Unlock Success with Essential KPIs for Global Capability Centers (GCCs)!

1. THE METRICS THE METRICS THAT MATTER THAT MATTER THE ESSENTIAL KPIS FOR THE ESSENTIAL KPIS FOR GLOBAL CAPABILITY GLOBAL CAPABILITY CENTERS (GCCS) CENTERS (GCCS)

2. INTRODUCTION INTRODUCTION Over the past three decades, Global Capability Centers (GCCs) have undergone signi cant transformation, shifting from being single-function Shared Services to multi-functional Global Business Services (GBS) organizations led by digital technology. Today's modern GCCs are equipped to perform complex decision- making tasks while simultaneously streamlining transactional activities through centralization and automation. By leveraging technology, they are revolutionizing operations to become more exible and adaptable. These centers are no longer solely focused on cost-saving measures but are instead regarded as strategic partners to enterprises, capable of providing a sustained competitive advantage. “According to a survey by Deloitte,75% of companies have plans to expandtheir GCCs in the next three years. This indicates that businesses see GCCs as an effective way to build operational resilience and achieve strategic goals.”

3. In today's globalized economy, organizations are increasingly establishing Global Capability Centers (GCCs) to achieve cost savings, drive innovation, and enhance their operational ef ciencies. GCCs are an essential part of the company's global footprint and are instrumental in delivering value-added services, technology, and innovation to customers. However, to achieve continuous improvement in operations, GCCs need to identify and measure their Key Performance Indicators (KPIs). Source: Mckinsey

4. KPIs are critical metrics that help organizations measure their performance against their objectives, and GCCs are no exception. The right KPIs can provide insights into how well the GCC is functioning, identify areas for improvement, and help in making data-driven decisions. Moreover, KPIs help the GCCs align their operations with the parent company's objectives and drive collaboration between the GCC and other business unit. In this blog, we will discuss the KPIs that GCCs can use to improve their operations and drive continuous improvement. Want to discover the power of global capability centers? Through this Ebook harness the strength of Global Capability Centers to propel innovation and fuel digital transformation! DOWNLOAD E- BOOK FOR FREE Navigate through the KPIs for continuous improvement strategies for GCCs with best practices

5. Continuous improvement is critical to the success of Global Capability Centers (GCCs) as it helps to enhance their operational ef ciency, reduce costs, and improve service quality. Key Performance Indicators (KPIs) for continuous improvement strategies help to monitor and measure the effectiveness of the improvement initiatives. Here are some KPIs for continuous improvement strategies for GCCs with best practices: #1. Process improvement: IT measures the percentage of processes that have been improved or optimized. GCCs should aim to continuously improve their processes to enhance their operational ef ciency. Best practices include establishing a process improvement culture, implementing process automation, and conducting regular process audits. #2. Quality improvement: It measures the percentage of improvement in the quality of services delivered by GCCs. GCCs should aim to continuously improve the quality of their services to enhance their operational ef ciency. It involves implementing quality control mechanisms, providing adequate training to employees, and conducting regular quality audits. #3. Innovation: According to a survey by Deloitte, 81% of companies reported that their GCCs help them achieve innovations, better business agility and adaptability. Innovation measures the level of innovation and creativity in continuous improvement initiatives. GCCs should aim to foster a culture of innovation and creativity to enhance the success of their improvement initiatives. Best practices include establishing a process improvement culture, encouraging employee participation in improvement initiatives, and recognizing and rewarding innovative ideas. #4. Process cycle time reduction: measures the percentage of reduction in process cycle time achieved throughcontinuous improvement initiatives. GCCs should aim to reduce process cycle time to enhance their operational ef ciency. So that, implementing process automation, identifying process bottlenecks, and continuously improvingprocesses can be smooth.

6. #5. Employee engagement: According to a survey by HfS Research, 80% of GCCs have highly skilled talent that is critical to their parent company's operations. Employee engagement measures the level of engagement and participation of employees in continuous improvement initiatives. GCCs should aim to increase employee engagement to enhance the success of their improvement initiatives. It involves establishing a process improvement culture, providing adequate training to employees, and recognizing and rewarding employee contributions. #6. Customer satisfaction: Customer satisfaction measures the level of satisfaction of customers or end-users with the services provided by GCCs. GCCs should aim to improve customer satisfaction through continuous improvement initiatives. The practices involve implementing a knowledge management system, providing adequate training to employees, and establishing a quality control mechanism. #7. Cost savings: According to a survey by EY, 63% of GCCs help their parent companies achieve cost savings. Cost savings measure the amount of cost savings achieved through continuous improvement initiatives. GCCs should aim to achieve signi cant cost savings while maintaining or improving quality. It includes implementing process automation, identifying process bottlenecks, and continuously improving processes. Therefore, measuring the performance of GCCs using KPIs for continuous improvement strategies is essential to monitor and improve the effectiveness of their improvement initiatives. GCCs should adopt best practices to continuously improve their processes, enhance operational ef ciency, and achieve long-term sustainability. By doing so, GCCs can contribute to the success of the parent organization and achieve their strategic objectives. Unleash the full potential of your global capability centers Leverage our analytics consulting solutions for continuous growth and unparalleled KPI success CONNECT TO OUR ANALYTICS CONSULTANT