driving transformation through operational excellence
DESCRIPTION
Transforming SSC’s:Moving up the Maturity CurveTRANSCRIPT
Confidential © 2011 WNS Global Services | www.wns.com
April 2011, Melbourne
Transforming SSC’s: Moving up the Maturity Curve
Driving Transformationthrough Operational Excellence
1Confidential © 2011 WNS Global Services | www.wns.com
Overview
2Confidential © 2011 WNS Global Services | www.wns.com
Key questions Shared Services Centers (SSCs) answering everyday
How do I reduce the cost of delivering Shared Services?How do I go from “good” to “better” and from “better” to “best”?How do I increase both efficiency and effectiveness of my shared services center?How do I embrace technology and what technology should I be considering?How do I retain staff and provide a meaningful career path?How do I provide more strategic value to the enterprise as against being a mere transaction processing hub?
3Confidential © 2011 WNS Global Services | www.wns.com
Polling Question
On a scale of 1 to 5, where – 1 stands for least mature (primarily a transaction
processing hub, non-standard processes, multiple ERP’s, etc.)
and – 5 stands for most mature (adds strategic value to the
enterprise, participates in enterprise wide planning and risk management, provides actionable insights, impacts business outcomes, provides an exciting career option, etc.)
Where would you rate your current shared services set up or third party outsourcing program?
4Confidential © 2011 WNS Global Services | www.wns.com
OverviewWhat is the Shared Services Maturity Curve?
Depicts the degree of evolution of a SSC within an enterprise
Normatively, SSC evolve according to a predictable maturity curve…– Common set of repeatable patterns that can be
seen across organizations– Similar evolutional domains including strategy,
operating model / process, technology, governance / controls, organizational development
Majority of SSC’s only attaining the first level of maturity– Focused on consolidation & standardization that
yields reduced costs and some levels of scale, efficiency, and standardization
– Operate as “cost center” with continued pressures to innovate, improve efficiencies while reducing costs
Maturity Curve suggests SSC’s are leaving significant opportunities for improvement untapped… not to mention the ability to reposition the SSC as a strategic asset.
5Confidential © 2011 WNS Global Services | www.wns.com
OverviewWhat is the Finance Shared Services Maturity Model?
Tool, meant to objectively assess the current state of the SSCAllows SSCs to compare themselves with the “best in class” and also define its own target stateMechanism, for determining the potential of the Shared Services operationsBased on 5 key dimensions & 36 sub-dimensions– Operating Model & Processes
□ Scope, Span, Standardization, Knowledge Mgmt.
– Technology Enablement & Optimization□ System standardization, Consolidation, Workflow, Self-
Service
– Operational Controls & Service Delivery□ Governance, Process Controls, Reporting, Business
Intelligence, Performance Management, Benchmarking– Organizational Development
□ Org Structure, Staffing, Incentives, Career Management, Development and Retention
– Strategic Business Value□ Strategic Planning, Customer and Vendor satisfaction, Risk
Management, Actionable Insights
Provides a guideline for deriving a “roadmap to maturity”
6Confidential © 2011 WNS Global Services | www.wns.com
OverviewFinance Maturity Model – Used as an Assessment Tool
Based on input across the 5 key dimensions & 36 sub-dimensions, the model indicates your organization’s maturity rating on a scale of 0 – 4.
Capability LevelCurrent
CapabilityTarget
CapabilityMedian
Operating Model / Processes 1.50 3.50 2.50Technology Enablement & Optimization 1.70 3.00 2.50Operational Controls & Service Delivery 1.50 3.50 3.00Organizational Development 1.25 3.00 2.00
7Confidential © 2011 WNS Global Services | www.wns.com
OverviewFinance Maturity Model – Data Collection Template (sample)
8Confidential © 2011 WNS Global Services | www.wns.com
Moving up the Maturity Curve
9Confidential © 2011 WNS Global Services | www.wns.com
Moving up the Maturity CurveLeverage the Domain Specific Maturity Models
Source to Procure Maturity Model
Tactical Collaborative Strategic Value Creation
Spend visibility >75%Spend under management >75%<10% Suppliers for 80% of spendCatalog based buying 50+%PO Cycle Time 1dayeSourcing adoption >75%
Spend visibility 50-75%Spend under management 50-75%10-20% suppliers for 80% of spendCatalog buying 25-50%
PO Cycle Time 3-5 dayseSourcing adoption 50-75%
Spend visibility <50%Spend under management ~50%20-30% Suppliers for 80% of spendCatalog buying <25%PO Cycle Time 5 -10dayseSourcing adoption <50%
Low spend visibilityDecentralized sourcingFragmented supplier baseNo catalog buyingPO Cycle Time > 10 days
Direct and Indirect Spend
Level 1
Level 2
Level 3
Level 4
Level of Effectiveness (Quality and Business Impact)
Leve
l of E
ffici
ency
(Aut
omat
ion,
Pro
duct
ivity
)
10Confidential © 2011 WNS Global Services | www.wns.com
Moving up the Maturity CurveLeverage the Domain Specific Maturity Models
Procure-to-Pay Maturity Model
Tactical Collaborative Strategic Value Creation
100% Electronic Invoices
Supplier Self Service
Dynamic Discounting
Fraud prevention
Supplier OnBoarding
Vendor Portal
PO flip
Automated Matching
Online Dispute ResolutionKey from Image and OCR
Point to Point edi
Online Matching
Exception Management
Approval Workflow
Automated Reports
Centralized
Scan Invoices
Manual Indexing
Manual Approval
Cost Per InvoiceLevel 1
Level 2
Level 3
Level 4
Leve
l of E
ffici
ency
(Aut
omat
ion,
Pro
duct
ivity
)
Level of Effectiveness (Quality and Business Impact)
11Confidential © 2011 WNS Global Services | www.wns.com
Moving up the Maturity CurveLeverage the Domain Specific Maturity Models
Level 1
Level 2
Level 3
Level 4
Electronic Bill PresentmentCustomer PortalElectronic Sales Order MgmtCollection Workbench & Audit LogContact Management DatabaseView of Credit DemographicDigital Dashboard
Online Payments / EFTAutomated Cash Application algorithms Advanced Credit AnalyticsCredit Portfolio MgmtCash ForecastingIntegrated Dispute Management Tools
Collection Strategy EngineCustomer ProfitabilityPortfolio Risk Predictive AnalyticsCustomer Satisfaction
Centralized ARStandard Invoice Generation /Invoice / Remittance TrackingManual Collection /Contract Mgmt.Operating Measures / Metrics
Tactical Collaborative Strategic ValueCreation
Order to Cash Maturity Model
12Confidential © 2011 WNS Global Services | www.wns.com
Moving up the Maturity CurveLeverage the Domain Specific Maturity Models
Level 1
Level 2
Level 3
Level 4
Standardization of policies, practices, schedules
Sub-ledger to GL consolidation through automated batch data feeds
Template based transactional tasks (Journals , Reconciliations, etc)
Efficiency metrics – Revenue / Finance FTE, Finance back office cost as a percentage of revenue
Single Chart of Accounts and ERP
Online repository of policies, practices, schedules
Automated consolidation & reporting engine integrated with GL , drill down from GL to sub-ledgers
Automated reconciliations
Workflow for journal approval
Automated closing calendar and workflow
Effectiveness measures – Days to close (GL Close, consolidation, MD&A, earning release), %Finance Cost / Revenues, FTE/ Million $ Revenues, No of ERP / GL systems
Continuous forecasting and auditing capability and tools
Synchronization capability (GL, Sub-ledgers, Consolidation & Reporting Engine, etc)
User self-service capabilities for querying and reporting
Finance as the custodian of enterprise master data, business rules, hierarchies (automated master data management)
Business outcome measures –rolling forecast vs actuals (monthly, quarterly, annual)
Duration to complete strategic plan, annual plan and forecast
Multiple ERPs
Non standard Chart of Accounts
Business unit consolidation and reporting
Manual / non-standard reconciliation templates
Email / paper based workflows
Non-standard closing calendars
Operating metrics limited to timeliness and accuracy of transactions
Tactical Collaborative Strategic ValueCreation
Record to Report Maturity Model
%Finance Cost / Revenues
13Confidential © 2011 WNS Global Services | www.wns.com
Next Steps
14Confidential © 2011 WNS Global Services | www.wns.com
Next StepsWhere do I go from here?
Conduct a discovery session in which discrete opportunities are identified and preliminarily sized / evaluated
Get organizational buy-in from key stakeholders (Finance, IT, HR, BU, etc)
Consider a formal assessment through High Level Due Diligence:– Will unearth clear opportunities without significant
investment – Driven by industry practices & thought leadership,
specifically the Finance Shared Service Maturity Model
Establish a Program:– Leveraging existing SSC staff, technology and other
stakeholders – Formalize as the opportunities, roadmap, and business
case become clear (i.e. Detailed Due Diligence)– Create timelines, define roles, assign responsibilities– Plan the work and work the plan!
15Confidential © 2011 WNS Global Services | www.wns.com
Polling Question
On a scale of 1 to 5, where – 1 stands for least mature (primarily a transaction
processing hub, non-standard processes, multiple ERP’s, etc.)
and – 5 stands for most mature (adds strategic value to the
enterprise, participates in enterprise wide planning and risk management, provides actionable insights, impacts business outcomes, provides an exciting career option, etc.)
Where would you rate your current shared services set up or third party outsourcing program?
16Confidential © 2011 WNS Global Services | www.wns.com
Manish Vora
Head of Sales – APAC and Middle East
www.wns.com
This presentation and any files attached and/or transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. No part of this presentation may be given, lent, resold, or disclosed to any unintended recipients or exploited for any commercial purposes. If you are not the intended recipient and you have received this presentation in error, please return this material to the sender immediately and forthwith delete and destroy the presentation including any copies thereof from your records. We hereby notify that disclosing, distributing, copying, reproducing, storing in a retrieval system, or transmitting in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, or taking any action in reliance on the contents of the presentation in its entirety or any part thereof is strictly prohibited without the prior written consent of WNS, such consent being given at the sole discretion of WNS. Any views or opinion expressed in this presentation are those of the author and do not necessarily represent that of WNS. WNS makes no representations and to the full extent permissible by applicable law, WNS disclaims any warranties of any kind, express or implied, including any warranty of merchantability, accuracy, fitness or applicability for a particular purpose, and non-infringement of third party rights, as to the information, content and materials.