Design Labs - The Future of Shared Services

I hope you are all enjoying the Christmas break and looking forward to 2025 with renewed optimism. It is interesting to note that 2024 marks the lowest year on record for the creation of new Finance Shared Service Centres in the UK Market. Despite it being an Operating Model which can deliver so much in terms of productivity, teamwork and a platform for growth all across the Business.

As the Economy stuttered throughout the year with uncertainly driven by the General Election and subsequent Budget many Finance Leaders 'kicked the tyres' on Shared Services but didn't go all in. This is reflected directly in my own experience as several Clients wanted a Feasibility Study or indeed a 'light touch' Feasibility Study but did not choose to go any further.

I should be clear this is in relation to the creation of a brand new Finance Shared Services Centre, not the expansion or outsourcing of an existing FSSC. During the course of December whilst planning for 2025 I reflected on why that is, why did many Finance Directors look at Shared Services but only 'window shop' in 2024.

The obvious answer may be the uncertainly which is reflected in so much of how 2025 unfolded politically and economically. However, I think that is a simple as Man Utd will win again once Ten Hag is gone, which is evidently proving to not be the case.

As I spent most of December planning new Services for 2025 and reflecting on the performance of the new Services introduced in 2024, an idea came to me whilst on a time out to play Santa. Every year since my friends established one of the finest pre school establishments in Ireland, I get roped into playing Santa.

Now how could Santa have any bearing on Finance Shared Services adoption I hear you cry with a 'ho, ho ho' thrown in. I can imagine the scene descending into full 'panto' mode as I say its possible and you say not a chance. Well, sometimes you have to move out of your regular environment in order to solve a problem about your current environment that would otherwise not be apparent to you.

As I worked my way around 9 classes in a school purpose built by my great friend I was struck by just how imaginative and inspiring the classrooms were. You would want to send your children there as they were a sensory delight. Colours, images, incredible detail in the murals on the wall and the children were effectively transported to the land of make belief that all children under 7 inhabit.

So I asked myself the question again, why do so many Finance Directors, new to Shared Services, not press the button and launch their own Finance Shared Services rocket ship?

Why?

Because they cannot truly envision what it will look like. They can listen to the concepts, the 101 list of Benefits, the jargon, the tall tales from the success stories of Businesses at this a very long time and they just cannot envisage what it will look like in their Business.

They cannot bridge that gap because nobody is helping them to. They are not staring wide eyed in wonder at what a fully functional, operational, kick ass, Finance Shared Services Centre would look like in their Business on Day 1, Day plus 90 or in Year 2.

Until now...

'Design Labs for Finance Shared Services' is where we bring your top team to meet ours and spend days helping you imagine what your future looks like. If you are considering Finance Shared Services in 2025 then reach out and let us book you in for your Design Lab.

Best Regards,

Michael Ryan