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The purpose of this study is to empirically explore management challenges that management must overcome in the early phase of adopting IT-shared services. Organizations to an increasing extent adopt IT-shared services as a means to providing organization-wide IT services.

Qualitative data from 20 case studies were analysed. The data were originally collected in a variety of predominantly large-size organizations from the public and private sectors in six different countries. The data used were collected between 2002 and 2010.

Our research identifies seven reoccurring themes in the collected data, all being common management challenges. These challenges are evident within the whole organization – including their service-consuming business units – as well as their service-providing IT units. The seven challenges are related to the ability to deliver IT services, communication between IT and non-IT staff, IT-service portfolios, nature of IT services, power and control, pricing and service-level agreements.

Gaining a deeper understanding of the seven common challenges is essential for further research on how to manage the successful transition towards organization-wide shared-services arrangements.

This study provides fundamental insights into the complex endeavour of adopting IT-shared services in organizations. It furthers the understanding of common management challenges, which management needs to consider in the early stage of an organization-wide adoption of IT-shared services.

The reason of this chapter is to clarify at a conceptual level the phenomenon of shared service centers. The aim of the chapter is to enable managers make better decisions when applying the concept of shared service centers.

This is a conceptual chapter, in which the phenomenon of shared service centers is being rewritten, from an initial cost efficiency level, into a constituting building block in the new nature of the firm.

The findings of this chapter are that especially the combination of financial shared service centers and IT shared service centers are an instrument to organize information outside the structure of the internal organization of the firm, as implied by the changing nature of the firm. Also shared service centers are enablers for new business models, especially those based on human capital.

Executives and managers that have a better conceptual understanding of the application of shared service centers will create more benefits beyond costs savings.

This is the first chapter in which shared service center is reconceptualized in terms of the changing nature of the firm. With that it is also one of the first chapter describing the changing nature of the firm in operational terms. The value of the chapter is that it will help executives to define more efficient change processes. A second value of the chapter is that it opens new avenues of empirical and conceptual research for academia.

Driven by cost reduction and improved quality of service, some firms have adopted shared services as a governance model to manage their staff functions. This paper seeks to explore this behavior using the resource‐based view.

The case of an information technology (IT) unit of a multinational manufacturing firm is presented to provide insight into the issues involved when adopting and migrating an IT resource system to a shared services model. The analysis is extended using conceptual models of the relevant sub‐systems developed through the soft systems methodology (SSM), using a set of root level definitions that are intended to express the transformation to a shared services model.

The results suggest that the major changes involved when transitioning to shared services are process and communication related. Aligning the team members and gaining their commitment are necessary for success.

The case analysis and SSM models provide some insight into the important issues to be considered when moving to a shared services model.

With the growing practice of shared services, it is important to understand how a shared services model fits successfully into the overall business strategy of the firm. This study will spawn further research into the evaluation and control techniques for the different types of IT capabilities under a shared services model.

Many governments and public organizations are turning to shared service arrangements to decrease costs while increasing service levels. This paper aims to elucidate the fine-grained challenges managers face as they adjust to working under a shared service arrangement.

A two-year longitudinal ethnographic field study followed the IT shared service transformation process at a large public university. Meeting observations, emails, documents and interviews were used in the qualitative analysis.

The research identifies 11 challenges faced by management undergoing a transition to shared services. The authors use a taxonomy of management challenges based on the organizational perspectives literature (Knol et al., 2014) to organize the challenges and relate them to prior literature.

The novel findings include the importance of changing organizational culture, balancing dual interests of cost and customer focus, establishing a sense of urgency and achieving process standardization through practicing when adopting a shared service arrangement. The results from a single case study may not by generalizable to other organizations.

This study provides a nuanced and fine-grained understanding of the managerial challenges of adopting IT-shared services. This unique longitudinal data set describes in nuanced detail the challenges faced by frontline managers.

Information technology (IT) professionals and their intentions to leave an organization have been studied by researchers; however, these studies do not compare the turnover intentions of IT professionals with non-IT professionals from the same institution. The purpose of this paper is to examine how IT and non-IT job professionals relate to motivational and social job characteristics and their impact on job satisfaction, job performance and turnover intentions.

Data were collected from IT-shared services employees through a survey and quantitative analyses were performed.

Among the motivational job characteristics, IT professionals experienced greater task significance than the non-IT job holders. With social job characteristics, IT professionals had greater outside interaction than the non-IT professionals. However, the non-IT professionals had greater intentions to leave the IT organization than the IT professionals. Additionally, the study examined the differences of the job characteristics and job outcomes among transactional, transformational, and professional advisory work groups. The professionals and advisory group differed from the other groups in terms of feedback from the job, job satisfaction, and turnover intentions.

The findings are based on a small sample. However, it highlights some unique differences in how IT and non-IT job occupants perceive job characteristics and job outcomes.

This study compares job characteristics and job outcomes of IT and non-IT job occupations in the same IT work environment.

The purpose of this research was to understand the sensemaking processes people use to determine their responses to organizational change initiatives as they unfold overtime. Based on a longitudinal comparative case study of five business units in a $900-million manufacturing organization in the United States, it shows that people continuously assess how the initiatives will enhance or diminish their individual and organizational identities using four kinds of trust: trust in the organization, trust in leadership, trust in the process, and trust in outcomes. The complex dynamics among these “four trusts” and their influence on responses to change are described. A four trusts model is proposed to help change leaders formulate specific trust-building strategies to increase the probability of success of organizational change initiatives. Implications for research and practice are discussed.

The purpose of this study is to offer an integrated literature review of shared services’ organizational structures by specifically focusing on centralization, specialization, control, and formalization mechanisms.

A sample consisting of 103 empirical and conceptual articles, identified in a structured literature search in Science Direct and Scopus, was analyzed. The focus was on exploring the structural dimensions of shared services in various fields: Supply Chains, Finance, Human Resource Management, and Information Technologies. Findings from the selected articles were codified alongside the structural dimensions drawn from contingency theory.

Most of the papers identified were concerned with the Human Resource function or with Accounting and Finance in the private sector. Purchasing was only mentioned in a few general articles and Marketing not represented at all, even though the literature suggests that shared services do exist in this field. This uneven distribution across fields, as well as the reality that many articles fail to make clear divisions between disciplines, is hardly conducive to identifying trends for individual disciplines, and only general trends for each dimension could be identified. Although centralization was one of the most discussed dimensions, there was no consensus as to whether shared services should be centralized or decentralized. Standardization and formalization were both found to be highly important, although a need for customization was also emphasized.

Future research should be oriented toward the structural dimensions of shared services in a broader range of fields as current findings are dominated by the Human Resource function. Another implication of our findings is that scholars could usefully test empirically the dimensions, especially those where opinions differed the most: centralization and specialization.

Earlier conceptualizations noted that the mixed shared service outcomes stem from the diversity in governance and several contingency factors. This work continues the exploration of the contingency factors and mechanisms that, through integration, allow shared services to respond to the environmental uncertainty. The value of this chapter is in examining the structures of different functional types of shared services that are reported as successful in the literature, thus offering an overview of best practices in organizing shared services.

The purpose of this paper is primarily to analyse the implementation of shared services models in business enterprises or private sector and the benefits realised, thereafter; to a greater extent, focusing on the lessons learnt from such operations and exploring the potential of applying similar models in the public sector.

This research attempts to examine whether or not the concepts regarding shared service in the private sector are valid and applicable in the public sector.

Even though the shared services concept and related models are significantly prevalent across the business enterprises or private sector and government sector, the author argues that the shared services model developed in the private sector may further significantly facilitate governments and public agencies in dealing with the recent changes (i.e. due to global financial crisis) in their environments and to become more effective and efficient.

This paper brings together some of the key discussions from the business and private sector on shared services and discusses their applicability in the public sector context.

The purpose of this study is to investigate the perception of knowledge workers on practice of knowledge management (POKM) as an organizational knowledge sharing enabler in an information technology shared services company to understand issues faced and provide recommendations on different technological characteristics of the system.

The initial stage of the research involved a preliminary review of the existing knowledge management-related documents. This was followed by a top management interview to understand the organization’s business goals and knowledge management (KM) expectations. A total of 70 knowledge workers took part in the research activity. Twenty-five participants from nine departments took part in the preliminary interview, and 52 successful survey forms were collected from a total of 70 respondents. The entire investigation took close to nine months. Data compilation and research result analysis took about three months to complete.

The outcomes of the research show that the quality of POKM is stable, easy to use and organization of the content is rated as good. However, POKM has poor response time and search capability. The content is found to be difficult to locate in the POKM but most participants agree that knowledge stored in the POKM is helpful, can be accessed anytime and anywhere and useful for their day-to-day job. As for the user interface, POKM is not very pleasant to use with a weak set of functions and features. For user satisfaction toward POKM, it is shown that users are not satisfied with the efficiency and effectiveness of the systems. However, employees generally are satisfied with the ease of access, download and reuse of knowledge contains in POKM. In term of perceived POKM benefits, users agree that POKM is an enabler for acquiring new knowledge and innovative ideas, managing and storing knowledge and accomplishing tasks more efficiently. Lastly, knowledge users agree that POKM functions enable knowledge networking, sharing and creation in the organization.

POKM was launched and implemented for close to 10 years; however, the organization has failed to achieve some of the goals such as knowledge sharing among employees, creation of new skills and knowledge, measuring knowledge sharing activities and knowledge sharing strategy. The importance of this study is to understand and highlight the technological perspective of POKM from the knowledge workers. Findings will summarize issues faced by the case company for further action and remedy. The outcomes of the study also provide a comprehensive view and guideline to organizations who are interested to implement a KM system.

The purpose of this of this paper is to show that judging by the number of mergers that still go sour, there is plenty of room to intensify the kind of operational due diligence that can uncover deal‐breaking factors before they destroy shareholder value. The paper focuses on specifically supply chain and IT as the two operations areas that deserve special attention because they still get short shrift.

The paper was written based on survey findings, publicly sourced information, case study work and Accenture's point of view based on work at over 400 M&A client engagements, three quarters with companies in the Global 1000. The two surveys cited are: 2006 Accenture study of supply chain managers; and Third Annual Due Diligence Symposium 2007 Survey.

The paper finds that when senior, experienced operations experts are involved in due diligence and pre‐merger planning, the major risks and potential deal breakers are exposed quickly – before deal momentum pushes things to the point where participants are reluctant to walk away. Also, with this input, deal makers can accurately assess the true investments needed as well as the “to be” operating costs of the joined companies. Those numbers can be used to adjust post‐merger cash flow projections, which are often extrapolated based on percentage estimates and projected top‐down rather than bottom‐up based on major projects under way or on operating model complexity. The operations experts allow new potential sources of value to be identified and considered as part of the valuation of the target company. The purchase price may then be adjusted up or down.

Dealmakers have significantly improved their understanding of, and skills in conducting, many elements of mergers and acquisitions, especially valuation and merger integration. Yet in example after example, due diligence processes have proven to be an Achilles heel. Dealmakers today must use every tool at their disposal to improve their odds of a successful deal while at the same time avoiding bad acquisitions. That means placing the same importance on operational due diligence as on valuation, traditional due diligence and merger integration. It also calls for using operational due diligence to pinpoint initiatives that protect and create value after an acquisition. The shift to this next level of due diligence will require enhancing rather than replacing traditional due diligence activities. The due diligence lists will be longer, yes, but importantly, they will be forward‐looking, gauging current observations against future operating needs.