Shared Services

Praise for Shared Services A Manager's Journey

"In Shared Services: A Manager's Journey, Dan presents the real business cultural challenges along with human factors when taking on such a change in a company's processes. A must-read for any executive, manager, or team member who is considering, decided to, or is already in the process of converting a company from a decentralized organization to a shared services environment."

-Katherine M. Ericsson Vice President of Membership, Project Management Institute of South Florida and director of a project management office, in a shared services environment within the distribution industry

"A how-to/survival guide for those thinking about entering shared services or beginning the journey...for the rest of us, an entertaining look back at our journey both professionally and personally. A great read!"

-Steve K. Stone Senior Vice President and CFO, Newspapers and Shared Services Morris Communications Company

"Over the past fifteen years, I've had the pleasure of working directly with hundreds of companies who are implementing shared services. What is striking is how very different 'real experiences' are from the stories spun by consultants or keynote speakers at conferences. Getting to the 'real truth' of how to put the pieces together will help you keep consulting fees low and the probability of success high. This book is a practical guide created by someone who has been there. It is the truth!"

-Mike Hostetler Managing Director, Shared Services Roundtable Corporate Executive Board

Foreword viii

Preface ix

Acknowledgments x

Chapter 1 Brown Fields, Green Fields, and Hazel Fields 1

Chapter 2 Finally 9

Chapter 3 You Are Only as Good as Those You Are Surrounded By 15

Chapter 4 Decision Time 28

Chapter 5 The Journey Begins 33

Chapter 6 The Journey Continues 43

Chapter 7 Mission Accomplished 51

Chapter 8 Location, Location, Location 59

Chapter 9 A Tough Conversation 65

Chapter 10 El Paso Goes Live 71

Chapter 11 Teamwork 77

Chapter 12 End-to-End Process 82

Chapter 13 Process Steering Teams 90

Chapter 14 Preparation 97

Chapter 15 Dinner and a Meeting 102

Chapter 16 Measure, Measure, Measure 108

Chapter 17 Bonus Time 116

Chapter 18 Pay Up 129

Chapter 19 Allocation Time 136

Chapter 20 Allocation Details 144

Chapter 21 Perception is Reality 150

Chapter 22 The Devil is in the Details 158

Chapter 23 The Next Steps 173

Chapter 24 Smooth Running 181

Chapter 25 The Meeting Continues 191

Chapter 26 Best-Laid Plans 197

Chapter 27 Time for a Change 205

Chapter 28 Opportunity 211

Chapter 29 Growth 216

Chapter 30 Hello and Good-bye 224

Chapter 31 The Conference 231

Chapter 32 Thanksgiving 241

Index 245

DANIEL MELCHIOR JR. is Vice President, Business Solutions Group with Southern Wine and Spirits, a wine and spirits distributor in twentyeight states. He is responsible for the overall management, performance, and budget of the Financial Business Solutions Group that includes 130 employees and supports operations in twenty states. He is the former director of Shared Services, where he was responsible for the day-to-day operations and success of accounts payable, supplier billing, general ledger, payroll, benefits, document management, and supplier billing. To learn more about Dan, visit www.DanielMelchior.com.

Shared Services
A Manager's Journey

Having freshly arrived from an established shared services center, Dennis was confident he had the know-how to make a difference at Capp, a lumber business that had mushroomed into a large building materials company, selling everything from lumber to cabinets to plumbing fixtures. Three months ago, he had been tapped to set up and head the shared services division at Capp and couldn't wait to dig into the challenge of setting it up—until, that is, he hit the walls of getting everyone on board with his vision and getting management to agree on where the division should physically be located.

What follows is an eye-opening experience in which, along with our hero, you will witness the pitfalls, triumphs, and lessons learned in the process of implementing and growing a shared services organization. Through Dennis's experience, you will find out why shared services is a proven method to deliver value in the support services field.

Author Daniel Melchior—a leading practitioner of shared services—presents a powerful framework for successfully establishing and running a shared services center. This innovative book:

• Introduces the shared services"vision" and the value-creatingopportunities the achievement ofshared services can deliver

• Explores and explains the business strategy behind centralizing various business units

• Honestly addresses the full range of issues involved in successful implementation of a shared services operation in your business

• Shows how shared services can create a unified front among business units

Thought-provoking and engaging, Shared Services: A Manager's Journey sheds light on how using shared services to perform specific internal services such as payroll, accounts payable, and travel and expense processing can tactically equip your business with a flexible tool for improving processes, generating profits, and reducing costs.

The leading guide to professional home construction—now updated and revised!

Having freshly arrived from an established shared services center, Dennis was confident he had the know-how to make a difference at Capp, a lumber business that had mushroomed into a large building materials company, selling everything from lumber to cabinets to plumbing fixtures. Three months ago, he had been tapped to set up and head the shared services division at Capp and couldn’t wait to dig into the challenge of setting it up—until, that is, he hit the walls of getting everyone on board with his vision and getting management to agree on where the division should physically be located.

What follows is an eye-opening experience in which, along with our hero, you will witness the pitfalls, triumphs, and lessons learned in the process of implementing and growing a shared services organization. Through Dennis’s experience, you will find out why shared services is a proven method to deliver value in the support services field.

Author Daniel Melchior—a leading practitioner of shared services—presents a powerful framework for successfully establishing and running a shared services center. This innovative book:

• Introduces the shared services “vision” and the value-creating opportunities the achievement of shared services can deliver
• Explores and explains the business strategy behind centralizing various business units
• Honestly addresses the full range of issues involved in successful implementation of a shared services operation in your business
• Shows how shared services can create a unified front among business units

Thought-provoking and engaging, Shared Services: A Manager’s Journey sheds light on how using shared services to perform specific internal services such as payroll, accounts payable, and travel and expense processing can tactically equip your business with a flexible tool for improving processes, generating profits, and reducing costs