Shared Services and Outsourcing
Shared Services and Outsourcing are approaches that can provide enormous benefits, however, these approaches are not panaceas - they are complex, need to be reviewed in the context of other potential change approaches, and the following types of risk and issues need to be assessed:
- these projects are politically complex, often requiring consensus and agreement between different organisations
- these approaches need to be viewed as one of a number of competing potential approaches for gaining operational improvements - for example, process redesign and structural reorganisation may be more appropriate approaches
- clear business and operational strategies are a necessary precursor to these complex projects
- people change issues. Clearly, these approaches imply major change issues, including TUPE, redundancy and relocation. However, changes to the working practices in the retained organisation can also be fundamental and successful achievement of these one of the greatest drivers of benefits.
Hitachi Consulting offers the following areas of support to organisations considering or undertaking Shared Services or Outsourcing projects:
- Readiness Analysis. Understanding the current state in enough detail to understand the art of the possible, knowing where detail is required and where the focus should be on achieving momentum
- Option Analysis, including what to share and how to share / outsource it (a rapid activity, involving all the main stakeholders)
- the Business Case. Hitachi Consulting has developed a proven business case template and methodology
- Detailed Solution Design. Including the design of new processes, systems, structures and skills, leading to definition of the changes within the retained organisation
- Implementation / Transition. Hitachi Consulting supports programmes through providing client-side advice - working with senior stakeholders in order to provide independent strategic advice, challenge and guidance
- Operational Assessment and Improvement. Understanding whether the benefits have been delivered, to identify potential improvements and wider transformation and to support the relationship between the supplier and the organisation, through the use of independent and impartial analysis
- Programme and Change Management. An in-depth change management approach is essential, in order to avoid project delay, disruption and failure. Activities undertaken include the following:
- stakeholder analysis and management
- creating a rationale for change
- communication planning and communication activities
- communication and liaison with unions.