{"id":1978,"date":"2014-12-08T17:12:15","date_gmt":"2014-12-08T17:12:15","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=1978"},"modified":"2022-08-11T22:55:34","modified_gmt":"2022-08-11T22:55:34","slug":"criteria-for-consolidating-processes-to-shared-services","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2014\/12\/criteria-for-consolidating-processes-to-shared-services\/","title":{"rendered":"Criteria for Consolidating Processes to Shared Services"},"content":{"rendered":"

Whether you are setting up Shared Services<\/a> for the first time or expanding your portfolio after a decade of service, you likely have a set of criteria to determine the order for consolidation, and to assess the probability that expected benefits will be realized.\u00a0 An effective decision process is critical:\u00a0 while a larger base of business from increased scope and scale has many advantages, there are also a variety of challenges from increased complexity.<\/span><\/p>\n

The Business Process Improvement Manager at a member company recently used Peeriosity\u2019s iPollingTM<\/sup> capability to quickly understand the criteria used by peers when evaluating the consolidation of decentralized processes. When transitioning decentralized processes to Shared Services, savings of 50% or more are often possible. \u00a0Typically, half of the expected savings are sourced from consolidating to one location, with additional saving from process standardization<\/a> and reengineering efforts.\u00a0 Even though the potential upside is significant, decentralized processes are often inconsistent with many touch-points and rework steps between the process and interfaced departments.\u00a0 In other words, reassembling multiple inefficient processes into a new consolidated location runs the risk of creating a much larger problem.<\/span><\/p>\n

Based on iPollingTM<\/sup> results, the primary criterion when evaluating the consolidation of decentralized processes for 61% of member companies is the potential savings and productivity improvements available<\/a>. Another 31% of the responding companies selected as the primary criterion the degree to which the decentralized work activities have non-standard systems and processes.\u00a0\u00a0<\/span><\/p>\n

\"top<\/p>\n

When considering the second most important criterion, not surprisingly, potential cost savings and non-standard systems and processes were flip-flopped as the top two reasons.\u00a0 Other criteria identified as important included business partner engagement and internal controls; certainly both important considerations.\u00a0 While not in the top two for everyone, paying attention to the criteria of business knowledge<\/a> and context, local regulatory compliance<\/a>, and local language are also important considerations.<\/span><\/p>\n

\"ipolling<\/p>\n

Here are some of the comments added by iPollingTM<\/sup> respondents:<\/span><\/p>\n