Martin H. Wenderoth Four-Phase-Model for the Implementation of Shared Services Verlag Dr. Kovac Hamburg 2014
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 1 1.1. Problem Definition 1 1.1.1. Historic Development of Shared Services 2 1.1.2. Present Situation of Shared Services in Theory and Practice 4 1.1.2.1. External Drivers and Enablers of Shared Services 4 1.1.2.2. Present Situation and Outlook 8 1.2. Status Quo of Research Regarding Shared Services 13 1.2.1. Classification of Publications 14 1.2.2. Shortcomings of Empirical Studies 19 1.2.3. Theoretical Foundation of Shared Services 22,1.2.4. Summary of Findings 22 1.3. Research Objective 23 1.4. Methodology 24 2. Shared Services: Definition, Objectives and Differentiation 29 2.1. General Definition 29 2.1.1. Semantic Representation 29 2.1.2. Structured Representation of the Shared Service concept 30 2.1.3. Definitions 40 2.2. Objectives Pursued by Shared Services 41 2.2.1. Characteristics of Shared Services 41 2.2.2. Objectives 42 XI
2.2.3. Risks and Limitations of Shared Services 52 2.3. Conceptual distinction from other organisational approaches 57 2.3.1. Shared Services vs. Decentralised Departments 58 2.3.2. Shared Services vs. Centralised Departments 60 2.3.3. Shared Services vs. Outsourcing 62 2.3.4. Summary 65 3. Structured Concept for the Implementation of Shared Services 67 3.1. Basic Considerations 67 3.2. Four-Phase-Model 70 3.2.1. Strategy 70 3.2.1.1. Situation Analysis 71 3.2.1.2. Objective Setting 72 3.2.1.3. Feasibility Study 72 3.2.1.4. Strategy Selection 73 3.2.2. Organisation 74 3.2.2.1. Governance 75 3.2.2.2. Design Phase 77 3.2.2.3. Standardisation of Business Processes 78 3.2.2.4. Harmonisation of the Technological Landscape 80 3.2.2.5. Blueprint / Implementation Plan 82 3.2.3. Transformation 83 3.2.3.1. Change Management 84 3.2.3.2. Service Level Agreement (SLA) 88 3.2.3.3. Rollout and Implementation 89 3.2.4. Operation 91 3.2.4.1. Control Mechanism 92 3.2.4.2. Information Flow 94 3.2.4.3. Continuous Improvements 95 3.3. Summary 98 XII
4. Theoretical Foundation of the Four-Phase-Model 101 4.1. Selection of Theories 101 4.1.1. Neoclassical Economics 102 4.1.2. Industrial Economics 103 4.1.3. Game Theory 104 4.1.4. New Institutional Economics 105 4.1.4.1. Property Right Theory 105 4.1.4.2. Transaction Cost Theory 107 4.1.4.3. Principal Agent Theory 108 4.1.5. Strategic Management and Organisational Behaviour 110 4.1.5.1. Resource-Based View 110 4.1.5.2. Network Model 111,4.1.6. Summary 112 4.2. Derivation of Hypotheses from the Selected Theories 113 4.2.1. Property Right Theory 113 4.2.1.1. Influence of the Property Right Theory on the 'Organisation' 114 4.2.2. Transaction Cost Theory 115 4.2.2.1. Influence of the Transaction Cost Theory on the 'Strategy' and..115,4.2.2.1. Influence of the Transaction Cost Theory on the 'Organis 117 4.2.3. Principal Agent Theory 119 4.2.3.1. Influence of the Principal Agent Theory on the ^Transform 119 4.2.4. Resource-Based View 122 : 4-2,4.1. Influence of the Resource-Based View on the 'Strategy' Phase...123 4.2.4.2, Influence of the Resource-Based View on the 'Operation' Phase 124 4.2.5. Network Model 125-4.2.5.1. Influence of the Network Model on the 'Operation' Phase 126 4.3. Impact on the Success of Shared Services 127 4.3.1. Influence from the 'Strategy' Phase 128 4.3.2. Influence from the 'Organisation' Phase 130 XIII
4.3.3. Influence from the 'Transformation' Phase 131 4.3.4. Influence from the 'Operation' Phase 131 4.4. Summary of Hypotheses 132 5. Empirical Study 137 5.1. Definition and Motivation of the Research Method 137 5.2. Research Design 139 5.2.1. Research Approach 140 5.2.1.1. Online Survey 140 5.2.1.2. Questionnaire Design 142 5.2.1.3. Verification through a Pre-Test 144 5.2.1.4. Expert Interviews 145 5.2.2. Population 145 5.2.2.1. Large-scale Enterprises 145 5.2.2.2. Consulting Companies 147 5.2.2.3. Researchers 147 5.2.3. Return Rate 148 5.3. Evaluation Methodologies 149 5.3.1. Evaluation Methods - Univariate Techniques 149 5.3.2. Evaluation Methods - Bivariate Techniques 150 5.4. Analysis of Results 151 5.4.1. Descriptive Analysis 151 5.4.1.1. Structure of the Responders 151 5.4.1.2. General Importance of Shared Services 154 5.4.1.3. Descriptive Analysis: 'Strategy' Phase 157 5.4.1.4. Descriptive Analysis: 'Organisation' Phase 160 5.4.1.5. Descriptive Analysis: 'Transformation' Phase 164 5.4.1.6. Descriptive Analysis: 'Operation' Phase.: 166 5.4.1.7. Overall Evaluation of the Shared Service Concept 168 5.4.2. Examination of Hypothesis 169 XIV
5.4.2.1. Hypothesis: 'Strategy' Phase 169 5.4.2.2. Hypothesis: 'Organisation' Phase 180 5.4.2.3. Hypothesis: 'Transformation' Phase 184 5.4.2.4. Hypothesis: 'Operation' Phase 189 5.4.2.5. Summary of Findings 196 5.5. Analysis of Success Factors 197 5.5.1. Success Factors: 'Strategy' Phase 198 5.5.2. Success Factors: 'Organisation' Phase 199 5.5.3. Success factors: 'Transformation' Phase 200 5.5.4. Success factors: 'Operation' Phase 202 5.5.5. Summary of Findings 203 6. Expert Interviews 205 6.1. Interview Partners 205 6.1.1. Dr. Hauck, Bayer AG 205 6.1.2. Mr. Kessler, arvato Bertelsmann 206 6.1.3. Dr. Kropfl, Sparkassen Abwicklungs- und Service Gesellschaft 206 6.1.4. Mr. Lehnert, Deutsche ACCUmotive - Daimler Group 207 6.1.5. Mr. Schuller, E.ON Energy and Trading 207 6.1.6. Mr. Straube, Celesio AG 208 6.2. Key Findings from the Expert Interviews 208 6.2.1. Strategic Direction Followed During the Implementation 208 6.2.2. Operative Versus Strategic Importance of Business Processes 209 6.2.3. Utilisation of Shared Services in Practice 210 6.2.4. Recommended Organisational Form for Shared Service Operat 211. 6.2.5. Standardisation ofprocesses and Technologies 211 6.2.6. Dysfunctional Behaviours and Change Management 212 6.2.7. Abilities of the Shared Service Organisation 213 6.2.8. Distribution of Power Between Shared Services and the Parent 213 6.2.9. Satisfaction with Shared Services 214 XV
7. Conceptual Approach for Implementing Shared Services 217 7.1. 'Strategy' Phase 217 7.1.1. General Strategic Direction 218 7.1.2. Frequency of Business Process Transfers 219 7.1.3. Degree of Shared Service Utilisation 220 7.1.4. Recommendations for Practitioners 221 7.2. 'Organisation' Phase 221 7.2.1. Organisational Form 222 7.2.2. Standardisation 223 7.2.3. Recommendations for Practitioners 224 7.3. 'Transformation' Phase 224 7.3.1. Change Management 225 7.3.2. Service Level Agreement 226 7.3.3. Recommendations for Practitioners 227 7.4. 'Operation' Phase 227 7.4.1. Customer Satisfaction 228 7.4.2. Control Mechanism 229 7.4.3. Recommendations for Practitioners 230 8. Conclusions 231 8.1. Summary of Findings 231 8.2. 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-03.1. Large-scale Enterprises 266 A-03.2. Consulting Companies 267 A-03.3. Institutions for Higher Education 267 A-04. Cover Letter and Reminder 267 XVI
A-04.1. Cover Letter 267 A-04.2. Reminder Letter 270 A-05. Questionnaire 273 A-06. Statistical Results 291 A-07. Incentives 291 A-07.1. Executive Summary 291 A-07.2. Donations 291 A-08. Transcription Expert Interviews 292 A-09. Descriptive Statistics - Illustrations 292 A-09.01. General Importance of Shared Services 292 A-09.02. Descriptive Analysis: 'Strategy' Phase 295 A-09.03. Descriptive Analysis: 'Organisation' Phase 299 A-09.04. Descriptive Analysis: 'Transformation' Phase 301 A-09.05. Descriptive Analysis: 'Operation' Phase 304 A-09.06. Overall Evaluation of the Shared Service Concept 306 XVII