IT Shared Services Organisation

Business case
Transformation of the IT function in a shared services organization

 

Context

This multinational corporation is historically organized on a geographical basis. Each country has its own resources, whether for core business or support functions, and operates in a very autonomous manner.

In the last years however, the business environment of the Group has changed. Its clients have become more global and tts resources (financing, expertise) scarcer. So this multinational has hence decided to change its governance and strengthen transverse coordination mechanisms. Major programs have hence been launched in the business and support functions, most of them involving the implementation of global IT systems.

These IT projects have revealed the inability of the IT function to manage large-scale projects (because of a lack of expertise, a lack of control on resource allocation, a lack of visibility on costs…). To enable these large projects to succeed, it has hence been decided to transform the IT organization into a Shared Services Organization (SSO). Karistem assisted the Group with the design and implementation of such organization.

Mission

For this project, Karistem decided to adopt an iterative and participative approach, that can be summarized as follows:

  • Map existing resources (internal resources and external resources) using a shared and recognized framework (CIGREF) and leveraging regional IT Directors’ (ITD) network
  • Clarify the rationale and the design principles with the top management (IT and Finance in that case)
  • Present the diagnostic and design principles to the IT management (including regional ITD)
  • Design 2 or 3 organizational scenarios, focusing on the first level of the organization (CIO and N-1), then present to the IT management, identify the preferred scenario and debrief the top management
  • Develop the preferred scenario (reporting lines, missions, detailed roles and responsibilities…), then present to the IT management
  • Clarify the interfaces of the organization (external interfaces with the core business and other functions and internal interfaces between the building blocks of the SSO), then present to the IT management
  • Consolidate all elements in a single document (blueprint), get validation from the IT and top management
  • Identify possible candidates for the key positions and make them responsible for the design of the level below (N-2)
  • Define the transformation’s key principles (big bang vs. phased implementation, timing…) and detailed path (communication to social bodies, staff, technical / financial, audit)
  • Get validation and launch the transformation



Main results of the mission :

  • A comprehensive view of IT resources’ activities and competencies
  • A more efficient organization with principles supported by management
  • A rationalization and simplification of processes and methodologies
  • A better governance in a more clear organization
  • A new dynamism and momentum



Why Karistem ?

Three key factors explaining why Karistem was chosen:

  • A deep knowledge of IS processes
  • A proven expertise in international IS projects
  • A robust approach to leveraging internal resources



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