What Will Shared Services Look Like in the Near Future?

There are rumbles of change vibrating through the shared services industry.

In a world increasingly shaped by AI, GBS leaders are facing an identity crisis. Many are grappling with how to prove their value—despite years of delivering major cost savings.

As Romek Lubaczewski puts it in our latest P2Podcast episode:

Too many GBS leaders think they’re safe because they’ve delivered millions of dollars of savings. But unfortunately, in the business world, history is history. One budget cycle, you’ve gone from being an added value to a cost. And costs go.

So what can GBS leaders do to stay relevant and thrive in the years ahead?

Mastering the Triangle of Transformation

In shared services, there are three sides you need to understand:

1. Business: Know your organization inside out.
2. Process: Understand how things really work across the value chain.
3. Technology: Use the right tools to enhance—not replace—those processes.

Most leaders understand their business inside out. And they usually have a good grasp of the processes underlying that business. They might not be as efficient as they’d hope, but they understand them.

But, as an industry, we can be a little wobbly when it comes to technology. We don’t understand how and where to fit it into the flow. It needs to work alongside our employees, not against them.

Technology Is a Tool, Not the Goal

There’s no point building a road if you don’t know your destination. One of the biggest mistakes GBS leaders make is using technology just for the sake of it. Upper management raves about a shiny new toy, so we try to shoehorn it into the business. Lately, that trend has been AI. But we all know it’s not going to cut half your costs overnight.

It’s the wrong approach. People don’t embrace change if they can’t see the value in it. If it’s not actually solving a problem, why would they start using it?

So don’t look at technology as the starting point. Instead, look at the business and processes first and see what needs fixing.

Expand the Scope of Your Role

Right now, the role of a shared service manager is becoming more and more administrative. It’s becoming more about running the physical office, rather than thinking strategically about the business and its processes.

The more that happens, the less relevant it’ll become.

There’s a simple solution, though. As leaders, we need to expand the role to include new responsibilities. One way is to think of the GBS centre as a hub for more services.

So think beyond the usual fare. Why can’t we be the centre for AI development, cybersecurity, or data analytics? Those services need a centralized hub. They don’t currently have a neat home in the business. The GBS centre can become that.

Fight to Own the Whole Process

You wouldn’t expect a mechanic to fix your car without being allowed to touch the engine. But GBS leaders are often attempting to fix processes with one arm tied behind their back. They don’t have the authority to make changes outside of the SSC.

Often there’s a bottleneck in the company that could easily be fixed. For example, contracts being inconsistent, or POs being created after the invoice has already been sent.

But because they don’t own the entire process, GBS leaders are stuck making small optimizations that have far less impact. If the role is to survive, we need to fight to own that process.

Listen to P2Podcast for more Insights

A tough road ahead, perhaps. But one where, at the end, the role evolves into something more strategic. We’re only just scratching the surface of what might be on the horizon for leaders.

🎧 Listen to the episode and hear the full story straight from Romek himself:

Spotify: https://spoti.fi/3FWg6IS

YouTube: https://bit.ly/43YdBOl