deloitte shared services, gbs & bpo conference · case study deloitte shared services, gbs...

Deloitte Shared

Services, GBS &

BPO Conference

Out-Tasking vs

Building a Global

Team: Moving

Beyond Labour

Arbitrage

Berlin, Germany

Peter Marsland, Danske Bank;

Mark Craddock, Deloitte

22 – 23 September 2015

2 Deloitte Shared Services, GBS & BPO Conference 2015

Does your organisation see Global Business Services

(or Shared Services) as an essential development step for

Senior Leadership?

Take a minute and answer our quick poll on the

Shared Services App

Introductions Your presenters for this session


• 15 years experience in Shared

Services and BPO covering F&A,

Procurement, HR, IT and Supply

Chain

• Mark has both managed and advised

on GBS services, with Operations

leadership experience in two major

BPO suppliers

• 9 years experience in Financial Services

• Responsible for driving the overall COO

strategic agenda and transformation (IT,

Operations, Procurement), including the

implementation of Global Teams in Group

Functions of Danske Bank.

• Has held a number of leadership roles

within the fields of change management,

strategy development and

implementation, communication and

public affairs

Mark Craddock

Director, Deloitte

Global Business

Services

Anne Melchiorsen

Exec. VP, Danske Bank

Chief of Staff COO area

Uffe Gade

Danske Bank

Head of Global Teams

Development

• More than 5 years experience in

developing shared service setups both

as a consultant and from within

operations

• Uffe has worked with offshoring and

development of global teams in

operations, finance, risk and several

other functional areas


“You might not always get what you want, but you

always get what you expect.”

Charles H. Spurgeon

Out-tasking or simple ‘lift and shift’


Quotes we often hear from onshore teams

“Sure, the SLAs are

green, but we still get a lot

of noise from our internal

customers”

“The teams are very

transactional – we don’t

feel confident in giving

them more complex

processes”

“All the thinking and co-

ordination comes from the

retained organisation”

The root of the problem is often in the building

blocks used to create the Shared Service


Sumantra Ghoshal (London Business School):

“The real test of an organisation is the context it creates”

Transactional

Operational

Strategic

SSC

Centre of

Excellence

Business

Partners

What messages are we sending our teams?

Process Splits Service Catalogues SLAs

Phil Whelan (Head of Strategy, BP GBS):

“If you don’t have a vision or a brand, you simply

become known for what you do…labour arbitrage”

The growth of Shared Services talent


Organisations are neglecting the global talent pool

FTE in Indian Captives grew at a CAGR of 14% from 2003 to 2015

Source: Deloitte India Survey, 2015

2012 2015 2003 2020 (E)

150,000 500,000

750,000

~ 1,800,000

Talent is moving

East and South

14% CAGR

Building a Global Team


Simply creating a “Captive” version of a BPO is not the solution

Invest in Leadership Training 1

Global Talent Management 2

Global Leadership Mobility 3

From SLAs to

Business Outcomes 4

End-to-end Ownership 5 International, Cross-functional

Teams 6

Brand and Vision 7

Deloitte Shared Services, GBS & BPO Conference 2015 9

Danske Bank Case Study Moving from out-tasking to building a global team

Case Study


Danske Bank – Background

[Russia]

[Finland]

[Norway]

[Sweden]

[Estonia]

[Latvia]

[Lithuania] [Denmark]

[Poland] [Germany ]

[Luxembourg] [UK)

[Northern Ireland]

[Ireland]

[New York]

Key facts

Market leader in Denmark, Finland and

Northern Ireland

3.6 million customers

313 branches* in 15 countries

18,874 full-time employees

Founded in 1871

Independent divisions

Case Study


Danske Bank – Shared Services

SSC located in Vilnius, Lithuania

Captive set up in 2013 as a proof of concept

Rapid build-up of new organisation

Fast and significant financial impact driven by

salary arbitrage

Side-effect: Maturation of processes with rigid

documentation and performance tracking

Culture change to more data driven quality

assessment

Case Study


Danske Bank – Shared Service Challenges

Benefits limited to labour arbitrage

Sub-supplier role builds perception of being “lowest in the hierarchy”

No functional or process ownership in low cost locations.

Small and fragile competency environments for specialist knowledge in

sending areas – no pipeline for continuity

Limited career paths – hampers talent pool utilization, causes higher

attrition

“Us and them” culture – blaming instead of solutioning

Case Study


Danske Bank – The Roadmap

Getting Started and Gaining Experience

with GSL International workforce

Gearing the

Organisation

30 FTE in GSL • Bottom-up screening

• Initial processes

piloted in GO DK

600 FTE in GSL • Migration process

standardized and

experience strengthened

• Selected process

centralizations to GSL

• Selected IT roadblocks

solved

International workforce • Integrated global teams across countries, with

common objectives

• Global functional management in key areas

• Long term sustainable knowledge environments

• Adjusted role of Market Area Operations

Ac

tivit

ies

Timeline 2016-2017 2012

750 FTE in GSL • Optimize and distribute

workload across

countries.

• Build infrastructure (e.g.

non psychical quality

and planning boards,

Workflows)

• Pilots for integrated

Global teams

• Further remove it-

roadblocks

• Continue build-up in

GSL

2013-2014 2015

Globalising delivery model Global Teams

Focus

Today

Case Study


Danske Bank – Changing the Model

Centralization

“a natural step in the overall migration of

work backwards in the value chain”

Custom work

Common work

Routine work

Straight-through

processing

Continuou

s f

low

Front line

Local back

office

Centralized

back office

Automation

Harmonization and integration of services

“…a pre-requisite for scale benefits and effective digital

solutions”

Country based thinking Global functional mindset

• Local standards

• Customer service varies

• Common standards

• Deliver service as one

collective unit

• focus on customer value • work better together as one collective unit

Case Study


Danske Bank – Lessons Learnt after the First Year

A valuable change journey...

• Global teams an ongoing change

process

• Leadership that sees the full potential

in Global talent pools perform better

• Clear vision drives collaborative

thinking

• Workforce planning a critical enabler

to identify challenges and define end-

state organisation

• Set up in Lithuania allows easy

access to talent at low cost

...although change is not easy

• Many existing systems and

structures do not support global

working

• Poorly documented processes -

difficult to collaborate across

countries

• Managing Global teams can throw up

complex issues

• Investment required for planning,

change management and temporary

double staffing

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deloitte shared services, gbs & bpo conference · case study deloitte shared services, gbs...

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