Three steps to Global Business Services: the Siemens story

Many companies are just beginning their journey to a shared services model — consolidating common functions and systems to reduce costs and improve efficiency. In today's competitive global economy, however, merely consolidating functions fails to deliver the flexibility and responsiveness companies need to survive.

At last month’s European Summit for Leaders in Shared Services, Michel de Zeeuw, CEO Global Shared Services (GSS) at Siemens, explained how by moving to a global shared services model they have increased in service quality, scope, and customer satisfaction.

Background

In 2009, the Siemens GSS was quite a large organization that had grown organically without any specific mandate. GSS at this time had great capabilities and a lot best practices but an inconsistent portfolio of regional services with few global synergies. At this stage customer also expressed the wish for increased quality of service and transparency in costs and operations. So there was a need for change, but to make a lasting change, GSS needed to be a part of the solution.

Their goal was to provide more benefits to Siemens’ business, and support its growth objectives. The Siemens’ managing board expressed clear expectations towards shared services: to create synergies on a global and cross-functional basis, achieve world class cost position levels and improve quality and transparency in operations.

The New Strategy

In order to make a sustainable contribution GSS needs to transform itself from a mandated service to a trusted partner. To achieve this GSS developed a clear roadmap with measurable and specific targets.

1. Become a mandated supplier: In 2009 the Board decided to give a mandate to GSS. By consolidating and harmonizing their portfolio of services (including accounting and finance, HR, supply chain management) with a ‘lift and drop’ approach they quickly increased cost savings and process efficiency. In parallel they created a strong service mindset and increased customer satisfaction.
2. Take their shared services to a world class level: In a second phase GSS professionalized in everything they do. Continuously they achieved high productivity savings and through levers such as further harmonization and automation, quality management, KPI monitoring and ongoing customer feedback they laid the basis for ongoing improvement. 
3. Become the trusted partner of the business: By achieving the World Class targets GSS has become a trusted partner. Thus creating the capability to engage with the business in an innovative and entrepreneurial way to provide end to end solutions for the Siemens businesses.

The Results

So what are the tangible benefits that result from the move to a GSS model?

“By the beginning of 2013, we have already seen an impressive cost reduction, improved quality of processes and increased transparency in operations whilst still growing quite significantly”, said Michel.

But perhaps more tellingly, they now receive increased user and customer satisfaction. Global Shared Services at Siemens sets the benchmark in many areas whether you look at the portfolio, customer satisfaction, global organization or service mindset.