End-to-End Cost and Profitability Performance
Shared Services Costing + Chargebacks

Companies have optimized the cost of business support services like human resources, legal, finance and information technology by pulling them out of individual business units and consolidating them into large, shared services centers. This has proven to be win-win-win approach yielding initial cost savings achieved through scale, improved service levels best practice adoption and reduced risk through standardization.

However, these benefits can be short lived when shared services cost recoveries (chargebacks) lack an explanation of the recoveries and associated calculation logic. These missing elements cause inefficient shared services consumption leading to higher costs and create mistrust with the business partners leading to non-value add chargeback analysis and circular management conversations.

An effective shared service chargeback approach provides visibility to the individual services provided and the logic behind the cost charged to supported business units. Whether you assign costs based on cost centers, fixed rates, volumes, market prices, or a cost-plus approach, the goal is to create accountability and encourage departments and teams to make smart decisions that improve overall performance.

ImpactECS provides the tools and capabilities required to create transparency and trust with supported business partners reducing the time spent debating charge amounts and instead focusing conversations on what business actions can be taken to reduce them.