As organizations have expanded, acquired other organizational entities, moved from centralization to decentralization (and back again), it is common that key functions become fragmented. Over time it is common that these functions become less efficient than they can be.
These trends contribute to very important functions and departments including IT, HR, Finance, Legal, Real Estate, Marketing, Administration, Customer Service and others becoming silo-oriented and, in some cases, are more costly, less flexible and may not support the business needs.
TSI helps organizations answer these key questions to align and enhance their organization and, when there are benefits, implement shared services. Key questions include:
- What logical work groupings make sense that link to key aspects of the business (such as, how customer segments want to do business)?
- What is the vision regarding how centralized and decentralized groups should collaborate to derive the greatest value and enable the overall mission and objectives?
- What domains are most important to address and decide how each is addressed as a shared service or a function that might be better handled in a decentralized fashion?
- What criteria should be used to decide how domains are handled?
- What are the pro’s, con’s and issues with centralized, decentralized and hybrid models?
- What are the financial, service, quality and customer repercussions of various models?
- What role should “corporate” or a shared service/center of service excellence play?
- What authority, organizational, resource, process, policy, technology and other changes are required to enable the transition to the “new model”?
Governance is a key component when an organization is seeking to improve its performance. TSI defines Governance as follows – the determination and application of decision rights and accountabilities across various constituencies to achieve improvements in Cost, Quality, Service and Speed – is on nearly every forward-thinking executive’s radar screen.
A recent study by MIT showed the links between business strategy, governance arrangements and financial performance in 20+ in depth case studies and using data from a survey of 256 enterprises in 23 countries. The study found firms with superior IT governance had more than 20% higher profits than firms with poor governance given the same strategic objectives. These top performers have custom designed IT governance for their strategies and identified the different IT governance arrangements these high performers used.
TSI takes a facilitated approach that involves many of the involved key thought leaders and players to discuss and analyze:
- Role of Shared Service Organization (e.g., IT)
Understanding the role IT and the PMO does and should play in the organization. Is it only for technology projects? What is the value of IT to your company? How do you demonstrated and defend IT’s business value? … IT Infrastructure … Qualitative “soft” benefits … Quantitative “hard” benefits … Business Risk What are the critical processes required to achieve greater value from IT? How does the CIO discuss the value of IT with the CEO and the executive team? What strategies and approaches are most effective?
How do key constituents view and value the Shared Service Organization (SSO)?
- Value Delivery
How is value delivered? How is it measured? How is it paid for?
- Organization Structure
Who reports to whom today? What “dotted line” relationships exist? How are performance appraisals given and what local versus enterprise bonuses and consequences are in place/should be in place?
- Core Competencies
Share skills exist at various parts of the organization and how do those compare to what is needed now and what will be needed going forward?
How does this environment compare to other leaders both in and outside of this industry?
- Objective Perspective
What recommendations does TSI suggest and what difference will it make in the context of its strategic plan and other initiatives?
Provided Below is an Example of an IT Governance Structure That TSI Led
How can the new “model” improve the following: