Global Business Services (GBS) service management processes form the foundation for delivering value to organizations through standardized, efficient, and effective service delivery. These processes encompass the end-to-end management of services, from strategy and design to delivery and continuous improvement, ensuring alignment with business objectives and stakeholder needs.
Core Service Management Framework
Strategic Alignment Service management requires clear alignment with organizational goals and strategies. The framework includes defining ideal and current states, developing winning strategies, and ensuring services deliver measurable business outcomes. This involves understanding both the broader business context and specific client needs to create value beyond cost optimization.
Service Definition and Architecture Service managers must clearly define their services through comprehensive service charters that outline objectives, value propositions, and target audiences. The service architecture should be structured to reflect end-to-end service delivery, with clear ownership and alignment to business goals. Services are typically organized into categories, services, and solutions that align with business needs.
Operational Excellence The operational aspect of service management focuses on delivering reliable, efficient services while maintaining high quality standards. This includes managing day to-day operations, ensuring service level agreements are met, and continuously monitoring performance metrics. Service managers must balance operational excellence with strategic initiatives to drive long-term value creation.
Stakeholder Management
Client Engagement Service managers must build strong relationships with clients through regular engagement, joint business planning, and strategic alignment. Clients, typically business leaders or process owners, require sophisticated relationship management and clear demonstration of value. Face-to-face interactions and proactive communication are essential for building trust and partnership.
User Experience Users interact with services daily and expect frictionless, reliable experiences. Service managers must focus on eliminating friction points, ensuring timeliness and accuracy, and continuously improving the user experience. The Kano model helps categorize service attributes into must-haves, satisfiers, and delighters to optimize user satisfaction.
Global Process Owner Collaboration Collaboration with Global Process Owners (GPOs) is crucial for driving process standardization and alignment with GBS objectives. GPOs play a vital role in governance and standardization, often representing corporate functions and ensuring consistency across the organization.
Performance Management
Measurement and Metrics Service performance is measured through comprehensive scorecards that include both operational and strategic metrics. These should focus on output measures that matter to clients and users, while avoiding the “watermelon effect” where green metrics mask underlying issues. Key metrics include adoption rates, client satisfaction, and business value creation.
Total Cost of Ownership Understanding and managing the total cost of ownership (TCO) is essential for service management. This includes all direct and indirect costs associated with service delivery, enabling accurate pricing strategies and benchmarking. Service managers must balance cost optimization with value creation to ensure sustainable service delivery.
Benchmarking Regular benchmarking, both internal and external, helps identify best practices and opportunities for improvement. Internal benchmarking facilitates learning across services, while external benchmarking provides insights into industry standards and innovations.
Continuous Improvement
Innovation and Transformation Service managers must continuously innovate and transform their services to maintain relevance and create value. This includes leveraging new technologies, optimizing processes, and identifying opportunities for service enhancement. Innovation should be balanced with operational stability to ensure consistent service delivery.
Adoption and Coverage Driving service adoption is crucial for maximizing value creation. Service managers must monitor adoption rates, understand barriers to adoption, and develop strategies to increase service uptake. This includes addressing shadow systems and non-standard practices that may hinder adoption.
Feedback and Adaptation Regular feedback collection from both clients and users helps identify areas for improvement and innovation. Service managers must establish effective feedback mechanisms and act on insights to enhance service delivery and maintain stakeholder satisfaction.
Service Strategy
Value Proposition Each service must have a clear and compelling value proposition that resonates with stakeholders. This includes defining distinctive benefits, articulating how the service creates value, and ensuring alignment with organizational goals. The value equation considers both functional and experiential benefits relative to costs.
Roadmap Development Service roadmaps guide the evolution of services, balancing innovation with operational stability. They should outline strategic choices, sequencing of initiatives, and plans for service enhancement or retirement. Roadmaps must align with business priorities and account for resource constraints.
Joint Business Planning Collaborative planning with key clients ensures alignment on priorities and value creation. Joint business plans include shared vision statements, key measures, and strategic initiatives that drive mutual success. Regular review and updates maintain focus and adaptability.
Conclusion
GBS service management processes require a comprehensive approach that balances strategic planning with operational excellence. Success depends on strong stakeholder relationships, clear performance measurement, continuous improvement, and strategic alignment with business objectives. Service managers must adopt a mindset of running services as a business, focusing on value creation while maintaining operational efficiency and stakeholder satisfaction.