{"id":3079,"date":"2017-07-19T16:25:02","date_gmt":"2017-07-19T16:25:02","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3079"},"modified":"2022-09-06T21:59:55","modified_gmt":"2022-09-06T21:59:55","slug":"shared-services-design-and-governance-structure","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2017\/07\/shared-services-design-and-governance-structure\/","title":{"rendered":"Shared Services Design and Governance Structure"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

The Shared Services model, when you include more recent descriptors like Global Shared Services, Global Business Services, and Global Integrated Services, has been a staple of large global companies for decades. Looking at a profile of member companies participating in collaborative best practice research to discover leading practices paints a picture of a Shared Services landscape dominated by large companies who often have global business operations.<\/a> \u00a0<\/span><\/p>\n

Regarding company size, 49% of Peeriosity member companies have over $10B in annual revenue, with 25% between $5B and $10B and 24% in the $1B to $5B range.<\/span><\/p>\n

\"iPolling:<\/p>\n

When considering the number of company employees globally, the figures are equally impressive, with 11% Peeriosity of member companies having over 100,000 employees, 19% with 50,000 to 100,000, and 49% with 10,000 to 50,000.\u00a0 Profile results suggest that the larger the company, the more likely the company is to embrace some form of Shared Services delivery model.<\/span><\/p>\n

\"iPolling:<\/p>\n

While the overwhelming majority of member companies operate in many countries around the globe when you consider the geographic design for Shared Services, 30% of member companies have a global design, 33% have a multi-regional design, and 27% have a regional design, with 22% indicating a design that is country-specific.<\/a><\/span><\/p>\n

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It is also interesting to consider the current lifecycle stage of Shared Services at member companies.\u00a0 Today, while 13% of members report that they are \u201cNew & Emerging\u201d, 35% report that they are \u201cFully Operational\u201d., An additional 44% indicated their lifecycle stage is \u201cMature\u201d and 6% selected \u201cAdvanced\u201d.\u00a0 In other words, most Peeriosity member companies have many years of experience with implementations that are largely complete and stable.<\/span><\/p>\n

\"iPolling:<\/p>\n

When you consider the structure of Shared Services organizations, 54% report that they are \u201cCross-Functional\u201d with an additional 42% reporting that they are organized by \u201cSingle Function\u201d (for example, HR or Finance), with only 2% organized by \u201cSingle Process\u201d (for example, an Accounts Payable Shared Services Center or a Payroll Services Center).\u00a0\u00a0 If you were to track this result over time, you would see a steady shift from \u201cSingle Process\u201d to \u201cSingle Function\u201d and from \u201cSingle Function\u201d to \u201cCross-Functional\u201d.<\/span><\/p>\n

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iPollingTM<\/sup> Results Review<\/strong><\/span><\/p>\n

A recent Peeriosity poll created using the iPollingTM<\/sup> technology was created to explore the governance structure companies use for setting the strategic direction and vision for Shared Services.\u00a0 The results indicate that, for 40% of member companies, the Shared Services Leader<\/a> has autonomy for setting the strategic direction and vision, with an additional 40% indicating the governance structure was with the CFO (28%) or someone else in the C-Suite (12%).\u00a0 Here are the details:<\/span><\/p>\n

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When examining the degree Corporate, Operations and Shared Services are aligned to a common strategy and vision for the Shared Services organization, 30% indicate complete alignment, 30% choose general alignment, with the remaining 40% selecting either \u201cSomewhat Aligned\u201d or \u201cChanges Taking Place that Require Realignment\u201d.<\/span><\/p>\n

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Poll comments from Peeriosity members on this topic include:<\/span><\/p>\n