time I’m thinking about this topic

2. Am looking into ite.g. have implemented a Shared Services / GBS capability and am now exploring the idea of establishing a Decision Support capability also

5. Have a Decision Support capability in placee.g. have implemented a Decision Support capability and am thinking about what the next wave of improvements could look like

4. Currently implementing our Decision Support capabilitye.g. am currently in the middle of setting up a dedicated capability to focus on Decision Support activities

3. Currently defining the vision and design, or planning the implementation of our Decision Support capabilitye.g. have started the journey, and am currently in the process of agreeing the vision and key design principles with my sponsors and stakeholders


Why Decision Support is an opportunity for SSC / GBS leaders


Today few Decision Support capabilities are owned by SSC / GBS. We think this represents an opportunity for leaders of these organisations.

What SSC / GBS have in common with a centralised Decision Support capability

Decision Support

capability

Transactional Shared

Service Centres / GBS

• Significant focus on process knowledge

• Ability to create outputs using facts

• Driving reporting & integrity of internal data

• Knowledge of core systems (e.g. ERP)

• Customer focus

• Quality

• Consistency

• Domain expertise

• Efficiency of processes

• Automation

• Continuous improvement & innovation

• Significant focus on business knowledge

• Ability to deal with ambiguity

• Drawing insights using both internal and external data

• Ability to work seamlessly across Business Intelligence (BI) applications

To establish a successful Decision Support capability will require Shared Services / GBS teams

to both build on existing strengths as well as develop new capabilities.


Key building blocks


We will now discuss some of the key considerations for each of the following six building blocks.

Key building blocks to establish effective decision support

• What ways of

working do you

need to have

seamless

interactions within

the DS capability

and with customers?

• How will teams

collaborate and

share knowledge?

• What are the talent

requirements and

where is it beneficial

to recruit from

within?

• Why should internal

or external talent

pick your DS

capability?

• How will you

develop and retain

the team?

• Which existing

technologies should

be leveraged or

improved to benefit

the DS capability

given the

opportunity?

• Are any new

technologies critical

to DS capability

success?

• What processes is it

beneficial that the

DS capability owns,

and which should it

not?

• In which topics will

the DS capability

establish expertise

and be known for

innovation?

Organisation

Services,

customers &

location

Ways of

working

Processes Information &

technology

People

• What services will

your decision

support capability

provide?

• Who are direct /

indirect customers?

What are their

expectations?

• Which location(s)

offers best cost,

coverage, talent?

• What are the core

organisational

capabilities and

focus areas

therefore how will

the team be

structured?

• What grade depth

and span of control

is right?


What services will your decision support capability provide? Who are direct / indirect customers? What are their expectations? Which location(s) offers best cost, coverage, talent?

Services, customers & location

Customers

Services

• Basic analysis and performance commentary

• Ad-hoc report production

• Data and information governance

• Detailed analysis e.g. gross margin, price volume mix analysis, across the HR lifecycle

• Decision support focused analytics e.g. pricing, business cases, strategic workforce planning

• Forward-looking insights e.g. using external, non-financial data

Location considerations

• Language, time zone and proximity requirements

• Cost vs. talent availability

• 1 Global Hub, a few Regional Hubs or Hub & Spoke

• Existing location or new location with a full location assessment?

Customer considerations

• Within Function (e.g. Finance-to-Finance) or Function-to-Business (e.g. Finance-to-Business)

• If Function-to-Business how will the Decision Support capability build business knowledge?

• What are the customer expectations?

The extent to which a Decision Support capability is able to deliver highly knowledge-based

services also depends on factors such as location and proximity to customers.


Processes

What processes is it beneficial that the DS capability owns, and which should it not? In which topics will the DS capability establish expertise and be known for innovation?

Expertise & innovationOwnership & governance

• Coordination role only vs. taking on full ownership

• Particularly if you are covering several business units, geographies, etc.

• Collecting and sharing “the best way of doing things”

• For example: Specific DS activities or discovering and adopting new technologies

Given its knowledge and proximity to the business, a decision support capability is uniquely

placed to coordinate or own processes that are close to the business and share best practices.


Which existing technologies should be leveraged or improved to benefit the DS capability given the opportunity? Are any new technologies critical to DS capability success?

Information & technology

• Existing technology more fully utilised

• Can help eliminate issues / effort to set CoE up for success

• Familiar to customers yet a step change

New technology may not be key to success, but using existing tech to its fullest can streamline

activities to enable the DS capability from day one – either way careful change planning is needed.

• New technology may underpin DS objectives

• Process / tech ownership in DS capability

• Potential for new team to implement or test

NewExisting


What are the core organisational capabilities and focus areas therefore how will the team be structured? What grade depth and span of control is right?

Organisation

Process / activity• Management reporting, planning,

budgeting & forecasting, pricing

…your primary objective is efficiency and expertise. …the effort of these activities is consistent over time and there are few

significant peaks and troughs e.g. within a particular day or month.

Geography• Europe, Americas, Asia, Africa,

Australasia …knowledge specific to a particular geography, timezones and / or language

requirements are a priority.

Business organisation• Business unit 1, Business unit 2 or• Europe, Americas, Asia, Africa,

Australasia

…knowledge specific to a particular business organisation (across processes and activities) is most important.

A combination of the above

• Grouping of business units combined with specific types of activities

…if the range of services that you will be delivering have differing requirements in line with the above

Options Example team structures Consider this option if…

Multiple configurations exist. Defining your primary points of contact in the business will help you

communicate the role of your teams. We see DS capabilities with team members ranging from graduates to

experienced leaders and spans of control of circa eight.


What are the talent requirements and where is it beneficial to recruit from within? Why should internal or external talent pick your DS capability? How will you develop and retain the team?

People

Onboarding programme Team identity Career pathways

• Employee value proposition

• Culture and mission

• Organisational and business knowledge key

• Balance training with “getting on with it”

• Clear development path, whatever that means for you

• Cross functional or business

Thoughtful employee value proposition and training is critical to early set-up. Follow up with

ongoing talent interventions to develop teams’ careers throughout the organisation.


What ways of working do you need to have seamless interactions within the DS capability and with customers? How will teams collaborate and share knowledge?

Ways of working

Collaboration toolInteraction model

• Defining key hand-offs

• Designated points of contact

• Working hours

• Connecting teams when working virtually

• Sharing “the best way of doing things”

Relationships are key for successfully centralising decision support activities. The defined ways of

working should look to build, facilitate and develop these relationships.


Interaction model animation

Ways of working


Practical next steps


While the steps to centralising activities are the same as for traditional SSC / GBS implementations, there are specific considerations worth highlighting for Decision Support

The key steps to establish a centralised decision support capability

6. Steady state and transformation

4. Knowledge and capability build

5. Cutover and stabilisation

2. Design and implementation

planning

3. Detailed due diligence

1. Sponsorship and vision

Control gate 3: Ready for knowledge and capability build

Control gate 4: Go-live

Control gate 5:Handover to

“business as usual”

Control gate 2: Go / no go

implementation decision

Control gate 1: Sponsorship and vision confirmed

Implement ImproveDesign

Recognise the differences between establishing knowledge-based vs. transactional activities and incorporate these into your implementation approach

Consider what else is going on in the business, and assess if you can help enable a business change by adapting your timelines accordingly

Given that you will be delivering a service that is crucial to the business and your stakeholders, decide whether to test your design and approach via a pilot or go “big bang” or with large waves

It is human nature to try and fix things; consider the advantages and disadvantages of fixing processes and technology before vs. after your implementation


A number of additional considerations relevant to organisational change initiatives

Additional lessons learned

Understand the impact that your available design options will have on timelines

Involve your end state sponsors and adoption champions from the very beginning to get them on board and help them feel accountable

Clearly define and communicate your case for change to get the required momentum behind your initiative and inform your design decisions

Tightly manage changes in scope to stay focused on your immediate objectives

Make change management and communications a priority rather than an afterthought

Make sure you get dedicated HR and Technology support as this will be critical to your success

Ensure the impact on roles left in the business is considered


Over to you: questions, thoughts?

This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte MCS Limited accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Deloitte MCS Limited is registered in England and Wales with registered number 03311052 and its registered office at Hill House, 1 Little New Street, London, EC4A 3TR, United Kingdom.

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© 2018 Deloitte MCS Limited. All rights reserved.

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