Four-Phase-Model for the Implementation of Shared Services

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1 Martin H. Wenderoth Four-Phase-Model for the Implementation of Shared Services Verlag Dr. Kovac Hamburg 2014

2 Table of Content Foreword V Acknowledgement VII Abstract... IX Table of Content XI List of Figures XIX List of Tables XXI Abbreviations XXIII 1. Introduction Problem Definition Historic Development of Shared Services Present Situation of Shared Services in Theory and Practice External Drivers and Enablers of Shared Services Present Situation and Outlook Status Quo of Research Regarding Shared Services Classification of Publications Shortcomings of Empirical Studies Theoretical Foundation of Shared Services 22, Summary of Findings Research Objective Methodology Shared Services: Definition, Objectives and Differentiation General Definition Semantic Representation Structured Representation of the Shared Service concept Definitions Objectives Pursued by Shared Services Characteristics of Shared Services Objectives 42 XI

3 Risks and Limitations of Shared Services Conceptual distinction from other organisational approaches Shared Services vs. Decentralised Departments Shared Services vs. Centralised Departments Shared Services vs. Outsourcing Summary Structured Concept for the Implementation of Shared Services Basic Considerations Four-Phase-Model Strategy Situation Analysis Objective Setting Feasibility Study Strategy Selection Organisation Governance Design Phase Standardisation of Business Processes Harmonisation of the Technological Landscape Blueprint / Implementation Plan Transformation Change Management Service Level Agreement (SLA) Rollout and Implementation Operation Control Mechanism Information Flow Continuous Improvements Summary 98 XII

4 4. Theoretical Foundation of the Four-Phase-Model Selection of Theories Neoclassical Economics Industrial Economics Game Theory New Institutional Economics Property Right Theory Transaction Cost Theory Principal Agent Theory Strategic Management and Organisational Behaviour Resource-Based View Network Model 111, Summary Derivation of Hypotheses from the Selected Theories Property Right Theory Influence of the Property Right Theory on the 'Organisation' Transaction Cost Theory Influence of the Transaction Cost Theory on the 'Strategy' and..115, Influence of the Transaction Cost Theory on the 'Organis Principal Agent Theory Influence of the Principal Agent Theory on the ^Transform Resource-Based View 122 : 4-2,4.1. Influence of the Resource-Based View on the 'Strategy' Phase , Influence of the Resource-Based View on the 'Operation' Phase Network Model Influence of the Network Model on the 'Operation' Phase Impact on the Success of Shared Services Influence from the 'Strategy' Phase Influence from the 'Organisation' Phase 130 XIII

5 Influence from the 'Transformation' Phase Influence from the 'Operation' Phase Summary of Hypotheses Empirical Study Definition and Motivation of the Research Method Research Design Research Approach Online Survey Questionnaire Design Verification through a Pre-Test Expert Interviews Population Large-scale Enterprises Consulting Companies Researchers Return Rate Evaluation Methodologies Evaluation Methods - Univariate Techniques Evaluation Methods - Bivariate Techniques Analysis of Results Descriptive Analysis Structure of the Responders General Importance of Shared Services Descriptive Analysis: 'Strategy' Phase Descriptive Analysis: 'Organisation' Phase Descriptive Analysis: 'Transformation' Phase Descriptive Analysis: 'Operation' Phase.: Overall Evaluation of the Shared Service Concept Examination of Hypothesis 169 XIV

6 Hypothesis: 'Strategy' Phase Hypothesis: 'Organisation' Phase Hypothesis: 'Transformation' Phase Hypothesis: 'Operation' Phase Summary of Findings Analysis of Success Factors Success Factors: 'Strategy' Phase Success Factors: 'Organisation' Phase Success factors: 'Transformation' Phase Success factors: 'Operation' Phase Summary of Findings Expert Interviews Interview Partners Dr. Hauck, Bayer AG Mr. Kessler, arvato Bertelsmann Dr. Kropfl, Sparkassen Abwicklungs- und Service Gesellschaft Mr. Lehnert, Deutsche ACCUmotive - Daimler Group Mr. Schuller, E.ON Energy and Trading Mr. Straube, Celesio AG Key Findings from the Expert Interviews Strategic Direction Followed During the Implementation Operative Versus Strategic Importance of Business Processes Utilisation of Shared Services in Practice Recommended Organisational Form for Shared Service Operat Standardisation ofprocesses and Technologies Dysfunctional Behaviours and Change Management Abilities of the Shared Service Organisation Distribution of Power Between Shared Services and the Parent Satisfaction with Shared Services 214 XV

7 7. Conceptual Approach for Implementing Shared Services 'Strategy' Phase General Strategic Direction Frequency of Business Process Transfers Degree of Shared Service Utilisation Recommendations for Practitioners 'Organisation' Phase Organisational Form Standardisation Recommendations for Practitioners 'Transformation' Phase Change Management Service Level Agreement Recommendations for Practitioners 'Operation' Phase Customer Satisfaction Control Mechanism Recommendations for Practitioners Conclusions Summary of Findings Critical Appraisal and Possible Further Research 235 Bibliography 239 Appendices 265 A-01. Vault Ranking Top 50 Consulting Companies 265 A-02. Pre-Test: Experts and Results 265 A-03. Population 266 A Large-scale Enterprises 266 A Consulting Companies 267 A Institutions for Higher Education 267 A-04. Cover Letter and Reminder 267 XVI

8 A Cover Letter 267 A Reminder Letter 270 A-05. Questionnaire 273 A-06. Statistical Results 291 A-07. Incentives 291 A Executive Summary 291 A Donations 291 A-08. Transcription Expert Interviews 292 A-09. Descriptive Statistics - Illustrations 292 A General Importance of Shared Services 292 A Descriptive Analysis: 'Strategy' Phase 295 A Descriptive Analysis: 'Organisation' Phase 299 A Descriptive Analysis: 'Transformation' Phase 301 A Descriptive Analysis: 'Operation' Phase 304 A Overall Evaluation of the Shared Service Concept 306 XVII

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