Northern Refugee Northern Refugee Centre Regional Centre Regional Event 16.12.11Event 16.12.11SHARED SERVICES AMONG SHARED SERVICES AMONG RCO’sRCO’s

SHARED SERVICESSHARED SERVICES

Joint provision of wanted services to Joint provision of wanted services to increase efficiency & quality of serviceincrease efficiency & quality of service

All about management of change. All about management of change. Change cannot be ordered to happenChange cannot be ordered to happen

On 8.12.2011 PM Cameroon refused to On 8.12.2011 PM Cameroon refused to sign-up to planned new Eurozone treaty sign-up to planned new Eurozone treaty

Principles – scope & Principles – scope & quality of servicesquality of services

Vision that commits to shared services Vision that commits to shared services based on collaboration & sharing best based on collaboration & sharing best practicepractice

Long term perspective when determining Long term perspective when determining savings, efficiencies and service savings, efficiencies and service improvementsimprovements

Principles – scope & Principles – scope & quality of servicesquality of services

Appointment of a lead authority for jointly Appointment of a lead authority for jointly managed services – avoid competitionmanaged services – avoid competition

Aim to improve service delivery to both Aim to improve service delivery to both internal and external customersinternal and external customers

Realistic benefits of collective provision Realistic benefits of collective provision and use of resourcesand use of resources

Principles – scope & Principles – scope & quality of servicesquality of services

Full use of economies of scale and Full use of economies of scale and experience curve economiesexperience curve economies

Simplification and standardisation of Simplification and standardisation of services to avoid duplication -local services to avoid duplication -local flexibility required flexibility required

stakeholder involvement – internal & stakeholder involvement – internal & externalexternal

Principles- scope & Principles- scope & quality of servicequality of service

Retain skills and intellectual knowledge Retain skills and intellectual knowledge to increase capability. to increase capability.

Delivery Mechanism – lead authority, Delivery Mechanism – lead authority, jointly managed, outsourced shared jointly managed, outsourced shared service projects, strategic partnership. service projects, strategic partnership. Need for joint project working groupsNeed for joint project working groups

Governance IssuesGovernance Issues

Joint boards, committees fully Joint boards, committees fully accountable to partner authoritiesaccountable to partner authorities

Impact assessment of services – Impact assessment of services – economic, financial and equality and economic, financial and equality and diversity agendasdiversity agendas

Shared Services Process Shared Services Process IssuesIssues

Rigorous evaluation of optionsRigorous evaluation of options Retention of skills, knowledge and Retention of skills, knowledge and

experienceexperience Business planBusiness plan Transparency of process in terms of Transparency of process in terms of

disclosure and evidence basedisclosure and evidence base

Employment IssuesEmployment Issues

In-house secondments/redeployments, In-house secondments/redeployments, transfers to joint RCO on basis of TUPE transfers to joint RCO on basis of TUPE – Transfer of Undertaking (Protection of – Transfer of Undertaking (Protection of Employment Regs). No erosion of Employment Regs). No erosion of employee rightsemployee rights

Development of HR base – retraining to Development of HR base – retraining to multi-skill, up-skillmulti-skill, up-skill

Benefits of Shared Benefits of Shared ServicesServicesBenefitBenefit Probability of Probability of

Occurrence Occurrence (high, medium, (high, medium, low)low)

Probable Probable Impact Within Impact Within RCO RCO

Learning & Learning & sharing best sharing best practicepractice

M -HM -H MM

Pooling & Pooling & sharing sharing resources & resources & investmentinvestment

HH HH

Benefits of Shared Benefits of Shared ServicesServicesBenefitBenefit Probability of Probability of

OccurrenceOccurrenceProbable Probable Impact Within Impact Within RCORCO

Achieving Achieving economies of economies of scalescale

LL

Standardisation Standardisation using ITusing IT

MM

Sharing training Sharing training &devpt costs&devpt costs

HH

Shared Services RisksShared Services Risks

RiskRisk Probability of Probability of OccurrenceOccurrence

Probable Probable Impact Within Impact Within RCORCO

Benefits less Benefits less than initially than initially forecastforecast

MM

Job losses, Job losses, relocationsrelocations

HH

Differences on Differences on project project objectivesobjectives

Shared Services RisksShared Services Risks

RiskRisk Probability of Probability of OccurrenceOccurrence

Probable Probable Impact Within Impact Within RCORCO

Differences in Differences in mgt & cultural fitmgt & cultural fit

Underestimated Underestimated level of level of business business process re-process re-engineeringengineering

Shared Services RisksShared Services Risks

RiskRisk Probability of Probability of OccurrenceOccurrence

Probable Probable Impact Within Impact Within RCORCO

Narrow scope Narrow scope of shared of shared services services projectsprojects

Delays in Delays in agreeing agreeing governance governance modelmodel

Shared Services RisksShared Services Risks

RiskRisk Probability of Probability of OccurrenceOccurrence

Probable Probable Impact Within Impact Within RCORCO

Failure to Failure to involve staff, involve staff, volunteers, volunteers, users etc in users etc in project project plan/designplan/design

Competition for Competition for staff & location staff & location of facilitiesof facilities

Shared Services Shared Services Risks/BarriersRisks/BarriersRisk/BarrierRisk/Barrier Probability of Probability of

OccurrenceOccurrenceProbable Probable Impact Within Impact Within RCORCO

Agreement on Agreement on IT/software and IT/software and operating operating systems may systems may not be reached not be reached due to previous due to previous investment and investment and commitmentscommitments

Evidence-based Strategy Evidence-based Strategy for Shared Servicesfor Shared Services

Must be comprehensive to identify all Must be comprehensive to identify all costs & benefits in planning, design, costs & benefits in planning, design, negotiation and implementation stages. negotiation and implementation stages.

Compatible with framework of principles Compatible with framework of principles for shared servicesfor shared services

Select SMART and sustainable optionsSelect SMART and sustainable options

Evidence-based Strategy Evidence-based Strategy for Shared Servicesfor Shared Services

Design systems that Design systems that maximise benefits to maximise benefits to service users & service users & integrate servicesintegrate services

Impact assessment Impact assessment on stakeholderson stakeholders

Business plan Business plan reviewsreviews

. .

Key Areas of Shared Services

Finance IT HR Procurement

Examples of Good Practice

Nottingham & Leicestershire County Cls - £2m savings 2010

Broomsgrove & Redditch Cls - £500k North & North East Lincolnshire - £14m

since 2006 South London & Waste Partnership

(Sutton, Croydon, Kingston, Merton) - £3.5m in 2010