Role of a strong brand in the expansion of BSSC

While the influence of branding on company value and positioning has been recently widely discussed, it is not as common to discuss the same for BSSC (Business Services Support Centre*). BSSC units play a key role in global organisations, so it is important to understand how the branding of these centres affects their reputation, image and ability to successfully attract business partners.

Leaders of the selected centres shared with KPMG Poland their experience and thoughts on branding of the centres they manage raising the following questions:

• Is there a clear plan for BSSC branding across the organisation and is it prioritized by BSSC leaders?
• How can the internal branding of BSSC support the development of the relationship with the parent company?
• How should the internal branding reflect the ambitions of the BSSC?
• What branding activities should be on the agenda of BSSC leaders?

Back to the past

The concept of shared services first emerged in the 1990s, when the so-called transactional, which means less complex and repetitive processes were transferred to low-cost destinations to reduce general operating costs. It then evolved into the Global Business Services model, where lower-value activities were typically outsourced and there was an increasing focus on knowledge-intensive services. The current transformation is about becoming a Centre of Excellence with innovative AI, machine learning and robotics solutions, the ability to support local process experts and with the proactive approach of a business partner in the organization.

The more developed and mature a BSSC is, the more complex the tasks and wider the range of responsibilities it is entrusted with. More and more is its contribution to process redesign, resulting in an increasingly positive perception of the centre by the parent company and a favourable image. The way we name the organisation also influences how it is perceived. Transparent communication naming the organisation as SSC, BSSC or CoE should be the norm, but still not all companies are able to promote and rank their business support centres well.

Selling services to the local business

The BSSC model is nothing more than selling services in the B2B area, but the client is special because it is an integral part of the same organisation. Is the branding of the support centre less important in this case than when selling services to external customers?

Marketers agree that trust in a B2B brand plays an important role in the professional buyer journey. Let's look at it from a BSSC perspective: the buyer is not free to choose his shared services provider, but he can still decide not to transfer services or to harden the transfer of services to BSSC. Lack of trust or even an unfriendly attitude towards BSSC-type units is recognised as one of the biggest challenges these organisations face. What can change the situation for the better? Even before the centre is established, branding activities should be initiated to properly position the emerging unit and build a positive image of it among future internal clients. Successful completion of pilot transition projects, establishing good relationships with the internal client and providing top-quality services will also help to build the centre's image.

Branding should be embedded in the management of the BSSC at every stage of its development because even a well-established BSSC may still face dissatisfaction of local business units. The word-of-mouth is also critical to the successful development of such an organisation. Positive feedback communicated through informal channels within the organisation regarding successful process transfers, high quality service delivery or process improvement and optimisation initiatives become the best advertisement for the BSSC organisation, laying the foundation for long-term collaboration and continuous process portfolio expansion.

Strong brand

Thriving service centres are recognised not only as places to reduce operating costs but also as a centre for innovation and efficient service delivery to clients around the world. Their responsiveness, process knowledge and sense of accountability are their brand. According to BSSC leaders, a strong brand is seen as a combination of two elements: the quality of the services provided and clear communication and good relationships between BSSC teams and local business units.

Customer satisfaction

Regular customer satisfaction surveys play a key role in building the brand of the BSSC unit within an organisation. Market observations show that some organisations do not yet use this type of tool to identify areas for improvement and implement specific solutions to increase the efficiency of the centre.

Conducting surveys on a regular basis is crucial in order to maintain contact with internal customers and prevent the accumulation of potential problems Some BSSCs use the results of satisfaction surveys to benchmark themselves internally against other business support units in the organisation, providing an additional source of motivation for development. Despite recognising the importance of surveys, some managers also prefer informal feedback, believing that it provides better insight than formalised satisfaction surveys.

The challenge with satisfaction surveys is to ensure a high level of participation, which guarantees the reliability of the feedback obtained. The higher the survey turnout, the more areas of potential improvement can be identified. Organisations therefore seek to create incentives for employees to get involved in the survey process and share their feedback.

The branding of a BSSC unit is highly specific due to its positioning within an organisation. While there are some similarities with the general approach to branding, such as measuring customer satisfaction or positioning the unit in the eyes of the customer, BSSC branding does not adhere to a standard approach. Given its dynamic nature as a sector of business support services, it requires its own tailored solutions and strategies.

In the January-February 2024 (1/2024) issue of FOCUS ON Business we will delve into the latest branding trends in the BSS sector observed by KPMG in Poland.

* For the purposes of this article, we would like to clarify the meaning of some terms:
• BSSC – Business Services Support Centre generic term for all forms of organisations in the BSS (Business Support Services) sector, including GBS (Global Business Services), SSC (Shared Services Centre) and CoE (Centre of Excellence).
• Parent company – company responsible for the core business.

Authors:

Magdalena Lach, Senior Consultant, Shared Services and Outsourcing Advisory, KPMG Poland

Justyna Wojdak, Manager, Shared Services and Outsourcing Advisory, KPMG Poland

This article comes from magazine:
FOCUS ON Business #12 September-October (5/2023)