Embracing Change: The Power of the GBS Model

As summer draws to a close, it’s an ideal time to reflect on the changes and opportunities that lie ahead. Just as the seasons transition, businesses must also adapt and evolve to remain competitive. The SSON Research & Analytics Global Business Services (GBS) Model offers a comprehensive framework designed to help organizations navigate our changing landscape. At its core, this model emphasizes value creation, supported by three critical levers: customer focus, resilience, and innovation. Let’s explore how these key themes can transform your business.

Value at the Core

The heart of the GBS Model is value creation. This extends beyond mere cost savings to delivering tangible benefits that drive business growth and enhance customer satisfaction. By prioritizing value, organizations ensure that every decision and action aligns with their overarching goals.

Strategies for Success:

• Align GBS Strategy with Business Objectives: Ensure that your GBS initiatives are not only operationally efficient but also strategically relevant. Leading GBS teams are moving beyond transactional processes to offer highly business-relevant services, often on a "pay as you use" basis, increasing their attractiveness and competitiveness.
• Measure Impact Effectively: Regularly assess the outcomes of your GBS initiatives against key performance indicators. Transition from traditional Service Level Agreement (SLAs) or KPI-based scoring to joint ownership and accountability for business outcomes. Incorporate partner review scores and mutual feedback to further enhance effectiveness.
• Continuous Improvement: Foster a culture that consistently seeks to refine and enhance GBS operations. Develop business-specific services based on clear organizational needs rather than top-down mandates. This approach builds trust and opens up new opportunities over time.

Assess Your Progress. How far along are you in evolving toward a "value-add" model? Take our complimentary benchmark to assess the health of your GBS model.

Customer Focus

In any service organization, the customer is central. Maintaining a strong customer focus is essential for the sustainability of the GBS model. Losing sight of customer needs can lead to model failure and stakeholders seeking alternatives.

Strategies for Success:

• Understand Evolving Customer Needs: Engage with customers regularly to grasp their changing needs and expectations. Tailor services to be both relevant and valuable to them.
• Deliver Exceptional Service Consistently: Provide high-quality services that build trust and foster long-term relationships. This consistency ensures continued support and engagement.
• Gather and Act on Feedback: Implement effective mechanisms to collect customer feedback and respond promptly. Demonstrating that customer opinions are valued leads to ongoing service improvement. For instance, many GBS organizations use the Net Promoter Score (NPS) to measure satisfaction. According to the Top 20 Most Admired SSOs Study 2023, 38% of Shared Services Centers (SSCs) have an eNPS between 80 and 90, indicating high levels of customer satisfaction.

Resilience

In a world of constant change and unexpected crises, resilience is vital for any operating model, especially in the services sector. A resilient GBS model can adapt and absorb both internal and external shocks, maintaining stability and continuity.

Strategies for Success:

• Build Flexible Processes: Design adaptable processes that can quickly respond to changing circumstances, enabling the organization to handle unforeseen challenges effectively.
• Invest in Proactive Risk Management: Develop comprehensive risk management strategies to identify, assess, and mitigate potential risks, ensuring sustained operational stability.
• Foster a Resilient Organizational Culture: Train employees to be adaptable and resourceful in the face of challenges. Encourage a culture that embraces resilience and continuous learning.

Insights from Recent Studies: Our latest GBS Disruption Study reveals that while SSOs/GBS exhibit strong processes and feel minimally disrupted, the broader ecosystem tells a different story. Approximately 70% of SSO/GBS report being only slightly disrupted, showcasing operational resilience.

The Disruptive Decade Ahead: What Threatens GBS's Survival (SSON Research & Analytics)

However, partners such as BPO and Tech providers feel the impact of disruption more acutely, with 56% of tech providers and 63% of BPO providers experiencing significant disruption. These findings underscore the importance of building resilience across the entire operational ecosystem.

Innovation

Innovation is the driving force that enables the GBS model to continuously evolve and improve. It fosters best practice adoption, waste reduction, and the realization of quick wins. Innovation often involves applying existing concepts in new ways to enhance GBS operations.

Strategies for Success:

• Encourage Creative Thinking: Promote a culture where employees are empowered to think creatively and propose innovative solutions, leading to improved ways of working.
• Leverage Advanced Technology: Utilize cutting-edge technologies to drive innovation. Adopting digital tools and platforms enhances efficiency and service delivery.
• Implement Continuous Improvement Programs: Establish dedicated programs focused on ongoing improvement and innovation, ensuring the organization consistently seeks ways to enhance operations and deliver greater value.
   

Reinforcing the GBS Model

The GBS model is a practical, multi-dimensional approach that integrates key elements such as strategy alignment, service management, human capital, and technology. These dimensions interconnect to form a cohesive strategy that drives business transformation through value creation, customer focus, resilience, and innovation.

Where Do We Go From Here?

Expanding Beyond Traditional Roles

Leading GBS teams are extending beyond traditional transactional processes in Finance, HR, Procurement, and IT, moving into middle and front-office roles. This evolution includes the development of internal consulting teams to offer specialized services tailored to the organization's unique needs.

Nurturing Talent

Successful GBS organizations recognize that nurturing talent is crucial for maintaining a competitive edge. By providing career progression opportunities and attracting top talent across the organization, GBS teams enhance their capabilities and contribute significantly to the broader enterprise. A culture of continuous learning and development ensures that teams stay at the forefront of innovation and operational excellence.

Digital Transformation with a Human Touch

The future of GBS is undeniably digital, but it must retain a human touch. Leading teams focus on creating a digitally native workforce through extensive training and development. This ensures that technology serves to enhance human capabilities, allowing GBS organizations to deliver more efficient and effective services while maintaining personalized interactions.

The SSON Research & Analytics GBS Model provides a robust and adaptable framework that supports continuous improvement and strategic alignment. By focusing on customer centricity, resilience, and innovation, your organization can confidently navigate today's complex market landscape and achieve sustainable success.

Let's Connect: Interested in transforming your business through the GBS model? Our GBS Advisory Services offer practical guidance and real-world applications to help you accelerate improvements. With a team of experienced and influential advisors, we can help you address challenges in career pathing, operating model assessment, process optimization, Center of Excellence (CoE) establishment, BPO optimization, AI/GAI business case development, and other shared services-related matters.

Until next time!

Naomi Secor, Global Managing Director, SSON Research & Analytics