It is an absolute
fact that Shared Services business model is based on global processes and IT systems.
Nevertheless it is also true that what works for one, will not necessary work
for the other. Simply copy-paste is never good for a business, however being too
flexible and adaptable to country specifics is also a bad idea, which drives
for complexity and cost increase.
How to
balance the need of process orchestration and business needs in SSC?
Based on my
recent experience from go live of FSSC Europe and preparation for go life in FSSC
Asia, I would advise you to concentrate on three items:
Global
Processes – start from one unified process, designed for the best cost efficiency
and performance effectiveness. Work out common solutions, organizational structure,
and the simplest possible way of doing your financial processes. You don’t need
to reinvent the wheel! There are a lot of shared services already existing
around the world, so the best you can do is to find the once which are in your industry
and learn from their experience.
Process
maps, procedures or working instructions, and all related forms and templates
need to be well documented and aligned with the process flow.
Never
forget that controls are integral part of your financial processes and simply build
them in. Make sure that your controls are evaluated by the auditors, especially
if your company is listed on NYSE or need to follow any ‘SOX-equivalent’ rules,
eg. as per Spanish ICFR rules.
Exceptions –
once your global process maps and org charts are completed, you can start
listing all country nuances based on local law or other regulations. It is very
true that EU is much easier in that terms,
because it provides more homogeneous legal environment, however if your
FSSC Europe provides services also to Russia or UK, you need to be much more
careful. Never forget also about specifics in Spain (SII, Spanish Code), France
(tax requirements), etc.
When it
comes to Asia, you need to consider deeper analyses into Chinese taxation,
archival process or payment regulations, which will mostly be based on cheques instead
of wire transfer.
Document
all of the exceptions and ensure proper time for the analyses before you move
on. Your process maps will for sure need adjustments. You need to make sure
that your processes work for your organization. In case of Europe/Asia nuances
you need to only add notes on the maps. However in case of very specific
process eg. for Cheque Payments you will need to create additional maps and
supporting documentation.
Local
Markets (operating companies) – moving finance process to SSC is always
difficult for the organization. We cannot forget about the whole personnel
related elements of the strategy. From the process perspective it is also not
easy. It has an serious impact on business and business parties. All invoiced
in this shifting exercise need to gradually learn how to communicate and work
with each other for the common benefit and companies objectives.
You need a
good local market alignment strategy built into the overall planning and
performance communication. You cannot forget that details such as who is doing
which step, or who is retrieving which reports become a crucial matter to be
solved, agreed, and documented.
Speaking to
your stakeholders is an absolute must. Easy to say, not that easy to do.
Markets will not give you a total buy-in until you confirm to them that you
bring them benefits. That can be probably achieved only after some time of
operations. So, what you can do just before go-live? Be transparent,…
communicate what they can expect, and what is expected from them.
To me, FSSC
in Europe and Kuala Lumpur are very much the same, in terms of construction.
They are both based on the same basis and have the same framework. I truly see them
as Twin Towers! The differences between these two towers are within their
constructions, i.e. within the processes.
