Nearly all managers seek to improve the bottom line of their business in different ways. After off shoring of production facilities and outsourcing of processes, the Shared Services approach has heavily been discussed in previous years. With regard to Bergeron, the Shared Service business model can be defined as follows: “Shared Services is a collaborative strategy in which a subsets of existing business functions is concentrated into a new, semi-autonomous business unit that has a management structure designed to promote efficiency, value generation, cost savings, and improved service for internal customer of the parent corporation, like a business competing in the open market.” Following Wißkirchen, organisations try to achieve in general the following objectives via the implementation of Shared Services:
- Cost reduction due to economies of scale and scope, based on the standardisation and accumulation of internal processes in one unit
- The parent company can concentrate on the core of the business
- Creation, expansion and maintaining of process know-how
- Services are charged by transfer prices and are put into competition to external service providers
- So-called service level agreements exactly define what the parent company can expect. Hence, by implementing Shared Services, the back office functions, such as finance, accounting, controlling, human resources, regulatory affairs, etc. are becoming a strategic driver. The present assignment proposes a change management strategy, in order to overcome resistance to change, implement a new system and take the organisation back to equilibrium by referring to some of the basic models of management. Where appropriate, change management tools are recommended which might be used in order to make the right decisions at the right time.
Table of Contents
1. Introduction
2. Change Management Strategy for implementing Shared Services
2.1. Analysis and Objective Setting
2.2. Planning
2.3. Realisation
2.3.1. Unfreezing the present level
2.3.2. Moving to a new level
2.3.3. Re-freezing the new level
2.4. Control
3. Summary and Conclusions
Objectives and Core Themes
The primary objective of this assignment is to develop a robust change management strategy tailored to the implementation of Shared Services. By addressing both the "hard" and "soft" sides of change, the work explores how organizations can overcome resistance, stabilize new processes, and ensure that employees successfully transition to a service-oriented mindset within a new, semi-autonomous business unit.
- Integration of traditional management models with Lewin’s behavioral change framework.
- Application of the DICE-factor system to manage the "hard" dimensions of organizational change.
- Utilization of Stakeholder and Force-Field Analysis to identify and mitigate resistance.
- Strategic emphasis on service-mentality, cultural alignment, and continuous control mechanisms.
Excerpt from the Book
2.3. Realisation
Malik (2006, p.193) compares a change management process with a surgical intervention into a living organism, but with one big difference. Whereas a surgeon can anesthetise a patient at least during the intervention, a manager can’t do so. His patient, the organisation, is fully awake and recognises what happens and reacts in its own way. He furthermore points out, that people can very good cope with change, but however, they also need phase of peace and stability in order to be productive.
2.3.1. Unfreezing the present level
Whereas in the planning phase of the change management program lots of work has been done behind drawn curtains, the details of the change program now become public. All persons involved and especially the top management team has to communicate the vision via all possible communication channels. Furthermore, once again, the management has to ensure that it “walks the talk”. As Kotter (1995, p.64) mentions, nothing undermines a change more than behaviour that is inconsistent with the words. Strebel (1996, p.88) highlights with regard to this point, that employees test the company’s main goals and evaluate the balance between what is said and what is done by the management. From this analysis, they are forming their own picture of the organisation and how it “really works”.
Summary of Chapters
1. Introduction: This chapter defines the Shared Services business model and outlines the strategic objectives for implementing such models, including cost reduction and process standardization.
2. Change Management Strategy for implementing Shared Services: This section presents a comprehensive strategy combining Lewin’s behavioral change model, Kotter’s Eight-Stage Process, and the DICE-factor system to guide the organizational transition.
3. Summary and Conclusions: The final chapter synthesizes the proposed strategy, emphasizing that successfully implementing Shared Services requires careful management of both technical processes and the human, cultural aspects of change.
Keywords
Change Management, Shared Services, Organizational Transformation, Lewin’s Three Step Model, Kotter’s Eight-Stage Process, DICE-factor system, Force-Field Analysis, Stakeholder Analysis, Service-mentality, Behavioral Change, Equilibrium, Strategic Driver, Business Process Outsourcing, Management Tools, Organizational Culture.
Frequently Asked Questions
What is the fundamental focus of this assignment?
The assignment focuses on proposing a comprehensive change management strategy specifically designed for the implementation of Shared Service Centers within organizations.
What are the central themes discussed in this work?
Central themes include the intersection of general management models with behavioral change, the balance between "hard" technical factors and "soft" cultural factors, and the process of overcoming employee resistance.
What is the primary research goal?
The goal is to provide a structured approach to transition organizations into a Shared Service model while minimizing risks and ensuring long-term stability and employee buy-in.
Which scientific methods or models are utilized?
The author utilizes Lewin’s Three-Step Model, Kotter’s Eight-Stage Process, the DICE-factor system, Stakeholder Analysis, and Force-Field Analysis.
What does the main body of the text cover?
It details the strategic phases of change—Analysis, Planning, Realization (unfreezing, moving, refreezing), and Control—specifically adapted for the complexities of Shared Service implementations.
Which keywords characterize this paper?
Key terms include Change Management, Shared Services, Behavioral Change, DICE-factors, Force-Field Analysis, and organizational equilibrium.
How does the author explain the difference between the "hard" and "soft" sides of change?
The author highlights that while technical aspects (hard stuff) like deadlines and budgets are essential, the human factors (soft stuff)—such as employee attitudes and culture—are often the most difficult and critical elements to manage successfully.
Why is the "unfreezing" phase considered so crucial?
It is crucial because it involves reducing the forces that reinforce current, potentially outdated behaviors, thereby convincing stakeholders of the necessity for change before moving to new organizational structures.
- Citation du texte
- Dipl.-Kfm. (FH), MBA Martin Wenderoth (Auteur), 2008, Change Management Strategy for Implementing Shared Services, Munich, GRIN Verlag, https://www.grin.com/document/122116
