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Shared Services – Savings opportunity or in the to hard basket?

Shared Services – Savings opportunity or in the to hard basket?. Discussion Document By G How. History. The path of Shared Services is littered with failed attempts.

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Shared Services – Savings opportunity or in the to hard basket?

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  1. Shared Services – Savings opportunity or in the to hard basket? Discussion Document By G How

  2. History The path of Shared Services is littered with failed attempts. With the later stages of four year CSR savings targets being upon organisations a review of whether this area provides a viable source of effective and efficient service delivery. To enable a clear decision on where and what to invest in the area of integration a number of factors need to be assessed; Drivers for change Key success factors Required environmental considerations Clarity of Rationale Commitment required Areas of Integration For a service to establish a joint working approach the above five areas provide points of integration. In assessing joint working a clear understanding of a mutually agreed position on each of these areas is required.

  3. Key Success Factors As an initial review of integrated working a PESTEL analysis highlights the key factors influencing any approach. POLITICAL: This is by far and away the biggest determining factor in progressing the integrated working agenda. Previous experience has highlighted the importance of stable and strong political alignment through out the process. Although the experiences to date have been impacted by member decisions it is the alignment of officers that will enable a smooth transition to a new working state. This is rated as a priority one in terms of required drivers. ECONOMIC: The economic climate has been and will continue to be a primary driver in the reasons that organisations will look to collaborate in joint working. Ensuring that all parties have solid business reasons to collaborate in joint working initiatives. SOCIAL: Social considerations are likely to be driven by a “no degradation” position at its base level, therefore the starting position is that this factor will not be a primary driver but more of a check item at the first gateway point. TECHNOLOGICAL: It can be envisioned that a technology driver would only be appropriate if there are marked differences in the estates of two or more parties (and that the least advanced party had little capital write off). This area is seen as a secondary consideration to the POLITICAL drivers that would have to be overcome as the impact on moving to a shared technology base either in service or corporately would have major control and skills impacts. ENVIRONMENTAL: The sharing of physical locations is currently seen as the least appealing and most problematic in the drivers for change, it will manifest itself later in the process as a shared benefit. It is thus seen as a low driver for change. LEGAL: If there is a Central Government dictate for regional service delivery, through Community budgets for example or that funding is tied to such an amalgamation, then this will be a priority one driver Political 1 Economic 1 Social 2 Technological 2 Environmental 3 Legislative 1 1 1 2 2 Key 3 Tier 1 – primary driver of integration 1 Tier 2 – secondary driver of integration 2 1 Tier 3 – not seen as a driver for change 3

  4. Approach Options Option 1 – Internal Focus This approach looks at developing a series of business cases that present the best options for Oldham Council. e.g. Your organisation looks to develop a Training Centre to service a number of partners Having reviewed the Key Success Factors surrounding the integration shared services there needs to be a review of the options to deliver the outcomes required/desired. In undertaking this stage of the analysis it is appropriate to assess the maturity and status of existing projects. Finally the opportunities for future focus need to be compiled against a set of standard criteria. Option 2 – External Focus This approach look to seek areas where other partners wish to build shared capability and to then develop a business case . e.g. A partner council has a SEN service that is already trading. Option 3 – Future State Creation This approach look to find areas of potential future requirement and to build a case across a number of partners collaboratively. • e.g. Three partners look to assess joint procurement service.

  5. What’s my role? • Member – See this as a viable option • Officer – Be prepared to give things up; understand what you will buy and what you can sell. • Partner – Look for agreement and true “sharing” – TRUST in OTHERS What should I consider? • What is the true baseline of my current costs? • What benefits and when will they be revealed by next best alternatives? • What skills are needed: and do I have these. • Do I trust the people that I’m working with.?

  6. Scope, Ambition and Stepping Stones Key Steps to Success Below are outlined the key areas for developing a coherent programme. This section looks at how best to move forward, it uses observations of the programme and wider change initiatives of this size and looks to build a coherent picture on the road forward . Scope Given the journey to date it is recommended that Oldham look for a small group of partners in focused areas to deliver joint benefit. The ability of twelve authorities seeking a joint area for agreement seems highly ambitious. The ability to seek partners outside of the LA market also has appeal due to the lack of “conflict” in assessing who’s process/people/systems should be adopted. Ambition The suggested method would be to focus on a small group of pilot areas to “learn” how to undertake service redesign in a cluster of clients. This would allow a slow ramping up of activity over the next two years. Stepping Stones Key to making the programme work will be in placing the stepping stones down early in the process as a clear path to delivery. Having these known and agreed to all parties with agreed and adequate gateways will ensure comfort to the participants. Task/Phase Partner Establishment Partner Management Business Case Review Business Case Development Business Case Delivery Service Line Review and Assessment New Operating Models & Organisations Time The key to this proposed approach is to getting the partners established with a commitment and a joint business case. This will mitigate the risks of later retractions or degradation of commitment.

  7. FirstSteps To enable the establishment of a programme of activity the following steps are recommended.

  8. Current Activity Partnership Interviews & Assessment Service Assessment Joint working with preferred partners Future operating models Cost & Benefits assessment New management teams New service delivery teams New service management and controls

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