Transformed SSCs : The key success factors
A clear vision that is aligned with the corporate strategy is crucial for transforming the SSC from a purely transactional organization and a source of savings into a driver of competitive advantage and exceptional customer experience . After that , transparency in the line organization and in the current SSC needs to be gained . The current cost structure , required activities , and the future workforce are crucial areas to analyze .
Once transparency on the current status is gained , it is time to design the new SSC . The upgraded role of the SSC needs to be reflected in a new organizational structure , new processes & interfaces , new roles & responsibilities , and a refined governance to ensure smooth interactions and alignment . If needed , SSC hubs can be bundled into one SSC .
The new SSC setup will result in a customercentric service delivery model focused on providing excellent business outcomes . With this shift also comes a shift in workforce . Leveraging new technologies requires highly skilled talent and decisionmakers . Deutsche Telekom represents a prominent success case in this field . After sophisticated process mining technologies to streamline and digitize the entire purchasing process (“ purchasing-to-pay ”) have been developed , the company decided to stick to this newly discovered best practice . They created a Process Mining Center of Excellence , supporting different business units in identifying weak spots within their processes and optimizing them in a targeted manner . So far , this has not only led to savings in the high doubledigit millions , but also to a significant acceleration of digitization within the organization . Once the SSC design is set up , it is necessary to create organizational buy-in . In addition , tailored change management should be established , with well-prepared communication being a key factor in the success of the SSC transformation .
Of course the profound transformation is associated with great challenges . Following the key success factors below helps telcos to successfully steer SSC transformation and take their organization to the next level of efficiency . This is achieved by taking into consideration all relevant dimensions from innovative governance models to the allocation of the right skills .
BOOSTING COST EFFICIENCIES
SUMMARY
Telcos can only exploit the full potential of the SSC organization when going beyond consolidating and bundling support functions . To successfully transform the SSC setup from a purely transaction-based “ service factory ” to a strategic partner and trusted advisor , four key success factors can be highlighted as summarized in the figure .
SHIFT FROM A TRANSACTIONAL SERVICE PROVIDER TO A ( DIGITAL ) ENABLER
Move service portfolio beyond transactional tasks to higher value services Become a ( digital ) enabler for the organization Develop a customer-centric mindset
KEY SUCCESS FACTORS
OPTIMIZE SSC ORGANIZATIONAL DESIGN AND GOVERNANCE
Establish full transparency and clear ownership for processes Create the right interfaces and reporting lines Define the most efficient organizational setup
THE AUTHORS
DR . ALEXANDER HENSCHEL
Managing Director , goetzpartners
ALLOCATE AND DEVELOP THE RIGHT SKILLS
Increase overall skill level Create cross-functional teams with SSC and business unit members Shift toward more digital skills
CREATE ORGANIZATIONAL BUY-IN
Create and demonstrate management buy-in Establish a change management task force Collect feedback on service quality and potential improvements
AXEL MEYTHALER Managing Director , goetzpartners
Source : goetzpartners © goetzpartners , 2021