SearchSUCCEEDING THROUGH COLLABORATION: Remodelling Shared Services
At SABIC, collaboration is central to our ability to grow and transform. In pursuit of becoming the preferred world leader in chemicals, we have enhanced our business operations and implemented new ways of collaborative working through a key function: Shared Services. Established in 2004, Shared Services generates significant value for our business as a critical component in building partnerships across SABIC. It standardizes processes and optimizes our efficiency as an organization through an integrated service delivery network. In addition to this, it adds further value to the organization through its unique governance framework, end-to-end processes, efficient systems, adoption of the latest digital technologies and highly skilled team of professionals.
In essence, Shared Services plays a vital role in supporting SABIC’s growth by enabling it to manage and control costs more effectively, provide better services and leverage more information in benefit of the organization.
CREATING VALUE
Shared Services continues to portray a culture of cost consciousness at its core and outperform its business case commitments on delivering strong cost optimization trends. In fact, assessments made in the past have shown that the implementation of Shared Services has led to a cost optimization of up to 44 and 46%, all enabled by automation and effective sourcing strategies. Yet, Shared Services is now witnessing a change in its focus from cost centric to becoming a value-creating arm of SABIC. Shared Services embodies SABIC’s value-add mindset and enables continuous growth through a best-in-class service. Our transformational approach to process standardization has allowed SABIC and its partners to benefit from economies of scale on transaction-intensive processes.
Shared Services’ key role in ensuring consistency of operational practices throughout SABIC, creates multiple advantages. It not only allows Shared Services to serve as a standard platform enabling corporate transformation through the deployment of directions and best practices across all areas of our business, but also elevates its inherent strength to enable stronger purchasing power, improved compliance, and exercise greater cost control. While we remain focused on our long-term growth ambitions, through Shared Services we are leveraging the strength of our operational efficiencies and capital discipline to mitigate short-term challenges and further position SABIC to thrive in today’s economic landscape.
UNDERPINNED BY STRONG GOVERNANCE
In conjunction with these components is a strong governance model which consists of a User Council for each service function – representing the user community - and accompanied by an overarching Shared Service Executive Committee. This two-tiered approach to governance is critical to the success of Shared Services in continuously realizing value opportunities while improving performance.
It also leverages the essence of collaboration and joint accountability which drives strong performance. Moving forward, strong governance will continue leading the evolution and adoption of integrated services across SABIC.
THE FUTURE OF SHARED SERVICES
Today, Shared Services is a well-established pillar of our business that supports our aspiration to be the preferred world leader in chemicals. It plays an important role in maintaining our competitive position in the global chemicals industry.
Companies today are progressively shifting from being transactional to value-oriented, and SABIC is on a journey to drive this cultural transformation. From delivering on our commitments to Saudi Vision 2030 through increased localization content, to integrating new technologies like artificial intelligence, advanced analytics and robotics, Shared Services plays a key role in improving the efficiencies of our business. As organizations today increasingly seek to re-examine and transform their operating models, through Shared Services, SABIC is once again leading by example.