In developing the framework for shared services in an organization, there are different approaches to how the recipients of shared service delivery should be treated.  Are the groups that receive services via a shared service center considered customers or partners?

As customers, the recipients of services ultimately decide if the services they're receiving are worth the price they're paying.  They can continue their relationship with the service center or they can go outside the company to obtain the services if they're better or cheaper.  From the Center's perspective, they are competing against numerous choices in the market and they need to be better, faster and cheaper than the competition.

As partners, the recipients have a great deal more influence in how services are delivered.  They help shape the service level agreements that govern the behavior of both parties.   They are actively engaged with the shared service organization to craft delivery capabilities and cost structures that will enable the business units to remain competitive.  They are not as concerned with comparing the shared service organization to outside suppliers, although they are mindful of what the market is providing and the cost for providing those services.

So which is it: Customer or Partner?  I believe the choice is a false dichotomy.  The truth is that it's both.  It benefits the company overall when the shared service organization and the business units it supports work together to create the right delivery and pricing model.  It works more efficiently when there is on-going dialogue between the parties to ensure that any issues that crop up are solved quickly and that the long-term direction of the service organization is in line with the strategic goals of the business.

Having said that, it's important for a shared service organization to never lose sight of the fact that the business units are in fact paying for the services and that they deserve to have the best service for the lowest possible price.  To approach it otherwise would be to regress to a bureaucratic mentality that was supposed to be eliminated through the move to shared services.  The most successful shared service organizations are the ones who constantly strive for solid service delivery and a competitive cost structure, while simultaneously partnering with the business units to create a mutually beneficial solution.