Deloitte Shared Services Conference 2018Decision support lab: practical steps to establish centralised decision support capabilitiesCharlie Wanbon, Hannah Parrott and Chris Rees, Deloitte
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 2
Your presenters for today’s session
Introducing the team
Charlie Wanbon
Director
Hannah Parrott
Senior Manager
Chris Rees
Manager
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 3
What we would like to cover with you today
Agenda
Topic Content
1. Introduction
• Why many organisations are setting up a centralised Decision Support capability today
• What we mean by “Decision Support”
• Where are you in your Decision Support journey?
2. Why Decision Support is an opportunity for SSC/GBS leaders
• What SSC/GBS have in common with a centralised Decision Support capability
• Case studies that we will be drawing on throughout the day
3. Key building blocks • Key building blocks to establish effective decision support
4. Practical next steps
• The key steps to establish a centralised decision support capability
• Specific considerations worth highlighting for Decision Support
• Additional lessons learned
5. Over to you: Questions, thoughts? • Exchanging questions, experiences and learnings with us and your peers
Decision Support: “Provision of information, insights and analytics to aid decision-making. A successful decision support capability will
improve the speed, focus and outcome of business decisions.”
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Introduction
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We are keen to get your insights as input into this session
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 6
The business is asking for…
Rapid and forward-looking insight
Several factors are leading businesses to demand more decision support
Why many organisations are setting up a centralised Decision Support capability today
Support with larger
quantities of dataGreater data quality & trust
Consistency & comparability of
information for group, regions
and countries
Support from functions to deliver
additional efficiencies & fund the
business growth agenda
Freeing up Business Partners’ time
to drive more value
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 7
We see clients adopting different definitions based on their specific objectives. The below shows common Transactional, Decision Support and Business Partnering activities.
What we mean by “Decision Support”
TransactionalDecision Support
Business PartneringBasic analysis and commentary Insight
Exam
ple
servic
es
Routine transactions e.g. journal postings, payroll, completion of references
Standard report production and distribution
Data reconciliation and rules-based maintenance of data
Basic analysis e.g. variances between actual, forecasted and budgeted performance
Writing basic performance commentary e.g. on monthly performance results vs. forecast, workforce measures and KPIs
Ad-hoc report production
Data and information governance
Detailed analysis e.g. gross margin, price volume mix analysis, HR lifecycle analysis
Decision support focused analytics e.g. pricing, business cases, strategic workforce planning
Generating forward-looking insights e.g. using external, non-financial data
Advising the business, by analysing insights not running reports
Influencing decision-making through engagement, communication and negotiation skills
Transactional activities Knowledge-based activities
Decision Support may include two different “types” of activities – one of which is often closer to
existing Shared Services/GBS activities than the other.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 8
Are you currently exploring, have you started, are you implementing or live?
Where are you in your Decision Support journey?
1. Haven’t started thinking about our Decision Support journey yete.g. today is the first time I’m thinking about this topic
2. Am looking into ite.g. have implemented a Shared Services / GBS capability and am now exploring the idea of establishing a Decision Support capability also
5. Have a Decision Support capability in placee.g. have implemented a Decision Support capability and am thinking about what the next wave of improvements could look like
4. Currently implementing our Decision Support capabilitye.g. am currently in the middle of setting up a dedicated capability to focus on Decision Support activities
3. Currently defining the vision and design, or planning the implementation of our Decision Support capabilitye.g. have started the journey, and am currently in the process of agreeing the vision and key design principles with my sponsors and stakeholders
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Why Decision Support is an opportunity for SSC / GBS leaders
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Today few Decision Support capabilities are owned by SSC / GBS. We think this represents an opportunity for leaders of these organisations.
What SSC / GBS have in common with a centralised Decision Support capability
Decision Support
capability
Transactional Shared
Service Centres / GBS
• Significant focus on process knowledge
• Ability to create outputs using facts
• Driving reporting & integrity of internal data
• Knowledge of core systems (e.g. ERP)
• Customer focus
• Quality
• Consistency
• Domain expertise
• Efficiency of processes
• Automation
• Continuous improvement & innovation
• Significant focus on business knowledge
• Ability to deal with ambiguity
• Drawing insights using both internal and external data
• Ability to work seamlessly across Business Intelligence (BI) applications
To establish a successful Decision Support capability will require Shared Services / GBS teams
to both build on existing strengths as well as develop new capabilities.
11© 2018 Deloitte MCS Limited. All rights reserved Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities
Key building blocks
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We will now discuss some of the key considerations for each of the following six building blocks.
Key building blocks to establish effective decision support
• What ways of
working do you
need to have
seamless
interactions within
the DS capability
and with customers?
• How will teams
collaborate and
share knowledge?
• What are the talent
requirements and
where is it beneficial
to recruit from
within?
• Why should internal
or external talent
pick your DS
capability?
• How will you
develop and retain
the team?
• Which existing
technologies should
be leveraged or
improved to benefit
the DS capability
given the
opportunity?
• Are any new
technologies critical
to DS capability
success?
• What processes is it
beneficial that the
DS capability owns,
and which should it
not?
• In which topics will
the DS capability
establish expertise
and be known for
innovation?
Organisation
Services,
customers &
location
Ways of
working
Processes Information &
technology
People
• What services will
your decision
support capability
provide?
• Who are direct /
indirect customers?
What are their
expectations?
• Which location(s)
offers best cost,
coverage, talent?
• What are the core
organisational
capabilities and
focus areas
therefore how will
the team be
structured?
• What grade depth
and span of control
is right?
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 13
What services will your decision support capability provide? Who are direct / indirect customers? What are their expectations? Which location(s) offers best cost, coverage, talent?
Services, customers & location
Customers
Services
• Basic analysis and performance commentary
• Ad-hoc report production
• Data and information governance
• Detailed analysis e.g. gross margin, price volume mix analysis, across the HR lifecycle
• Decision support focused analytics e.g. pricing, business cases, strategic workforce planning
• Forward-looking insights e.g. using external, non-financial data
Location considerations
• Language, time zone and proximity requirements
• Cost vs. talent availability
• 1 Global Hub, a few Regional Hubs or Hub & Spoke
• Existing location or new location with a full location assessment?
Customer considerations
• Within Function (e.g. Finance-to-Finance) or Function-to-Business (e.g. Finance-to-Business)
• If Function-to-Business how will the Decision Support capability build business knowledge?
• What are the customer expectations?
The extent to which a Decision Support capability is able to deliver highly knowledge-based
services also depends on factors such as location and proximity to customers.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 14
Processes
What processes is it beneficial that the DS capability owns, and which should it not? In which topics will the DS capability establish expertise and be known for innovation?
Expertise & innovationOwnership & governance
• Coordination role only vs. taking on full ownership
• Particularly if you are covering several business units, geographies, etc.
• Collecting and sharing “the best way of doing things”
• For example: Specific DS activities or discovering and adopting new technologies
Given its knowledge and proximity to the business, a decision support capability is uniquely
placed to coordinate or own processes that are close to the business and share best practices.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 15
Which existing technologies should be leveraged or improved to benefit the DS capability given the opportunity? Are any new technologies critical to DS capability success?
Information & technology
• Existing technology more fully utilised
• Can help eliminate issues / effort to set CoE up for success
• Familiar to customers yet a step change
New technology may not be key to success, but using existing tech to its fullest can streamline
activities to enable the DS capability from day one – either way careful change planning is needed.
• New technology may underpin DS objectives
• Process / tech ownership in DS capability
• Potential for new team to implement or test
NewExisting
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 16
What are the core organisational capabilities and focus areas therefore how will the team be structured? What grade depth and span of control is right?
Organisation
Process / activity• Management reporting, planning,
budgeting & forecasting, pricing
…your primary objective is efficiency and expertise. …the effort of these activities is consistent over time and there are few
significant peaks and troughs e.g. within a particular day or month.
Geography• Europe, Americas, Asia, Africa,
Australasia …knowledge specific to a particular geography, timezones and / or language
requirements are a priority.
Business organisation• Business unit 1, Business unit 2 or• Europe, Americas, Asia, Africa,
Australasia
…knowledge specific to a particular business organisation (across processes and activities) is most important.
A combination of the above
• Grouping of business units combined with specific types of activities
…if the range of services that you will be delivering have differing requirements in line with the above
Options Example team structures Consider this option if…
Multiple configurations exist. Defining your primary points of contact in the business will help you
communicate the role of your teams. We see DS capabilities with team members ranging from graduates to
experienced leaders and spans of control of circa eight.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 17
What are the talent requirements and where is it beneficial to recruit from within? Why should internal or external talent pick your DS capability? How will you develop and retain the team?
People
Onboarding programme Team identity Career pathways
• Employee value proposition
• Culture and mission
• Organisational and business knowledge key
• Balance training with “getting on with it”
• Clear development path, whatever that means for you
• Cross functional or business
Thoughtful employee value proposition and training is critical to early set-up. Follow up with
ongoing talent interventions to develop teams’ careers throughout the organisation.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 18
What ways of working do you need to have seamless interactions within the DS capability and with customers? How will teams collaborate and share knowledge?
Ways of working
Collaboration toolInteraction model
• Defining key hand-offs
• Designated points of contact
• Working hours
• Connecting teams when working virtually
• Sharing “the best way of doing things”
Relationships are key for successfully centralising decision support activities. The defined ways of
working should look to build, facilitate and develop these relationships.
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 19
Interaction model animation
Ways of working
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Practical next steps
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 21
While the steps to centralising activities are the same as for traditional SSC / GBS implementations, there are specific considerations worth highlighting for Decision Support
The key steps to establish a centralised decision support capability
6. Steady state and transformation
4. Knowledge and capability build
5. Cutover and stabilisation
2. Design and implementation
planning
3. Detailed due diligence
1. Sponsorship and vision
Control gate 3: Ready for knowledge and capability build
Control gate 4: Go-live
Control gate 5:Handover to
“business as usual”
Control gate 2: Go / no go
implementation decision
Control gate 1: Sponsorship and vision confirmed
Implement ImproveDesign
Recognise the differences between establishing knowledge-based vs. transactional activities and incorporate these into your implementation approach
Consider what else is going on in the business, and assess if you can help enable a business change by adapting your timelines accordingly
Given that you will be delivering a service that is crucial to the business and your stakeholders, decide whether to test your design and approach via a pilot or go “big bang” or with large waves
It is human nature to try and fix things; consider the advantages and disadvantages of fixing processes and technology before vs. after your implementation
Deloitte Shared Services Conference 2018 – Decision support lab: practical steps to establish centralised decision support capabilities© 2018 Deloitte MCS Limited. All rights reserved 22
A number of additional considerations relevant to organisational change initiatives
Additional lessons learned
Understand the impact that your available design options will have on timelines
Involve your end state sponsors and adoption champions from the very beginning to get them on board and help them feel accountable
Clearly define and communicate your case for change to get the required momentum behind your initiative and inform your design decisions
Tightly manage changes in scope to stay focused on your immediate objectives
Make change management and communications a priority rather than an afterthought
Make sure you get dedicated HR and Technology support as this will be critical to your success
Ensure the impact on roles left in the business is considered
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Over to you: questions, thoughts?
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