Teams & Professionals

Ever find yourself scratching your head over constant hiccups in your shared services processes? You’re not alone. Many of us in the industry have faced the frustration of recurring issues that no matter how many times we fix, they just keep popping back up. It’s maddening, right? That’s where the 5 Whys technique comes into play. It’s not just a fancy buzzword—it’s a powerful tool that can help you dig deep and uncover the real root causes of those pesky problems. In this blog post, I’m going to share how you can implement this simple yet effective method in your shared services environment. What is the 5 Whys Technique? The 5 Whys is a straightforward questioning technique that helps you peel back the layers of symptoms surrounding a problem. You start with a problem statement and keep asking “why” until you uncover the root cause. Let me give you a quick example. Imagine you’re having trouble with delayed invoice processing: Problem: Invoices are consistently being processed late. 1st Why: Why are invoices processed late? Because the approvals are taking too long. 2nd Why: Why are approvals taking too long? Because the approvers are often unavailable. 3rd Why: Why are approvers often unavailable? Because they are overburdened with their own tasks. 4th Why: Why are they overburdened? Because we don’t have enough staff to cover the workload. 5th Why: Why don’t we have enough staff? Because we have not prioritized hiring for the finance team. At the end of this process, you’ve done more than just scratch the surface. You’ve pinpointed a significant underlying issue: the need for more resources in your finance team. The Power of Asking Why In many ways, the 5 Whys technique is like a game of investigative journalism—just without the press badge. It’s about being curious, persistent, and sometimes a bit annoying—but that’s how real change happens! By digging deeper, we can truly grasp the factors driving inefficiency in shared services. How to Implement the 5 Whys in Your Team Now that you understand what the 5 Whys are, how can you make it a part of your shared services routine? Here’s a quick guide: Gather a Team: You can’t do this alone. Bring in your team—associates, process experts, and even a few subject matter experts. The more diverse the group, the better the insights. Define the Problem: Ensure everyone aligns on the specific issue. “Invoices are processing late” is a clear starting point rather than something vague like “we have a problem.” Start Asking Why: Go one by one, taking turns asking the next “why” until you’ve reached that fifth layer of inquiry. Document Everything: Capture the conversation! This will not only help you stay organized but will also serve as a reference point for future discussions. Identify Solutions: Once you’ve unearthed the root cause, start brainstorming solutions! Sometimes it’s as easy as implementing a new hiring process. Common Pitfalls to Avoid While the 5 Whys can be incredibly effective, there are a few snafus to watch out for: Stopping Too Early: Resist the urge to stop after just three whys. Push through to five unless you feel confident you’ve hit the root cause sooner. Blaming Individuals: This isn’t about blaming people—it’s about processes! Keep the focus on systemic issues, not personal failures. Getting Stuck: It’s easy to spiral into a blame game or get lost. If your team finds itself going in circles, maybe it’s time to step back, gather your thoughts, and reset. Email Collaboration: A Success Story Let’s take a quick side trip into how one organization tackled their email response times. Last year, I worked with a company that was struggling with delivering timely responses to clients. They used the 5 Whys, and what they found was eye-opening: 1st Why: Emails were often left unanswered too long. 2nd Why: Staff had too many emails in their inboxes. 3rd Why: There were unclear response protocols. 4th Why: Teams lacked training on email priorities. 5th Why: No one had designated a “communication best practices” ambassador. The solution? They assigned team leaders to create a monthly training session and established a clear protocol for email response time. It worked wonders! Emails went from days of delays to near-instant replies. Cultivating a Culture of Continuous Improvement Using the 5 Whys isn’t a one-off solution; it’s about fostering a culture of continuous improvement. Make it a regular part of your team meetings. Encourage your associates and specialists to think critically. Help your team break free from the habit of putting band-aids on wounds that need stitching. As shared services professionals, we can drive significant change by closely examining the “why” behind our everyday processes. This practice not only enhances operational excellence but also empowers teams to take ownership of their work. Conclusion: Your Role in Transformation The journey to understanding the root causes of problems in shared services can be both revealing and rewarding. The 5 Whys technique is a straightforward approach that empowers you to dig deeper and enact real change. And as you begin to implement this method, remember that it’s not just about fixed processes. It’s about shaping a culture rooted in exploration and transparency. For more insights and tips on shared services transformation, innovation, and leadership, check out THEGBSEDGE blog. It’s a fantastic resource for anyone who’s serious about making a difference in our industry. This blog is written by Vikrant Aglawe, a shared services expert with over 20 years of experience. I encourage you all to start asking those tough questions and let your discoveries guide your journey to optimization!

Why Process Mining Is a Game Changer for Root Cause Analysis Ever run into a snag while working on a project and wondered where it all went wrong? Or maybe you’ve felt the pressure to hit targets while a few pesky issues keep bubbling up? You’re certainly not alone. As someone who’s been in the shared services industry for over 20 years, I’ve seen my fair share of challenges when it comes to operational hiccups. Tackling them isn’t just about putting out fires; it’s about understanding why those fires started in the first place. That’s where process mining steps in. It helps shine a light on the hidden insights in your data, enabling you to pinpoint root causes effectively. The Basics of Process Mining Picture process mining as a magnifying glass over your business operations. It allows you to: Visualize the actual process flows Identify bottlenecks and inefficiencies Enhance compliance with regulations Support continuous improvement efforts In short, process mining is about making the implicit explicit, helping you to uncover those vital insights that often hide in plain sight. Common Challenges in Root Cause Analysis If you’ve been in the game long enough, you know that root cause analysis can feel like searching for a needle in a haystack: Data silos can lead to incomplete views. Manual analysis is time-consuming and prone to error. Bias can sneak in if people rely too heavily on intuition rather than factual data. Each of these factors can muddy the waters when you’re trying to see what’s really going on in your processes. This is where process mining sheds light by providing concrete data analytics. How Process Mining Works in Practice Let’s walk through how you can leverage process mining with a relatable example. Imagine you’re dealing with customer service complaints. Here’s a straightforward methodology you can follow: Data Collection: Gather logs from your CRM system. Process Mapping: Use process mining tools to create a visual representation of the customer service workflow. Analysis: Identify where delays are happening. Is it during escalation? Are reps spending too much time on certain types of queries? Root Cause Identification: Dig deeper into your findings. If you find that escalation is slow, is it due to lack of training, lack of staff, or something else? Continuous Improvement: Adjust the process based on what you find, and keep the cycle going. This isn’t just theory; it’s grounded in real-world application. You can actually see improvements almost immediately. Stories that Highlight the Power of Process Mining During my career, I’ve seen organizations transform through process mining. One firm I worked with was struggling to keep operational costs down while maintaining quality customer service. They started process mining and noticed that a lot of time was being wasted on repetitive tasks during customer interactions. By realizing this, they automated a chunk of that work. The result? A 30% increase in efficiency and a much happier customer base. This story isn’t unique; many organizations reap similar rewards by leveraging process mining. Best Practices for Implementing Process Mining Getting started with process mining involves more than just a tool and some data. Here’s how you can set yourself up for success: Get Team Buy-In: Make sure everyone understands the importance of process mining. Set Clear Objectives: Define what you want to achieve—improved efficiency, reduced costs, better customer experience? Collaborate Across Departments: Break down silos and get various teams involved in the analysis. Iterate: Process mining isn’t one-and-done. Continuously refine your approach based on findings. By fostering a culture of openness and collaboration, you can maximize the benefits of your process mining initiatives. Conclusion: Your Road to Continuous Improvement In a world where efficiency is king, process mining yields powerful insights that pave the way for smarter decision-making. Embracing this methodology allows shared services professionals to uncover the root causes of their challenges and transform their operations for the better. And remember, this is just the tip of the iceberg. There’s a wealth of knowledge waiting for you at THEGBSEDGE. It’s your go-to source for shared services insights. With process mining, you don’t just fix problems; you prevent them from happening again. So next time you face a challenge, think process mining—it’s the key to unlocking those hidden insights!

Ever feel like you’re burning the midnight oil but still not getting anywhere? You’re not alone. In the world of shared services, where efficiency is king, it’s crucial to cut through the noise. And let’s face it, in a sea of processes, data, and reports, we sometimes overlook the real game-changers. Enter Pareto Analysis, the nifty little tool that can shift your perspective on what really matters. What is Pareto Analysis? Think of Pareto Analysis as your efficiency compass. Named after the Italian economist Vilfredo Pareto, this method leverages the 80/20 rule. You know, the idea that 80% of your results come from just 20% of your efforts? In the context of Global Business Services (GBS), this means identifying the few processes or issues that cause the most significant impact, both positive and negative. By focusing your energies there, you can unlock efficiency and achieve process optimization. Why It Matters in GBS Let me share a quick story. When I was setting up a shared service center for a global organization a few years back, we got bogged down in countless processes, trying to optimize everything at once. It was chaos! But then we started digging deep into Pareto Analysis. We discovered that just three core processes were consuming 70% of our resources. By honing in on those areas, we streamlined operations significantly and saved the company thousands of hours annually. That’s the magic of Pareto Analysis—it helps you zero in on the impactful few instead of chasing the many. Steps to Conducting Pareto Analysis Identify and List Problems: Gather data on the processes you’re running. What are the bottlenecks? Where’s the delay? Collect Data: Quantify the impact. This includes time wasted, costs incurred, or risks attached. The clearer the data, the clearer the picture. Sort and Analyze: Organize this information from largest to smallest impact. Use charts or graphs—visuals help! They’re not just pretty decorations. Prioritize: Focus on that crucial 20%. What changes can you implement that will drive the most significant results? Implement Changes: Now comes the fun part—put those insights into action. Make changes where you know they’ll matter the most. The Real-World Impact: Case Studies Let’s break it down further with a couple of examples from my own experience. Finance Transformation: In one company, finance was a tangled web of approvals and paperwork. After conducting a Pareto Analysis, we identified that a few types of transactions accounted for over 75% of processing time. By automating these specific transactions, we slashed processing time by 60%. Customer Support Optimization: For another organization, we analyzed support tickets. Surprisingly, 80% of customer complaints stemmed from just two issues. Addressing these led to a 50% decrease in ticket volume. Less volume means a more focused team, better response times, and happier customers. Common Pitfalls to Avoid You’re probably thinking it all sounds great, but let’s keep it real. Here are some traps that you might fall into: Overlooking the Minor Processes: Sometimes, small issues can snowball. Avoid ignoring them completely. Involving Too Many Metrics: Don’t drown yourself in data. Less is more. Not Revisiting: Pareto is not a set-it-and-forget-it strategy. Reassess periodically. Processes evolve. Tools to Assist Your Efficiency Journey Ready to dive deeper into optimization? Here are a few tools that can help you conduct Pareto Analysis effectively: Excel: Good old Excel can be your best friend for creating charts and analyzing data. Tableau: Great for visualizing complex data in a digestible manner. Process Mapping Software: Tools like Lucidchart can help visualize current vs. streamlined processes. Transforming Mindsets As much as tools and strategies matter, remember that transformation starts with mindset. Encouraging your team to adopt a Pareto perspective is vital. Foster a culture of continuous improvement where every voice matters. Create an environment where team members are eager to bring their insights to the table. At the end of the day, it’s about finding that sweet spot between efficiency and satisfaction. A happy team is often an efficient one. Embrace the Change Unlocking efficiency doesn’t happen overnight. It’s a journey. But you have the tools at your disposal. With Pareto Analysis in your toolkit, you’re armed to tackle complexities and streamline processes. Take it one step at a time, and don’t hesitate to reach out to experts in shared services. The journey can be complex, but the rewards are absolutely worth it. Looking for more insights into transforming the shared services landscape? Check out THEGBSEDGE blog, where I dive deeper into strategies on innovation and leadership in GBS. Let’s continue engaging and transforming together!

Do you ever sit back and wonder what really lies beneath the surface of your GBS challenges? Every shared services expert has been there: tangled in a web of issues, looking for that one thread to pull that unravels everything. Let’s face it, root cause analysis isn’t just a buzzword; it’s a lifeline. It goes beyond band-aid fixes. Understanding the real issues is essential for driving true transformation. That’s where fishbone diagrams come into play. They’re like that map you need when you’re lost in the woods. They’re simple yet powerful tools for uncovering problems and their causes. In my 20+ years in the outsourcing and offshoring game, I’ve set up and led multiple large-scale shared service centers. I’ve seen the chaos caused by not addressing the root of the issue. Let’s dish out some easy tips on how to effectively use fishbone diagrams for your GBS challenges. Understanding the Fishbone Diagram So, what’s a fishbone diagram? Also known as the Ishikawa diagram, it’s a visual tool that helps you figure out potential causes of a problem. Think of it as the spine of a fish. Each bone represents a category of potential causes. Unlike other charts, it gives you a bird’s-eye view of what’s really going wrong. This is crucial in shared services transformation. You know how it feels when your team is stuck in endless meetings trying to pinpoint issues? The beauty of a fishbone diagram is that it cuts through chaos, letting you see potential causes in one glance. Setting the Stage for Root Cause Analysis Let’s make this practical Imagine you’re facing a decline in customer satisfaction in your shared services center. What do you do? You grab your markers and a whiteboard. Start by writing down the problem at the head of the fish. Draw a long arrow to represent the spine. Now comes the fun part. You’ll label the “bones”! Some common categories include: People Processes Technologies External Factors Inside each category, brainstorm possible causes. For instance, under ‘Processes’, you might identify issues like inefficiencies or outdated procedures. Under ‘People’, you could pinpoint lack of training. Every idea matters here. The goal is to get everything out in the open. Collaborative Efforts: Bring Your Team Along This isn’t a Lone Ranger mission. Gather your team and make it a collaborative affair. Everyone’s perspective counts. When you encourage open dialogue, you’ll often uncover insights that might not emerge in a more formal setting. Facilitate discussions and keep it engaging. Use sticky notes for an interactive element. Let folks jot down their ideas and stick them on the chart. This not only boosts morale but also cultivates a culture where everyone feels valued. Changing the narrative around root cause analysis in shared services isn’t just smart—it’s essential. Analyze the Diagram: Spotting Trends and Avenues for Improvement After you’ve fleshed it out, step back. Look for patterns. Which categories are most cluttered? These are areas that need attention. For example, if the ‘Processes’ category is overflowing, the focus should shift to process optimization. Prioritize these in your action plan. Breaking down these calls for action into manageable tasks is key. Here’s a quick formula: List potential solutions. Assign ownership. Set timelines. This structured approach helps keep your team on the same page and propels transformation efforts. Testing and Implementing Solutions Alright, you’ve spotted the issues and created an action plan. But are you ready to pull the trigger on implementing changes? This can be a bumpy ride, but it’s totally doable. Involve your team in testing solutions. Get their feedback early. It builds trust and ensures you’re on the right track. Start small with pilot programs. Measure results before fully rolling out. Like with any project in the shared services arena, flexibility is key. Adjust based on feedback and keep iterating until you hit the sweet spot. Document and Share: Building a Knowledge Base for Future Challenges Once you’ve successfully rolled out improvements, don’t just dust your hands and walk away. Document everything! Create a knowledge base. This isn’t just for current issues; it’s gold for future challenges. Share your findings with the broader organization. Encourage other teams to adopt fishbone diagrams for their challenges. This sharing enriches organizational knowledge and helps diffuse innovation across the board. Remember, in shared services, we’re all in this together. Wrap Up: Embrace the Journey Using fishbone diagrams for root cause analysis is a game-changer in tackling your GBS challenges. It’s about tearing down silos, encouraging collaboration, and fostering a culture that welcomes change. With the right approach, you can turn problems into opportunities. Your shared service center is more than just a cog in the corporate machine. It’s a hub for innovation, transformation, and leadership. As you dive deeper into your journey, remember this: the goal is continuous improvement. Lean on your experiences, leverage collaborative efforts, and embrace the ongoing learning that comes with navigating these challenges. And if you’re looking for more diverse insights and resources around GBS, process excellence, and shared services transformation, check out THEGBSEDGE blog. It’s a treasure trove of wisdom that I’m proud to share with you. Let’s tackle those challenges together—armed with fishbone diagrams and a determination to drive real change!