All of these dimensions need to be evaluated from different vantage points to be assessed for their maturity level. For example, tax and risk capabilities may vary widely, depending in which part of the world the company is operating (see chart below).
“When doing its assessment of pharmaceutical companies in Peru, for example, the KPMG member firm deploys subject matter experts with a range of qualifications to advise and assess companies operating in the country, where labor regulations are very complex,” says Gallego. “Similarly, the company must assess the degree to which the Board is aligned with the GBS initiative, which falls under the commercial perspective”, he says.
Ten fundamental dimensions of GBS:
- Delivery and sourcing strategy: The business service organization’s strategy and relationship to the overall enterprise.
- Service portfolio: The functional breadth, depth and geographical reach of business services in the company, from finance and internal audit to HR and compliance.
- Data and analytics: Its capability to analyze large amounts of data, financial and otherwise, for the purpose of business decision making.
- Talent management: The ability of the company’s HR department, working with other functions and levels of the organization, to attract, retain and nurture the skills of the workforce.
- Process excellence: The deployment of end-to-end business services throughout an enterprise’s global operations with a focus on continuous improvement, quality and innovation.
- Enabling technology: A technology platform for enterprise resource planning, applications and tools to enable the deployment of standardized services.
- Enterprise service governance: A systematic approach to working with stakeholders to manage risk and drive the value derived from business services.
- Commercial perspective: The way in which business services engage with internal customers, based on a customer relationship model.
- Tax and risk optimization: A company’s capability to monitor and manage its tax, legal and risk exposures around the world.
- Change and program management: A focused, holistic approach to ensure everybody in the company is ready, willing and fully to adopt and sustain changes in the organization. This helps to realize expected benefits, reduce resistance and manage risks that might undermine the value of the initiative.