Developing a performance index model for a finance shared service centre.

• Main Authors: Chua, Kim Heng., Kho, Bernard Wee Chong., Tang, Hong Wee.
• Other Authors: Wu Yuan
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Business::Finance
• Online Access: http://hdl.handle.net/10356/44040
• Institution: Nanyang Technological University

The deployment of Shared Service Centres (SSCs) by international firms has been rather widespread in recent years, especially across major industries. Rather than outsourcing their common functions to external parties, firms prefer to centralize these processes to maintain a certain level of efficiency and performance. To date, many academic papers have sought to discuss and analyze the performance measurement of the SSCs. This is crucial in helping firms assess their operational effectiveness. However, few of such research efforts have performed in-depth analysis on the banking industry. In collaboration with the Finance Global Services (FGS) hub of the Royal Bank of Scotland (RBS), this paper seeks develop a performance index model that will enhance the process of performance measurement in a Finance SSC. Two key research methodologies are employed for the purposes of this paper: the Delphi Survey method and the Fuzzy Set Theory method. Based on the Delphi Survey method, a panel of Finance SSC ‘experts’ were engaged to respond to a series of online questionnaires. The result of this iterative process is the Performance Index – a linear equation comprising of four weighted Key Performance Indicators (KPIs) that best measures service centre performance. The Fuzzy Set Theory method takes this research a step further by allowing for the development of a performance measurement matrix which accurately qualifies and quantifies the four individual KPIs in the Performance Index. The final model proposed by this paper has helped RBS FGS adopt a more metric-driven approach to measuring and understanding their performance, as well as their customers’ needs. The bank believes that this model would empower them towards achieving greater efficiency.