Building Shared Services at RR Communications Mini-Case
Ross Roman (founder of RR) wants Vince Patton (executive VP of IT) to transform RR’s IT so that they will be more flexible, more responsive, and able to introduce new products to the market more quickly. Ross also finds it unacceptable that RR cannot generate just one bill per customer. Previously, each line of business (internet, mobile, landline, and cable) had its own divisional units for IT. There were multiple sets of hardware, sales systems, databases, and customer service centers. Business unit leaders were rewarded based on the performance of their divisions only and as such did not care about RR’s overall objectives. ...view middle of the document...
These goals must be accepted by both sides of the house or the new shared CSC will never achieve full acceptance from the business and/or IT sides of the house.
* Develop a comprehensive investment model that accounts for start-up costs as well as operating costs. Investment model should be approved by the steering committee to ensure necessary business buy-in from senior management across all divisional units.
* Continue to build relationship with the business by involving IT managers in all aspects of the business, looking for ways to better serve each division’s unique needs and expectations. Foster communication between IT and business units to avoid a feeling of “disconnect” between IT and the business during the shift to shared service. Desire here is to mitigate the fear that as IT centralizes business units will lose the level of service they have come to expect.
* Develop new training program for IT staff to stress the importance of customer service and communication with the business side of the house. Effective communication is key to proper change management during this move to a shared service. Must set the pace for the required cultural change and work with senior management to affect this change from the top down.
* Proper governance mechanisms should be put in place to ensure that the CSC is achieving business goals effectively and efficiently. This will further help to bridge the gap between business and IT as well as foster the cultural change from “divisional” to “enterprise-wide” thinking about the business.
It is possible to achieve an enterprise vision with a decentralized IT function through the use of well-defined business objectives, effective communication, and...