Why Is Change Management Crucial For The Success Of A Shared Service Center?

“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