Why is it that shared service centres (SSCs) rarely achieve the intended cost and efficiency benefits?
In her doctoral thesis, Herma van Laar explains, on the basis of extensive practical and theoretical research, why this is the case and analyses the effectiveness of strategies that organisations employ to resolve the problems faced by SSCs.
Using the chosen method of congruence analysis, she demonstrates why the conventional theory based on economies of scale – which underpins the shared service concept – falls short when it comes to analysing the effects, and why systems theory-based design theory, founded on economies of flow, is better suited to this purpose.
Among other things, the research shows that solution strategies work better when they are in line with systems theory principles – such as customer-focused teams within the SSC – and less effectively when they align with the principles of economies of scale, such as the introduction of a coordinating organisation or the deployment of additional IT.
The research contributes to the development of management science theory concerning the design of organisational structure, particularly with regard to the debate on ‘economies of scale versus economies of flow’, which plays a prominent role in this field. The research findings are of practical importance to organisations that already work with SSCs or are considering introducing them.
Herma van Laar (1963) is an organisational consultant and freelance lecturer in organisational design. In 2010, she graduated summa cum laude with an MSc in Business Administration from Radboud University, where, whilst conducting her PhD research, she also lectured on the evening programme in Business Administration at the Radboud Management Academy. Prior to that, she worked as an organisational consultant and director of the consultancy firm Prospectief Advies in the Rijnmond-Drechtstreek region, where she primarily supported metalworking companies, engineering firms and logistics service providers in restructuring and strengthening their organisations. She was also project leader for Revival Technisch Onderwijs, a collaborative project between metal and electrical engineering companies, technical vocational colleges, the FME Association and knowledge agencies, which aimed to better align technical education with the needs of businesses and to develop a continuous learning pathway from VMBO to MBO to HBO. Early in her career, she worked, amongst other roles, as a staff member at the Product Board for Poultry and Eggs and as Head of Human Resources at the IT division of the Dutch Railways.