{"id":1493,"date":"2014-03-25T14:28:54","date_gmt":"2014-03-25T14:28:54","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=1493"},"modified":"2022-05-17T23:21:32","modified_gmt":"2022-05-17T23:21:32","slug":"implementing-global-business-services-using-a-regional-center-model","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2014\/03\/implementing-global-business-services-using-a-regional-center-model\/","title":{"rendered":"Implementing Global Business Services Using a Regional Center Model"},"content":{"rendered":"

Peeriosity benchmarking data suggests that, while many companies embrace the idea of moving towards a Global Business Services model with a broad scope of services and a large geographic footprint, less than 20% of companies have ambitions to deliver global services from a single location.\u00a0 <\/span>The model most likely to be embraced is to implement on a regional basis, with multiple regional centers that support many countries in a region, and with only a limited number of processes or sub-processes delivered on a global basis from one of the regional centers (thus making it a global hub for that process or sub-process).\u00a0 <\/span><\/span><\/p>\n

A recent PeercastTM<\/sup> featured a global $10B product distributor with 20,000+ employees, 500+ branch locations, and millions of customers.\u00a0\u00a0 <\/span>After completing a multi-step process to get a consensus on what processes to target, the next step was to determine the optimal location for the first regional hub.\u00a0 <\/span>Twenty locations were evaluated using sixty attributes in their selection criteria. A location in Central America was the selected site for the regional center. Below are five examples of the more heavily weighted location selection attributes used:<\/span><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Quality of the workforce<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Language capabilities<\/span><\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Cost and financial benefit<\/span><\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Telecommunications infrastructure<\/span><\/p>\n

5.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>A stable political climate<\/span><\/p>\n

Following are examples of lessons learned during the implementation:<\/span><\/p>\n

People<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>A comprehensive training plan is required<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Be out in front of redeployment issues <\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Understand cultural differences and similarities<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Address performance issues quickly<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Evaluations of language proficiency must include both speaking and writing<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Develop a strong bond between center personnel and business partners<\/span><\/p>\n

Process<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Documentation must be validated and complete<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Identify non-standard work<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Run in parallel before go-live<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Involve business partners at every step<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Develop detailed plans for knowledge transfer<\/span><\/p>\n

Technology<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Create and document business continuity<\/a> and disaster recovery plans<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Technology changes need to be implemented and thoroughly tested before go-live<\/span><\/p>\n

As shown below, per a supporting iPolling1 <\/sup>question, 64% of companies have implemented regional hubs, with another 21% with plans to do so. <\/span><\/p>\n

\u00a0<\/span>\"company's<\/p>\n

Perhaps more interesting are the results from the second iPollingTM<\/sup> question that asks about the member company\u2019s outlook on further consolidation.\u00a0 <\/span>The results indicate that 52% expect to consolidate with regional hubs playing an important role, with only 14% reporting that they either are already operating processes on a global basis or have long-term ambitions to do so.\u00a0 <\/span>An additional 24% are either pausing for the moment or have completed the transition<\/a>, with their response indicating that \u201cstandardization across locations is more a driver for us than further consolidation\u201d.\u00a0\u00a0 <\/span>Here are the details:<\/span><\/p>\n

\u00a0<\/span>\"company's<\/p>\n

\u00a0<\/span>Here are some additional comments from iPolling participants:<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Our HR Shared Services model is currently operating with regional hubs, primarily in the US, Canada, Mexico, and Brazil. At this time, there are no plans to consolidate into one.<\/span><\/em><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>While our talent is located regionally, our goal is to support global business processes by optimally leveraging location and talent.<\/span><\/em><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>We continue to identify additional services to consolidate into our two regional hubs to gain greater efficiencies.<\/span><\/em><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>We are still standardizing processes and have started consolidation, but will need a few more years before we could say we are mainly operating from regional hubs.<\/span><\/em><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Our belief is that a regional hub might be the best solution to deal with time zone differences and language barriers.<\/span><\/em><\/p>\n

Do regional Shared Service centers fit with your company\u2019s plans<\/a> for global Shared Services<\/a>?\u00a0 <\/span><\/span><\/p>\n

Have you fully implemented, or are there additional processes to include more countries to transition<\/a>?<\/span><\/p>\n

Who are your<\/em><\/span> peers and how are you collaborating with them?<\/span><\/p>\n

\n

\u00a0<\/span><\/p>\n<\/div>\n

\u00a0<\/span><\/p>\n

\u201cPeercastsTM<\/sup>\u201d are private, professionally facilitated webcasts that feature leading member company experiences on specific topics as a catalyst for broader discussion.\u00a0 <\/span>Access is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from attending or accessing discussion content.\u00a0 <\/span>Members can see who is registered to attend in advance, with discussion recordings, supporting polls, and presentation materials online and available whenever convenient for the member.\u00a0 <\/span>Using Peeriosity\u2019s integrated email system, Peer MailTM<\/sup>, attendees can easily communicate at any time with other attending peers by selecting them from the list of registered attendees.\u00a0 <\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/sup>\u201ciPollingTM<\/sup>\u201d is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. <\/span>Using Peeriosity\u2019s integrated email system, Peer MailTM<\/sup>, members can easily communicate at any time with others who participated in iPolling. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

\n

Peeriosity members are invited to log into <\/span>www.peeriosity.com<\/span><\/a><\/span> to join the discussion and connect with Peers.\u00a0\u00a0 <\/span>Membership is for practitioners only, with no consultants or vendors permitted.\u00a0 <\/span>To learn more about Peeriosity, <\/span>click here<\/span><\/a><\/span>.<\/span><\/p>\n<\/div>\n

<\/span><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"

Peeriosity benchmarking data suggests that, while many companies embrace the idea of moving towards a Global Business Services model with a broad scope of services and a large geographic footprint, less than 20% of companies have ambitions to deliver global services from a single location.\u00a0 The model most likely to be embraced is to implement […]<\/p>\n

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