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Implementing a Shared Services I.T. Model As companies acquire other companies and lines of business, they almost always inherent redundant functions (i.e. Human Resources, Accounting, Finance, and Technology). Common sense dictates that consolidating like functions that are operating autonomously in each line of business into a single Shared Services Organization is smart. The thought being that as the consolidation eliminates redundant functions it will naturally lead to lower operating expense. However, many times, challenging ramifications of the consolidation are overlooked. In this article, I will focus on the challenges surrounding implementing a Shared Services Technology Model. The successful implementation of a Shared Services I.T. Model is full of obstacles. However, if implemented properly the benefits are many. On the surface, one (especially those with little experience in technology- i.e. business leaders) would believe that it should be relatively simple to implement a Shared Services I.T. Model and gain all of the efficiencies almost immediately. After all, networks are networks, help desks are help desks, application development is application development, etc. We know that this is not the case, but even leaders that understand this often are quick to overlook the obstacles to success and just have their eye on the prize- saving dollars. It is possible and wise to consolidate the I.T. Functions that are occurring in each division/line of business into a single shared services model. You just need to be aware of and prepared to address the challenges that are created. I have created a list of 25 questions that should be answered prior to implementing a Shared I.T. Service Model. Keep in mind that this is not an all inclusive list, but answering these questions should enable you to anticipate and proactively address most of the challenges that may arise as a result of the implementation. Functions of each I.T. area 1. What specific functions does each autonomous I.T. department perform? 2. Which of those functions need to continue? 3. How will each of the functions identified in question 2 continue? 4. Is there institutional knowledge that needs to be transferred? And from who to whom? 5. What infrastructure is in place for each Line of Business? 6. How will infrastructure be integrated/eliminated to accommodate the Shared I.T. Service Model? 7. What existing contractual obligations exist in each line of business? Cultural Issues 8. How does technology enable that line of business? 9. What is the perception of I.T. in each Line of Business? 10. What is the culture within each line of business? 11. How will the Shared Services Concept mesh with the existing culture? 12. What is the marketing plan to prepare and gain the support of each line of business’ client community for the Shared I.T. Services implementation? Existing Service Level within each Line of Business 13. What is the current Service Level received by each line of business? 14. Is there a need to sustain/improve existing service levels? 15. What changes regarding Service Level need to occur? Financials and Governance 16. How will I.T. funding occur in a Shared I.T. Service Model? 17. What is the basis for charging each line of business for I.T. Shared Services? 18. What is the proposed project prioritization process for the Shared I.T. Services environment? 19. How will the projected benefits for each project be validated? 20. How will conflicts regarding the use of the Shared I.T. Resources within each line of business be addressed? Talent 21. How will the existing talent in each I.T. Organization be utilized? 22. What criteria will be used for determining how redundant resources will be eliminated (i.e. what stays and what goes)? 23. Is there a potential for disenfranchised employees as a result of the implementation? If so, how will it be addressed? 24. Is the top talent in each autonomous organization identified? 25. What is the plan to retain top talent throughout the implementation process? The following links provide further information regarding the case for implementing a Shared Services I.T. Model. http://www.oracle.com/global/uk/sharedservices/ss_10.html http://www.bridgestrategy.com/topics/optimizing_shared_it_services |