Have you ever felt lost when trying to figure out the best way to fund innovation in your Global Business Services (GBS)? You’re not alone. Many of us in the shared services space find ourselves staring at funding models, feeling like we’re looking at a puzzle with a missing piece. We want to bring our ideas to life but spend too much time tangled up in complex frameworks and financial red tape.
My journey in the outsourcing and offshoring industry for over 20 years has put me right in the middle of this chaos. I’ve set up multiple large-scale shared service centers. I’ve faced the hurdles, and I get it. Innovation and funding seem like a tug-of-war, but they don’t have to be. Let’s break down how to navigate innovation funding models, so GBS can thrive. I’ve got some actionable insights and relatable stories to share, so grab a coffee, and let’s chat.
Understanding the Mindset Shift
Buckle up, because before we talk funding, we need to talk about mindset. Innovation in GBS requires us to shift gears. Traditional funding models often emphasize ROI and numbers in a way that can stifle creativity. We have to embrace a growth mindset. Here’s what that looks like:
- Focus on long-term value instead of just short-term gains.
- Encourage a culture of experimentation, where failure is just a lesson learned.
- Drive collaboration across teams to break down silos.
Finding Your Funding Model
Now, let’s tackle the practical part: choosing the right funding model for your innovation programs. Options are varied, and each has its strengths. Here are some prominent funding models you can consider:
1. Centralized Funding
This is where a single entity manages all funding decisions. This approach can streamline processes but might lose the spark that comes from individual departments pushing for their own innovations.
2. Decentralized Funding
Here, individual units control their funding. This model can foster creativity and tailor funding to specific needs. The downside? It can lead to duplication of efforts.
3. Innovation Funds
This is a pooled fund dedicated to financing innovative initiatives across the organization. It’s flexible and often more adaptable to changing circumstances.
4. Corporate Venture Capital
Think of it as a way to invest in startups or new projects outside your organization for strategic gain. It can open doors to fresh ideas but requires careful selection to avoid misalignment.
Crafting Your Pitch
Once you’ve chosen a model, it’s time to craft your pitch. And trust me, I can’t stress this enough: storytelling is key. Frame your ideas in a way that resonates with stakeholders’ hearts, not just their spreadsheets.
Here’s how you can approach this:
- Start with a problem: What gap are you addressing?
- Share your vision: Paint a picture of success. What does it look like?
- Outline the benefits: How will this funding model drive value? Real numbers and potential savings can help.
- Invite collaboration: Make them part of the story. “We can do this together.”
Real Stories, Real Impact
Let me share a story from my experience. We had a shared service center struggling to innovate due to tight budgets. After analyzing our funding model, we shifted to an innovation fund. I gathered finance and operations teams around a table, and we brainstormed. The passion in the room changed everything.
We launched an in-house tool that streamlined our internal processes, saving hundreds of hours each month. The tool went on to serve as a blueprint for additional process optimization across other centers. The key takeaway? This approach cultivates a sense of ownership and commitment—both in funding and execution.
Monitoring and Measuring Success
Okay, your project is funded, and the wheels are turning. But hold up! How do you know if it’s working? Monitoring and evaluating are critical. Here’s how you can effectively measure success:
- Set clear KPIs. Make them specific and achievable.
- Foster open feedback loops. Talk to both the team and stakeholders regularly.
- Celebrate small wins. They build momentum.
Adjusting on the Fly
Not everything will go according to plan, and that’s okay. The key is to remain agile. Regular reviews of your progress will help you spot any red flags early and pivot as needed. Being flexible with your funding approach ensures you’re always aligning with business goals and market demands.
Collaborate with Experts
Don’t underestimate the power of collaboration. Joining forces with other departments, consultants, or industry experts can provide fresh perspectives. At the end of the day, everyone benefits from shared knowledge and reduced risks. Think about reaching out to your colleagues in finance, for example. Their insights might be the golden ticket you need.
Building a Culture of Innovation
Finally, let’s talk culture. A successful innovation funding model isn’t about the money. It’s about fostering a culture that encourages creativity and rewards risk-taking. Show your team that their ideas matter. Recognize out-of-the-box thinking and praise those who venture into uncharted territories.
Communicate that innovation is everyone’s responsibility, not just a select few.
The Road Ahead
As we wrap this up, remember that navigating innovation funding models for GBS success is an ongoing journey. Start small, learn, adapt, and grow. Connect with others in your industry, and don’t hesitate to learn from successes and failures. Keep your passion alive, and let the drive for improvement guide your way.
If you’re looking for more insights on shared services transformation, process optimization, and leadership, I highly recommend checking out THEGBSEDGE. You’ll find a treasure trove of knowledge that can help you in your journey.
Thank you for joining me in this conversation. Keep pushing the envelope and creating change. Together, we can navigate the complex waters of innovation funding and come out stronger.
If you’re hungry for more articles on strategy and leadership, head over to this section and dive deeper. Your journey toward excellence in shared services begins with knowledge.
