Shared-services implementation

A large energy company needed to revise its operating model in the context of a major IT transformation program. Strategy& was engaged to help the client understand new operating models that rely on shared services, develop an “umbrella strategy” for the transformation effort, and design a shared-services organization to deliver support functions.

The Strategy& team created a master strategy for shared-services implementation, designed a screening process to identify support functions suitable for shared services, assessed what cost savings opportunities were available through economies of scale, and provided guidance on the shared-services organization model.

In a second phase, Strategy& developed a baseline for existing support functions operations; identified savings opportunities in each of these support functions arising from economies of scale, process redesign, and improved demand management; quantified economic benefits for the entire organization and for each affiliate; and designed service offerings, service delivery processes, organization structures, pricing, and service-level agreements (SLAs). The client adopted the design and has moved to the implementation phase.