Methodology:SharedServicesOverviewTheSharedServiceMethodologyisdesignedtoguideconsultantsthroughthekeyprocessesinqualifying,designingandimplementingsharedservices.SharedServicesareindependentbusinessunitsthatprovideconsolidatedservicestoseveralotherbusinessunits.TheSharedServicesCenterprovidesincreasedserviceatareducedcostthroughfocusingoninternalcustomersandservicelevelagreements.Theobjectivesofthismethodologyare:-Provideguidanceinqualifyingapotentialsharedservicesproject-Provideinformationforsellingasharedserviceengagement-ProvideframeworkforperformingSharedServiceengagements-ProvidetoolstosupporteachphaseinaSharedServiceengagementQuestions1.Seediagnostictoolforideasonquestionsandqualifyingacompanyforsharedservices.HintsSharedServicescanbethefocusofanengagementortheorganizationalapproachidentifiedtoeffectivelyimplementreengineeredprocessesornewsystems.-Typicalfunctionswhichcanbenefitfromsharedservicesincludeprocessinghighvolumeroutinetransactions,relianceonspecializedskills,andaccesstocompany-wideinformation-SharedServicesare:independentorganizationalentities(Centers)withtheirowndedicatedresourcesprovidersofwell-definedservicestomorethanoneunitofacorporation(e.g.division,businessunit)responsibleformanagingtheircosts,quality,andtimelinessofservicesoftencontractuallyobligatedtotheir(internal)customersintegratedwithcustomersthroughcommunicationstechnologytoovercomebeingremotefromthebusinessunitsbeingserved-OutsourcingisafurtherextensionoftheSharedServicesconceptwhereathirdpartyvendorprovidestheservice.Inoutsourcing,multiplecompaniesmayusethesamevendor.SeetheContractServicessectiononAAOnLineandtheOutsourcingMethodologyontheAAKnowledgeSpaceforadditionalinformation.KeycontactsforContractServicesare:RonStrattonandDennisTorkkoinChicago-ThreekeycomponentsofdevelopingaSharedServicesCenterareconsolidation,standardization,andreengineering.(SeeMethodologyPresentationviadownload)Thismethodologyapproachestheprocesswithconsolidationandstandardizationfirstandreengineering(OptimizePhase)last.Althoughconsolidationisdescribedinthisprocessasthefirststep,therearecomponentsofallthreeineveryprojectandtheamountofstandardizationandreengineeringdoneduringorbeforeconsolidationwillvary.IssuesLackofavisibleleadershipbytopmanagementandinadequatefunding-Clientswhoviewsharedservicesasstrictlycentralizationwillnotrecognizetheseparate“business”viewofanentrepreneurialorganization.-Clientmayfeelthateachdivision/businessunit/companyistoodifferentfromeachothertoeffectivelysharesupportservices-Clientlacksunderstandingofthebaselinecosts.Thismayaffectthemotivationforchange,i.e.,“noburningplatform”andperformanceoftheSharedServiceCentermaybeconstrainedwithoutabaselinetomeasureagainst.(Note:ThiswillneedtobeaddressedintheOpportunityAssessmentPhase.)-Needexecutivesupportacrossorganizationnotjuste.g.,Finance,especiallytheoperatingunitheadsthatwillbeaffected.-Mostsharedservicesrequiresomedegreeoftechnologyinvestmentstoachievecostandservicebenefits,Theclientmaybeunwillingtoinstalltheinfrastructureneeded.OtherFirstOtherCategoryOverlayingallofthephasesandstepsintheSharedServicesMethodologyaretheManagetheProcessandEnableChangePhasesfromBC’sConsultingProcessFramework.SecondOtherCategoryTheSharedServicesapproachshouldbecustomizedafterreviewingotherBCmethodologies,particularlytheOpportunityAssessment,Outsour...