Many organizations are embracing the business upside in streamlining accounts payable operations and moving to a shared service model to improve financial performance and boost the bottom line. But all too often they struggle with attaining this shared services nirvana.
PayStream Advisors has outlined five key steps to engineer shared services success:
- First gain executive buy-in. A shared services initiative is ultimately dependent on the agreement and enthusiasm of an organization’s C-suite and other executive members.
- Get everyone involved. The project’s continued success and forward momentum is dependent on the cooperation and collaboration of all key stakeholders in an organization.
- Establish a change management team. As soon as an organization has gained executive approval to begin a shared services initiative, a change management team should be established.
- Upgrade processes to get the most value from the move to shared services. The value of shared services is often lost when it is used to consolidate dysfunctional departments and broken processes. The move to shared services is a great opportunity to upgrade procure-to-pay processes from outclassed to best-in-class. Organizations must improve the current state of back-office operations as much as possible before creating a synchronized environment.
- Create a constructive foundation for change. Making hasty, forceful changes can backfire. Adopting a more moderate approach focused on changing current methodologies for greater efficiency and adjusting employee interactions over time can be more effective.
For more tips on how you can succeed in transforming your finance department to help meet the demand for expedited financial and resource efficiency and the need to manage ever-increasing transaction volume, check out Inspyrus CEO Nilay Banker’s article on Shared Services and Finance Transformation.