Major considerations/dependencies
What are the key requirements to start moving to capability centres?
The move should start with a clear definition of the future operating model and a solid understanding of the current state.
Main requirements:
Define the end state
Be clear on what the capability centre will do, what remains local, and how teams will interact.
Assess current state processes and value streams
Map existing processes end-to-end.
Understand process variation, dependencies, and where work currently sits.
Assess impact on other functions/teams
Consider how moving work will affect adjacent teams, hand-offs, controls, and service levels.
Standardise processes
Reduce local variations before transition.
Create consistent ways of working and clear exception routes.
Review technology readiness
Ensure enabling systems are fit for purpose, including:
IT infrastructure
ERP
Billing / ticketing systems
Consider people and organisational implications
Identify roles at risk, local restructuring impacts, and labour law / redundancy implications.
Clarify who will lead and manage the remaining local team.
Plan knowledge transfer
Document process knowledge, local expertise, and business rules before any move begins.
Think about future talent model
Understand how career development, retention, and succession will work in both the centre and retained teams.
What do you see are the greatest risks in moving to capability centres?
The biggest risks are less about the idea itself and more about poor transition planning, people impact, and weak process design.
Main risks:
Loss of knowledge
Local and embedded process knowledge could be lost during transition.
Broken or fragmented processes
If processes are moved before they are simplified and standardised, service could deteriorate.
Negative impact on the retained/local team
Reduced morale, loss of team spirit, uncertainty, and disengagement among those who remain.
Talent and career risks
Future talent may see fewer development opportunities, making retention and growth harder.
Unclear ownership and leadership
Risk around who manages the retained team and who is accountable for end-to-end delivery.
Technology / systems not being ready
Inadequate infrastructure, ERP limitations, or weak ticketing/billing tools could undermine the model.
Cross-functional disruption
Moving one process may create problems for upstream or downstream teams if dependencies are overlooked.
Legal / people risk
Restructuring and redundancy issues must be managed carefully and in line with labour law.
Language / communication barriers
Potential misunderstanding or inefficiency if communication and process interpretation vary across locations.
What solutions would be required to support a move to capability centres?
The move will require a combination of operating model design, process improvement, technology enablement, and people/change support.
Required solutions:
End-state design
Define a clear target operating model, including:
scope of the capability centre
retained local responsibilities
governance and decision rights
service ownership
Process documentation and standardisation
Create standard operating procedures, controls, and hand-off points.
Build clear exception management routes.
Current-state and impact assessment
Run a structured assessment of current processes, value streams, and impacts on other functions.
Knowledge capture and transition planning
Formal knowledge transfer plans, process documentation, and shadowing/hypercare support.
Technology enablement
Ensure the right supporting tools are in place:
strong IT infrastructure
fit-for-purpose ERP workflows
billing and ticketing capability
Change management and communications
Support (directly and indirectly) affected employees with clear messaging, role clarity, and transition plans.
Address morale, engagement, and team cohesion early.
Organisation and leadership design
Define roles, reporting lines, and accountability for both the capability centre and retained teams.
Workload and capacity planning
Make sure volumes, complexity, and staffing levels are understood before migration.
Risk and compliance planning
Include legal, labour law, redundancy, and control considerations from the start.
Talent and capability development
Put in place a plan for future skills, progression, and retention so the model is sustainable.
Summary
Moving to capability centres should begin with a clear end-state vision, detailed current-state assessment, process standardisation, system readiness, and careful people planning. The main risks are loss of knowledge, process breakdown, impact on the retained team, weak leadership clarity, and insufficient technology or legal readiness. To make the move successful, the business would need standardised processes, defined exception routes, strong systems, structured knowledge transfer, clear governance, and a robust change and people plan.
Suggested action points
Define the target end state
Agree what the capability centre will own.
Clarify what activity remains with local teams.
Set out governance, ownership, and decision-making.
Complete a current-state process assessment
Map existing processes and value streams end-to-end.
Identify process gaps, variations, and dependencies.
Assess the impact on other teams and functions.
Standardise processes before transition
Simplify and align processes across teams/locations.
Define clear controls and exception handling routes.
Remove unnecessary local variations where possible.
Assess technology and infrastructure readiness
Review whether current IT infrastructure can support the model.
Confirm ERP, billing, and ticketing systems are fit for purpose.
Identify any system changes needed before migration.
Develop a people and organisation plan
Identify impacted roles and retained responsibilities.
Clarify leadership for the remaining/local team.
Consider restructuring, redundancy, and labour law requirements.
Protect and transfer knowledge
Capture key process knowledge and local expertise.
Put in place a structured knowledge transfer plan.
Use documentation, shadowing, and handover support.
Assess risks to service and control
Identify where process breaks or service disruption could occur.
Review control, audit, and compliance implications.
Build mitigation plans for critical risks.
Plan for change management and communication
Communicate early and clearly with affected teams.
Address concerns around morale, retention, and team cohesion.
Manage the impact on those remaining in the business.
Create a talent and capability plan
Consider future career paths and development opportunities.
Address retention risks in both the capability centre and retained teams.
Ensure the model is sustainable long term.
Set up a phased implementation plan
Prioritise which processes are suitable to move first.
Use pilots or phased migration rather than a full transfer at once.
Track delivery against clear milestones and success measures.