These companies have found that forming shared service organizations allows them to eliminate many redundant functions across their operation units reducing costs, while allowing business organizations to be focused on their particular business. Shared Services Model Key factors in the success of the shared services model are the relationship between the providing organization and the customer organization, and the communications within the provider organization and within the customer organization. Service agreements establish demand forecasts and set relationship expectations. An appropriate order fulfillment process allows the shared service team to be very responsive without losing efficiency by defining which products and services are provided. The provider understands the cost structure and can explain how the underlying costs relate to the product and service lines.
Pricing is accomplished consistent with the cost structure and market information.
Organizations are charged for the products and services which they actually use. The underlying principles and strategies establish direction and expectations, allowing users to anticipate and prepare for changes. Policies guide users to follow patterns of behavior which contribute to overall operating and financial performance from a corporate perspective. Customers know how to interact with the provider and know what to expect from the provider. Customer satisfaction is continuously monitored and those behaviors which contribute to business performance are rewarded.