Challenges and Solutions in Corporate Shared Services

Implementing a corporate shared services model offers significant advantages, such as cost savings, process standardization, and enhanced efficiency. However, the journey to realizing these benefits is often fraught with challenges. Understanding these obstacles and proactively addressing them is crucial for the successful deployment and operation of shared services. Below is a detailed examination of the common challenges faced by organizations implementing corporate shared services, along with practical solutions to overcome them.

1. Challenge: Integration Issues Across Business Units

When organizations consolidate services from multiple business units into a single shared services center, integration challenges are almost inevitable. These challenges may stem from differences in processes, systems, and organizational cultures across business units.

Solution: Standardization and Flexibility

• Standardize Processes: One of the key goals of shared services is to standardize processes across the organization. Establish clear guidelines and standard operating procedures (SOPs) to ensure consistency in service delivery. This reduces complexity and makes integration smoother.
• Flexible Approach: While standardization is important, there must be flexibility to accommodate the unique needs of different business units. A one-size-fits-all approach may not work for every function. A hybrid model, which combines centralized and decentralized elements, can be a good solution. This allows for some customization while maintaining overall standardization.

Case Example: When we took over their services, a global manufacturing company was facing integration issues due to different ERP systems across its regional units. By adopting a phased approach to system integration and creating cross-functional teams, we were able to standardize their processes while maintaining regional flexibility. Our strategic approach ensured a smooth transition and minimized disruption to their operations, ultimately enhancing efficiency and cohesion across all business units.