A Getting-Started Guide The Next Value Driver for Global Business Services S E R V I C E E X P E R I E N C E : Service Experience: The Next Value Driver for Global Business Services 2 The GBS model is still a work in progress for the majority. While processes have now been standardized and optimized into effective global delivery models, it’s early days for design and investment in a singular GBS experience. Ten years or so ago, enterprises with shared services models—the consolidation of a single function’s business processes into one operation globally—took the next step: consolidating and integrating several functions’ processes under one operating umbrella or into a global business services (GBS) model. The benefits of a GBS model have been obvious: further reduced cost, leveraged technology, and, most importantly, integrated processes end to end, regardless of which function they belong to. GBS has been a good news story for so many global enterprises; in addition to efficiency, the model has transformed corporate ways of working. However, a growing number of GBS organizations are at the vanguard, learning how to create an imperative for investment in experience, no matter the function or process. Leaders have figured out how to harness their corporate contexts to make the case for service delivery transformation, creating a compelling vision that the business can get behind. By trial and error, they now know how to “sell it in”. And they are generously sharing their dos and don’ts, helping other GBS organizations to embrace a unified service experience confidently and with speed. This paper sets forth a roadmap to begin the GBS experience journey based upon the lessons learned from a number of pioneering organizations. Service Experience: The Next Value Driver for Global Business Services 3 The next frontier for GBS? The first few phases of GBS evolution are arguably complete. A substantial percentage of global enterprises have embraced some form of the model—over 40% according to SSON Research and Analytics’ March 2023 report. GBS organizations have mastered the fundamentals: the right work in the right location assigned to the right resource. They now encompass the delivery of key processes underpinning a number of functions. Scope and scale are global. Automation has taken hold, while the data flowing through GBS is being harnessed to provide vital decision support. But leaders—and the businesses they serve—are asking, “Is that all there is?” Let’s be honest, the main goal of GBS has historically been to impose efficiency and effectiveness, ultimately measured by how much money is saved. But delivery of efficiency and effectiveness is leaving some enterprises looking for more out of their GBS organizations. The traditional bag of tricks—consolidation into offshore locations, process improvement, analytics—have certainly delivered quantifiable value, but can only move the needle so far. GBS customers now want seamless, frictionless, and fast 24/7 capability; in short, they want what e-commerce platforms provide to their customers. So, many are asking—if my savings dashboard is so green, why am I seeing red? Leaders—and the businesses they serve—are asking, “Is that all there is?” So, many are asking—if my savings dashboard is so green, why am I seeing red? Service Experience: The Next Value Driver for Global Business Services 4 Historically, in the majority of enterprises, fixing the way that internal services organizations interact with their customers has been low on the list of priorities, leaving experience by the wayside. The mantra has been primarily focused on the business case with little concern about access, ease of use, or frictionless processes. An experience initiative costs money, is not always perceived to deliver a tangible ROI, may not impact the end customer’s experience, and frankly, for CXOs looking to make an indelible mark on their businesses, it may not be on their radar screens. But the wind is starting to change. Based upon conversations with leading global business services organizations, the ability to make a case for investing in experience that does not land on deaf ears is increasing. The track record of benefits in individual service towers such as HR and IT are now evident, suggesting that other functions can also obtain value. Technology is no longer a barrier, but an enabler. Conditions are now ripe to change the calculus, perhaps even a perfect storm. Leading GBS organizations are harnessing tailwinds to make the case for a consistent service experience across business services functions. They now have sufficient knowledge to craft a vision for a GBS experience that the enterprise can buy into. They are learning how to navigate stakeholder agendas. They know how to pick their battles and rally internal resources around the GBS cause. In an industry that is committed to self-referencing and taking its lead from best practices, it’s time to formalize some of the lessons learned. This article documents four strategies gleaned from those leaders—who are arguably at the head of the GBS experience pack—who have harnessed them in an effort to spur those thinking about implementing GBS experience or are currently in flight. The ability to make a case for investing in experience that does not land on deaf ears is increasing. Service Experience: The Next Value Driver for Global Business Services 5 1 Use business context as a hook Service Experience: The Next Value Driver for Global Business Services 6 1: Use business context as a hook What’s compelling any change/urgency around service delivery transformation? Let’s unpack four of the strongest winds of change: 1 2 COVID-19 has changed the relationship between employee and employer. Even in the face of a potential worldwide economic downturn, primacy of the employee in the relationship with the enterprise remains. With a profound generational shift to Millennials and Generation Z, their embrace of digitization, and a new set of career tolerances and goals—emulating consumer experience has become more critical. Employee mobility has led to new expectations colored by what they do outside of work. Hybrid work means it is no longer possible to communicate just by walking around a desk. Global workforces mean that access during an eight-hour workday is now meaningless. As Takeda’s Etienne Grisvard says, “Experience is much more than Zoom.” And employees are asking for it. GBS organizations, having learned from changing the employee experience, now have a critical proof source to unify all interaction across service towers. There’s not much more juice to get out of the traditional efficiency squeeze. GBS organizations have wrung substantial year-on-year savings out of the processes they deliver through the usual playbooks—standardization and consolidation, work elimination, process automation and digitization, and offshoring. One of the next levers has been staring them in the face for some time—moving to self-service to further eliminate the work they perform, sharing the workload with their users, and aligning processes end to end. With consumers now used to self-service accessed through a frictionless platform, the time is right to change the service/cost calculus, harnessing the power of experience. Service Experience: The Next Value Driver for Global Business Services 7 1: Use business context as a hook 3 4 Technology is now up to the experience challenge. Think mobile. We no longer look at technology as an add-on; it is part of everything we do. And since we do not separate user experience from core technologies, customer experience technology is not synonymous only with customer relationship management. The terms were almost interchangeable because the only technology used to connect with customers was basic data like names, emails, phone numbers, and addresses. However, there has been an explosion of customer technology that is changing the customer experience. Technology can exploit the power of business context. As General Mills’ Paul Dottle says, “Buying something online, it’s so easy and efficient. But if I’m ordering something inside my company, it’s antiquated and kluge.” The lack of technology is no longer an excuse. Digitization is now on the majority of enterprises’ agendas. Look at corporate organization structures and you’ll see a new role, called the Chief Data Officer or Chief Digitization Officer. Whether the move to embrace digitization runs deep with an urgent need across the enterprise, or is a passing fad, GBS leaders have a hook—and a language—to grab onto. As Siemens’ Matthias Egelhaaf says, “Digitization now gives us the biggest lever to generate new value. Now we have to turn shared services centers into a tech company, because tech will make the big difference in delivering value from services.” When it comes to digital and digitization, enterprise operation experience is now compared with that of Google or Amazon, no matter what the industry or the business function. Whatever the tailwind, GBS leaders no longer have to go it alone, pushing for investment that, to an uninitiated CXO, may look like a play for an expensive new self-service portal. When they can easily connect the dots to other imperatives, the case for transformation becomes so much stronger. Service Experience: The Next Value Driver for Global Business Services 8 2 Define a vision that the business can get behind Service Experience: The Next Value Driver for Global Business Services 9 2: Define a vision that the business can get behind GBS experience is complicated. It is not only the front door to services, but experience becomes the essence of the GBS value proposition—the brand of the operation. And, like most programs whose return on investment cannot be quantified, it requires a North Star, an unassailable goal upon which to hitch its benefits. How does GBS define a North Star that not only compels the business to play ball, but also aligns GBS processes? For some GBS organizations, the North Star starts and stops with the employee value proposition—on- demand, frictionless, self-service hire-to-retire function, end to end.