It is not easy to change your mind in any industry. Any type of restructure carries the risk for failure if not managed properly. It is easy to get carried away with a poorly executed business strategy, rather than risking upheaval and creating a new one that doesn’t work. For more information you can click here.
Because of the many uncertainties involved, and because every company’s situation is different, it can be challenging to make a business argument for major human resource changes. You may find that what works at one place may not work at another. It is usually a good idea for the project to start with examining the possibility of making efficiency savings via shared services. This will allow for resources to be freed up for other stages.
The idea behind shared services is that they should produce both cost efficiency and practical efficiencies. Shared services will eliminate duplicate work, redundant bureaucracy, undues and possibly introduce economies of scale. Each department of the organisation may possess its own knowledge and expertise. However, when a chain is in place that leads to more generic work, it is often possible for this work to be done more efficiently using fewer people.
This will make the process more efficient. For example, automating or outsourcing certain tasks is a must. Also, it’s necessary to re-negotiated or replace contracts with suppliers in order to provide the highest value. Finally, eliminating any obstacles that could hinder the delivery of customers’ services.
Preparations must be made for this important, but not easy undertaking.
A successful transition to shared services, and to a fully integrated operation, must invariably create confidence and give the organization the ability to undergo a more thorough overhaul of both its structure and its practices. The end result is a more modern, efficient and economically viable operation that is more ready to compete in the modern market.