Case Studies.
Streamlining Operations: Transforming Shared Services for Efficiency
- Industry: Transportation
- Challenges: The establishment of a shared service center was required to streamline operations, enhance efficiency, and facilitate the spin-off of a business unit. Additionally, with an ongoing Oracle upgrade, alignment with the new operating model was essential.
Nexel Partners Approach:
• Conducted a comprehensive assessment and strategy development for the shared service center covering six business areas: Finance, HR, IT, Procurement, Facility Management, and Customer Service.
• Ensured alignment with the ongoing Oracle upgrade by integrating the shared service center with the new business and operating model.
• Designed a new operating model for the Holding, SBUs, and Shared Services, defining detailed business processes for all functions in both Arabic and English languages (48 business processes).
• Developed a new organizational structure, manpower plan, and functional statements to support the shared service center’s operations.
• Defined and implemented SLAs between core business functions and shared services business units, ensuring clear transparency and accountability.
• Designed a cost structure (chargeback model) for new business units and established new support function policies, such as financial control, procurement, personnel, and administration.
• Implemented and rolled out the new operating model, providing training and support to the organization to facilitate the transition.
• Identified technology requirements for business function processes and trained all users on the new model, supporting its implementation.
Outcome:
• Achieved a significant reduction in back-office manpower, decreasing from 470 to 157 employees.
• Consolidated 150 services and standardized 48 business processes, improving efficiency and clarity across the organization.
• Streamlined operations with 650 system users and improved transparency and accountability through defined SLAs.
• Successfully implemented new support function policies and established a sustainable chargeback model for cost allocation.
• Enabled the organization to adapt to organizational changes and align with the ongoing Oracle upgrade, ensuring operational continuity and efficiency.
