A Problem Shared
Cat Rickard from Orion Partners looks at the long term viability of Shared Services in the Public Sector.
Now, more than ever before, the Public Sector is under pressure to operate to reduced budgets whilst delivering enhanced services to the public. Economic conditions, falling available budgets and resource cuts mean a lot more has to be delivered with a lot less. Implementing shared services is one way of delivering this agenda. However, regularly attacked in the press with a number of high profile failures adding fuel to the fire, is this option a viable long term solution for the public sector?
Introducing shared services is a great way to reduce cost and enhance service levels. However, achieving engagement and the right level of sponsorship at the outset is key. Achieving consensus is challenging, particularly when engaging politicians, managers, HR professionals, staff and Trade Unions but it is critical these groups are bought in. Items for agreement should include objectives, scope, timeframes and longer term aspirations for the transformation.
To offset the pain of implementation and change, a robust business case is essential. Escalating costs and poorly planned activities can result in overruns which could be avoided were sufficient effort and rigour invested in the business case from the outset. Draw on the experience and learnings of other transformations and be prepared to defend the business case against the kind of inappropriate ‘salami-slicing’ that can go on as part of the sign-off process.
Much of the success of any shared services implementation is due to rigorous project management. However, two factors which will really make a difference are often neglected in the race towards go-live. Any service is only as good as the staff who deliver it and the standards they adhere to. This means not just a well thought out service management framework, but also ensuring HR staff have the right skills, capabilities and mindset. Often organisations reduce costs by slashing development, in particular development for Business Partners. As the face of HR to the business, having a confident, competent team out there working with line managers is key.
Orion Partners have supported over 50 major transformation programmes in leading public and private sector organisations. Their unique insight has helped HR teams – from consortia of local authorities through to central Government – to realise long lasting, tangible benefits for their organisations.
