A group in the publishing industry had a shared services division. In his role as division manager at the time, the current interim manager was tasked with setting up a central shared service center for financial accounting. To this end, the local financial accounting departments with five companies and 14 annual financial statements were to be separated from the operating group companies and bundled centrally.
The interim manager planned and managed the project from the initial idea through to successful regular operation. This included the following milestones:
- Development of a business case and a feasibility analysis
- Design and development of a roadmap for the transformation project
- Harmonization of the business processes
- Implementation of the first necessary automations
- Recruitment of existing employees for the SSC and further team building
- Sequential transfer of the five companies to the SSC over a period of two years
- Management of the division beyond the hypercare phase until a settled SSC was established
- Phase up to a steady-state operation.
In the implementation phase, the current interim manager had to overcome the following challenges, among others:
Building up the teams and securing the existing financial statements
For the local group companies, the outsourcing meant that all jobs in the local accounting departments were eliminated. At the same time, these employees were needed in full to support the project until the handover was complete. In order to keep employees motivated, the interim manager worked with HR to develop fair concepts for transferring employees to other functions or to the central shared service center. In other cases, he found appropriate exit solutions. Appreciative communication also helped to maintain the motivation of most employees.
In parallel, the interim manager created role models and a schedule of requirements for the specific implementation. He planned backup scenarios for ongoing operations and the annual financial statements in case employees left the company early. Fortunately, he did not have to resort to these plans.
Harmonizing the processes and defining the interfaces
Harmonizing the business processes in the five companies was a particularly big challenge. In workshops with those responsible, the interim manager developed a common vision of the future processes. He created the documentation according to Business Process Model and Notation (BPMN 2.0.)
With the harmonization of the processes, the interim manager also initiated a standardization of the accounting methods. He also defined new interfaces to the specialist departments and reorganized the distribution of tasks using a RACI model.
Reworking incoming invoice processing
The revision of incoming invoice processing required particular attention. Previously, invoices were released for payment on paper by signing off on the original invoices according to an authorization matrix. With the relocation, the interim manager converted the process to an electronic workflow. To do this, he reorganized the document flow, adapted the authorization matrix and trained the organization's employees. In doing so, he managed to keep delays caused by inconsistent IT infrastructures to a minimum.
For suppliers with high document and purchasing volumes, the interim manager had further automation systems created. Electronic interfaces to suppliers and the company's own upstream systems now reduce manual activities to the necessary minimum.
Auditors confirm successful work in the SSC
After 24 months, the current interim manager had successfully completed the project. The transfer of activities to the SSC took place without any major complications. The auditors confirmed the successful work as part of the annual audit.
The SSC quickly paid off for the company. It benefits from a significant reduction in costs. This is also sustainable thanks to the standardized processes within the Group - and offers scope for further centralized development with even better efficiency and lower costs. The project has also built up expertise for faster adaptation to legal changes and the implementation of internal guidelines (e.g. IFRS requirements, UST).
