Exploration of Lean Management Methods Used in Shared Services Centers, Drivers and Barriers to Process Selection for Improvements in the Light of Risk Management and ESG Reporting

This paper aims to study how processes are selected for improvements in shared services centers (SSCs), and if the risk management aspect is considered during process improvements. Lean management has become a highly regarded platform for process improvement within organizations with the focus being on waste reduction and value added at the customer level. As a leading destination of SSCs, Poland has been seen implementing this approach since at least 2015 with the main benefit being cost reduction. This philosophy opens the door to identifying potential waste reduction and ongoing efficiencies of processes that have been migrated to SSCs. With the identification of the research need, firstly, a targeted literature review on tools and models of process selection for improvements was performed. The second step entails in-depth interviews with lean management experts, surveys with detailed questions in the area of lean management implementation, and finally a case study on measurements of testing the effectiveness of applying lean management methodology. The findings present drivers and barriers to selecting of processes subject to lean management. Although lean management activities are strongly supported by risk management experts, there is no synergy between the two streams causing the need for further research in SSCs

The selection of lean management processes – considerations on the methodology applied at shared services centers

W obliczu postępującej globalizacji, jak również zmian, które miały miejsce w ostatnim roku, każda organizacja musi mieć jasno określoną strategię rozwoju i budowania efektywności procesów. Celem artykułu jest identyfikacja czynników wpływających na wybór procesów podlegających lean management (szczupłemu zarządzaniu) realizowanych w centrach usług wspólnych (shared services centers – SSC) w Wielkopolsce. Aby osiągnąć cel, przedstawiono wybrane definicje lean management ukierunkowujące na tworzenie kultury ciągłego doskonalenia, a na podstawie przeglądu polskiej i międzynarodowej literatury omówiono zasady wyboru procesów podlegających przebudowie wskutek zastosowania zasad szczupłego zarządzania. Opierając się na wywiadach eksperckich, przeprowadzono rozważania wstępne na temat barier w wyborze procesów podlegających lean management na terenie Wielkopolski. Jak pokazano w artykule, pomocne w kontekście wyboru procesów może być wykorzystanie osiągnięć z zakresu zarządzania procesowego i zarządzania ryzykiem, które najczęściej nie są łączone z lean management. Przedstawiono kierunek dalszych prac badawczych prowadzących do oceny efektywności stosowania szczupłego zarządzania w obszarze procesów, które przeszły transformację wskutek przebudowy procesów.The selection of lean management processes – considerations on the methodology applied at shared services centers In the face of increasing globalization and significant changes in the last year, each organization must have a clearly defined strategy for developing and building process effectiveness. The article aims to identify factors influencing the selection of processes subjected to lean management, implemented in Shared Services Centers (SSC) in the Wielkopolska region. To achieve this goal, selected definitions of this concept were presented with a focus on creating a culture of continuous improvement. Based on a review of Polish and international literature, the principles of selecting the processes subjected to this methodology were discussed. Based on expert interviews, preliminary considerations were made on the barriers to selecting processes subjected to lean management in the Wielkopolska region. As presented in the article, it may be helpful, in the context of process selection, to use the achieve- ments in the field of process management and risk management, which are most often not associated with this concept. The article presents the direction for further research: to assess the effectiveness of lean management in terms of processes that have been transformed as a result of process redesign

Exploration of Lean Management Methods Used in Shared Services Centers, Drivers and Barriers to Process Selection for Improvements in the Light of Risk Management and ESG Reporting

This paper aims to study how processes are selected for improvements in shared services centers (SSCs), and if the risk management aspect is considered during process improvements. Lean management has become a highly regarded platform for process improvement within organizations with the focus being on waste reduction and value added at the customer level. As a leading destination of SSCs, Poland has been seen implementing this approach since at least 2015 with the main benefit being cost reduction. This philosophy opens the door to identifying potential waste reduction and ongoing efficiencies of processes that have been migrated to SSCs. With the identification of the research need, firstly, a targeted literature review on tools and models of process selection for improvements was performed. The second step entails in-depth interviews with lean management experts, surveys with detailed questions in the area of lean management implementation, and finally a case study on measurements of testing the effectiveness of applying lean management methodology. The findings present drivers and barriers to selecting of processes subject to lean management. Although lean management activities are strongly supported by risk management experts, there is no synergy between the two streams causing the need for further research in SSCs

Risk management in diffused structures: Analysis for Shared Services Centers

Research background: Shared Services Centers (SSCs) are often a spin-off of corporate services to separate all operational tasks from the corporate headquarters. The primary focus of the headquarters should be on leadership and corporate governance. However, many SSCs have also been given some corporate functions. Risk management is a significant part of governance and one of its principles. The effectiveness of risk management depends on its integration into the organization’s governance, including decision-making. The question is how a modern SSC manages this part of governance. Purpose: This study aims to present the conditions that prove the implementation of risk management in SSCs and to evaluate the most effective risk management model. Research methodology: Targeted literature review followed by surveys and a case study. Results: The risk management process consists of several stages that are repeated in many models (identification and risk assessment, risk management model selection, and monitoring). Thus, it is possible to use each model in the SSC concerning the migrated processes, considering the limitations of the strategic goals definition. However, not all methods will find a potential application in risk management in the SSC, considering the most effective risk assessment. Novelty: While the literature provides models that can be of use, a lack of specific guidelines has been recognized, especially regarding the risk management aspect in SSCs. In the last decade, the focus was on the expected benefits coming from standardization, ignoring the new risks in SSC processes.Research background: Shared Services Centers (SSCs) are often a spin-off of corporate services to separate all operational tasks from the corporate headquarters. The primary focus of the headquarters should be on leadership and corporate governance. However, many SSCs have also been given some corporate functions. Risk management is a significant part of governance and one of its principles. The effectiveness of risk management depends on its integration into the organization’s governance, including decision-making. The question is how a modern SSC manages this part of governance. Purpose: This study aims to present the conditions that prove the implementation of risk management in SSCs and to evaluate the most effective risk management model. Research methodology: Targeted literature review followed by surveys and a case study. Results: The risk management process consists of several stages that are repeated in many models (identification and risk assessment, risk management model selection, and monitoring). Thus, it is possible to use each model in the SSC concerning the migrated processes, considering the limitations of the strategic goals definition. However, not all methods will find a potential application in risk management in the SSC, considering the most effective risk assessment. Novelty: While the literature provides models that can be of use, a lack of specific guidelines has been recognized, especially regarding the risk management aspect in SSCs. In the last decade, the focus was on the expected benefits coming from standardization, ignoring the new risks in SSC processes