Understanding the Role of Global Process Owners (GPOs) in Business Efficiency

2. What is a Global Process Owner (GPO)? • A GPO is a single owner assigned by the company to completely oversee an end-to-end process, such as procure-to-pay (P2P). • The role of the GPO is driven by the specific business priorities of the company but usually involves: • Process Management: Complete process design, re-engineering or re-mapping • Development of governance structures and protocols, and ensuring staff compliance with said protocols as well as technological infrastructure • Performance Management: Analytics and establishing of performance metrics and monitoring compliance • Drivingcontinuous improvements by identifying pain points in process and prioritising opportunities

3. Why do we need a GPO? • Many enterprises suffer from a P2P approach which is fragmented and inefficient. If implemented correctly, the GPO role is a strategic one which can: • Envisage an efficient P2P structure • Drive change to enact it, through technological innovation, improved processes, personnel changes, etc. • Standardise P2P across the whole enterprise, compensating for regional differences / difficulties • Encourage effective collaboration between various company stakeholders and key suppliers

4. What is the trend towards GPOs? The number of companies adopting P2P Global Process Owners has been on the rise since 2009. A recent survey of P2P Process Owners found that finance and procurement are the key lines which GPOs report into: Source: How to be an Effective P2P Process Owner, Tungsten Network

5. What is the trend towards GPOs? The same survey also asked: Source: How to be an Effective P2P Process Owner, Tungsten Network

6. What could happen if we postpone implementing a GPO? • Non-optimised P2P processes continue to cost the parent company: • Time:Companies disregarding the efficiency of their P2P structure take up to 75% longer to process their invoices. • Money: Invoice processing costs increase up to 80% more than those of P2P leaders. • Effort:Incalculable working hours are lost as staff use inefficient workarounds and track down inaccurate payments.

7. Example of stakeholder feedback pre-GPO for P2P: Source: More Power Through “End-to-End” Process Ownership, Chazey Partners

8. Pressures Driving P2P Modernisation through GPOs: Source: Aberdeen Group, September 2010

9. What does a successful P2P GPO look like? A successful GPO needs to have: Strategic Global Outlook:GPO must continually be pushing for transformation towards standardisation across whole enterprise. Ability to focus on bigger picture and align P2P process with company goals. Tech Savviness:Firm grasp of technologies and processes available to improve P2P efficiency and scale. Functional P2P Experience:Credibility and working knowledge of P2P process helps GPO achieve buy-in from company management and stakeholders. Clear Visibility Into Key Metrics for Every Functional Aspect of the Enterprise:Regardless of authority, GPO must understand effect of each business process on all of the others. Holistic overview of the enterprise enables effective transformation of P2P to work in concert with other processes.

10. What does a successful P2P GPO look like? Source: Survey conducted by Sharedservicelink and Tungsten Network

11. What does a successful P2P GPO look like? Source: The Value Of Global Process Owners In Global Business Services, Deloitte

12. What are the measurable returns of implementing GPO? Efficiency:On average, P2P leaders with GPOs process up to 1,300 more purchase orders per FTE than companies with low-performing P2P. Speed:They take on average 4.1 days to process an invoice from receipt to approval compared to 7.1 days in case of non-optimised P2P process. Invoicing Accuracy:GPOs can design and implement improved P2P structure which eliminates excess manual processes, maintains accurate master vendor databases and oversees internal controls and vendor compliance.

13. What Enables P2P Process Owners to Enforce the Process? Source: Survey conducted by Sharedservicelink and Tungsten Network

14. What needs to be done to effectively implement a GPO? • Step 1: Define the role of the GPO and ensure it has proper authority • GPOs responsibilities and expectations must be clearly documented and consistent with company policy. • GPO must have authority to take charge of P2P process and implement changes.

15. What needs to be done to effectively implement a GPO? • Step 2: Secure Corporate/Management Buy-in • GPO must effectively communicate global vision for P2P in order to secure senior management support. • On-board senior management can provide useful guidance and remove roadblocks in GPOs path. • Lack of management buy-in leads to change resistance. By contrast, senior management support leads to positive effect on KPIs and service quality in 74% of GPO projects.

16. What needs to be done to effectively implement a GPO? • Step 3: Understand the Process • Ensure that the GPO understands the enterprise’s current P2P process end-to-end, accounting for: • Technological constraints/areas for improvement • Talent management, ensuring right people are placed in effective roles • Areas of supplier/vendor overlap • Potential pain points such as: long cycle times, non-compliance, lack of PO visibility

17. What needs to be done to effectively implement a GPO? • Step 4: Communicate with Key Stakeholders • The GPO must communicate their vision of the desired P2P process and get key company stakeholders to understand and sign off on the design in order to enforce the process: • Keep all relevant department heads/key management personnel apprised of progress and potential issues. • Frequently test design for potential pain points, feedback to company stakeholders. • Promote benefits of improved P2P structure and sell your vision.

18. What needs to be done to effectively implement a GPO? • Step 5: Maintain Sound Project Management • Build internal and external global networks and clearly communicate with them • Communicate progress on KPIs on weekly or monthly basis • Manage risk, record progress and pain points, educate stakeholders, prepare to roll out

19. Key challenges and pain points facing GPOs tackling P2P: • Resistance to change: Stakeholders/staff don’t see need to change viable system • Non-compliance with new system: Due to employee attrition, staff attitude towards changing process procedures, etc • Technological implementation: Compatibility issues involved in implementing new hardware/ software for various regional networks across global enterprise • Lack of definition and clarity of GPO role • Limited decision power and impact: Does a global mandate/ authority naturally comes with a global title?

20. In summary: • Don’t: • Lose operational focus:GPOs cannot get bogged down in process minutiae and must maintain focus on strategic goals and vision of the enterprise. • Think small:All process initiatives and changes must have impact on global scale. GPO requires insightful and holistic view of the entire enterprise when pushing for process change. • Avoid standardisation:It can be tempting to create bespoke solutions to solve tricky regional issues. However, standardisation across the entire enterprise should be the goal to maximise efficiency and reduce operational costs.

21. In summary: • Do: • Achieve and maintain transparency:Overcome mistrust and change resistance to keep company confidence in the project at high level. • Design and build effective process model:Ensure it eliminates process inefficiencies through intelligently implemented changes enterprise-wide. • Benchmark standards:Effectively measure performance against an accurate baseline. Requires accurate and holistic performance metrics • Ensure user compliance:Monitor relevant business units to ensure compliance otherwise standardisation efforts are rendered meaningless.

22. Learn How Asia’s Leading Companies are Implementing their GPO Function at: 19 - 21 May 2015, Singapore • Featuring: • Best Practice Case Studies from Fortune 500 companies • Insightful C-Suite Panel Discussions • Technology Innovation for P2P End-to-End Processes Click Here to Download the Agenda