The Top 5 Things 'Not To Do' In I2C for GBS Leaders

In a world where businesses are pushing the boundaries of what’s possible, breaking limits isn’t just about doing more—it’s about doing more with less.

Whatever your role or title, you will find various articles telling you what to do. While those can be useful, learning and memorization work even better when something goes wrong.

Instead of the typical 'to do' lists, I offer a unique 'not to do' list that can provide valuable insights and prevent potential pitfalls. This practical guide will give you the confidence to navigate the challenges ahead, knowing you're equipped with the right knowledge.

Amidst the myriad of topics and trends for GBS leaders to navigate, this 'not to do' list is a beacon of guidance. It's a collection of observations about potential pitfalls that could hinder your progress in these current times, serving as a roadmap to avoid these obstacles.

We have been on a transformation journey for so many decades; it seems we have been transforming forever. The transformation journey is depicted in almost every slide deck and serves as a generic explanation for why all kinds of things need to be done.

We have been in a VUCA world, a crisis, a challenging market, a pandemic, and have been expecting a downturn or recession many times before, and the transformation is still ongoing. We are likely in transformation mode for good and correct reasons, but why does it take so long if it is so urgent and essential?

Transformation is about breaking the limits of traditional processes, like manual invoice-to-cash operations, and embracing intelligent automation that accelerates and optimizes outcomes. It's crucial to note that transformation is not just another word for change. While change is a constant, transformation signifies a significant shift.

It's not about tweaking existing processes like I2C, but about fundamentally altering our approach to solve underlying issues. The key is to always start with the question of what we're trying to achieve, not how to improve something already existing. This shift in approach is vital in adapting to the current business landscape.

Transformation is akin to metamorphosis in biology, such as a caterpillar becoming a butterfly. It's about becoming a different entity. Just as businesses must break away from the limitations of old processes, the transformation should lead to the creation of entirely new value propositions.

While constant change can lead to long-term success, in GBS, we should focus on more than just small changes in the existing approach, process, or technology. Instead, we should always start with the desired outcome and work our way back to the present.

One of the most pressing topics currently is the difficulty of finding people with the right skills and capabilities. This issue is global, and everyone knows about it. We urgently need the right people to implement and run the GBS processes and technologies.

Since the end of the pandemic, we have all been looking for talent. Relatively small movements in the labor force and changes in behaviors have led to an unbalanced labor pool in many geographies and sectors, at least from an employer´s point of view.

In breaking the limits of traditional training methods, businesses must invest in upskilling their workforce to thrive in a future impacted by AI and automation. With the dawn of generative AI, the gap will increase. Enormous numbers of AI experts will be needed very soon. It seems unlikely the market will fix the lack of skills issue quickly.

Hence, the good old training approach is back: instead of buying ready-made employees from the market that you can insert into a process in no time, we might have to invest and train again. Upskilling and re-skilling are also good options.

Nevertheless, while many companies agree with this view of the market, they invest little in learning and development. This does not appear logical in a market with rapidly rising skill demands. 

While select organizations have tripled or quadrupled their efforts, the average training budget in GBS is around 1,000 USD/FTE/year (SSON Research & Analytics), less than one GBS conference ticket.

 To break limits, organizations must rethink their investment in training, ensuring their teams are equipped to harness the full potential of intelligent automation and new technologies. So, don't save on training; invest!

The increased uncertainty in the past years has led GBS organizations to reassess their location footprint. Within the GBS model, and with advanced technology and competent people in place, we assume that a defined process could be performed from anywhere.

However, some of the above requirements, especially the talent requirements, are more challenging to fulfill in the current situation. Companies potentially want to tap into more labor markets, distribute the risk, and spread the work.

With automation breaking the limits of location constraints, businesses can now operate truly global processes, including invoice-to-cash, from anywhere in the world.

SSON Research & Analytics recently revealed that 2/3 of GBS organizations have between 1 and 6 locations, and the rest have even more; nevertheless, about half plan to add to or change the footprint. A significant wave of activity on the location front is ongoing.

Many in GBS enjoy the actual location selection process. Everyone has an opinion about which location makes sense or doesn’t. The trips to assess location options are the most sought-after trips. Often, the targets are exotic places otherwise known only from a holiday catalog.

While it is understandable and very human to appreciate an inviting location, possibly in a warm climate with friendly people and a great party, locations selected for GBS should work for GBS in the long run.

In a world where automation breaks down geographical barriers, the focus should be on locations that offer sustainable advantages and long-term potential for growth and efficiency. Do not go for those with the highest perks or subsidies, as they will run out.

Do not select a location based on what you like, but one that works for the company. Those that don't work will come back chasing you, and the following location selection might be done by someone else.

Many companies running GBS are not yet using the most modern available tools. When asked why, I often hear an explanation stating that it is not clever to be a beta client or implement a technology immediately when released but rather to wait a while for some testing and piloting to occur and for the errors to be resolved.

To break the limits of traditional thinking, companies must embrace technology as the enabler of smarter, faster, and more intelligent processes, particularly in areas like invoice-to-cash. While it might sound logical and clever initially, this is a big risk.

These same companies often keep waiting for bugs to be fixed or for the price to come down. This leads to a situation where the next big thing enters the market; the next technology wave takes over. The company in question no longer wants the old technology and is waiting for the new one to be established.

While the cycle runs repeatedly, the company does not improve and loses time. Do not let fear of imperfection limit your potential—embrace new technologies that can transform your operations today rather than tomorrow. So do not wait for technology to be perfect or for others to fix bugs for you—get into it ASAP.

Automation is closely related to technology, and you could argue that it is the same point. However, I want to highlight an additional aspect of this.

In the pursuit of breaking limits, automation is no longer just about efficiency—it's about unlocking intelligence across every stage of the invoice-to-cash process. As a reminder, automation is the core of what we do in SSO/GBS.

Everything in this model is about automating processes to become more efficient and effective and to provide value to our customers. Automation will always be on a top five list of any sort.

A common issue in automation efforts is that people automate a part of the process instead of the whole process. A well-known example is the digitization of paper, where forms, letters, orders, and invoices are digitized and printed out again by the receiver to work with them manually, file them, etc.

These automation breaks slow the process and destroy some targeted efficiency gains.

To truly break limits, automation should be end-to-end, transforming the entire invoice-to-cash process into an intelligent, seamless experience. My final advice is not to automate bits and pieces but rather take an end-to-end view and automate holistically.