Enterprise Service Management, or ESM, set out to reduce duplication and improve collaboration between business functions. The approach was to take what worked in IT service management and apply it to areas like HR, Finance and Facilities. With shared processes and a single platform, services could become more consistent, easier to manage and more focused on the user experience.
In practice, progress has been mixed. Some functions adapted well. Others continued working in isolation. While the technology has evolved, the operating models have often remained fragmented.
In recent months, the language has started to shift. More organisations are now referring to Global Business Services, or GBS. With that shift comes a different level of ambition and complexity.
How GBS differs from ESM
Where ESM often focused on tools, portals and process alignment, GBS takes a broader view. It considers how services are structured, governed and funded. It looks at the whole operating model, not just the interface.
GBS puts more emphasis on standardisation, customer experience, and joined-up delivery. It also requires shared accountability across multiple functions. While ESM often began in IT, GBS is usually business-led and covers a wider scope from day one.
Understanding the journey from shared services to GBS
Many organisations began by creating shared service centres to consolidate activities like payroll, IT support or procurement. These centres focused on efficiency, standardisation and cost savings within individual functions.
GBS takes that model further.
It builds on shared services but adds layers of integration, governance and customer focus. Rather than having separate shared service teams for each function, GBS promotes a single, enterprise-wide model. Services are grouped into families, processes are aligned, and performance is measured across the organisation, not just within silos.
Where shared services often report into functional leadership, GBS tends to have cross-functional governance and a more strategic role in shaping how services are delivered. It is less about consolidation and more about coherence, experience and adaptability.
What happens when GBS is only partial
Some organisations have taken a first step by creating a GBS function that covers a handful of services across HR, Finance or Facilities, but not the full range. IT might still sit outside of GBS. Many core functions might still run separately, with only limited coordination.
In this kind of hybrid model, the user experience can quickly become fragmented. For example, someone needing payroll support might receive part of the service through GBS, and part through their HR business partner. Different systems, different processes and different levels of responsiveness can make the experience confusing or inconsistent.
Is this something you recognise?
How are you planning to grow the scope of your GBS without overwhelming teams or disrupting established ways of working?
What does a sensible transition look like, and how do you reduce the impact on the user experience while expanding?
Is your organisation on that journey
Some have well-established GBS structures with shared service centres, cross-functional governance and dedicated transformation teams. Others are still using the language of ESM, even if the goals are beginning to align with GBS thinking.
And some are caught between the two. They are scaling shared services, but without a clear strategy or integrated way of working.
Key challenges for GBS teams over the next 12 months
- Moving from functions to shared services
Many organisations are still structured around departments. True service alignment means designing around the user journey, not the org chart. - Planning across functions
Roadmaps are often created in silos. Without joint planning, it is hard to deliver services that work well across IT, HR, Finance and other areas. - Measuring what matters
Metrics tend to reflect internal priorities rather than end-to-end value. GBS teams need to focus more on customer outcomes and shared performance goals. - Managing ownership and funding
It is still unclear in many organisations who funds and governs a shared service. Without clarity on decision-making and priorities, progress slows. - Avoiding change fatigue
Many teams are already stretched. If GBS is introduced as another layer of transformation, it can meet resistance. The benefits need to be clear, and the approach needs to feel manageable.
What about AI and automation
AI is appearing in every transformation conversation. It can be useful, but only when the basics are in place. Without good knowledge management, clear service definitions and aligned processes, AI will struggle to add value.
Some organisations are discovering this the hard way. The promise of automation often runs ahead of what is actually achievable. GBS success still depends on human input, structured content and well-designed services.
What makes GBS work in practice
In programmes that make real progress, a few things tend to stand out.
- Strong business ownership with support from IT
- People who can connect strategy and delivery
- Shared design principles across service areas
- A focus on customer experience, not just internal efficiency
- Bridge-builder roles that help teams align without forcing uniformity
What does your GBS journey look like?
Are you still using the ESM model, or has your organisation moved towards something more structured and scalable?
What has helped you make progress?
What has slowed things down?
I am always keen to hear from others working in this space. Whether your organisation is just starting out or already delivering services at scale, feel free to share your experience. These conversations help all of us to learn and improve.
In the coming weeks, I will post more reflections based on recent work. That includes what helps teams collaborate across business functions, and what kind of roles can make the biggest difference.
If you’d like to share your thoughts or see how others are approaching this journey, you can join the conversation on LinkedIn, or get in touch via hello@gwit.ltd
