Project-Based Operations: A Cornerstone of Global Business Services
In the evolving landscape of Global Business Services (GBS), a significant paradigm shift is evident as these organizations increasingly adopt project-based or project-oriented operational models. GBS organizations, once primarily recognized for cost efficiency and operational optimization, are now integral to corporate strategy. They serve as strategic partners, delivering substantial value through specialized expertise in areas such as project management, change management, and innovation. This transition elevates GBS organizations from being perceived merely as transactional processing centers to being acknowledged as strategic allies, crucial to the overarching objectives of the company. As a result, it becomes imperative for GBS organizations to incorporate project-based operations (PBO) as a core component of their operating model.
GBS organizations are progressively being recognized as incubators for innovation, particularly in domains such as predictive analytics, data visualization, and robotics. These activities, characterized by low to medium volume and medium to high variety, necessitate a project-based operational structure that fosters rapid innovation, reengineering, and continuous improvement. Figure 1 below provides a visual representation of this embedded PBO approach, highlighting its central role in driving innovation within GBS.
Figure 1
Project-Based Operations in GBS
To fully leverage the opportunities presented by ongoing technological advancements, GBS organizations must undergo a fundamental transformation in both their operating model and talent management strategies. This transformation hinges on the integration of PBO into the GBS operating model, thereby translating strategic vision into tangible value. It also requires a reimagining of talent acquisition and development strategies to align with the demands of a PBO-driven environment, along with the establishment of both formal and informal mechanisms to ensure continuous skill development and adaptation to change.
However, the successful implementation of PBO is not merely a matter of structural reorganization; it necessitates a holistic and integrated approach to organizational design. For these changes to be sustainable, GBS organizations must cultivate a culture that supports continuous development and effectively engages employees at all levels. This cultural shift can be achieved through several key strategies:
1. Role Modelling
Leadership must exemplify the behaviors and attitudes that reflect the organization’s commitment to PBO and continuous improvement.
2. Fostering Understanding and Conviction
Employees need to fully understand the rationale behind the shift to PBO and be convinced of its value to the organization and their professional growth.
3. Building Capabilities
It is essential to equip employees with the skills and knowledge required to thrive in a PBO environment.
4. Reinforcing New Ways of Working
Continuous reinforcement of PBO practices through consistent and supportive management will embed these changes into the organizational culture. Indeed, the integration of PBO into GBS is as much about cultivating the right organizational culture as it is about structural changes.
Figure 2
PBO as the Nucleus of GBS Strategic Management
Regardless of where a GBS organization currently stands in its evolution, the urgency for transformational change is undeniable. Employees are increasingly demanding more from their organizations, and some companies have already begun transitioning from experimental stages to capturing tangible value. By embracing the rapid technological advancements and integrating PBO into their operations, GBS organizations can seize the current momentum and position themselves for sustained success. This transformation requires a fundamental rethinking of GBS operations, preparing employees for a future defined by continuous change and innovation.
