The global theme of services delivery transformation continues as we have the end of 2022 in our sights. I’ve just come back from SSO Week Europe, Autumn, held at London’s lovely Hurlingham Club, where shared services execs from across Europe  – and beyond – met over tea and cakes to see what’s going on; and just to catch up, frankly. Because that has been one of the hallmarks of 2022: the need to see and be seen; hear and be heard. 

What’s interesting is that the core challenges are clear, and held in common: 

1. Figuring out the people 

Where are they working? How are they working? Are they happy and productive? Or planning to quietly resign or leave? There is no right answer, that much is clear. While trust is not generally an issue (though stories of BPOs struggling with remote staff  “moonlighting" at multiple different companies prevail), culture and cohesion is hard. Nobody seems to think that back to the office will ever be more than a few days a week (and I still cannot believe I am writing this), but there is definitely a push from the more "experienced" leadership generation (AKA 40 years of working life) to get staff back where they can be seen. Still, few think that will happen.

What’s exciting is to see how creative companies have become. PepsiCo is pioneering an approach to serve its hybrid needs based on a future workplan, the rallying cry for which is “work that works.” A great starting point. Danone shared a cool video produced by its GBS (and commissioned from a professional advertising agency) that simultaneously communicates the service it promises customers (i.e. the business) and an exciting work environment for its staff. That is really the crux of the matter: being credible to your team about what you propose, and ensuring that proposal reflects exciting capabilities. 

The challenge for some execs is that their leaders "just don’t care." As unbelievable as it is to us in “Shared Services Rules” Lalaland, many of our peers still struggle to get out from under the "servant" umbrella. So, if you are fortunate enough to have visible, committed and supporting leadership – now is the moment to give yourself a virtual high-five and be grateful.

By the way: one interesting trend we may see this winter is full offices as staff figure their employer may as well be footing the rising heating bill!

2. Figuring out the value

Value-add has become a cliché. I know, and I’m sorry. But one of the panelists from the “World Class” session expressed it perfectly. Shared services should, long ago, have gotten the savings and synergies out of transactions. There are really no excuses. But today, a world-class GBS defines its value in terms of how it supports the business. Inflation is fast ramping up, and threatening most enterprises. So, how does a food retailer, for example, ensure that its food prices stay within a reasonable margin for the end consumer? By using GBS to identify the opportunities to shave costs and inefficiencies in supply chains. Or by ensuring that there is enough working capital available – working through improvements in AP and O2C. These steps are going beyond fixes for their own sake. The fixes are focused on pain points. And given where we are going …  GBS will be busy.

Remember: “Better never stops!”

3. Figuring out the technology

First: Could we be seeing a pushback to all the #IA gospel? Not because it’s not effective, but many speakers reflected the message that process improvement has many levers. Automation has been a game-changer, it’s true; and the possibilities continue to expand, though customers are getting sick and tired of being promised one thing by the A-team, and the moment the ink has dried on the contract being shifted over to the B-team for execution (and “80% achievement” being touted as a “success”). In addition, what many are now considering is how much of their (significant!) ERP investment is being properly leveraged, or potentially overlooked while the shiny new toys get all the attention. I heard many people saying that with Cloud, so much more is possible in legacy systems. Will we see a #Blockbuster fighting back against #Netflix, but this time sustaining itself?

One point I liked: The “gap” we keep hearing about is a human gap, not a technology gap, explained a GBS leader. What needs to be fixed is the (in)ability to share knowledge adequately. That is the real gap. And digital literacy. In fact, add to that data literacy, analytics literacy, and a foundational awareness of what “digital” entails. So we are talking about education. The lack in inherent digital literacy is a big hurdle. Encourage curiosity around your technology, was the message.

The one aspect of tech-enabled opportunity that is truly amazing and still often strangely untapped is data. “We have all the data … amazing data …”, one attendee told me. “No-one cares. No-one listens. We are just back-office.”

A tragedy of Shakespearean proportions.

4. Figuring out the experience

This is exciting. Everyone is talking about it. (Should we coin: Experience is the new black?) A "positive" (we’ll get to that) experience for employees keeps them happy, engaged, productive, purposeful and in your team. The cost – the incredible cost – of valuable, knowledgeable and capable talent just marching out the door (even when they’ve never actually physically entered it) is awful. So #1 is figuring out what counts as “employee experience” and making it a priority. Start with showing care and compassion, and listening. Make their work more purposeful so they see the impact. Connect the dots.

Joint #1 is Customer experience. But in truth they feel like opposite sides of the same coin. Understanding one means passing it on to the other. We heard many examples. Delivering a task as per agreed SLAs is not an experience. That is meeting your promise, your commitment. Experience is what comes next.

And while measuring its worth in dollars and cents on the balance sheet is not obvious, it should be counted because it works like the eponymous snowball. Its momentum builds. Think “E2E customer journey.”

5. Figuring out the purpose

Leading with purpose. Recruiting for a purpose. Delivering to serve a purpose… all worthy sentiments. But what do they mean? A number of speakers reminded us that, in the face of “hyperinflation,” it’s now a matter of back to basics, and that that counts for Shared Services’ purpose, too. Delivering as expected, being reliable and accurate, being customer-centric. Added to that, today’s purpose must also reflect concerns around workplace, health, and equity and inclusion, alongside diversity.

With GBS models influencing or impacting larger segments of the enterprise, many leaders are now focusing on freeing up the capacities of specific markets and ensuring they are crisis-prepared.

That, perhaps, has emerged as the clearest requirement or purpose yet, for modern day shared services: resilience and sustainability, no matter what.

6. Figuring out diversity, equity and inclusion

We’ve had this conversation for years but I dare say it’s never been more relevant. The workforce today is robotic and human. Employees are in an office, at home, or in a coffee shop. They might be near physical operations or on a different continent. The point is, never have we’ve been more virtual and yet connected. 

This requires empathy above all – a facet still undervalued in our annual surveys. There’s no question that the shared services model should lead by example (look at your global teams), and through its HR services can specifically push for more transparency and inclusiveness across the enterprise.

GBS like Mars are doing an admirable job in driving supplier diversity as they advance their services scope. An excellent example of ESG (Environmental, Social, and Governance) in practice. 

7. Figuring out the women

Women in business. Women in GBS and Shared Services. Women leaders. We’ve heard this for years but never have we been held more accountable. (Attendees are quoting the ratio of women to men speakers back at us – quite right!)

What’s clear is that women need to take the initiative. I took part in a “women in GBS” breakout room, which showed just how much energy and willingness there is to support women in their careers. And to push back against the widely held notion that “women are promoted based on performance… men, based on potential!” Please think about that. 

One idea that I think applies to anyone forging a career in this area is to build your own personal/professional “advisory board” as you move through your career. These people don’t need to come from your current company… in fact, they shouldn’t. They should be trusted individuals who know you and who guide you objectively – and who encourage you to be “visible.”

The other point I liked was that we should not talk about “female” leadership skills but simply leadership skills. The capabilities don’t differ.

One final suggestion: Someone pointed out that very few SSOs or GBS are conducting “stay” interviews – which might provide more insight than “exit” interviews. This goes for every demographic, but perhaps even more so in trying to understand whether certain segments (e.g., women) still feel they face limitations.

Please stay connected with SSON. Reach out on LinkedIn or send me a mail with your concerns.