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Spotting the early signs of a GCC at Risk
Spotting the early signs of a GCC at Risk

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Every Global Capability Center (GCC) reaches a critical point that shapes its future. Some thrive through timely intervention, while others stagnate. Here's how two centers—Center A and Center B—had different outcomes despite facing similar challenges:

• Center A addressed rising attrition and poor collaboration with leadership development and talent realignment. The result: attrition dropped below 10%, and leadership thrived.

• Center B, focusing only on cost-cutting, saw high contractor dependence, a fractured leadership team, and limited growth after two years.

Key Warning Signs Your GCC Needs Attention:

1. Talent Issues: High attrition and hiring delays signal leadership or growth gaps. Address this by fixing leadership and streamlining hiring processes.

2. Contractor Overuse: Relying on contractors means you're not attracting permanent talent. Invest in full-time employees and strengthen your talent proposition.

3. Poor Global Collaboration: Siloed GCCs struggle to add value. Foster collaboration by involving GCC leaders in global decision-making.

4. Cost-Cutting Focus: A GCC stuck in cost-saving mode risks irrelevance. Focus on innovation, business value, and product impact.

5. Unclear Success Metrics: Without clear metrics, it’s hard to measure your GCC's impact. Define success based on customer impact, revenue, and innovation.

Conclusion:

The right intervention at the right time can transform a struggling GCC into a growth driver. At Zinnov, we help GCCs unlock their full potential to lead, innovate, and create value.

 


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Founded in 2002, Zinnov is a leading global management consulting and strategy advisory firm, with a presence in 10 global locations. Over the last 22 years, Zinnov has partnered with Global Enterprises and Fortune 2000 companies across their value creation journeys to develop actionable insights – across revenue, talent, innovation, scale, and optimization. Zinnov enables companies to develop and optimize a global engineering footprint through center setups, technology and functional Centers of Excellence (COEs), portfolio optimization, partnerships, and real-time data/ insights – through its unique GCC Accelerator Platform (GAP) offering. This multi-lever approach helps Zinnov’s clients achieve higher R&D efficiencies, innovation, and productivity via an immersive and highly networked model. Zinnov’s expertise also includes advising global PE firms in asset shortlisting, target evaluation, due diligence, and value creation for their portfolio companies through a globalization lens.

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