Why Today's GBS Model is Centered on Value

In 2023, SSON Research & Analytics launched a new award to identify a Global Business Services that represents "the world's best" based on contributing core value to the business in terms of cash, impact on working capital, margin and market growth. This shifts the focus from transactional efficiency, which defined shared services success in the past, to supporting business success in a far more strategic way.

Alongside multi-functional, multi-country coverage, a single global leader, and global scope – today's GBS is defined by its ability to deliver "value-add" beyond cost.

For this initiative specifically, we developed a GBS Model which reflects the three levers, four enablers, and eight dimensions that the new award evaluates.

The result is a visual model with value at its core:

Three Levers

These three core levers are key for achieving the defined aim and value. They also act as performance drivers. 

The customer is always at the center of everything done in a services organization. If we lose customer focus, the model will not be sustainable in the long run, as the customer will quit the model.

“Resilience” is a rather new “buzz word” used in connection with the GBS discussions, but likely here to stay. Since we live in a world of permanent crises, we have learned that any operating model, especially in the services business, must be resilient to internal and external shocks and changes. 

Since the core purpose of the GBS model is to be a “change enabler”, this is exactly what it should be. Hence, the need to constantly improve, and innovate. Innovation is possibly the largest driver of success in a GBS organization. 

Four enablers

Resilience is not accomplished through large, stiff structures “bolted to the ground.” We need a flexible setup in order to be agile and able to respond to internal and external changes. The simplest way to achieve this is through automation.  

Data, like oil, is a resource, that is not so useful in its original state, but must be refined, processed, and turned into something useful. Its value lies in its potential. 

Digitizing data makes it more easily accessible, storable and usable. All activity within GBS is driven by digitizing work and information flows to as high as possible a degree. The core purpose of GBS has changed from efficiency- and effectiveness-driven models to a value-driven model since digitization has become available. “Digital” is the biggest revolution for GBS, ever. 

Transformation describes a marked change in form, appearance, or nature. Transformation describes the continuous improvement efforts combined into a structured plan. In most cases, digital is combined with transformation, as transformation journeys are mostly about digital transformation nowadays.

For more information about the components of the GBS Model read SSON Research & Analytics'  "The World's Best GBS" report.