SRF’s Journey to Shared Services
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SRF Limited established a shared services center to consolidate accounting processes across its business units. A feasibility study determined it was the right time and strategy. The center launched in September 2015, managing accounts payable, payroll, and bank reconciliation. Challenges included change management and document flow changes. Metrics and SLAs were established to track performance. The center helped standardize processes and create efficiencies despite some transitional challenges.
SRF’s Journey to Shared Services
- 1. SRF’s Journey to Shared Services
- 2. Content • SRF Limited- A background • Shaping of BPM strategy • Execution of BPM strategy • Shared Service Centre Go-Live
- 3. SRF Limited • Established in 1970 • Multi business entity – Technical textiles – Packaging films – Chemicals – Engineering Plastics • Operations in India, Thailand and South Africa • Headquarter at Gurgaon, NCR, India. • Presence at 9 locations in India and 4 overseas • Different manufacturing processes and thus different accounting practices
- 4. Shaping of BPM strategy • Whether it is right time to consolidate processes – Feasibility Study conducted and reported to leadership team • Whether it is a organisational strategy or a functional stragegy – organisational strategy Was it the right way to go in the present and for the future?
- 5. Shaping of BPM strategy …contd. • Consolidation to be achieved through Out sourcing the processes to third party In-house managed shared service centre Managed shared service centre • Shared services to be seen as a corporate initiative and not as a Finance thrust • Distancing finance from the centre
- 6. Shaping of BPM strategy …contd. • Incorporating the voice of the senior leaders of the Company • Selecting the plant / location for taking representative samples for the report • Processes to be consolidated Accounts payable Payroll processing Bank reconciliation
- 7. Execution of BPM strategy • Project Kick off • Formation of Steering Committee • Challenges during execution • Change in document flow
- 8. Execution of BPM strategy • Project Kick off Project Kick Off – Feb-15 Full support from top management • Formation of Steering Committee Representation from all businesses and department • Business CFOs • Information Technology • HR
- 9. Execution of BPM strategy …contd. • Overcoming the challenges during execution Site readiness • Challenges – Many sites rejected at due diligence stage – Less time for furnishing after site finalisation • Solution to the challenges – Regular follow ups with the furniture vendor – Plan B ready in case of site unpreparedness – Regular talks with the ISP
- 10. Execution of BPM strategy …contd. • Overcoming Challenges during execution – Change Management • Challenges Fear of process getting outsourced Fear of losing jobs • Solution to the challenges Regular mailers from top management Release of regular mailers Redeployment plan ready
- 11. Execution of BPM strategy …contd. • Document Flow – Consideration aspects Scanning – Decentralised Vs. Centralised Scanning – Pre processing Vs. Post processing Documents lost in transit • Decision Centralised scanning pre processing Risk of Lost in transit mitigated through document tracking system
- 12. Shared Service Centre Go-Live • SSC Go-Live 1st September, 2015 • Managed Service Partner • Total strength-33 FTEs – just the right mix 1 Leader through Managed Service Partner 14 internal (6 with plant experience, 4 middle management position) 18 new hires • Improvements initiated Vendor Master management Single bank account Document tracking system Management Information System
- 13. Shared Service Centre Go-Live • 3 months transition period • Metrics Regular tracking of SSC performance Baselining to be done SLAs to be signed with business • Some challenges in transition Pendency High pressure from plants Some delayed payments Old habits die hard
- 14. Thank You