5. Challenge: Aligning Shared Services with Business Objectives

One of the critical challenges is ensuring that the shared services center aligns with the broader business objectives. If shared services are seen as purely a cost-cutting measure, they may fail to deliver strategic value.

Solution: Strong Governance and Strategic Alignment

• Establish Governance Structures: Create a governance framework that aligns the shared services center with the organization’s strategic goals. This includes setting up a steering committee with representatives from key business units and leadership teams to ensure alignment.
• Link Shared Services to Business Outcomes: Shift the focus from cost reduction to value creation. Identify how shared services can contribute to broader business outcomes, such as faster time-to-market, improved customer experience, or innovation.
• Regular Reviews and Adjustments: Conduct regular reviews to assess how well the shared services center is meeting business objectives. Be prepared to adjust the model as business needs evolve.

Case Example: A consumer goods company aligned its shared services center with its overall strategy of enhancing customer experience. By integrating customer service functions into the shared services model and regularly reviewing performance, they improved customer satisfaction while achieving cost efficiencies.