Marcell Vollmer (F&A) and Johannes Mayer (HR)
Shared Services are a consolidation of functions, processes and resources, which were previously spread across business units or legal entities, into a strategic platform, to provide defined services to internal or external customers with a specified quality for a competitive price. Shared Services are highly effective by consolidation of IT systems and redesign of business processes into major service centers. Most of the companies see 4 reasons for building an SSC:
Standardization of business processes is a prerequisite to increase the effectiveness and efficiency of a Shared Service Organization (SSO) with a high level of automation. The more homogeneous these processes are in an SSC, the more they can be automized, and thus, made efficient in time, quality, and cost.
The SSC strategy has been derived from SAP's mission to become a world-class unit, which delivers internally high-quality, value-adding business support and acts as a voice of conscience focusing on compliance issues, risk management and good Corporate Governance. Additionally, it demonstrates best practices in the usage of processes and systems. There are transactional finance and billing processes in scope for the SSC. In Human Resource the HR Shared Service Center is consolidating back-office processes with the objective to free up capacity for more higher value and customer facing HR work. Transactional processes contain a multitude of repetitive activities that can be standardized and automated. The less the required know-how for executing the selected processes is, the easier it is to set-up the migration plan and to structure the SSC organization.
SAP's organizational finance and HR SSO model is process oriented with a geographical sub-level where needed. SAP's organizational finance SSO model is process oriented with a geographical sub-level. The same structure has been chosen for quality management which includes training, communication and other projects as well.
The capabilities of application software are critical for reaping the full benefit of a Shared Service Center. A set of systems and applications is required that ensure maximum automation of transactions, workflows, communication with all process constituents and exchange of data with the backend systems.
The project management for implementing a SSC can be structured in five phases.
To perform a plan and a complex SSC change project effectively a senior and experienced project management team is needed. All phases of the project need to be planned, detailed and aligned between parallel ongoing workstreams. For the realization of the change process and its implementation a broad toolset and methodology have to be developed.
The following Finance link describes the best practise finance processes (AP, AR, GA) for a Shared Service organisation according to SAP.
The following link describes in details the best practise billing processes in a Shared Service oganisation according to SAP. Billing Processes are EB, CB incl. STA and SB and specificly customized for SAP. The described standard is the best practise process for SAP.
HR processes have been redesigned and implemented with the following guiding principle
Once a location has been determined, a legal framework has to be set up. The service management framework is the contractual agreement
Best Practise Billing Processes in Shared Services
Best Practise Finance Processes in Shared Services
Best Practise HR Processes in Shared Services
Copy of Best Practise HR Processes in Shared Services
Links and Blogs
Project phases SAP SSC
SAP Finance Shared Service Center Organization
SAP HR Service Center Organization
Service Management Framework (SMF)
Strategy, Feasibility and Planning