When forming a Shared Services Organization (SSO), it's essential to create a governance structure that provides oversight and guidance to the new organization.  Part of that governance structure is the Steering Committee which has overall responsibility for ensuring that the SSO fulfills its mission and is properly funded.

In creating an effective Steering Committee, the composition of that Committee is extremely important.  It's essential that all major stakeholder groups have representation of the Committee.

• Senior customer representatives. From the beginning, an SSO should be a partnership between the SSO and the customers it serves.  This means that the Committee should have senior representatives from the major lines of business.  A good rule of thumb is that if you view the business as a reportable segment for SEC reporting purposes, or if your internal management reports segment the business a particular way, then a senior representative from the operations of that segment should have representation.
• Leaders of key functions in the shared services.  If the SSO focuses on a single discipline such as Finance, than a leader from that group should represent them on the Committee.  It's becoming more prevalent to have a multi-function SSO, so a representative from each group, such as Finance, HR and Procurement should have representation.
• IT.  Whether an SSO is regional or global, IT plays a critical role in supporting the processes of the SSO.  It's essential that IT initiatives support the broader business initiatives.  Representation on the SSO Steering Committee will enable tight integration between the evolution of the SSO and its ability to support that evolution with existing and future IT investments.

Through all of this, the representatives on the Committee must have the organizational and moral authority to lead the SSO and to ensure that it is properly funded and staffed.  When this occurs, the SSO will have the governance structure needed to fulfill its mission and to continue adding value throughout its existence.