Introduction
A service charter is a foundational document that defines and communicates the purpose, value proposition, and scope of a Global Business Services (GBS) offering. It serves as a critical tool for providing strategic clarity, aligning efforts across stakeholders, and establishing a clear roadmap for service delivery. The charter helps clarify overlapping services, align offerings, and improve communication with business partners, ultimately increasing trust and value creation.
Core Components of a Service Charter
Service Definition The service definition should be simple and clear, describing what the service is in plain business language. It must avoid technical jargon and focus on articulating the service in terms that resonate with business stakeholders. The definition should be concise while providing a complete picture of the service’s scope and boundaries.
Service Objective The objective section outlines the expected outputs and outcomes of the service. It should articulate specific, measurable goals that align with broader organizational objectives. This includes defining what success looks like for the service and how it contributes to business value creation.
Value Proposition The value proposition is perhaps the most critical component of the service charter. It must clearly articulate the unique and distinctive value the service provides to the organization. This goes beyond listing tasks or services performed – it should demonstrate how the service creates higher-level value and contributes to organizational success.
Key Stakeholder Identification
Business Customers The primary audience for a service charter is business customers, who are typically P&L owners or key executives funding the service. The charter must use language that resonates with these stakeholders and clearly demonstrates the service’s alignment with their priorities and objectives.
Global Process Owners The charter should identify relevant global process owners who are responsible for process governance and standardization. These stakeholders, often found in corporate functions, play a crucial role in driving efficiency and compliance across the service.
End Users While users may not be the primary audience for the charter, their needs and expectations must be reflected in the document. This includes understanding how they interact with the service and what constitutes a successful service experience from their perspective.
Strategic Alignment
Business Goals The charter must demonstrate clear alignment with organizational strategies and goals. This includes showing how the service contributes to broader business objectives and creates measurable value for the organization.
GBS Strategy Service charters should reflect their place within the overall GBS strategy, showing how they fit into the broader service portfolio and contribute to GBS’s strategic objectives.
Operational Excellence The charter should outline how the service will maintain operational excellence while driving innovation and transformation. This includes defining key performance indicators and success metrics.
Implementation Considerations
Clarity and Communication The charter must be written in clear, business-focused language that avoids technical jargon. It should effectively communicate the service’s value and benefits to all stakeholders while maintaining professional standards.
Standardization Using standardized templates and formats for service charters ensures consistency across the GBS organization and facilitates better understanding and adoption of services.
Regular Review Service charters should be treated as living documents that evolve with changing business needs and organizational priorities. Regular review and updates ensure continued relevance and alignment.
Conclusion
A well-crafted service charter is essential for successful service management within GBS organizations. It provides the foundation for service delivery, stakeholder alignment, and value creation. By clearly defining the service, its objectives, and value proposition, the charter enables better communication with business partners and helps drive the organization’s transformation journey. When properly developed and maintained, service charters become powerful tools for building trust, demonstrating value, and ensuring services remain aligned with business needs and expectations.