Shared Services
Last Updated on 17 September 2023 at 15:54
Shared services are about centralizing support functions. By centralizing support functions like Human Resources (HR), Information Technology (IT), and finance, organizations can eliminate redundancies and improve service delivery. This model promotes consistency and scalability and can lead to significant cost savings.
For example, many multinational corporations have shared service centres that cater to multiple regions or functional departments. By having a single IT helpdesk for an entire organization, companies can ensure standardized IT support and reduce the overheads of having multiple helpdesks.
However, centralization can also lead to a disconnection between the shared service centre and individual business units. To mitigate this strategic risk, it is crucial to maintain open channels of communication. Regular feedback loops, stakeholder meetings, and alignment sessions can ensure that the shared service centre remains in tune with the evolving needs of the business units.
Training employees in multiple skills or roles ensures they can be deployed in different areas as needed — the cross-training to wear multiple hats. This approach not only improves operational flexibility but also fosters a collaborative culture.
However, the expertise might sometimes be diluted, so this approach must only apply to specific functions and departments. While departments like sales, marketing, and human resources benefit immensely from multi-skilled professionals, it is not because these functions seem ‘easier’ to cross-train. The real value lies in the amplified impact that multi-skilled individuals can bring to these roles.
Startups offer a clear example of this. In the early stages, it is not uncommon to find employees oscillating between roles, from handling customer queries one moment to brainstorming product development the next. Being agile can give any organization a major edge, especially in the rapidly changing startup world.
Boosting inter-departmental and inter-functional synergy can use different tools and methods to break down departmental or functional silos and ensure that different parts of the organization work cohesively.
Promoting synergy across departments is about more than just cross-training. It is about creating an environment where collaboration is the norm, not the exception.
Tools like Trello or Slack can facilitate communication across teams, while regular inter-departmental meetings can foster a sense of unity and shared purpose. It is not only about making everyone do everything but about maximizing the collective skill set.
Consider a company launching a new product. The marketing team, equipped with insights from the sales team (thanks to regular inter-departmental catch-ups), crafts a compelling advertising campaign. Simultaneously, having collaborated with customer service, the product team ensures that common customer queries are preemptively addressed in the product’s FAQ section.
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