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The shared services model can transform business processes and smooth out the rough edges in your operational model. Have you been looking for ways to centralize your operations? We recommend that you consider the shared services model. Through the use of standardized technology, various units in an organization can access the same services.
In this article, we are going to be providing everything you need to know about the shared services model. If you are committed to concentrating administrative activities into a smart and centralized hub, this model could be of tremendous benefit to your organization. With the continued evolution of autonomous technology, we believe this is the model of the future.
Do you need to reduce business operation costs? Are you trying to avoid the duplication of effort across various departments and divisions? This model has the potential to be a total game-changer for your organization. The centralization of expertise can have an enormous impact on an organization’s ability to effectively deliver services to key stakeholders.
We will be answering the following questions:
Alongside answering these questions, we will also be considering how StartingPoint can be used to facilitate and support the shared services model. When it comes to implementation, you must ensure that the best practices and systems are in place to guarantee success. There are many organizations using StartingPoint as the secret weapon powering their operation.
After reading this article, if you have any further questions about the model, please feel free to contact us. At StartingPoint, we work closely with businesses and organizations of all shapes and sizes to integrate service management software into their operational model. We are always ready and available to answer all of your questions.
Without wasting any time, let’s dive straight into the central idea of shared services.
What is included in shared services?
When you look at the various business units of an organization, there are many services that play an integral role in supporting the daily operations of different departments. From payroll and inventory management to hiring and information technology, there are many divisions in a business that could benefit from operating within a centralized hub.
Companies that take the time to restructure their operations and implement shared services can enjoy significant cost savings by standardizing practices and creating economies of scale. Improved quality of internal service between departments can result in improved customer service. Ultimately, if things are going well internally, this will impact your external results.
What is a shared services HR model?
Many human resources departments successfully operate through the shared services model. As you will know, HR departments are a vital component to the operation of any organization and interact with every team member. There are administrative tasks, such as pensions and recruitment, that will require the input of multiple areas of the same organization.
Centralizing these back-office operations can help to prevent duplication of effort and eliminate redundancy. When a human resources department is being bombarded with requests from every corner of an organization, this can be a difficult situation to manage. StartingPoint offers a centralized hub for requests to be processed with a SaaS solution.
How are shared service models implemented?
Instead of running as a centralized function of an organization, a shared service unit operates as an internal customer service business. Those working within the unit are tasked with providing exceptional levels of customer service to team members. Yes, if you are committed to improving your operations, you need to start treating your team members as customers.
A shared service unit will often charge divisions and departments for services provided. They will also utilize service level agreements that are constructed as contractual agreements, detailing the cost, time, and quality of the service. This provides those working in operations with the necessary data to measure performance.
What challenges come with the shared service delivery model?
Naturally, when you implement a new operations model into an organization with many moving parts, there can be a few teething troubles in the early days. Some organizations can be met with greater challenges than others. It all depends on how the implementation process is approached. The shared service delivery model is highly effective when implemented well.
When it comes to implementing the shared services model, problems can arise as companies consider processes that are already centralized and standardized. They often believe these can easily fit into a new shared services organization - but this doesn’t always work. Organizations should take a look at even their most centralized processes and consider their effectiveness.
What is the difference between shared services and outsourcing?
While there are many similarities between outsourcing and shared services, they couldn’t be more different. Outsourcing is the act of contracting with a third party to deliver a service. In contrast, shared services are the delivery of those same functions and processes from inside the organization. Bringing everything in-house can often result in a smoother operation.
With the support of StartingPoint, your shared services unit can hit the ground running. Our software has been simplified for non-technical business leaders and teams for ease-of-use.
Are you ready to get started? Request a 14-day free trial today.