INTERVIEW OF THE MONTH

INTERVIEW WITH MR. NAVNEET BANSAL,
CEO-JSW Global Shared Services

What are the top 5 factors that enterprises should keep in mind to build as they build and mature their shared services?

Executive Sponsorship and Top management commitment for change

Building a shared services enterprise is an evolving change management process that requires developing a culture of change. Hence a supportive and active executive sponsorship with a top management commitment is a necessary factor for building shared services.

Invest in Training and recognition of employees

Organizations need to invest a significant amount of time and resources in training and other interventions, not only on the domain and technical knowledge but also on soft engagement skills. Also, they need to assure the employees that experimentations and innovations can fail. Moreover, there should be a reward and recognition system for successful initiatives.

Strategic long term value enabler

Due to its business-level benefits such as speed, faster time to support customers, economies of scale and clarity in communication among employees and stakeholders, the shared services model should be built as a long-term strategic value enabler.

Having a COE

Once a shared service is optimized, Organisations should build a Centre of Expertise (COE). According to Shared Services Outsourcing Network’s 2019 industry survey, 68% of global Shared Services operate a COE. This emphasis on having COE recognizes value proposition beyond process excellence.

Having a Digital Road map

Digitization is another key factor in building a successful shared services model. Organization should have a comprehensive digital roadmap in place outlining what the business wants to achieve, through its digital initiatives.

How do you see the GBS organization of the future look like? What factors will contribute to its changes?
The future Shared Services organizations will increasingly adopt emerging technologies like process digitization, robotics and artificial intelligence. With the help of technology, Shared Services can now provide deep business intelligence through industry benchmarks, which company boards are more and more leveraging for their strategic initiatives.

As per the Global Digital Transformation Survey Report 2021: Priorities in the post-pandemic world (Fujitsu Future insights, 2021) , 44% of organizations will have automated more than half of their currently non-automated processes by 2025.

What is the role of a GBS leader in building a digitally mature organization?
Leaders will need to manage a blended workforce of human and digital workers. Human workers will need to be focused on problem-solving providing customer support and performing quality control for the results of digital workers. Much of the new work will require essential human skills as workers perform more knowledge-based and customer-facing services.

Leaders need to assess their organizations’ maturity in terms of value that is created from their existing digital initiatives.

What are some of the good practices for designing and deploying an RPA? What are some of the key business benefits of an RPA?
As per Deloitte study 2021, 69% of shared services firms have already implemented a Robotics Process Automation as a key enabler in the process of digital adoption.

Pilot starting by automating the low-hanging fruits – those simple, repeatable processes are a good head start for RPAs. It is a good practice to select processes that are high impact, such as those involving high volumes, speed-sensitive and error-prone. Processes need to be re-designed, if need be, rather than just automating an existing process as its manual version.

Benefits of RPA

Cutting Costs
The reduction in dull repetitive tasks, leading to a reduction in FTEs and associated infra cost such a laptops/desktops/training etc reduce to the tune of 30 to 35 percent.

Scalability
When multiple time zones are involved, Robots can work around the clock and deal with fluctuation in work volume more efficiently than human beings.

Error Reduction and Accuracy
When robots take over the tasks, there is a minimum human intervention which reduces the chances of human error, thereby improving accuracy.

Improved Efficiency
Robots do not get fatigued or bored of doing repetitive tasks. They can work for long hours at a stretch, and this improves productivity and efficiency.

Better security and compliance
RPA allows for better security of data that is collected from a variety of sources and helps in regulatory compliance.

Insight and Analytics
RPA allows for processing the data stored in various databases and coming up with meaningful insights. Based on the insights provided, important decisions can be taken. Analytics helps businesses draw out information from raw data.

Technology initiatives have always until recently, been the responsibility of the Chief information officer. In the context of Indian enterprises, do you see the change happening where CEO’s, Shared Service leaders and COO’s are getting increasingly involved in suggesting or driving these initiatives?

The role of technology in shared services has gone beyond just being a support service to a strategic value enabler. Hence the technology initiatives should be led by Business heads/CEOs. CIO can manage IT for leveraging technology, to help create value for the business, but the initiatives need to be driven from the Business Heads.