Whenever a company embarks on the journey to shared services, it's critical that a solid business case be built to support the decision.  All too often, however, the case revolves solely around a hard ROI for the investment.  The thinking is basically: "how much do we invest, how much cost can we cut, and how long will it take to have our investment paid back." 

A hard ROI calculation should be part of most investment decisions, but when evaluating the possible move to a Shared Service Organization, ROI cannot be the only metric by which the decision is made.  It's also important to consider the "soft" benefits of shared services.  Ultimately, the case for shared services will be a combination of both hard numbers and soft benefits.  What are some of the soft benefits?

• Creating a scalable enterprise for future growth
• Setting up operations in a region, such as Asia, that is growing in strategic importance
• Creating a career path for employees as a way of attracting and retaining key talent
• Standardizing and Optimizing processes globally to reduce cost
• Enhancing controls and compliance efforts globally
• Improving productivity

Rarely will a shared services business case be justified on ROI alone as it competes against other investment opportunities for capital.  But by combining an ROI calculation with the soft benefits of shared services, a compelling business case can be created that will support the decision to move forward.