Author: Shared-Services-Company-Aidosol

Human resources is a key asset for any organization. To develop long-term relationships with employees and business growth, companies must focus on employee satisfaction and motivation. Drucker (1999) explained that employees voluntarily quitting their jobs is a potential retention issue. Human Resource Shared Service Center (HRSSC) helps organizations retain their employees and also improves their satisfaction level by providing special services. As per research studies, the cost of retaining employees is much less than hiring new ones.

During difficult economic times, many companies embraced the HR Shared Services Model to lower the cost of their operations. The companies’ vision is to focus more on core businesses and centralize or outsource support services to boost their productivity.

Boroughs & Saunders (2007) stated that the HR shared services model has been widely used and has now become regularly accepted as a means of delivering cost-reduction and enhancing performance levels while providing a foundation for more effective HR services.

The core focus of Human Resources management is to understand the unique needs and aspirations of the workforce and create retention strategies that align with the organization’s values and goals. By effectively managing people resources, the organization can achieve the set goals of performance, growth, and profitability. Thus through effective implementation of the Human Resources Shared Services Center (HRSSC) organizations can have a significant impact on employee satisfaction levels leading to an increase in the talent retention rate. Also, HRSSC provides speed, accuracy, efficiency, and consistency in service delivery.

According to one survey report by Deloitte (2021), around 57% of the 600 organizations that participated in the survey utilize HRSS centers 80% of the respondents leverage HRSS for payroll processing, and most continue to grow upstream to include specialized HR functions.

In one case study on a global multinational company with more than 60,000 employees, it was found that with the use of automated HRSS helpdesk support, they reduced the cost by 65%.

In one study on retail organizations, based on data analysis it has been found that implementing HRSSC in Retail Organizations helps to improve Employee Retention.

HR Shared Services can cater to a wide gamut of employee needs like payroll, benefits administration, employee communication, query management, organizational policy dissemination, performance management, announcements, employee records management, report generation, analytics, organizational learning, general administration, etc.

Challenges

One of the biggest challenges is ‘One Size’ doesn’t fit all. For some business units, HRSSC can prove to be the right solution and can benefit or complement their business however for some it may be a hindrance. It is therefore important yet critical to determine the value it can bring to the business units, overall organization, and the cost by conducting a cost-benefit analysis.

How can AIDOSOL help you?

With years of expertise and a correct blend of technology, AIDOSOL will support you in cost-benefit analysis, improving service catalogues, and expanding your geographical reach and automation levels. Also, AIDOSOL will help you with process standardization and efficiency complimenting cost-reduction strategies.

contact@aidosol.com to get started.

“There is nothing permanent except change”. – Heraclitus

Change is inherent and inevitable in life. One should embrace it since without change there is no innovation, no advancement, no creativity, and no personal growth. In business, change is vital.

When an organisation plans major changes while updating or refining business processes or systems, restructuring, redirecting, or redefining resources, introducing new technology, or updating digital technology, change management is considered very useful in driving the successful adoption and usage of change within the business.

A shared service center is a centralised hub, from where they deliver dedicated support services to the organisation and plays a crucial role in implementing and managing the shared services model within an organisation. For the successful implementation of shared services, change management plays a vital role in ensuring that everyone in the organisation is ready, willing, and able to perform their roles in the new environment.

According to research, one of the most common causes of unsuccessful shared service implementation is the weakness or absence of a change management program or system within the organisation. The essence of shared services transformation is to encourage and engage employees to adopt new ways to perform their job roles.

As per Deloitte’s Global Shared Services Survey, successful shared service centers prioritise employee training and communication and often have robust change management frameworks.

Types of changes

There are three types of change, which usually occur in any organisation and shared service leaders should know how to deal with them for successful implementation of shared services.

1. Developmental change: refers to a process of enhancing and correcting existing systems without radical changes. The focus is on making gradual improvements in existing processes, structures, and practices keeping in view prior successes and aims. Utilizing a whole systems approach, the organisations take into account various interconnected elements, such as culture, leadership, communication, and workflow.
2. Transitional change: When there is a need to replace the existing system, process, and strategies with the new ones then it is transitional change. For example, replacing a manual process with an automated process or replacing the old methods and implementation practices with the new methods and implementation techniques. However, the chances of deep personal change are low and are relatively predictable hence managing the human dynamic here is less challenging than the transformational change.
3. Transformational change: A type of organisational change that is typically much grander in scope than incremental, adaptive changes. Transformational change is a significant change in an organization that completely reshapes an organization. These changes are often sudden and dramatic and completely alter the way the organization, its employees, and customers work and perceive themselves. For example, making significant strategic and cultural reforms, introducing new and very different technology, converting a business into an e-commerce business, etc.

Challenges

Shared service implementation is transformational change and the personal impact it leaves on staff should not be neglected. Appropriate strategies are required to handle this efficiently. There are certain challenges that organisations often face during the change process.

1. Challenges related to assessment and evaluation of change management strategies.
2. Confusion, delays, and inefficiencies due to improper planning.
3. Challenges in keeping track of the progress of change initiatives.
4. Insufficient financial, human, or technological resources.
5. Another important hurdle is resistance to change and taking people from the denial and anger stage to the exploration and acceptance stage.

How can AIDOSOL help?

At Aidosol, we know proper implementation of change is essential for business viability and we are here to guide you throughout the process to make it as seamless as possible. Our consulting services based on your ‘need’ will develop a strategic plan to build a vision that will clearly communicate your goals and aspirations to your stakeholders, leadership, employees, and clients.

If you need more information contact@aidosol.com

In today’s digital era, the focus on managing personal information has escalated due to its far-reaching implications for privacy and security. This spotlight is particularly intense in payroll management, where the interplay of sensitive financial intricacies and the demands of precision, adherence, and confidentiality underscores the heightened significance of robust data governance. Today, we will delve into the central role of data governance in the domain of payroll management. We will also examine the pivotal responsibilities played by Data Owners, Data Stewards, Data Admins, and Data Custodians in this framework, with a specific emphasis on safeguarding personal information and its profound import.

Ensuring the Security of Personal Information:

A paramount concern within the domain of payroll management pertains to the safeguarding of personal information (PI). This encompasses a spectrum of data, ranging from employee names and addresses to Social Security numbers, bank particulars, and tax details. The vulnerability of this information to data breaches or unauthorized access can result in identity theft, financial malfeasance, and irreparable harm to an organization’s reputation. Data Owners, Data Stewards, Data Admins, and Data Custodians emerge as vital sentinels in the protection of this sensitive data.

Compliance and Regulations:

Stringent regulations govern personal information, exemplified by Europe’s General Data Protection Regulation (GDPR) and the United States’ Health Insurance Portability and Accountability Act (HIPAA). The imperative of adherence to these regulations is non-negotiable, as any violation can yield severe penalties. Data Owners, Data Stewards, Data Admins, and Data Custodians assume the pivotal role of ensuring that personal information is managed in exacting alignment with these regulations, encompassing secure storage and meticulous access controls. This concerted effort serves to mitigate both legal and financial vulnerabilities.

Elevating Data Privacy and Security Standards:

Undoubtedly, the preservation of personal information’s confidentiality is paramount. The repercussions of data breaches are profound, including litigation, erosion of trust, and far-reaching financial ramifications. Guided by Data Owners, Data Stewards, Data Admins, and Data Custodians, data governance constructs a robust scaffolding of protocols. These protocols encompass data encryption, access controls, and security measures that collectively erect a formidable barrier against breaches. The unwavering principle is to render personal information accessible exclusively to authorized personnel on a need-to-know basis, substantially reducing the risk of data compromise.

Data Minimization and Purposeful Utilization:

Data governance, underscored by the roles of Data Owners, Data Stewards, Data Admins, and Data Custodians, upholds the principles of data minimization and purposeful utilization. The emphasis lies on the collection of essential personal information, employed solely for its designated purpose, such as payroll processing. Irrelevant data is promptly discarded, a practice that serves to mitigate the potential fallout of breaches. Furthermore, this approach exemplifies a steadfast commitment to ethical data management.

Empowering Individuals through Transparent Governance:

Effective data governance, orchestrated collectively by Data Owners, Data Stewards, Data Admins, and Data Custodians, yields a noteworthy outcome: the empowerment of individuals with control over their personal data. It affords employees access to their payroll data, enabling them to review deductions and validate accuracy. Additionally, the embrace of transparent data governance practices strengthens employee trust, manifesting the organization’s unwavering dedication to both privacy and well-being.

Now, let’s also quickly understand the responsibilities of the discussed roles in this article from Payroll domain prospective:

Data Owners in Payroll Management:

Within the realm of payroll management, Data Owners assume the primary responsibility for upholding the accuracy, integrity, and suitable utilization of payroll-related data. Their role encompasses verifying the precision of employee compensation details, tax information, and other relevant payroll data, ensuring alignment with both legal requisites and organizational standards. Working collaboratively with HR, finance, and legal departments, Data Owners define data access tiers, establish policies, and implement measures to ensure compliance for safeguarding payroll data.

Data Stewards in Payroll Management:

In the domain of payroll, Data Stewards bear the daily responsibility for managing payroll data. They meticulously oversee the input of payroll information, validate the accuracy of payroll calculations, and ensure accurate recording of deductions. Collaborating closely with Data Owners, Data Stewards uphold payroll policies and promptly address any anomalies. Additionally, they lend support in generating payroll reports and diligently maintain the integrity of payroll data.

Data Admins in Payroll Management:

Operating as Payroll Data Administrators, Data Admins oversee the technical aspects of managing payroll data. They supervise payroll software, database systems, and tools essential for processing payroll. The tasks of Data Admins encompass establishing and maintaining the payroll database, assuring secure data storage, and managing access permissions for authorized personnel. Further, they are entrusted with tasks like data backups, implementing data security protocols, and troubleshooting technical challenges related to payroll data systems.

Data Custodians in Payroll Management:

Within the context of payroll management, Data Custodians shoulder the responsibility for physically handling and securely storing payroll data. Their role includes implementing security measures such as encryption and access controls to safeguard sensitive payroll information. Data Custodians ensure that payroll data is stored in a secure manner, with access granted exclusively to authorized individuals. Collaborating with both Data Owners and Data Stewards, they also guarantee adherence to data retention policies and legal prerequisites.

Data Privacy Leads in Payroll Management:

In the payroll domain, Data Privacy Leads are at the forefront of ensuring compliance with data protection regulations, including GDPR, HIPAA, and local labour laws. They undertake the development and implementation of data privacy policies tailored specifically to payroll data. Conducting risk assessments, Data Privacy Leads identify potential privacy vulnerabilities and provide guidance on handling sensitive payroll data. Their collaboration extends to HR, legal, and IT departments, ensuring that the collection, processing, and storage of employee data align with privacy regulations.

Summing-up, the roles of Data Owners, Data Stewards, Data Admins, Data Custodians and Data Privacy Lead within the framework of data governance illuminate the multifaceted responsibilities of managing and protecting data, especially within payroll management. This elucidation contributes to a deeper understanding among readers regarding the orchestration of data management and preservation within this context.

Introducing a new product to the market can be a scary task, filled with uncertainties and challenges. Companies need a reliable and efficient way to analyse the impact of new product introductions to ensure success. Aidosol, a market leader in data analytics solutions, provides cutting-edge tools and methodologies to help businesses navigate this complex process. Today, we will be talking about how Aidosol helps companies analyse the impact of new product introductions and outline a comprehensive checklist for a successful product launch.

Understanding the Target Market and Audience

The first step in launching a new product is understanding who the product is for. Aidosol’s advanced analytics help companies segment their audience based on various demographic and psychographic factors. By identifying the target market, businesses can tailor their product features and marketing strategies to meet the specific needs and preferences of their audience.

Performing Market Research

Market research is crucial to understand the current market landscape and consumer behaviour. Aidosol employs classy data collection and analysis techniques to gather insights from various sources, including surveys, social media, and industry reports. This research helps companies identify market trends, consumer needs, and potential demand for the new product.

Conducting a Competitive Market Analysis

Understanding the competition is key to positioning a new product effectively. Aidosol’s competitive analysis allow companies to analyse competitors’ strengths, weaknesses, pricing strategies, and market share. This information is vital for differentiating the new product and identifying opportunities for gaining a competitive edge.

Creating a Pre-Launch Market and Promotional Strategy

A successful product launch requires a well-thought-out marketing and promotional strategy. Aidosol assists companies in developing a comprehensive pre-launch plan that includes identifying the right channels, crafting compelling messages, and timing the promotions strategically. By leveraging data-driven insights, businesses can maximize their reach and create buzz around the new product.

Launching the Product

The launch of the product is a crucial phase that requires flawless execution. Aidosol provides real-time monitoring and analytics to track the performance of the launch. This includes measuring engagement, sales, and customer feedback. By keeping a close eye on these metrics, companies can quickly identify and address any issues that arise during the launch.

Assessing the Results

Post-launch assessment is essential to understand the impact of the new product introduction. Aidosol’s analytics platform offers comprehensive reports on key performance indicators (KPIs) such as sales growth, market penetration, customer satisfaction, and return on investment (ROI). These insights help companies evaluate the success of the launch and make data-driven decisions for future product introductions.

Metrics to Consider for Decision Making

• Sales Volume and Revenue: Track initial and ongoing sales figures to measure market acceptance.
• Customer Feedback and Satisfaction: Use surveys and reviews to gauge consumer reactions.
• Market Share: Assess the product’s impact on the company’s overall market position.
• Cost of Customer Acquisition: Calculate the expense involved in attracting and converting customers.
• Return on Investment (ROI): Determine the profitability of the product launch relative to its cost.
• Engagement Metrics: Analyse website traffic, social media interactions, and other engagement indicators.

Key Takeaways

• A successful product launch requires thorough market research and competitive analysis.
• A pre-launch strategy that is well-planned can result in significant anticipation and demand.
• Real-time monitoring during the launch helps in quickly addressing any issues.
• Post-launch assessment provides valuable insights for future product introductions.

Conclusion

Launching a new product is a complex process that requires careful planning and execution. Aidosol’s advanced analytics solutions help companies navigate this journey by providing deep insights and data-driven recommendations. By following a structured approach and leveraging the power of analytics, businesses can increase their chances of a successful product launch and avoid common pitfalls. With Aidosol, companies can make informed decisions, optimize their strategies, and achieve their product introduction goals effectively.

In the dynamic world of business, pricing strategy stands as a pivotal element that can either propel a company forward or leave it struggling to keep up.

Two fundamental concepts, often connected but distinctly valuable, are price elasticity and price sensitivity. Understanding these concepts not only sharpens a company’s competitive edge but also empowers it to navigate the complexities of modern markets with precision.

Key Difference Between Price Elasticity and Price Sensitivity

Price Elasticity

Coined by economist Alfred Marshall in 1890, price elasticity measures how changes in product prices affect consumer demand. This concept is foundational in both B2C and B2B sectors, offering predictive insights into sales and revenue impacts amidst changing market conditions.

Price Sensitivity

This metric scales how customers react to price changes, helping businesses identify segments that are more likely to vary purchasing behaviour in response to price adjustments. By segmenting customers based on price sensitivity, companies can tailor pricing strategies to improve revenue and market perception.

Ideal Practices for Adapting Pricing Strategy to Stay Competitive

In today’s competitive model, maintaining a robust pricing strategy is indispensable for sustaining profitability and relevance.

Let’s explore the key practices to ensure your pricing strategy remains adaptive and effective:

Acknowledge Customer Price Sensitivity

Conduct a thorough analysis to understand how price adjustments affect consumer behaviour in different market segments. This understanding is crucial for establishing competitive prices that resonate with your target audience.

Dynamic Pricing

Embrace agility through dynamic pricing strategies, enabling the real-time adjustments based on market dynamics, competitor activities, and customer demand patterns. This approach maximizes revenue potential while maintaining a consistent focus on the market environment.

Consider Value-Based Pricing

Adapt from traditional cost-based or competitor-driven pricing models to Value-Based Pricing. Highlight the unique value propositions of your products or services to justify premium pricing, aligning price with perceived benefits and enhancing customer willingness to pay.

Monitor Competitors Wisely

Keep a vigilant eye on competitors’ pricing strategies and market positioning. While it’s crucial to stay informed about industry trends, avoid descending into price wars that could undermine long-term profitability and brand value.

Communicate Value Effectively

Clearly convey the value your offerings provide to customers. Emphasize key features and benefits that distinguish your products/services in the market, reinforcing customer confidence and fostering loyalty.

In conclusion, mastering pricing strategy in today’s competitive landscape requires a deep understanding of price elasticity and price sensitivity. These concepts serve as compass points, guiding businesses through market fluctuations and customer dynamics. By adopting adaptive pricing practices such as dynamic pricing and value-based strategies, companies can effectively meet evolving customer expectations while maintaining a competitive edge.

Contact US:

To learn more about how Aidosol can help you optimize your pricing strategy and stay ahead in your industry, visit our website or contact us now. Let’s explore the complexities of pricing together and ensure your business remains competitive and profitable in today’s evolving markets.

The concept of shared service centers (SSCs) has become a hot topic across various channels, with many top players claiming success in establishing centralized points of service shared across multiple departments. These SSCs have been beneficial for many multinational organizations by reducing costs and time, improving services, offering better control, and enabling more value-added activities.

The Advantages of Shared Services

Shared services aim to standardize and streamline work processes, enhancing performance and delivering reliable services. They provide a central point of contact for various functions, such as IT, HR, and finance. The benefits include:

• Cost and Time Reduction: Centralizing services reduces administrative expenses and improves efficiency.
• Improved Services: Standardized processes and service management tools enhance service quality.
• Better Control: Centralized functions make it easier to monitor and manage performance.
• Value-Added Activities: By reducing duplication of efforts, organizations can focus on more strategic tasks.
• Data Centralization: This supports improved reporting and analytics, offering deeper insights.
• Scalability and Integration: Centralized services heighten scalability and integration, allowing for the deployment of new technologies through cost sharing.

Challenges in Implementing Shared Services

However, setting up a shared service center is not without its challenges. While some organizations thrive, others struggle or even fail to implement SSCs successfully. Key challenges include:

• Leadership and Change Management: Strong leadership is essential. Challenges arise when leaders, responsible for setting up the SSC, must influence the SSC team, customers, suppliers, and stakeholders.
• Feasibility Assessment: Organizations often lack a clear vision and face challenges in defining processes, locations, and technology, making it hard to find appropriate and timely solutions.
• Design Challenges: Envisioning future processes, stakeholders, and technology requirements can meet resistance to change within units.
• Build and Testing Phase: Lack of coordination during the integration of process design and technology tools is a common challenge.
• Implementation Issues: Before going live, organizations must manage migration, phases, and business readiness, requiring clear plans, resources, and support.

Strategic Considerations for Success

To successfully implement shared services, organizations need to set a clear vision for the processes they wish to outsource or manage through SSCs. Strategic decisions regarding service transformation alternatives—such as simplification, standardization, consolidation, insourcing, or outsourcing—are crucial.

Moreover, the success of shared services hinges on several factors, including:

• Shared Service Employees: Skilled and committed employees are vital.
• Governance: Robust governance frameworks ensure alignment with organizational goals.
• Communication: Effective communication is key to managing expectations and fostering collaboration.
• Service Flexibility: Adaptability to changing business needs is essential.
• Performance Management: Continuous monitoring and improvement of performance metrics are necessary.

Expert Insights

According to Redman et al. (2007), the attractiveness of shared services lies in the need for cost reduction, improved service quality, process simplification, sharing best practices, knowledge transfer, and alignment with business requirements. Ramphal (2011) further asserts that the quality of SSCs depends on service level agreements, contact centers, communication, shared service products, employees, and the provision of services.

Our Commitment at AIDOSOL

At AIDOSOL, we are dedicated to providing our clients with valuable expertise worldwide. We offer a robust business strategy that encompasses both financial and non-financial benefits, ensuring sustained impact and enhanced efficiency in the face of constantly evolving needs.

By leveraging our comprehensive understanding of shared services, we help process owners meet rising user expectations, drive continuous improvement, and achieve greater transparency across enterprise data.

A Shared Services Center (SSC) is an organizational model designed to achieve cost reduction, quality improvement, and enhanced strategic flexibility. This dedicated unit within an organization handles operational tasks such as human resources, payroll, accounting, compliance, IT, legal, and security. Typically, SSCs are leveraged by mid-sized to large, decentralized, or distributed organizations aiming to optimize operations and maximize efficiency.

Three Popular Configurations of Shared Services

The Shared Services Center (SSC)

This configuration ensures greater cost-efficiency as all policies and instructions originate from a single, centralized source. By consolidating services and standardizing processes, organizations achieve economies of scale, reduce redundancies, and streamline operations. This approach enhances control and consistency, leading to significant cost savings and improved service quality.

Free-Standing Shared Services Department

This setup promotes autonomy among various shared services centers, allowing each to optimize its strategy independently. While this model fosters innovation and responsiveness, it can pose challenges in resource and technology sharing. Inefficiencies and increased costs may arise if coordination between centers is problematic. However, when managed effectively, this approach provides tailored solutions for different organizational divisions.

Outsourced Shared Services Center

Here, an external organization or service provider delivers services such as payroll, IT support, or customer service. This model leverages external expertise, often resulting in cost savings and enhanced service delivery. Organizations can focus on core competencies while outsourcing non-core functions. Requests and services are managed through a vendor agent, ensuring efficient service provision.

SSCs focus on key processes such as delivery and performance, best sharing practices, and improving customer relationship processes (Deloitte, 2011). Adopting a shared services model can lead to significant operational improvements and better business outcomes.

Why Large Multinationals Choose SSCs

• Cost Reduction: Centralizing services and eliminating redundancies achieve substantial cost savings.
• Standardization and Process Efficiency: Standardized processes improve efficiency and consistency.
• Capability Development: Centralized services develop specialized expertise within the SSC.
• Business Value Enhancement: Optimized operations and reduced costs enhance business value.
• Digital Agenda Acceleration: Leveraging technology advances an organization’s digital agenda.

Implementing a shared services model requires careful planning and execution to address potential challenges and maximize benefits. However, with the right approach and support, SSCs can significantly enhance an organisation’s operational efficiency, strategic flexibility, and overall performance.

How Can Aidosol Help?

Aidosol, specializing in shared services consulting, provides tailored solutions for seamless SSC implementation. We begin with a thorough assessment of your operational landscape, identifying key areas for shared services. Our comprehensive strategy aligns with your business goals and addresses industry-specific challenges.

Our consultants customize the shared services model to fit your needs, focusing on optimizing processes, leveraging the latest technologies, and ensuring effective communication. We guide you through each implementation phase, mitigating risks and ensuring a smooth transition.

Aidosol also provides ongoing support, offering training and development programs and performance monitoring to ensure your SSC continues to deliver value. Partnering with Aidosol empowers your organisation to achieve operational excellence, strategic flexibility, and sustainable growth through effective SSC implementation.

Introduction

In today’s dynamic business environment, Shared Services Centers (SSCs) play a pivotal role for multinationals seeking cost efficiencies, standardization, and enhanced operational agility. However, various sectors face unique challenges that can hinder SSC effectiveness.

Challenges Across Different Sectors

IT Sector Challenges

• Balancing Cost Efficiency and Quality: Achieving cost savings while maintaining high-quality service and strategic support.
• Managing Technological Diversity: Handling diverse technologies and software platforms effectively.
• Addressing Regulatory and Tax Complexities: Navigating international tax laws, regulatory costs, and overhead expenses.

Finance Sector Challenges

• Driving Cost Reduction: Implementing strategies to reduce operational costs effectively.
• Overcoming Feasibility Assessment Hurdles: Assessing the feasibility of SSC implementation and sustainability.
• Ensuring Design and Stakeholder Engagement: Engaging stakeholders in design processes and gaining buy-in for SSC initiatives.
• Integrating Processes and Technology: Aligning process designs, technology tools, and training to enhance operational efficiency.
• Managing Implementation Challenges: Overcoming hurdles during SSC rollout and ensuring smooth implementation.
• Mitigating Staff Turnover: Addressing challenges related to talent retention and skill development.

HR Sector Challenges

• Leveraging Technology for Operational Excellence: Developing a clear digital roadmap to maximise HR technology’s impact.
• Advocating for HR Investments: Creating urgency for investments in HR services and technologies.
• Customizing Solutions: Tailoring SSC models to fit diverse organizational needs effectively.
• Facilitating Knowledge Transfer: Overcoming challenges during knowledge transition phases.
• Promoting Collaboration: Fostering collaboration across departments to enhance HR service delivery.

How AIDOSOL Can Help

At AIDOSOL, we specialise in navigating these complexities. Our seasoned consultants bring years of expertise and proven methodologies to streamline your SSC operations. From mitigating sector-specific challenges to reducing costs and enhancing service delivery, we are committed to driving your organization’s success.

Conclusion

Embracing Shared Services offers substantial benefits, but overcoming sector-specific challenges requires strategic guidance and expertise. Connect with AIDOSOL today to explore how we can empower your organisation through tailored SSC solutions that drive efficiency and innovation.

Shared service is a key concept by which organizations organize their resources. Research indicates that some organizations struggle with implementing SSC and sometimes entirely fail to implement them. Although prior research exploring the determinants of implementation success is relatively scarce, researchers have conducted several SSC implementation case studies; however, these valuable findings remain isolated in standalone case studies.

Some of the critical variants that influence the successful implementation of shared service are included in this article.

Introduction

Firms face increasing pressure to create businesses that are more agile and efficient than their competitors. A pivotal means of achieving this goal is sharing corporate resources at the strategic business unit (SBU) level. Specifically, implementing a shared service center (SSC) is a strong trend among firms seeking to optimise resources and achieve substantial improvements.

An SSC is an organisational concept that firms use to bundle a subset of distributed resources previously located in SBUs. SSCs manage these resources as semi-autonomous units and supply support services for customers (i.e., the SBUs) within their corporations. Firms are more effective and efficient through sharing such resources within the group than organizing them in a multibusiness form (M-form). For instance, firms such as one of the largest banking and financial services announced that implementing SSCs resulted in lasting cost savings of up to 40%.

Four organisational resources that influence the success of SSC implementation:

• Organisational Member SupportOrganisational member support plays an important role. We define member support as the extent to which members of the organisation support the SSC implementation (i.e., accept and promote the implementation).
• Mechanistic StructureThe degree of mechanistic structure of support activities is composed of three dimensions: centralisation, formalisation of work, and output standardisation.
• IT (infrastructure) StandardisationThis variable is defined as the extent to which firms use standard IT applications across SBUs, such as ERP systems or human resources information systems. Firms have a low degree of IT standardisation if they use different IT applications in their SBUs, and they have a high degree if they use the same IT system in all SBUs.
• Organisational TrustOrganisational trust as an important variable. Organisational trust is defined as an expectation held by customers—the SBUs—that the SSC will behave in a mutually acceptable manner.

How AIDOSOL can help

Our comprehensive evaluation of the key factors influencing shared services setup ensures a high success rate. Our change management strategies promote greater adoption of Shared Services and foster harmony between Strategic Business Units (SBUs) and Shared Services Centers (SSCs).

Introduction

Large-scale infrastructure programs rarely operate in ideal conditions. Budget constraints, tight timelines, regulatory pressures, and resource limitations are the norm rather than the exception.

The real differentiator is not just execution capability, but how effectively operations are structured to support delivery. This is where shared services evolve from a support function into a core program capability.

The Challenge: Complexity Under Constraint

Infrastructure programs today face multiple layers of complexity:

• Multi-vendor coordination
• Cross-border operations
• Regulatory compliance
• Cost pressures and funding limitations
• Talent and resource constraints

Without a structured operational backbone, these challenges quickly lead to delays, cost overruns, and execution risks.

Case Insight: Where Things Break

In many large programs, failure does not come from strategy. It comes from operational fragmentation:

• Disconnected procurement and finance processes
• Delayed onboarding of contractors and vendors
• Lack of visibility into program performance
• Inefficient reporting structures

These gaps create friction across the program lifecycle and slow down decision-making.

Shared Services as a Program Capability

When designed correctly, shared services act as the operational engine behind complex program delivery.

They provide:

• Centralized governance and control
• Standardized processes across functions
• Faster onboarding and vendor management
• Real-time reporting and performance tracking

This transforms operations from reactive coordination to structured execution.

Key Capabilities Enabled by Shared Services

To support infrastructure programs effectively, shared services must deliver:

1. Integrated Program Support

Finance, procurement, HR, and compliance aligned under one operating model.

2. Scalable Resource Management

Ability to quickly ramp up or down based on project phases.

3. Process Standardization

Consistent workflows that reduce errors and improve speed.

4. Data-Driven Decision Making

Centralized dashboards and reporting for leadership visibility.

The Impact: From Risk to Control

Organizations that embed shared services into program delivery see measurable improvements:

• Faster execution timelines
• Better cost control
• Improved compliance and governance
• Enhanced coordination across stakeholders

Most importantly, leadership gains the ability to focus on strategic decisions rather than operational bottlenecks.

The Shift in Thinking

Shared services should no longer be viewed as a back-office function.

In complex infrastructure environments, they act as:

• A program enabler
• A risk management layer
• A scalability engine

This shift is critical for organizations managing high-stakes, large-scale programs.

Conclusion

Delivering complex infrastructure under constraint is not just about engineering or project management. It is about operational excellence.

Shared services, when positioned as a program capability, provide the structure, control, and scalability required to execute successfully in challenging environments.

Build operational strength into your program from day one.

Discover how the right shared services model can support complex infrastructure delivery at scale.