September 18, 2024,Bengaluru, Karnataka, India : In the face of mounting macro-economic challenges, Global Business Services (GBS) organizations are at a pivotal moment. A new study by Zinnov, a global management and strategy consulting firm, in collaboration with ProHance, a productivity management pioneer, underscores the critical need for GBS leaders to implement robust productivity frameworks to not only withstand economic pressures but also drive sustainable growth.
Navigating the Crossroads of GBS: The Need for a Data-driven Productivity Framework
GBS organizations today are navigating a complex landscape marked by economic uncertainty, talent retention challenges, and rapid technological advancements. The study highlights that 53% of GBS leaders rank productivity improvement as their top priority for 2024. This focus is driven by the dual need to enhance operational efficiency and foster innovation amidst ongoing economic headwinds.
As the economic environment remains volatile with inflation, geopolitical risks, and supply chain disruptions, the pressure on GBS organizations to deliver cost efficiencies has intensified. Zinnov and ProHance’s study reveals that a data-driven approach to productivity management is not just desirable but essential. With 52% of leaders citing limited access to reliable data as a key barrier, there is an urgent need for comprehensive visibility and actionable insights to optimize operations and impact the bottom-line effectively. In response, GBS leaders are increasingly focusing on productivity as a critical lever to mitigate these pressures and ensure organizational resilience.
This one of a kind study by Zinnov and ProHance guides GBS leaders on how productivity can serve as a key lever to navigate these challenges and offers a roadmap for sustainably enhancing productivity. The key to success lies in transforming data into actionable intelligence and integrating it across people, processes, and technology. This holistic approach not only enhances immediate productivity gains but also builds a culture of continuous improvement, positioning GBS organizations as strategic enablers within their parent organizations.
From Quick Wins to Sustained Impact: The Journey of Productivity Transformation
The study outlines a three-step strategy for GBS leaders to enhance productivity and achieve sustained impact –
Visibility: The first step is gaining comprehensive visibility into workforce data. This involves leveraging advanced analytics tools to capture and visualize performance metrics, enabling GBS leaders to identify bottlenecks and areas for improvement.
Interventions: Once visibility is established, targeted interventions can be implemented. These range from optimizing resource allocation and task prioritization to reengineering processes and integrating Automation and AI technologies. The goal is to enhance both short-term productivity and long-term operational resilience.
Change Management: Effective change management is crucial to the success of any productivity initiative. The study emphasizes the need for a strategic approach to manage stakeholder expectations, align priorities, and drive cultural change across the organization.
The study also captures compelling, real-world case studies that demonstrate how organizations at different stages of their productivity journey can achieve significant gains – with a framework approach. The Zinnov-ProHance Productivity framework is designed to help organizations systematically identify pain points and curate targeted interventions. With early-stage organizations reporting up to a 20% improvement in productivity levels, the framework-led approach clearly has merits.
The Strategic Imperative: Embracing Productivity for Sustainable Growth
In light of the study’s findings, it is clear that productivity is no longer just a measure of efficiency but a strategic imperative for GBS organizations. As the role of GBS evolves from being a cost center to a value driver, leaders must adopt a more nuanced approach to productivity management—one that balances cost efficiencies with value creation and innovation.
Talking about the study, Karthik Padmanabhan, Managing Partner at Zinnov, said, “Today, the pursuit of productivity extends beyond just deploying advanced tools – it requires a cohesive, framework-led approach. With 52% of leaders citing limited access to reliable data as a major barrier, and productivity dropping by 15% after 8 hours of work, it’s clear that sustainable productivity is not just about working harder, but smarter. By setting realistic targets and KPIs, the Zinnov-ProHance approach helps move 19% of employees into high productivity zones within six months, driving impactful change across people, processes, and technology. The Zinnov-ProHance Productivity Quadrants framework provides a strategic blueprint for GBS organizations to baseline and benchmark productivity, allowing them to make data-driven decisions. As GBS leaders navigate the complexities of modern business, adopting this holistic approach will be essential to sustain and scale their impact.”
The Path Forward: Leveraging Data for Strategic Advantage
For GBS leaders, the path forward is clear: embrace a productivity framework that integrates advanced analytics, targeted interventions, and strategic change management to navigate the complexities of the current business environment and unlock sustainable growth.
“Driving the productivity agenda within GBS demands a robust measurement system. The enterprise productivity landscape is increasingly complex and cluttered with various technologies such as Generative AI, RPA, and Process Discovery. However, the impact of these technologies on optimizing investments in human capital often remains unclear. ProHance offers a comprehensive understanding of work patterns and their influence on efficiency and productivity. This study, grounded in first principles, provides accurate measurement and presents an alternative perspective, enabling GBS organizations to cut through the noise and focus on the true drivers of sustainable productivity,” said Ankur Dhingra, CEO, ProHance.