Outstanding Transition Projects in the GBS Context

Today, an increasing number of companies face major challenges due to rapid developments in global cooperations and technology solutions, and now recognize the importance of preparing their business for these challenges in the best possible way. In this context, setting up a GBS (Global Business Services) framework and implementing it through a transition project are frequently deemed essential by the organizations.

Within a GBS framework, organizations are able to establish centers of excellence that are dedicated to managing and steering both the changes and the opportunities that arise. KPMG has developed a methodology which can help companies make an efficient GBS transition using a clear five phase project approach. The project team follows a structured method involving all key stakeholders, ensuring effective communication throughout the process. The success of the project is driven by a confirmed transition plan including an aligned set of activities for each phase. KPMG will gladly support your company in this endeavor with our extensive knowledge and methodologies. In addition, your company can rely on our global network and teams.

Companies commonly aim to enhance their efficiency, unlock significant value and drive sustainable growth. In order to achieve these objectives, the integration of a GBS center can prove foundational. The following four key points reveal how a GBS can enhance your business.

Cost efficiency and optimization: GBS transformation offers organizations the opportunity to consolidate and centralize their support functions (such as IT, finance and human resources), leading to significant cost savings. By standardizing processes, leveraging economies of scale and implementing automation and digital solutions, companies can achieve greater efficiency and productivity while reducing operational expenses.

Enhanced service quality and agility: In order to satisfy customer expectations, organizations need to deliver exceptional service levels while maintaining the agility needed to adapt to the dynamic market environment. GBS transformation enables the implementation of best practices, streamlined workflows and enhanced service delivery models. This standardized approach improves quality, reduces errors and enhances the overall customer and employee experience.

Risk management and compliance: In an increasingly complex regulatory environment, compliance and risk management are non-negotiables for organizations throughout industries. GBS transformation facilitates the standardization of processes, data governance and compliance procedures and ensures adherence to regulatory requirements, while mitigating operational risks. By improving visibility, control, and reporting capabilities, organizations can proactively detect and resolve compliance issues, protecting their reputation and minimizing potential liabilities.

Strategic focus and business partnership: By transferring routine and transactional tasks to GBSs, organizations can free up valuable resources and talent to focus on value-added activities. GBS transformation enables business leaders to shift their attention from day-to-day operations to strategic planning, innovation and business partnering. By aligning GBS objectives with overall business goals, organizations can drive both sustainable growth and their competitive advantage.

A successful GBS transition project is carried out in five phases, each with its own set of activities and clear responsibilities. KPMG offers a clear methodology, customized for your company. The following provides an overview of the key elements of each phase:

1. Prepare Phase: The first phase of the project involves conducting an initial assessment of the current situation. Overall stakeholders are identified. All available process documents are collected and analyzed. The detailed transition plan is aligned and finalized and the change management communication plan is developed. A transition governance framework is also established.
2. Fit-Gap Phase: The second phase of the project involves the comparison of local processes with the Standard Process Model and an evaluation of the steps that must follow. Afterwards, a knowledge transfer plan is developed, based on the Fit-Gap outcomes. The change management communication plan is then finalized.
3. KT Phase: The third phase of the project involves onboarding the future operational resources and performing the Knowledge Transfer sessions with regard to processes and systems. Where required, the User Acceptance Testing (UAT) is conducted.
4. Operational Readiness Phase: The fourth phase of the project involves continuous training, if required. In order to be prepared for the period after Go-Live, the hypercare approach is set up. Communication regarding change management covers all questions regarding the period following Go-Live; the phase ends with the successful handover of activities from the former operational colleagues to the new operational colleagues.
5. Stabilization: The final phase of the project involves running the hypercare component to quickly resolve any issues related to the Go-Live. As a last step, the handover from the transition team to the operational team is carried out.

With the completion of these steps, the GBS transformation project is successfully implemented, each phase having contributed to the overall success and target of the project. The activities conducted in each phase ensure that the project is finished within the expected timeframe and budget, and that the change from the previous set up to the new set one is seamless. KPMG, with its expertise and a wide range of tools can help ensure that these objectives are achieved on time and within budget.