In one of its latest efficiency moves, the UK government has announced its plans to seek private sector partner to deliver its second shared services center in a deal estimated to be worth £2bn. The Next Generation Shared Services Strategic Plan outlines how government departments and arms-length bodies will share functions to deliver potential savings of between £400 and £600m ($650-$975m) a year in administration costs. It is absolutely clear that the UK government wants to set up systems that bring better administration to the nation. (See more at http://www.sharedserviceslink.com/file/95755/uk-government-seeks-a-partner-for-their-second-independent-shared-service-center.html).
What makes countries or organizations better than the rest? One of the answers that I believe and have experienced from my stint in the Indian Navy, the naval military arm of the Indian Armed Forces, and my subsequent stints in the corporate world, is the level of standardization and maturity of standard operating procedures (SOP) of these organizations and their ability to dynamically change with changes in the environment without causing too much disruption to their "business as usual" activities.
While in the Navy, I realized that everything, including something very complex and something very mundane, was done in a jiffy and with much precision, the same was not to be said of things in the corporate world. Teams in the corporate world would struggle to get something very simple to be executed consistently. While in the Navy, the success of the operations was largely to the strict Standard Operating Procedures being followed, whereas success of a corporate venture would largely depend on the individual leading the venture. However, some large companies, who are leaders in their fields of operations, come close to the operational standards of the military by defining their SOPs. Most of such companies have already moved into or are moving into the Shared Services mode to become more agile and efficient in their operations.
Coming more specific to the objective of this document, India has made a turnaround in its fortunes through the IT and ITES industries. This turnaround has brought out many dreams in many Indians to start something on their own. However, are Indians ready to take their businesses to the next level where they can sustain at the Global field? Are both the Government and the Corporate entities of India geared up to meet the challenges and dynamics of the changes that the world is going through?
The answer lies in what the UK government is planning to achieve. India Incorporation needs to come together to set up a Shared Services system to bring its burgeoning administrative set up to work with efficiency and speed in sustaining the high growth that it has experienced. It is not just the Government arm that we are talking about; it’s also the corporate sector which needs to organize itself to prepare for scale ups to achieve higher growth rates. While the Government organizations are seen too slow and bureaucratic in their approach, there are many corporates who resort to many quick fixes endangering their long term sustenance as a company.
There have been some initiatives by India Inc. to make things faster and more reliable to its citizens. One of the best I have seen is the evolution of the Indian Passport System. From a very bureaucratic system with long queues and many touts plaguing the system, it has now turned out to be a tech savvy and efficient system where passports are issued without any hassles. I have seen this myself while applying for passports of my family. The passport system is a good example of how technology and processes can implement a good Shared Service Center. However there are many other areas both in the Government and Private Sectors that are yet to experience such wonders through a well-planned Shared Service Center.
The opportunities to improve, especially in a large country like India, are quite huge. However, it is time now to move in and take advantage of the Shared Service Model to create an efficient administration system. The challenges are many but the advantages far outweigh them through a good Shared Service Center for India Inc. In terms of technology, India as a country has enough and more talent to not just develop the necessary software but to continuously improve as and when new software advancements are required. However, as I have I mentioned in my previous article, “Transforming Shared Services by understanding “The Shared Services Matrix” – The People Way”, a good Shared Services is established only with the transformation of people in the Shared Services. Hence, the right way would be for the governments to introduce Shared Servicers Framework as a subject for all Government servants’ right from the prestigious Indian Administrative Services to the lower echelons of the clerical government workforce. In terms of Corporate India, Shared Services as a specialized subject needs to be introduced at premier business schools to teach the corporate workforce on how to create a sustainable business administration model.
While speaking of people transformation, it is a well-accepted fact that utilizing military concepts in business helps companies achieve their goals. Today, I see a lot of young Short Service Commission Officers completing their tenure in the military and joining the corporate world for a second career. These officers are already experts in the Shared Services Framework, i.e., Knowledge, Operations and Control Management. Hence, absorbing such talent in the Shared Services field will help in catalyzing the transformation to an efficient management system.
There’s a very interesting article that I read on the Harvard Business Review website called, “First, let’s fire all the Managers” http://hbr.org/2011/12/first-lets-fire-all-the-managers which talks about how in bigger organizations, managers actually add chaos to the organization instead of managing them. In a country as big as India, a large bureaucracy can actually stall the country’s growth. The need of the moment is a quick and efficient administration system that is able to support the growth in a robust and efficient manner. What better way than to implement a central Shared Services setup for India Inc.
