Before exploring how shared services in Finance and HR empower small and medium-sized businesses (SMBs) to scale rapidly and securely, grasping the core concept is crucial. Consider the analogy of ubiquitous mobile towers. Until recently, each telecom company owned and managed its own towers. Equipment upkeep, power supply, and diesel generators at each base were the telecom company’s responsibility. Then came the innovation of a common service provider managing multiple towers. This led to tower consolidation, making power, upkeep, maintenance, and generators far more cost-effective as costs were shared. Unlike traditional outsourcing, shared services center on a common objective. A shared service model enables economies of scale, simplified maintenance, and access to a broader talent pool.
A shared service provider can readily supply skilled HR professionals, proven and budget-friendly technology, experienced accounting teams, and other services like IT support, all at a reduced cost compared to building those capabilities in-house, delivering top-tier performance.
Can a burgeoning small business readily access a deep bench of HR, accounting, or legal experts? Can it generate enough work to keep them fully engaged and productive? The answer is often a resounding NO! This not only deprives the SMB of top-tier talent but also diverts the entrepreneur’s time and energy from core business activities. Another consideration is the application of digital technologies to business processes. Lacking in-house expertise and time to assess and implement technology and best practices, SMBs often struggle. Shared services not only provide the service itself but also the IT-driven solutions required to efficiently manage Finance & HR processes.
Numerous examples demonstrate the benefits for organizations leveraging a shared services model for scaling. Consider Quick Service Restaurants (QSR). One newly established QSR chain with fewer than 30 locations adopted a shared services model, significantly strengthening its financial and HR processes. This provided control over potential revenue leakages and gave the leadership team the confidence to scale rapidly. Within two years, they expanded to over 125 outlets.
These shared service solutions aren’t exclusively for small enterprises. Established organizations can also significantly benefit by subscribing to services from providers like Mynd Integrated. Mature organizations can maintain a leaner structure, focusing internal resources on core deliverables rather than managing large, unwieldy departments. Shared services are also implemented rapidly; their “Plug-In” nature ensures a painless and easily managed “Plug-Out” process if needed. In today’s volatile market, the flexibility of shared services becomes all the more important.
Looking ahead to 2025 and beyond, the role of AI and automation within shared services is set to explode. Businesses leveraging shared services will increasingly benefit from AI-powered insights in areas like talent management, predictive financial analysis, and enhanced process efficiency. This trend reinforces the importance of choosing a shared services partner equipped to integrate and leverage these emerging technologies for maximum value. The ability to adapt and incorporate such advancements will define the most successful businesses in the coming years.
In conclusion, utilizing shared services is a cost-effective and accessible solution to support growth within a secure operational framework.
