Shared Services for Local Government

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Shared Services forLocal Government

• Tony Hall
• Head of Welland Procurement
• 7th February 2007

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• What is the Welland Partnership and how has it
  developed shared services?
• What are the critical success factors in setting
  up a shared service?
• How does a shared service differ from a
  conventional service?
• Lessons we have learned

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The Welland Partnership

• East Northamptonshire
• Harborough
• Melton
• Rutland
• South Kesteven

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Common Issues

• Lack of scale
• Common rural and market town agenda
• Little apparent deprivation to attract funding
• Surrounded by major cities with very different
  agenda
• More in common with each other than with some
  other neighbours

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Welland Partnership progress over time

• Sub Regional Strategic Partnership
• Community web portals
• Shared e-government infrastructure
• Shared Services

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Types of shared service

• Shared within a single organisation, such as a
  contact centre
• Shared within a single community, links with NHS,
  public protection, voluntary bodies
• Shared between two or more separate organisations
  or communities
• Shared between many organisations

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Critical Success Factors
Change Inertia Confusion
Frustration False Start
Capacity for Change
Pressure for Change
Shared Vision
Action Plan
Capacity for Change
Action Plan
Shared Vision
Pressure for Change
Capacity for Change
Action Plan
Pressure for Change
Shared Vision
Action Plan
Pressure for Change
Capacity for Change
Shared Vision
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Critical Success Factors 1. Common pressure for
change

• External pressure
• Financial pressure
• Need for greater critical mass
• Need to enhance quality / skills
• Benefit opportunity
• These issues shared with others

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2. Shared vision

• The broader the vision the better
• Shared service should flow from the vision
• Widespread sign-up to the concept is vital
• Shared belief that partnership working will
  deliver cashable returns / better services
• Embracing a new culture and way of working
• New approach to the customer / client

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3. Capacity for change (1)

• Buy-in at the most senior level
• Ongoing commitment with financial backing
• Possibility of external funding
• Being prepared to let go

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3. Capacity for change (2)

• Willingness to take on risks
• Is the partnership one of equals or is it
  unbalanced?
• What is the shared service to deliver and how
  will it be managed?

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4. Action plan (1)

• Leadership
• Project team(s)
• Appropriate model for a shared service
• Legal agreements

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4. Action plan (2)

• Address the people issues
• Be resilient, patient, prepared for set- backs
• Is the set-up cost worth it? Is cost sharing
  simple and transparent? Is set-up funding
  available?

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Structure (1)

• Essential to have a clear legal / organisational
  structure with appropriate reporting framework
• Identify and engage key staff in the project
• May be subject to short term budget commitment,
  impact on staffing and investment needs
  resilience

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Structure (2)

• Needs a clear Service Level Agreement with client
  organisations, clarifying who is responsible for
  day to day decision making between the service
  and the clients
• Avoid meetings overload

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Running a shared service

• Make sure key clients are on board
• Understand clients priorities and address them
• Show results quickly
• Under promise and over deliver
• Be even handed with clients
• Be visible, listen and innovate
• Be prepared to flex your business model

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How does a shared service differ from a
conventional service? (1)

• Unanimous decision making can be very protracted
• Need to be clear about boundaries and interfaces
• Cultivate champions within each participating
  organisation
• Risk of dropping out of the loop with members

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How does a shared service differ from a
conventional service? (2)

• Conflicting priorities and peaks in demand
• The impact of organisation and personnel changes
• Being seen as a cash cow
• May be vulnerable to cash cuts

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Lessons we have learned
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• For further information contact
• Welland Procurement
• on 01664 502342