A global control hub based on Lean principles
Genpact worked with the company to develop a customized roadmap for the solution design and migration methodology. The aim was to gradually consolidate key F&A functions into a single shared service, and create a template for future consolidation. To make the center operational, we established it in a building where we were already running operations for several global clients, which ensured that we would develop an even closer partnership. Our knowledge of the local market and talent also helped us to quickly recruit the people we needed to run the center.
Genpact designed, transformed, and ran a GCH to strengthen compliance and reduce overall costs. A center of excellence (CoE) applied Genpact’s Lean DigitalSM methodology to get the most out of the solution. Lean DigitalSM focuses on end-users’ needs with design thinking, digital technologies, and Lean principles underpinned by domain expertise. This unique approach means clients can respond to changes in business requirements through incremental and iterative sprints and feedback loops.
Genpact and the client established the GCH in just eight months. The project involved:
- Designing a comprehensive, integrated controls framework covering financial, operational, and compliance risks. The framework provided a common risk and control language for global operations
- Redesigning the roles and responsibilities of the global internal controls group, both in local markets and in the CoE
- Redesigning the SOX program, by optimizing the control framework to include risk-based global scoping, standardized test scripts, remote testing of controls, and better documentation
- Migrating SOX testing to the GCH
- Designing and implementing digital control monitoring solutions, such as controls self-assessment (CSA) and continuous controls monitoring (CCM)
- Setting up dashboards for near-real-time visibility across all work streams, which enabled stronger governance
- Creating and implementing change management initiatives, including internal controls team training around the world, for faster adoption of the new controls framework
The integrated controls framework, controls self-assessment, and continuous controls monitoring solutions were among over 150 unique design deliverables that Genpact’s 20-member design team and 50 end users co-developed. The solution helped the company exceed SOX compliance and provide better coverage of all financial, operational, and compliance risks (see Figure 1).
We applied digital tools and analytics to incorporate surveys and remediation tracking. With well-defined key performance indicators and service level agreements, the management team also had real-time visibility into the impact of its GCH activities.
We made sure stakeholders were fully engaged in the design of the CoE. It was critical have buy-in from relevant leadership and operational teams during this transformation because of the sensitive nature of risk management. Our change management initiatives introduced the concept and sought support from stakeholders. The goal was to make the GCH’s impact transparent and to ensure that it aligned with corporate objectives. We organized training sessions on new processes and technologies so that everyone, including the company’s outsourcing partners, understood management’s vision.