Part 1: Introduction

This is the first in Forum Solutions’ four-part series: A Best Practice Framework for Launching an Enterprise Shared Service (ESS).

Enterprise Shared Service (ESS) departments are functions not located locally within a business unit but established a level at or below the C-suite to enable global effectiveness. Common examples of ESS include human resources, marketing, and finance. Specialized ESS examples include functions with a more limited scope and are designed to function as focused teams for quick and powerful interventions. Examples include internal audit, operational excellence, and corporate development. During the heyday of outsourcing & offshoring in the early 2000s, many of these types of functions and associated business processes were commonly outsourced to 3rd parties to manage. Organizations concluded that these arrangements, on the whole, did not realize the outsourcing benefit: quality and control over cost. There is now a course correcting trend to insource many of these specialized teams.

A 2021 survey by Deloitte confirmed that firms are planning to insource specialized functions such as Robotic Process Automation (RPA, 89%) and Process Excellence (PE, 83%) in the next year by establishing (or having established) shared service departments.[1] Rather than relying on outside vendors to navigate and transform their organizations effectively, we expect the trend to create in-house specialized internal ESS functions increasing. In addition to RPA & PE, we also see the development of internal consulting teams, portfolio (vs. project) management, business development, and organizational effectiveness ESS teams as areas of value to explore.

There will always be a need for high functioning organizations to effectively support highly visible, high impact initiatives and processes. Rather than relying on outside organizations to provide unsustainable on-going support, an effective solution is to create centralized highly effective ESS focused teams that can work across traditional departmental silos. ESS department cost justification is often net positive, and uses a very basic framework: does the increased benefit cover the incremental headcount and equipment? Some example ESS value propositions:

RPA: Use of technology to automate processes and reduce incremental headcount needs
PE: Lean/Six Sigma application to existing processes to reduce unnecessary costs
Business Development: Structuring better deal terms that reduce risk exposure and increase enterprise benefits
Portfolio Management: Increased enterprise revenue generation and cost savings through more predictable strategy development, governance, deployment, and monitoring

The case for developing an internal ESS is compelling, but how exactly does one go about doing so?

Figure 1 High level ESS development framework

Forum Solutions’ four-part series: A Best Practice Framework for Launching an Enterprise Shared Service can help you consider the approach and resources required in launching an effective and sustainable ESS that delivers on its mission:

Forum Solutions is a management consulting company dedicated to crafting and delivering transformational outcomes for our clients, our colleagues, and our community. With our help, clients become more agile, resilient, and connected, bringing great ideas to fruition with brilliant results. From start-ups to the Fortune 50, business leaders rely on Forum Solutions to help them form and realize their strategies. Our company is a certified Woman Owned Business that believes in developing and growing our colleagues, company, and region in a socially conscious way.

[1] 2021 Global Shared Services & Outsourcing Survey Report, Deloitte. https://www2.deloitte.com/nl/nl/pages/enterprise-technology-and-performance/articles/2021-global-shared-services-survey-report.html

A Best Practice Framework for Launching an Enterprise Shared Service (ESS): Part 1 of 4

A Best Practice Framework for Launching an Enterprise Shared Service (ESS): Part 2 of 4

Forum Solutions Welcomes Michelle Godwin