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Deloitte Shared
Services, GBS &
BPO Conference
Out-Tasking vs
Building a Global
Team: Moving
Beyond Labour
Arbitrage
Berlin, Germany
Peter Marsland, Danske Bank;
Mark Craddock, Deloitte
22 – 23 September 2015
2 Deloitte Shared Services, GBS & BPO Conference 2015
Does your organisation see Global Business Services
(or Shared Services) as an essential development step for
Senior Leadership?
Take a minute and answer our quick poll on the
Shared Services App
Introductions Your presenters for this session
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• 15 years experience in Shared
Services and BPO covering F&A,
Procurement, HR, IT and Supply
Chain
• Mark has both managed and advised
on GBS services, with Operations
leadership experience in two major
BPO suppliers
• 9 years experience in Financial Services
• Responsible for driving the overall COO
strategic agenda and transformation (IT,
Operations, Procurement), including the
implementation of Global Teams in Group
Functions of Danske Bank.
• Has held a number of leadership roles
within the fields of change management,
strategy development and
implementation, communication and
public affairs
Mark Craddock
Director, Deloitte
Global Business
Services
Anne Melchiorsen
Exec. VP, Danske Bank
Chief of Staff COO area
Uffe Gade
Danske Bank
Head of Global Teams
Development
• More than 5 years experience in
developing shared service setups both
as a consultant and from within
operations
• Uffe has worked with offshoring and
development of global teams in
operations, finance, risk and several
other functional areas
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“You might not always get what you want, but you
always get what you expect.”
Charles H. Spurgeon
Out-tasking or simple ‘lift and shift’
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Quotes we often hear from onshore teams
“Sure, the SLAs are
green, but we still get a lot
of noise from our internal
customers”
“The teams are very
transactional – we don’t
feel confident in giving
them more complex
processes”
“All the thinking and co-
ordination comes from the
retained organisation”
The root of the problem is often in the building
blocks used to create the Shared Service
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Sumantra Ghoshal (London Business School):
“The real test of an organisation is the context it creates”
Transactional
Operational
Strategic
SSC
Centre of
Excellence
Business
Partners
What messages are we sending our teams?
Process Splits Service Catalogues SLAs
Phil Whelan (Head of Strategy, BP GBS):
“If you don’t have a vision or a brand, you simply
become known for what you do…labour arbitrage”
The growth of Shared Services talent
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Organisations are neglecting the global talent pool
FTE in Indian Captives grew at a CAGR of 14% from 2003 to 2015
Source: Deloitte India Survey, 2015
2012 2015 2003 2020 (E)
150,000 500,000
750,000
~ 1,800,000
Talent is moving
East and South
14% CAGR
Building a Global Team
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Simply creating a “Captive” version of a BPO is not the solution
Invest in Leadership Training 1
Global Talent Management 2
Global Leadership Mobility 3
From SLAs to
Business Outcomes 4
End-to-end Ownership 5 International, Cross-functional
Teams 6
Brand and Vision 7
Deloitte Shared Services, GBS & BPO Conference 2015 9
Danske Bank Case Study Moving from out-tasking to building a global team
Case Study
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Danske Bank – Background
[Russia]
[Finland]
[Norway]
[Sweden]
[Estonia]
[Latvia]
[Lithuania] [Denmark]
[Poland] [Germany ]
[Luxembourg] [UK)
[Northern Ireland]
[Ireland]
[New York]
Key facts
Market leader in Denmark, Finland and
Northern Ireland
3.6 million customers
313 branches* in 15 countries
18,874 full-time employees
Founded in 1871
Independent divisions
Case Study
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Danske Bank – Shared Services
SSC located in Vilnius, Lithuania
Captive set up in 2013 as a proof of concept
Rapid build-up of new organisation
Fast and significant financial impact driven by
salary arbitrage
Side-effect: Maturation of processes with rigid
documentation and performance tracking
Culture change to more data driven quality
assessment
Case Study
12 Deloitte Shared Services, GBS & BPO Conference 2015
Danske Bank – Shared Service Challenges
Benefits limited to labour arbitrage
Sub-supplier role builds perception of being “lowest in the hierarchy”
No functional or process ownership in low cost locations.
Small and fragile competency environments for specialist knowledge in
sending areas – no pipeline for continuity
Limited career paths – hampers talent pool utilization, causes higher
attrition
“Us and them” culture – blaming instead of solutioning
Case Study
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Danske Bank – The Roadmap
Getting Started and Gaining Experience
with GSL International workforce
Gearing the
Organisation
30 FTE in GSL • Bottom-up screening
• Initial processes
piloted in GO DK
600 FTE in GSL • Migration process
standardized and
experience strengthened
• Selected process
centralizations to GSL
• Selected IT roadblocks
solved
International workforce • Integrated global teams across countries, with
common objectives
• Global functional management in key areas
• Long term sustainable knowledge environments
• Adjusted role of Market Area Operations
Ac
tivit
ies
Timeline 2016-2017 2012
750 FTE in GSL • Optimize and distribute
workload across
countries.
• Build infrastructure (e.g.
non psychical quality
and planning boards,
Workflows)
• Pilots for integrated
Global teams
• Further remove it-
roadblocks
• Continue build-up in
GSL
2013-2014 2015
Globalising delivery model Global Teams
Focus
Today
Case Study
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Danske Bank – Changing the Model
Centralization
“a natural step in the overall migration of
work backwards in the value chain”
Custom work
Common work
Routine work
Straight-through
processing
Continuou
s f
low
Front line
Local back
office
Centralized
back office
Automation
Harmonization and integration of services
“…a pre-requisite for scale benefits and effective digital
solutions”
Country based thinking Global functional mindset
• Local standards
• Customer service varies
• Common standards
• Deliver service as one
collective unit
• focus on customer value • work better together as one collective unit
Case Study
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Danske Bank – Lessons Learnt after the First Year
A valuable change journey...
• Global teams an ongoing change
process
• Leadership that sees the full potential
in Global talent pools perform better
• Clear vision drives collaborative
thinking
• Workforce planning a critical enabler
to identify challenges and define end-
state organisation
• Set up in Lithuania allows easy
access to talent at low cost
...although change is not easy
• Many existing systems and
structures do not support global
working
• Poorly documented processes -
difficult to collaborate across
countries
• Managing Global teams can throw up
complex issues
• Investment required for planning,
change management and temporary
double staffing
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