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ACCA Strategic Professional · Strategic Business Leader · Finance transformation

Brantley plc has set up a finance shared service centre (SSC). Business unit managers complain that they are charged an allocated share of SSC costs but have no say over service levels, and they see little incentive for the SSC to improve efficiency. Which action would best address this concern while keeping the SSC internal?

Introducing service level agreements with usage-based charges and agreed performance measures is best. It gives business units influence over service levels and gives the shared service centre an incentive to be efficient and accountable. Relocating, decentralising again or removing charging does not fix the accountability problem.

  1. AIntroduce service level agreements with transfer prices or charges linked to agreed volumes and performance measuresCorrect
  2. BRelocate the SSC to a lower-cost country to reduce the cost base
  3. CAllow each business unit to rebuild its own finance team
  4. DChange the SSC into a cost-free corporate overhead with no charging

Explanation

Service level agreements with usage-based charging make the SSC accountable to its internal customers and create cost and quality incentives. Relocation may cut cost but does not give managers a voice. Rebuilding local teams loses the SSC benefits, and removing charges worsens the lack of accountability.

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