Conference KeyNotes - The Conference Board · multi-functional shared services and outsourcing optimization strategies in the financial services, consumer business, life sciences,

www.conference-board.org

Conference KeyNotes

The 2009 Shared Services Conference

Shared Business Services @ Merck

Run, Transform, Sustain

Stacey Gelman, VP, Shared Business Services

The 2009 Shared Services Conference

November 18th, 2009

What is Shared Business Services at Merck?

Global Technology ServicesPartner for Technology Delivery

Expense Management

Procure-to-Pay•Purchasing•Payment Processing•Accounts Payable

Record-to-Report•General Accounting•I/Co Accounting•Fixed Assets•Bank Transaction Accounting•Book Close•Transactional Tax

Order-to-Cash•Order Management•Customer Service / Account Mgmt•Credit•Billing•Accounts Receivable•Returns

Payroll•Gross-to-Net•Time / Labor•Tax and Garnishment

Benefits•Health & Welfare •Pension / 401K / Stock Option Administration

Hire-to-Retire•Hire, Leave & Separate•Non-Merck Workers•Int’l Assignment

Corporate Information Technology

Service Management

SBS Americas SBS EMEA SBS AP / Japan

Sourcing Strategy and Partnerships

HRFinanceProcurementManagersEmployeesSuppliersCustomers

Evolution of Shared Business Services

Hir

e-t

o-R

etire

Pro

cure

-to-P

ay

Record

-to-R

eport

Ord

er-

to-C

ash

Contact

Center IT

Non-Core

Shared Work

Phase I

Self-Services

Enterprise Portal: The Key to Service Delivery

Illu

str

ati

ve D

esig

n o

f O

ur

Com

pan

y T

ab

Service Delivery - The End User Point of View

Service

Metrics

Utilization

Performance

Testing

TransactionsProcesses

Information

Definition

Forms SystemsEducation

Help

Purpose

Process

Rules

Taxonomy

Channels

SupportCenter

Electronic

Field

Portal

Email

Chat

Mobile

Goals

Roles

Geographies

Expectations

ProductivitySatisfaction Knowledge/Content

Management

Reporting

ChannelsLeveraged

Evolution of Shared Business Services

Hir

e-t

o-R

etire

Pro

cure

-to-P

ay

Record

-to-R

eport

Ord

er-

to-C

ash

Contact

Center IT

Non-Core

Shared Work

Phase I

Self-Services

Phase II

Integrated Support Model

Managed Services (Travel, Meetings, Media)

We are here

Enterprise Portal and Social Networking

Data Quality and Analytics

•Americas

Enterprise Process Service Delivery

•EMEA •AP/J

•Service Management

Commercial Platform

•GlobalHuman Resources Platform

The e

nd u

ser

experience

requir

es a

ll layers

of th

e s

tack

Key Decisions Shaping Shared Business Services

• Begin with premise of multi-function breadth across Procurement, Human Resources, Finance and Order Management

• Assume global oversight, avoiding the limits of scale imposed by organization or region

• Exploit ERP implementation and optimization; unified software works wonders

CATERPILLAR CONFIDENTIAL: Green 9

What’s Required

Component Sourcing Decision Control

Purchasing Integration

-Purchasing becomes a direct line function in BCP, responsible for managing BCP’s internal and external supply base

Compensation/Human Resources

-BCP defines and implements a C+B strategy aligned with BCP’s industry needs-BCP hires, develops, and manages succession of its employees to ensure the development and retention of industry expertise-Lean organization that supports profitability

Distribution Services, Core Services and COEs

-BCP gains direct line responsibility for Core Services (HR, IT and Finance)-BCP opts in for, at an agreed upon price, services, initiatives or programs

Manufacturing Footprint

-Focused facilities-Creation of Sanford campus for SSL / MTL

Key Decision Rights Changes

BCP can turn the business profitable mid 2010 using an end to end business model with full decision rights

Acid Test =

Customer Value


Lessons Learned


Lessons Learned by Leaders

#1 – Clearly Address the Stages of Change

Targets of change need to know:

– Why change is necessary and no longer viable

– What the future holds and how they fit in

– How you plan to support them during the transition



#2 – Provide Clear Definition of the Future

Targets of change need:

– Terminology that makes sense to them

– Clear definition of your “vision” statements

– Measurable goals

– To see where they are in the picture


Productivity


#3 – Address the Dip in the Delta

K. Judge



#4 – Consistently Gain “Target” Perspective

K. Judge


Clearly define the roles and responsibilities of sponsors and change agents

Sponsors

Make it clear that resistance will

be addressed

Commit the resources that are required

to reduce the resistance

Do the communicating

Provide the rewards and reinforcements

Change Agents

Systematically identify the target populations

and the sources of potential resistance

Identify the actions required to reduce the

resistance and build the plan of action

Write the speeches

Determine what those need to be


# 5 Know Difference Between Sponsors & Change Agents



#6 – Establish a Governance Model

Steering Committee

Change Management

Team

Program Management

Team

Team 2Team 1 Team 3 Team 4

Communication

Enterprise

Learning

Reward


Building Construction Products

Lessons Learned

Sponsor for the change must have a vision for the change

Focus, Focus, Focus

Communication, Learning & Reinforcements systems are critical

Go, See, Act

Our Results

– Improved Employee Engagement by 2 percent

– Improved our Strategy Index by 7 percent

– Improved Change Index by 5 percent

© 2010 The Conference Board, Inc.18 www.conference-board.org

Jessica Golden is a Deloitte Principal

specializing in performance improvement and cost reduction

strategies through Global Shared Services. Jessica advises

Fortune 500 senior executives in developing and delivering

multi-functional shared services and outsourcing

optimization strategies in the financial services, consumer

business, life sciences, and high technology industry

verticals. In addition to her advisory roles, Jessica is also a

frequent speaker at industry conferences and author of

shared services publications

Moderator:

http://www.conference-board.org/




Panelist: Stacey Gelman is Vice President of Shared

Business Services at Merck, where she leads the

globalization of shared services for order management,

finance, human resources and procurement. In addition,

Stacey leads the enterprise portal initiative, driving a

revolution in self-services and establishing new markets for

collaboration and social networking solutions. Before this

role, she was in the senior leadership posts for Human

Health Information Technology and Global Infrastructure.

Prior to joining Merck in September 2003, Stacey held

executive positions in the information and communications

industries, including Chief Product Officer at Factiva,

General Manager of Mobile Internet Solutions for Lucent

Technologies, and Chief Information Officer for AT&T

Network Systems. Stacey holds degrees from Queens

College in New York and the University of Pennsylvania.





Panelist: Michelle Noe is currently a communications

manager and change consultant for the Building Construction

Products Division at Caterpillar Inc. located in Cary, North Carolina.

She is responsible for the communications, change management

and organizational effectiveness for this global division. She is

leading the culture change for this divisions business

transformation project. Noe received her B.S. in Communications

from Bradley University in Peoria, IL in 1998. She currently holds

the position of president-elect for the National Alumni Association

and will assume the presidency June of 2010. She led the efforts to

develop a comprehensive student engagement plan and is

currently working on establishing the long-term strategic plan for

the Alumni Association. She was the recipient of the 2002 Bradley

University Alumni Association’s Lydia Moss Bradley Award. Noe

established the Michelle M. Noe Communication Leadership Award

upon her graduation from Bradley. It is presented annually to a

student who exemplifies leadership and commitment to community

service. Prior to joining the Caterpillar Inc. almost five years ago,

Noe was Career Advisor for the Smith Career Center at Bradley

University as well as previously the Marketing Manager for the

Insurance Brokerage firm, Kuhl & Company. Noe has been a

mentor for Big Brothers Big Sisters, advisor to Sigma Nu Fraternity,

spokesperson for the March of Dimes as well as has served on the

Triangle United Way Women’s Leadership Committee.




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