GBS
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Turning a Global Capability Center into a Global Business Services Organization
One common scenario in the marketplace is companies starting with a Global Capability Center (GCC) model and seeking to transition into a Global Business Services (GBS) model. Stakeholders accustomed to the GCC model frequently misunderstand the differences between GCC and GBS. We find it important to carefully distinguish between how you lead and manage under the two different models. Otherwise, a company can go sideways on a whole range of topics including scope, service management, process management, outsourcing relationship management, financial management, and governance to name but just a few.
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The GBS Paradox: Single vs Multi-functional 'Global' Business Services
A burning question asked by business services leaders is "Which is best: Multi-functional Global Business Services (GBS) or single function shared services such as individually managed Finance or Human Resources shared services?" Read our recently published article including lessons learned from the front lines to help you define which model is best for you.
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Another One Bites the Dust - Maintaining Organizational Agility in Your Business Services
We’ve always been intrigued by the shifts in organizational models among business services organizations. Just in the last month we observed one highly acclaimed multifunctional global business services (GBS) organization get split apart. At the same time, another organization is moving to a highly integrated multifunctional GBS model. If there is one key lesson learned for business services leaders it is that you need to be prepared to pivot to shifting models.
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The GBS Paradox: Single vs Multi-functional 'Global' Business Services
Synopsis: The article discusses the paradox between multi-functional Global Business Services (GBS) and single-function shared services, exploring the evolution, challenges, and decision-making factors for choosing the right model.
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Market Trends and Paradox: Despite surveys indicating a preference for multi-functional GBS, some companies are reverting to single-function shared services due to leadership changes and other factors.
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Definition of Terms: The document defines key terms such as business services, functional shared services, GBS, and captive models to provide context for the discussion.
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Evolution of Business Services Models: Business services have evolved from functional shared services in the 1980s to multi-functional GBS in the last decade, with some companies now reversing back to functional shared services.
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Choosing the Right Model: The choice of business services model should align with the company's overall strategy and evolve as the business services' value contribution changes.
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Stages of Evolution: The document outlines four stages of business services evolution: Functional Shared Services, Aggregated Business Services, Integrated Business Services, and Capability-Based Business Services.
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Stakeholder Engagement: Successful implementation of business services models requires enrolling stakeholders and building competencies, with increasing difficulty as the model evolves.
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Impact of COVID-19: COVID-19 has accelerated the shift towards digitally-enabled business services models, but sustaining this momentum requires significant commitment to enabling technologies.
