Multi-functional shared services involves functions sharing a management team, technologies, and service delivery locations. They typically fall under the responsibility of a manager with strong ties to the functions for the design of processes, service scope and service standards.
The transition from corporate shared services to a multi-functional approach can reduce costs. Cost reduction is achieved by consolidating management roles and/or locations. A common area of cost reduction is in service delivery, thanks to an increase in efficiency and consequent reduction of personnel. The cascade effect propagates throughout the organization with a contraction in demand for tools and assets such as office space and telecommunications with the cost managed between the functions using them.
Challenging economic conditions are driving an increase in multifunction shared services models as a means to achieve greater efficiency. Globally, there are now more multifunction shared services organizations than single-function ones. As one of the few consulting firms assisting companies since the inception of the shared services concept, ScottMadden does not just monitor trends: we create and influence shared services trends.
We are moving shared services to the next generation—integrating finance, human resources, information technology, supply chain, and/or other business administrative services into a single, high-performance multifunction shared services operation. And from lower costs and reduced overhead to cross-functional continuous improvement to optimized vendor relationships, our clients are finding plenty of advantages to this approach.
Our experienced consultants can help you with strategic planning, design, implementation, and improvement, using their deep functional expertise. Throughout the process, we will work with you step-by-step to ensure your project’s success.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.