ibm - united states · 2009-02-24 · frank kern senior vice president, global business services...

© 2009 IBM Corporation

How we did it

Shared Services reduced spending by $3B over the last three years

Supply chain averaging $3-5B in savings every year for the last five years

Each Shared Service driving ongoing efficiency & effectiveness:• Finance E/R reduced from 3% to 1%

• Real Estate improved E/R by 50%

• HR HC Ratio to Employee: improved from 1:122 to 1:169

Global Shared Services

Impact

Established consistent set of processes, controls, systems and governance for global shared services

Global function owners accountable for meeting productivity goals based on benchmarked targets

Shared Services Council provides a common approach for identifying opportunities to improve efficiency and effectiveness

“We no longer have to replicate IBM from floor to ceiling in every country. We are optimizing key operations in the right places in the world – eliminating redundancies and excess overhead – and integrating those operations horizontally and globally. …This is

about doing the right tasks, with the right skills, in the right places.” - Sam Palmisano, May 20, 2005 Analyst Meeting

Enabling Productivity