Finance and shared services centre: can it work?

To derive maximum value from shared services, leaders of finance departments should be committed and engaged. Their commitment is vital to ensure deployment of a shared services unit will lead to the desired cost optimisation.

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Objections to shared services include loss of jobs, loss of control over key processes, and the risk of loss of information. However, such concerns can be mitigated if finance managers collaborate with leaders of the shared services unit.

The cfo.com website cites the results of research by Gartner, a leading research and advisory company. Based on this, it may be stated that finance officials need to be active partners for shared services if the cooperation is to produce the desired savings.

Communication is crucial

Shared services leaders need to make sure they know how to communicate with clients in order to increase their commitment. The key to this is communicating openly and objectively. The overall impact of switching to shared services should be described honestly with no sugar-coating. If customers understand the overall impact and also what can happen, they will be much more willing to continue using shared services.

If things aren’t working well, the consequences will be costly

When cooperation and active communication are absent, there is more service disruption, more complaints and more delays in implementing new services from the centralised services unit.

What causes these extra costs? Indifferent finance managers who are convinced that the benefits of having some finance work outsourced do not outweigh the drawbacks.

Sometimes they also think the shared services unit does not understand finance operations and thus the necessary quality will not be provided.

-jk-

Article source CFO.com - US website for financial managers
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