All in GBS Operating Models
The evolution of Global Business Services (GBS) is a journey shaped by strategic ambition, operational pressures, and technological transformation. As organizations increasingly rely on GBS to streamline operations, deliver efficiency, and enable enterprise agility, a pressing question arises: what limits GBS from evolving into a truly strategic powerhouse? The Theory of Constraints (TOC), introduced by Eliyahu Goldratt, offers a compelling narrative and practical lens to explore this question.
Maturity is not the end of the journey—it’s the beginning of reinvention. For GBS organizations that have mastered operational excellence, the next horizon is strategic enablement.
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.
How should leaders within Global Business Services (GBS) navigate the strategic evolution of their organizations? The implementation of a scorecard as a strategic framework provides a comprehensive approach to steer the GBS organization. This framework elucidates the governance structure of the GBS organization, assesses the performance of process owners, and clarifies the prioritization of objectives.
For over two decades, organizations globally have leveraged shared services to optimize processes, enhance controls, and reduce costs. While these benefits remain relevant, the expectations for leading Global Business Services (GBS) organizations have significantly increased. Mature GBS organizations now provide strategic value in specialized areas such as tax compliance, statutory reporting, project controlling, and credit management; alongside strategic initiatives in project-based operations, change management, and innovation, beyond traditional cost and operational efficiency gains. Consequently, key stakeholders and business partners perceive GBS as a strategic ally rather than merely a transactional processing center. With the maturation of GBS, the Partnering Operating Model is becoming increasingly strategic.
Global Business Services (GBS) significantly influence operational models and process sourcing across corporate functions. By establishing Centers of Expertise (CoE) and collaborating with global business process outsourcing (BPO) organizations, GBS creates substantial strategic value, fostering efficiency, innovation and digitalization of business processes.
Business Process Outsourcing (BPO) has become a strategic tool for organizations seeking to enhance operational efficiency, reduce costs, and focus on core competencies. However, the success of BPO sourcing model largely depends on effective governance. The governance of BPO services is crucial for creating strategic value, ensuring process effectiveness and efficiency, and enhancing the operating model by maintaining ownership and accountability within the relevant corporate functions.
The nature of the Global Business Services (GBS) function can be better understood by addressing a fundamental question that has gained prominence due to recent digital advancements:
What do we really want to achieve?
