Design and implementation of Global Business Services (GBS)
Why did the company decide to introduce a Global Business Services (GBS) organization?
The international chemical company was faced with the challenge that the service and business orientation in the global functional areas had increasingly faded into the background. Although the global harmonization of processes was successfully driven forward, the strong focus on functional goals led to a pronounced internal focus in the individual divisions.
As a result, the requirements of the business divisions were no longer sufficiently taken into account. At the same time, the combination of governance and service responsibility made it difficult to provide customer-oriented services. The corporate strategy therefore provided for a stronger focus on service excellence and a clear separation of governance and operational services.
The aim was to develop a modern Global Business Services organization that consistently focuses on business requirements and at the same time taps into efficiency potential through standardization, harmonization and digitalization.
What requirements did the GBS transformation project have to meet?
The project included the development of a comprehensive Global Business Services concept for all of the company’s service areas. This included, among other things
- Finance
- Controlling
- Supply Chain Management
- Procurement
- Human Resources (HR)
- Communications
- Consulting
- Environment, Health & Safety (EHS)
- Intellectual Property
In addition, a transitional organization and a target image for the future organizational structure had to be developed and implemented. A key component was the expansion of existing shared service centers from purely transactional services to expert and knowledge services.
The introduction was to take place as part of a company-wide go-live with a so-called “big bang” approach.
How was the new Global Business Services Organization designed and implemented?
The concept of the new GBS structure was based on a central organization in which all service units of the previous global functions were bundled.
A matrix organization was set up in the first phase. Regional contacts looked after the respective business areas, while global service heads took responsibility for the design and further development of services.
A tried-and-tested “lift & shift” approach was chosen for the go-live. All service-providing units worldwide were initially transferred unchanged from their previous functional structures to the new GBS organization.
After successful stabilization, the transformation from a functional organization to a process-oriented structure along central end-to-end processes such as
- Order-to-Cash
- Book-to-Report
- Purchase-to-Pay
- Hire-to-retire
This approach enabled a sustainable alignment of the organization with global business processes.
What role did change management play in the introduction of the GBS structure?
The transformation project had to be implemented within an exceptionally short period of time. There were less than four months between the start of the project and go-live.
Success was therefore based on close cooperation between functional areas, business units and the project team. A comprehensive change management program was implemented in parallel with the organizational transformation.
Employees, managers, business managers and those responsible for governance were continuously supported and actively involved in the change process. Particular attention was paid to developing a shared understanding of the new service culture.
The meaning of the term “service” was redefined and established as a key success factor for cooperation between the business and service organization.
What results have been achieved through the introduction of Global Business Services?
The introduction of the Global Business Services Organization was successfully implemented. All system-side The introduction of the Global Business Services Organization was implemented successfully. All necessary adjustments were completed on time, meaning that the service processes functioned stably from the go-live.
Key results:
- Rapid stabilization of service provision after go-live
- Ensuring high service quality
- Strengthening the understanding of the role of business services
- Basis for further harmonization, automation and digitalization
- Preparation of future offshoring and outsourcing initiatives
An important success factor was the adaptation of over 16,000 employee profiles, roles and authorizations. At the same time, a new, cross-divisional GBS management team was established.
Under the guiding principle of “Better Together”, a common identity was created that strengthened the strategic importance of Business Services for the company’s success in the long term.
FAQFrequently asked questions
What is a Global Business Services (GBS) organization?
Global Business Services (GBS) bundle central corporate services such as Finance, HR, Procurement and Supply Chain Management in an integrated service organization. The aim is to improve efficiency, service quality and customer focus through standardized processes and clear responsibilities.
What are the advantages of introducing Global Business Services?
A GBS organization enables the harmonization of processes, higher service quality, cost savings, better scalability and the basis for automation, digitalization and future outsourcing or offshoring strategies.
Which success factors are particularly important in a GBS transformation?
The most important success factors include a clearly defined vision, consistent change management, early involvement of all stakeholders, a strong service culture and a stable organization during and after the go-live.
