Travel and Expense
Four things to do when you centralize shared services
If you have operations across the globe, you likely have multiple regions, countries, business units and teams each managing multiple aspects of their finance functions. You've also likely considered, or have already moved to, a shared services model to centralize those efforts, eliminate redundancies and put resources to better use. You may know what shared services can do, in other words, but do you know where they can take you?
Many global companies already use some form of shared services to manage their finance operations
Shared services organizations provide a high level of precision and efficiency to business processes offering the organization better control. But there are more benefits beyond just time and cost savings, like the ability to capture data and strategically plan around those insights.
According to a McKinsey study on shared services “By incorporating automation, virtualization, advanced analytics, and other digital technologies into their operations, shared-services organizations may be able to streamline processes,” and achieve up to “50 percent increases in efficiency in some back-office functions.”
Shared services bring rich financial data to the table, giving a sharper and wider lens with which to view the business. Businesses using Concur today, coupled with a global shared services model, are seeing benefits like efficiency, compliance, visibility and control.
If you’ve already automated travel and expense management, you’ve seen the added value of time, savings and visibility. Incorporating T&E into a shared services model and using it consistently around the globe can bring these benefits to the next level.
So, how do you make a global shared services model work for you? And if your organization has already made this move, how do you take your program to the next level by going beyond automation to completely connected spend management? Take these four steps:
- Centralize your processes
While it’s ideal to have common policies in place when you start centralizing spending processes, it may not be reality. Don’t hold up the centralization while you get these established. Start now.
- Use policy to create the pull
There could be outliers that need to be coaxed into a shared service model. Bring them in with policy. Business units need to comply with global policies and they need help in doing so. So instead of forcing a new way of working onto them, they’re knocking at your door.
- Accountability is key
Once you get your business units and departments on a global policy, keeping the shared services model flowing requires a culture of commitment.
Remember that an outsourced team and your team are one team and it takes collaboration and commitment to get things right. An issue for one is an issue for all, and everyone needs to embrace ownership and partnership in the process.
- A single system will help you get the most out of your shared services
One central system for managing spending is often a key initiative in a company’s overall digital transformation, so make sure everything from employee purchases to card administration to invoice approval and expense report audits is centralized. An end-to-end spend management program that’s easy for users will make it easier for your organization to make the move.
It all comes down to one
Using one system across your business in a single, global approach is the key to maximizing the value of your investment. You can streamline process, policies and create consistency, while also allowing for—and controlling—variations like the country-specific nuances necessary within a global policy.
Our team will work with you to bring best practices and adapt your program accordingly. To learn more about incorporating spend management into your shared services organization, contact your Concur team. You can also read this case study on how Mitsui found greater visibility through shared services.