Shift from Global Shared Services (gss) to Global Business Services (gbs)

Global business services (GBS) is the next step in the shared services evolution.

Companies that have set up ‘Global Business Services’ have significantly boosted their support functions performance, optimizing the cost-quality trade off through efficiency improvements and a clear shift towards a strong and compelling value proposition to the business.

They can, now, be considered full-fledged partners of business operations, and not just providers of services. This improved cash flow can help with funding the cost of transformation whilst driving ongoing innovation and sustainable performance improvements to its customers.

At last count, more than 1,000 multinational companies have moved to this model, now commonly referred to as Global Business Services (GBS).

Features of a true GBS Organization:

1. Truly Global - They deliver services to a global customer base.
2. Multi-functional - Multinational GBS organizations are not strangers to cross-functional process managements.
3. Reports to one person - They report to a single individual with overall budget responsibility. True GBS models govern decisions through one owner with one philosophy and one consistent and integrated delivery model.
4. Might not be led by Finance - The number of employees should be distributed equally among all the functions under the GSS umbrella.
5. Shared locations - They share infrastructure, including locations and technology platforms. GBS organizations optimize global operations to deliver services in the most efficient manner. Some services are delivered globally, while others may require regional support.
6. Shares technology platforms - Technology platforms are shared globally to the fullest extent possible.
7. Processes are end-to-end - Organizing global support processes end-to-end allows one process owner to standardize and automate the underlying process across countries.
8. Not just transactional - GBS organizations move beyond traditional transactional services, such as accounting, to higher-value services, such as forecasting and budgeting. These services are generally provided through some form of Center of Expertise (COE) staffed by a small team of specialists who promote collaboration and apply best practices within the functions in question.
9. Brand equity - Valuation of the Service by the customer, the customers being the internal and external stakeholders. The customers need to be aware of the service ownership, accountability, understanding of the leadership, who we are, who are our customers, etc.
10. Integrated - Being plugged into strategic delivery to enable integration of multiple functions.

Organizing a single function, such as Human Resources or Finance, under a single global leader located in one country requires navigating thorny issues around local labor laws, customs, and national pride—not to mention the political battles of centralizing functional control. None of this is for the faint-hearted.

In spite of these challenges, a growing number of multinational companies continue to move to the GBS model. Similarly, those who have adopted a GBS model continue to add support services under their GBS umbrella.