Appointing a lead for the Shared Service Center

In a previous post I referred to a Shared Services and Outsourcing Network article on the Top 10 Mistakes When Implementating a Shared Service Center.  I wanted to add my thoughts around the issue of appointing a lead or "head honcho" for the Center early on.  It certainly makes sense to hire a dedicated Director for the Shared Service Center early on in the process.  Doing so has a number of benefits that are as follows:

1. Dedicated management.  A dedicated lead will devote 100% of his or her time to the task of developing the Shared Service Center.  This involves everything from ensuring a smooth build out of the facility to facilitating a smooth transition.
2. Personnel recruitment.  Ideally the Director will be able to choose their own team.  This can only occur if the hire is made early on.  The alternative is to let a manager who is not the permanent head of the Center to recruit individuals and then the permanent Director ends up leading a team they didn't choose.  This is not a recipe for success.
3. Training oversight.  Once a team is on-board, a permanent Director of the Center can ensure that their team receives the proper training.  For off-shore locations, this can also include language training as well as training around the specific functions and activities handled by the Center.
4. Process design.  An early hire ensures that the Director at least has a hand in the design of processes to be handled by the Center.  Sure there will be the functional experts and potentially outside consultants to handle the details, but the Director should be involved at a high level in the way the processes will be handled.
5. Transition support.  If a Director is hired up front, they have the big picture and can work to ensure that as technology is configured and processes are tested, that there can be a relatively smooth transition of the activities from the Business Units to the SSC.  They should also have the ear of the Director of the global Shared Service Organization when they need someone to run interference.

Organizations that are serious about setting up a Shared Service Center will make the hiring of a Center lead a high priority.  By doing so, they significantly increase the chances that they will have a successful deployment of the Center.

Managing talent in down times

It's been my observation, for companies I personally worked for in industry as well as consulting clients of mine, that performance feedback goes out the window during recessions.  It's easy to give feedback during good times when raises are relatively high.  During these difficult times, it's more important than ever to make sure you're taking care of your best employees.  These are your "A-players" , the ones you want to nurture and grow.  And it isn't always about money.

If money is the only thing you're using to motivate your employees, I suggest you reevaluate the way you're motivating your employees.  Although money and benefits are important to most people, I believe that you're A-players are motivated by more than just money.  So, what are some of the ways to motivate and encourage your best employees (not to mention all the others) that don't cost money?

1. Encourage your employees.  Yes, I know this seems basic, but I can't tell you how many Finance departments I've been in where there seems to be little encouragement.  In these uncertain times employees want to know that their contributions matter.
2. Offer a vision.  Employees want to know your thoughts about charting these rough waters.  Where are you going as a Finance department?  What do your employees have to look forward to?  How are you going to be a better group as you emerge from this recession?
3. Give your A-players meaningful assignments.  Not just what they do on a daily basis, but special projects.  A slow moving economy is the perfect time to look at the way you do things.  Work on eliminating non-value added activities.  I realize in many departments staff have been laid off so there may not be much excess capacity, if any.  But projects don't have to be huge.  They can  be small, incremental process improvements that make you more efficient.
4. Rotate your A-players through other groups.  Expanding their skill sets is a great way to motivate your best employees.  You might be thinking you can't afford to lose them in their current job.  Maybe so, but if you don't look out for your best employees now, they may very well leave when the economy improves.

Motivating employees should be about much more than money.  Make sure you set challenging but realistic goals in their performance plans and continue to push them to become better accountants, analysts, Treasury managers or whatever their job is.   Be honest with them about what's happening and cast a vision of the road you're taking to become a better Finance organization.  By doing so, your group will emerge as a more effective and efficient partner to your business.