Charging Back Drives Behavior

One of the most effective ways to cut costs out of shared services is to charge services back to the parent company. Rather than being allocated funds as a cost-center, some shared service centers bill a per-transaction fee to the individual business units or departments that they service. The major benefit of charging back is that it can influence behavior at the business units. Implementing a chargeback structure based on type of activity can encourage organizations to adopt efficient…