Following a benchmarking exercise in 2005, we realised
that our finance function was significantly more
expensive than the peer group and that change was
required. Comparatively, we had too many people in
finance at the time and, a bit like one of our oil tankers,
we knew that it would take a while to change direction.
We also needed to be sure that the new direction would
be the right direction.
A shared service approach allows a large function,
such as finance, to be tackled in a phased, one could
say “salami” manner, and we felt that it was right for
us that shared services should be a key enabler for the
transformation of the Royal Dutch Shell (RDS) finance
function. Radical change programmes can sound
convincing in the board room, but in reality they tend
not to live up to management’s expectations. In any
case, while we accepted that things had to be done faster
and cheaper we did have a well-embedded model with
elements that worked well enough. As a multinational
dealing with critical energy supplies, we could not
risk creating problems that would adversely impact
our businesses.
Following a benchmarking exercise in 2005, we realised
that our finance function was significantly more
expensive than the peer group and that change was
required. Comparatively, we had too many people in
finance at the time and, a bit like one of our oil tankers,
we knew that it would take a while to change direction.
We also needed to be sure that the new direction would
be the right direction.
A shared service approach allows a large function,
such as finance, to be tackled in a phased, one could
say “salami” manner, and we felt that it was right for
us that shared services should be a key enabler for the
transformation of the Royal Dutch Shell (RDS) finance
function. Radical change programmes can sound
convincing in the board room, but in reality they tend
not to live up to management’s expectations. In any
case, while we accepted that things had to be done faster
and cheaper we did have a well-embedded model with
elements that worked well enough. As a multinational
dealing with critical energy supplies, we could not
risk creating problems that would adversely impact
our businesses.
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