As companies grow, many adopt a shared services operating model. As the name implies, this approach consolidates products and common functions at headquarters — often finance, IT, human resources, facilities, procurement, legal services and more. These centralized service units then support field offices, local market initiatives and individual brands that may exist under the corporate umbrella.

Executive Summary

A shared services operating model consolidates products and common functions to help companies achieve cost savings, gained efficiencies and standardization of procedures. But once the model is adopted, it's crucial to build formal procedures that allow for and support creative solutions and transformational ideas.

The typical motivation for this operating model is cost savings, gained efficiencies and standardization of procedures — all things that are good for any business. However, once a shared services model is adopted, it’s crucial to build formal procedures that allow for and support creative solutions and transformational ideas.

Hundreds of businesses have joined Brown & Brown’s team, including in my own division, Arrowhead Programs. At Arrowhead, we’ve evolved from what might be a more traditional shared services model to what we call a “growth and innovation model.” While the efficiencies of corporate support remain, as does our focus on acquiring companies that fit culturally and make sense financially, this elevated model has helped us feed and maintain an entrepreneurial culture.

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