From Aspiration to Failure of a Shared Service Center: A Case Study

Background: A multifaceted business organization embarked on a transformational change initiative to streamline operations, reduce costs, enhance service quality, and improve efficiency and standardization. The company decided to establish a Shared Service Center (SSC) in different low-cost regions to consolidate its finance, HR, and IT functions and serve multiple countries.

Challenges:

• Employee Relocation Resistance: Employees from various regions were expected to relocate to the new center, leading to significant resistance.
• Process Standardisation Resistance: Distinct work cultures and practices made standardising processes challenging.
• Local Regulations: Varying local regulations and business practices across regions caused struggles.
• Operational Inefficiencies: Meeting service quality expectations of regional offices led to operational inefficiencies and dissatisfaction.
• Budget Overruns: Unanticipated expenses, budget overruns, and delays plagued the transition phase.
• Communication Issues: Poor communication between the SSC and regional offices resulted in a lack of trust and misunderstandings.
• IT Support Failures: Inadequate IT support and training, along with several technological failures, compounded the issues.

Result:

• The shared service center didn’t do well.
• The organisation faced financial losses.
• Attrition rates increased.
• Employee morale dropped.
• Customer satisfaction declined.
• Service quality deteriorated.
• The company’s reputation suffered.

Solution:

At Aidosol, our experienced and strong leadership is always available to support you in achieving continuous improvements. We provide valuable insights into the complexities of implementing shared services and the critical factors necessary for success. Our consultants will conduct a thorough cost-benefit analysis, guide you on potential overruns, technology systems, training, and change management strategies, and provide you with contingency plans to ensure your shared service center thrives.

Need to know more, contact@aidosol.com today.