The GBS Payoff: Leaders drive the metrics that matter

The GBS Payoff

Understanding the impact and drivers of GBS maturity.

Global Lead, Shared Service & Outsourcing Advisory

KPMG in the U.S.

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To understand the correlation between GBS maturity and the levers that enable enhanced financial outcomes, KPMG International began by surveying and analyzing more than 200 GBS organizations worldwide using a proprietary tool that examines 70 characteristics across 10 competencies of GBS excellence.

After analyzing and segmenting the information, the overall GBS maturity was plotted on one axis and their functional and geographic footprints on the other. From this the following four categories were developed to fit organizations into the maturity scale:

1. Beginners

Beginners are just starting out on the shared services/GBS journey, have immature processes, and lack functional scale. Services are provided mainly in the retained organizations, such as supply chain and financial management.

2. Conservatives

Conservatives expand geographically and functionally before having a strong process, technology, or governance framework. This may be due to strong management- oriented functional biases and functionally siloed shared services delivery.

3. Focused

While GBS organizations in this segment have put in place many of the levers and infrastructure to drive higher performance, they often run the risk of devolving because they haven’t optimized economies of scale and efficiency. They have generally focused on building out one or two functional areas and the end-to-end processeswithin them, but subsequently run out of incremental cost savings opportunities.

4. Masters

Masters have optimized most, if not all, elements of their strategy that align with their enterprises’ s overall goals for GBS delivery, as well as across all 10 dimensions thatcharacterize GBS maturity. They provide a significant array of end-to-end services that span multiple (often more than five) functions, and do so from a global delivery platform.

To learn more about KPMG’s GBS maturity model and GBS maturity assessment research program, please go here.

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