Borwn, EDS, Richard, CEO
Case study #2: Richard Brown, CEO, Electronic Data Systems
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Richard Brown came into the CEO position at EDS with a clear mandate: to break put of the old way of doing things. In January 1999, EDS was not thriving. Brown determined that the real problems with EDS involved the company’s outmoded, cumbersome structure. EDS operated 48 self-sufficient units that neither communicated, nor cooperated. It turned out that the units were duplicating one another’s efforts instead of working together.
Brown put together a working group and devised a new business model that compressed the 48 units into four departments, cutting duplication and introducing a shared services model. By July 2001, EDS had increased quarterly profits by 17 percent and raised revenue by 7.5 percent.Working smarter
Moving to a shared services model can, if properly deployed, accomplish three key objectives: it can streamline operations, thus cutting costs by optimising administrative tasks; it can, through automation, minimise manual activities, leading to more precision and better documentation; and shared services can ensure better communications and coordination between corporate departments.
By initiating the move and overseeing the implementation of shared services, an executive officer becomes the hub of communication between management and administration. By providing his or her vision throughout the shift to shared services, the corporate leader can maintain the alignment between corporate objectives, implementation and results.
Because shared services centres function as the administrative hub of an organisation, they don’t just streamline activities, they consolidate information - such as profitability data, market intelligence and forecasting. The right technology, in tandem with centralised administration, enables an organisation to manage and share knowledge. Because this information is at management’s fingertips, executives can assess and act quickly to implement changes.
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