By definition, Shared Services Centers is a high-level strategic concept developed to help CEOs think about the optimal organizational structure for their firm or group of corporate holdings. At the most fundamental level, consideration of role of center may be framed as a business definition or identifying the value of common ownership.
Goals of clearly identifying the role of center include:
- Assessment of fit between all business units themselves as well as with overall corporate “big picture”;
- Determining the level of consistency to be encouraged throughout global businesses;
²Enabling sharing of common business practices.
PARAGON’s approach to determination of the role of center includes a fit assessment, a relative valuation of business units as owned “by us” or “by them” and an analysis of strategic parental advantage.