Study reveals critical barriers in shared service delivery
strategy
Public sector bodies are facing a number of critical barriers in
seeking to reap the benefits of shared service initiatives,
according to a report published today by law firm Browne
Jacobson.
These include a lack of available resources, workforce
opposition and risk-averse organisational cultures.
The Shared Services Survey 08 is the result of research carried
out among 178 senior public sector managers in the health, local
authority, social care, education and fire service sectors.
Chicken & egg
The primary barrier to implementing shared services identified
by public sector managers is a lack of adequate resources,
according to the report. Two thirds of public sector managers (65%)
were concerned about a lack of financial resources, while 59%
identified insufficient manpower. Resource challenges were
particularly evident within the social care and education sectors,
where 85% and 71% of managers expressed concern over financial and
human resources respectively.
Dominic Swift, Head of the Shared Services team at Browne
Jacobson, said:
“Having the necessary financial and human resources in place
is a vital component if the full potential of shared services is to
be realised.”
Keeping focused
When asked to define shared services, the vast majority talked
about ‘sharing, collaboration and the pooling of resources’.
Surprisingly only one in four public sector managers (26%) referred
to cost savings and end benefits.
Dominic Swift comments:
“Government is guiding the public sector to drive
significant cost efficiencies while improving public services. Yet
only a small minority of managers list these among the aims of the
shared services agenda.
“This raises an interesting question : is it widely assumed
that shared services will mean greater efficiency and translate
into significant cost savings or have public sector managers not
fully engaged with the government’s ambitions to drive efficiencies
through shared services projects?”
From the Top
When quizzed on who they believe is the driving force behind
shared services, public sector managers principally identified
senior management and central government. Over three quarters (77%)
pointed to senior management, and over half (52%) Whitehall civil
servants.
Frontline workers were cited by only 13% of managers – customers
by just a tenth (10%).
Dominic Swift added:
“The momentum behind shared services is being generated
internally– and from the top. It is critical that front line staff
are equally engaged in the process right from the
beginning.
“Managers need to consult with staff and customers in a
consistent and coordinated way, consider the feedback received and
decide together how to address any major concerns.”
Cultural Barriers
The report also identifies a series of cultural issues including
internal opposition, risk-averseness and a lack of trust between
partner organisations.
According to public sector managers less than a quarter (23%) of
the workforce are active supporters of shared projects, while over
a third (36%) actually oppose them. Opposition levels reach some
40% among fire services.
Over a third of public sector managers cite a lack of trust as a
key challenge to implementing shared services. Concerns over
partner organisations giving priority to their own issues, and a
lack of authority over partner workforces, are the two principle
barriers to establishing trust identified by the study.
Dominic Swift continued:
“Clear consultation and communication with employees, unions
and local representatives is essential if public bodies are to
overcome cultural hurdles and internal opposition, and develop
trusting partnerships.”
Risk Factors
Close to half (41%) of managers identified the risk-averse
nature of their organisations as a significant challenge to
delivering shared services.
Ongoing liabilities and high exit costs are paramount among the
risks keeping public sector managers awake at night. Close to three
quarters (71%) cited these as key.
Other major risks identified are partners withdrawing from
shared arrangements (cited by 66% of public sector managers);
non-compliance with statutory procurement processes (61%); and
inadequate consultation with staff (55%).
Dominic Swift concluded:
“Public sector managers are clearly concerned about a range
of risks and barriers inherent in sharing operations with an
external organisation.
“Managers will undoubtedly need to undertake a thorough
profile to identify and assess any potential risks – including
financial, personnel, regulatory, compliance, data privacy and
intellectual property.
“They should also ensure that all the partners are clear
about their responsibilities and obligations and put in place the
necessary legal and governance structures before
implementation.”
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