Shared Services

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Shared Services

• Jo Clift
• Head of Shared Services
• Transformational Government

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Agenda

• Context
• What do we mean by Shared Services?
• What is our goal?
• Where are we now?
• Role of the external market
• Role of Shared Services Team Future Challenges

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Transformational Government November 2005
Government must move to a shared services
culture in the front office, in the back
office, in information and in infrastructure
and release efficiencies by standardisation,
simplification and sharing
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Transformational Government
the future of public services has to use
technology to give citizens choice
we are stronger and more effective when we work
together than apart
we have to have the right people... To plan,
deliver and manage technology-based change
Prime Minister 2006
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Transformational Government
it details 3 core themes
Citizen Centric
Shared Services
Professionalisation
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Service Transformation Sir David Varneys Review
December 2006

• The report identified key changes needed to
  create joined up citizen and business facing
  services
• Engaging more with citizens and businesses
• Putting customer insight into the heart of
  service design
• Group Service Delivery around customer needs
• Rationalising Service Delivery by radically
  reducing number of websites, phone lines etc
• Making best use of the governments information
  assets.

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Varney Review Key Actions for Service
Transformation over the 2007 CSR period

• Develop a change of circumstance service
• Improve Directgov Businesslink.gov
• Improve public sector call centre performance
• Develop a cross-government identity management
  system
• Data sharing between central and local government
• Establish new citizen and business contact roles
• Cross-government estate strategy
• Establish service transformation as a top
  priority outcome for government

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Local Government

• Local Government context and definition is
  broader.
• Blackburn and Darwen
• 700 new jobs created
• The two authorities now share and collaborate in
  providing services, such as
• Housing
• Economic development
• Transport

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Shared Services Context

• Historical Drivers

• Current Focus
• Corporate services
• Specifically HR/Finance
• Doing nothing is not an
• option
• Sir Gus ODonnell

Gershon
Efficiency
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Goals Why Shared Services?

• Saving a potential 1.4 billion per year in
  HR and Finance
• Better added value from the Governments top
  managers as they are freed from responsibility
  for transaction processing
• More flexible government with the capability
  and readiness to deliver future reform and
  change

Efficiency
Effectiveness
Employee Experience
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Retained and transactional activity
The strategic, business advice function
Retained function
Transactional activity e.g. Accounts
payable Payroll Recruitment
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Shared ServicesReal Progress
Live Programmes
Scale
Functions
HM Prisons
48,000 staff
Finance
HR
HMT/OGC
1,500 staff
Finance
HMRC
Finance
HR
95,000 staff
NHS Shared Business Services
Finance
20 of Trusts
MOD People, Pay, Pensions
80,000 civilian staff
HR
MOD Joint Personal Admin
275,000 military, 380,000 pensioners
HR
DWP
120,000 staff
Finance
HR
8,000 staff
DfT
Finance
HR
HR
Transport for London
20,000 staff
Defra
14,000 staff
HR
Finance
Note Live refers to a live operational service
provided on a common platform
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Planned Programmes
Scale
Functions
Cabinet Office
1,500 staff
Finance
HR
Home Office
20,000 staff
Finance
HR
Ministry Of Justice
32,000 staff
Finance
HR
FCO
3000-4000 staff
Finance
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Where are we now?

• Step change in attitude within Whitehall in the
  last year or so.
• Departments are much more likely to be looking to
  share services with others, across a range of
  disciplines.
• Discussions are taking place about sharing not
  only corporate services, but IT infrastructures
  and delivery contracts, buildings, call centres
  and even staff.
• Over half of all central government employees are
  now customers of shared corporate services
• All large and medium scale departments are now
  engaged in running shared corporate services
  internally within their organisations.

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Progress by smaller departments

• Majority of smaller departments (Central
  Government Sector) have expressed a preference to
  buy from internal suppliers
• Demand from smaller departments to move to
  business case and implementation has increased
  dramatically in the past 6 months
• This process has started with Cabinet Office in
  discussion with DWP
• This first programme of buying and selling will
  pipe clean the process and inform pan-Whitehall
  practices in this area

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Suppliers and Customers
HMT(OGC)
CLG
HMRC
DCMS
CO
DWP
DIUS
DCSF
BERR
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Case Study Health

• NHS Shared Business Service JV with Xansa.
  Provides financial services to NHS trusts.
• Approximately 20 of trusts have joined, 25
  expected by April 2008.
• NHS/Xansa has saved 108 health trusts up to 34
  of the cost of processing finance transactions.
• On track to deliver 220m of savings over 10
  years.

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Case Study DWP

• Integrated HR and Finance shared services
  solution went live on 1 September 2006.
• Service culture has been adopted with shared
  services operation set up as a separate entity in
  DWP.
• DWP looking to sell services to smaller
  departments.
• On-going discussions with Cabinet Office
  implementation planned 2008.

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Role of the External Market

• Currently at the in-house stage of process,
  where most of the shared corporate services
  provision is being provided internally, at the
  wish of the departments.
• As the experience of creating shared services
  matures within and between departments, a greater
  engagement with external providers can be
  envisaged.
• Private sector will continue to provide
  partnering and specialist skills. Expertise has
  been brought in from outside to run some of the
  new shared service centres.

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Role of the Cabinet Office Shared Services Team
Future Challenges

• New permanent team being assembled.
• Cabinet Office communicates central government
  shared service strategy and its role in the
  delivery and transformation agenda.
• Works with HR and Finance across Whitehall to
  move to a shared service culture.
• Works with government departments to spread best
  practice on HR and finance shared services and
  the removal of barriers (e.g. VAT) at the centre.
• Works to develop the processes to create a
  healthy internal market for suppliers and
  customers of shared services.
• What does good look like? - Assists in the
  development of benchmarking across central
  government shared services.

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Questions?