Global Capability Centers (GCCs) have become critical to modern organizations, helping to drive efficiencies, cut costs, and create innovation hubs. But as the number of these centers expands worldwide, some can lose their way.
Is your GCC lagging behind others in your network? Is it failing to deliver at its full potential?
Centers that underperform can slip under the radar, but their impact, or the lack of it, has consequences. A center that’s not maturing, lacks strong leadership, or is stuck in firefighting mode without enough investment can quickly see its productivity drop. Worse, it risks losing its reputation in the local talent market. Once that happens, attracting top talent becomes an uphill battle, further diminishing the center’s ability to compete.
So, how do you spot the problem, and what can you do to address it?
Asking the Right Questions
- Local Leadership or Distant Control?
A common issue with struggling GCCs is leadership that isn’t local or isn’t empowered. Are decisions being made on the ground by leaders who understand the market, or is everything controlled by HQ? Centers that rely on top-down decision-making from afar lose agility. Local leaders need the power to act independently, take ownership, and make quick decisions that align with local dynamics.
2. Strong Brand or Local Disconnect?
How is your center perceived in the local market? Does it have a strong brand identity, or is it just another office among many? Without a strategic effort to build local brand awareness, your center will struggle to attract top-tier talent. Are your managers visible thought leaders in the industry? If not, you’re missing a crucial opportunity to boost your center’s credibility.
3. Meaningful Investment or Shallow Perks?
Free lunches and quirky perks won’t solve deep-seated issues. Are you making real investments in your people such as learning opportunities, infrastructure, and resources that genuinely improve their work experience? Employees can easily tell if a company is focused on quick wins versus meaningful, long-term investment in their growth.
4. Collaboration or Silos?
Is your center working in sync with others across your organization, or is it constantly playing catch-up? Collaboration between centers can be a game-changer, enabling cross-pollination of ideas and shared learning. It’s crucial to create a culture of cooperation rather than competition among centers, where teams can learn from each other instead of working in isolation.
5. Capability Development or Plugging Gaps?
Are you equipping your employees with the skills they need for the future? Many GCCs fall into the trap of assigning more work without building capability. It’s essential to invest in upskilling, especially in areas like AI, automation, and digital transformation. Centers that fail to move their employees up the value chain risk becoming irrelevant.
6. Real Value Proposition or Hollow Promises?
What’s your employee value proposition (EVP)? Is it something that resonates with local talent, or is it a one-size-fits-all message from HQ? It’s critical to localize your EVP and back it up with tangible proof points. If your promises don’t align with the employee experience, you’ll lose credibility fast.
7. Pulse of the People or Engagement Stunts?
Does your leadership team truly understand the needs and concerns of your employees? Short-term engagement tactics may boost morale temporarily, but they won’t create a lasting connection. Focus on building a long-term employee experience that includes well-being programs, career development, and a supportive work environment that aligns with industry standards.
Taking Action
Once you’ve asked the tough questions, it’s time to take action. Here’s how you can turn things around.
- Short-Term Fixes: Start by empowering your local leadership. Give them the autonomy to make decisions, adapt quickly, and lead from the front. Listen to employee feedback, and address their immediate concerns with visible actions that show you’re serious about change.
- Long-Term Strategies: Develop a roadmap for capability building. This should include investments in training, technology, and processes that will keep your center competitive. Strengthen your local brand presence by positioning leaders as experts in the market, and focus on building a culture of collaboration between centers.
Global Capability Centers that thrive are the ones that fully invest in their people, build local connections, and have a clear strategy for growth. It’s not enough to merely exist within a network. You need to lead, innovate, and continuously add value. By taking stock of where your center stands today, you can ensure it stays relevant and delivers on its promise to the organization for years to come.
It’s time to get serious. Invest where it matters, empower your people, and make sure your GCC isn’t just staying afloat but leading from the front.
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