Getting More Value from Shared Services

Abstract: Most large organizations are moving their central services functions to shared services centers. However, while the economies of scale can look compelling there are many hidden traps lying in wait. Unless these changes are accompanied by a real service culture then internal customers (i.e., business units) are likely to resist them and the full potential of these shared services centers (e.g., higher quality processes and lower costs) will be lost. This paper examines these issues and how some organizations have moved from top-down allocations to internal markets that enable operating teams to draw down central services when they need them.