Shells Customer-to-Cash and SSC Journey An interview with The - - PowerPoint PPT Presentation
Shells Customer-to-Cash and SSC Journey An interview with The Hackett Group Siobhan Riggott Customer-to-Cash and GBS Advisor, The Hackett Group Michal Fic Global COC Process Excellence Manager, Shell Credit Matters VI The Deep
Siobhan Riggott – Customer-to-Cash and GBS Advisor, The Hackett Group Michal Fic – Global COC Process Excellence Manager, Shell
Key Findings - The Hackett Group’s GBS study
Source: The Hackett Group’s annual GBS performance study, 2017
INCREASING STRATEGIC ACCOMPLISHMENT OF GBS GBS OPERATING MODEL DEVELOPMENT CHALLENGES DIGITAL TRANSFORMATION IMPERATIVE CUSTOMER CENTRICITY
Strategic alignment, cost leadership and compliance focus are the main strategic priorities
Source: The Hackett Group’s annual GBS performance study, 2017
2014 2015 2016 2017
GBS Strategic Objectives,% effective and highly effective in meeting the stated goal
ALIGNMENT COMPLIANCE FOCUS COST LEADERSHIP FOCUS SERVICE EXCELLENCE FOCUS AGILITY FOCUS CUSTOMER INTIMACY FOCUS
Current and expected use of GBS model, by function
Source: The Hackett Group’s annual GBS performance study, 2017
GBS use for customer service and direct procurement is set to grow fastest in the next 2-3 years
5% 6% 6% 11% 12% 13% 16% 25% 25% 27% 29% 38% 50% 52% 79% 2% 3% 5% 2% 2% 3% 8% 5% 7% 12% 14% 12% 11% 13% 3% Government Affairs Sales Research & Development Marketing Corporate Communications Environmental, Health & Safety Legal Supply Chain Management Real Estate & Facilities Mgt. Direct Procurement Customer Service Information Technology Indirect Procurement Human Resources Finance Current 2-3 years (% growth)
u What functions are included within the scope of Shell Business Operations? u What is the organizational and geographic scope of Shell Business Operations? u How have the strategic priorities and objectives of Shell Business Operations changed over time?
Discussion
Finance operating model, conceptual view
Corporate Center Focus: Defines corporate strategy and exercises stewardship § Strategic and Financial Planning & Performance Management § External Reporting, Tax, Treasury, Mergers & Acquisitions, Internal Audit Centers of Excellence Focus: Supports enterprise-wide stewardship goals § Tax Management § Cash Management § Capital and Risk Management § Compliance Management § Cost Accounting Business Partnering Focus: Defines BU strategy and measures performance § Planning & Performance Management § Business Analysis § Tax, Treasury, § Mergers & Acquisitions, Internal Audit (in autonomous organizations) Country/ Entity level (BU) Focus: supports localized strategy execution and activities retained for compliance reasons § Business Analysis (focused on sales support) § External reporting (focused on country/ entity P&L and fiduciary responsibilities) Finance Operations Focus: Delivers operational finance services to BUs Cash Disbursements §Accounts Payable §Travel & Expenses Revenue Cycle §Credit §Customer Billing §Collections §Cash Application §Dispute Management General Accounting §Fixed Assets §Intercompany Accounting §General Ledger Accounting §Cost Accounting
Corporate center Shared Services BU
Finance operating model, empirical view
Source: The Hackett Group’s annual GBS performance study, 2017 91% 87% 83% 82% 82% 80% 77% 77% 75% 72% 60% 50% 46% 46% 46% 43% 42% 39% 24% 63% 5% 9% 8% 8% 9% 16% 12% 4% 17% 21% 32% 13% 15% 9% 7% 22% 12% 40% 54% 16% 5% 4% 8% 9% 9% 4% 12% 19% 8% 7% 8% 37% 39% 45% 48% 35% 46% 21% 22% 20%
Accounts Payable Travel & Expense Fixed Asset Accounting Intercompany Accounting General Ledger Customer Billing Collections Cash Application Dispute Management Credit Cost Accounting Tax Management Payroll Enterprise Consolidation Treasury Management Compliance Management External Reporting Business Analysis Planning & Performance Management TOTAL
GBS BU Corporate Center
Finance in GBS, organizational model by process (Top quartile)
A significant proportion of O2C fall within the scope of Global Business Services, with top quartile having taken the model further than peer
u What does Shell’s Customer-to-Cash look like from a delivery perspective as well as from a governance
perspective?
u What is the role and accountabilities of the Process Excellence team – is their scope in line with Shell
Business Operations or wider than the scope of Shell Business Operations?
u
What frameworks and matrix do Shell use to define their operating model and optimise service placement? How does the global delivery model vary for the different processes within the scope of Customer-to-Cash?
u Could you share examples of some of Shell’s most significant Customer-to-Cash optimisation activities;
whether they be in relation to service placement, process design, use of technology and automation?
Discussion
Customer experience defined
Source: The Hackett Group’s annual GBS performance study, 2017
Customer experience is the sum of all experiences a customer has with a supplier
their relationship with that supplier
Wikipedia definition
More mature customer experience management leads to higher customer satisfaction
Source: The Hackett Group’s annual GBS performance study, 2015
8,0 9,0 8,0 8,4 8,3 8,2 6,0 6,2 5,9 5,2 6,0 5,9 Finance Human Resources (HR) Information Technology (IT) Indirect Procurement Direct Procurement Overall
Customer Satisfaction (10 point scale)
Peer World-class
u How mature is Shell’s Customer-to-Cash organisation in terms of customer experience management? E.g.
culture, use of technology, skills and talent, service design etc.
u Do Shell Business Operations undertake customer / stakeholder satisfaction surveys on a regular basis?
How are the results of the surveys used to drive customer experience improvements?
Discussion
Half of all GBS have defined a digital transformation strategy, but lack resources and funding to execute
Source: The Hackett Group’s annual GBS performance study, 2017
14% 10% 1% 7% 47% 26% 30% 31% 33% 53% 57% 49% 6% 11% 11% 13% Digital transformation resource allocation and funding Digital transformation strategy definition Understanding of digital transformation enabling technologies Digital transformation initiatives definition
Capability levels for aspects of digital transformation in GBS
None Low Moderate High
Low Low Moderate Moderate Moderate Moderate Moderate Moderate Peer World-class
Digital transformation is expected to contribute most to GBS agility and productivity improvement
Source: The Hackett Group’s annual GBS performance study, 2017
1% 6% 1% 23% 19% 13% 7% 17% 7% 13% 39% 33% 47% 40% 29% 37% 24% 23% 29% 34% 44% 47% 50% 54% 14% 14% 6% 7% 7% 6% 9% Profitability improvement External customer experience improvement GBS operating cost reduction Internal customer experience improvement Improved management information GBS productivity improvement Improved GBS agility
Expected improvement achieved by Digital Transformation in GBS in 2-3 years
None Low Moderate High Don't know
Moderate High Peer World-class Moderate Moderate Moderate High Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate
u How defined and developed is Shell’s digital transformation strategy from an Customer-to-Cash
perspective?
u •Could you please share examples of initiatives included in Shell’s Digital Transformation roadmap that
will impact (or are already impacting) Customer-to-Cash?
u What expectations does Shell have in terms of how digital will contribute in terms of agility and
productivity improvements?
Discussion
Siobhan Riggott Customer-to-Cash and Global Business Services Advisor The Hackett Group sriggott@thehackettgroup.com
Michal Fic Global COC Process Excellence Manager Shell Michal.Fic@shell.com