Day Two News Report
Pinning It Down: What Do We Mean By 'Shared Services'?' 05 March 2008
An important part of Headstar's online summit on shared services is looking at definitions - what is meant by the term shared services, and how could its meaning change in different contexts?
Tandridge District Council Head of ICT Stuart Mitchenall said 'shared services' and 'partnerships' were still unclear terms. "Anything can be shared services, the [National Audit Office] definition is OK, but the big question, for independent organisations, is why? Too often the [local authority] argument is actually about control, or ownership of assets, or identity, whereas the discussion should be based on efficiencies and customer expectations. If shared services cut the cost to the taxpayer, then shared services there should be, in whatever area."
David Sainsbury of Hambleton District Council said: "For customer facing services where there has been a long record of contracting out, [and] it seems that shared service/partnership options are likely to be more acceptable. Sharing the provision of corporate services can have the appearance for some, of touching on issues relating to the integrity of the independence of local authorities."
Nick Ananin said the sharing of data, information, and best practice should become an element of the definition of shared services: "Other forms of collaboration (e.g. sharing knowledge) are, in my view, equally important in ensuring a successful outcome for the project… there is possibly an argument for widening the definition of Shared Services to include 'cognitive' types, of which there are significant instances in terms of benefits realisation.
"As much as anything, it is probably easier to convince organisations (and individuals) to start with 'Cognitive shared services'. Once the benefits of this approach to shared services are seen, then it may then pave the way to the development of 'Physical Shared Services'.
Alex Stobart from the Scottish Government said: "Fitting the message around performance improvement is perhaps an easier issue for people to grasp than the term shared services.
"Senior managers and political leaders are up for this. When one gets them in a room and focused on the issues, they do understand the opportunities for their organisations, constituents and the customers."
The Online Summit continues today and all this week at:
http://www.headstar-events.com/shared-services08/online-summit/
For more information and technical support telephone Claire on 01273 231291.
Day One News Report
Shared Services 'Not Just About Cost Savings' 04 March 2008
Public sector bodies must not focus purely on cost savings as a reason to implement shared services, or they will miss out on chances to improve services, participants heard on day one of Headstar's online summit Shared Services in the Public Sector.
Julie Kane, Head of Shared Services at the Scottish Government, said: "Shared services benefits for the public sector should be focused on two main areas: delivering efficiency, and maintaining or improving the experience for the customer. In terms of measuring and benchmarking it is important not to just focus on efficiency but also on effectiveness."
The benefits of sharing services are not confined to financial savings but should also be thought of in terms of "better corporate performance [and] higher quality service," Kane said. "If organisations focus solely on cost savings they are likely to miss the chance to improve service outputs by establishing better processes. Shared Services should also provide career opportunities, workforce development and introduce greater professionalism into corporate transaction functions by establishing centres of skills."
Alan Shemwell, from consultancy firm Morse, endorsed these comments: "Without a full appreciation of these realisable benefits, the organisation cannot hope to compare the SSC [Shared Service Centre] option with other options for improving efficiency, reducing costs or improving quality of service to its customers (the public)."
David Sainsbury of Hambleton District Council suggested that in recent years accountant centred business models in overemphasise cash gains and ignore other significant benefits. "However, the gains in effectiveness and therefore provision of better value for money often outweigh the relatively superficial gains that can be measured in cash terms. For a small district council, the opportunity to employ specialists rather the Jacks and Jills of all trades can be the single major efficiency to be gained from a shared service option and this may be very difficult to measure in quantitative terms."