The review found that all sectors have undertaken and developed detailed business cases including cost and performance baselines, as well as processes for the review and challenging of business assumptions. As the Health shared services initiative emerged following a restructuring, sector’s there was no business case for shared services developed at the time, however, cost and performance baselines have been documented. Across sectors, business cases are independently scrutinised and a balance of private and public sector benchmarks used where available. It is still too early to effectively measure the extent to which cost and timeline assumptions included in business cases were found to be accurate across sectors. However, a number of stakeholders commented that the initial timelines established for the Civil Service shared services implementations were too ambitious. Ambitious timelines were said to have been due in part to pressures from stakeholders to deliver in a shorter timeframe, but also due to operational challenges experienced such as the ability to secure skilled resources internally. Conclusion The extent to which the sectors have adopted a structured approach to business case development is in part evidence of the effectiveness of guidance provided by the NSSO and driven by the reform agenda. However, awareness of the overall shared services methodology was not found to NSSO’s be widespread. Therefore, the NSSO should ensure continued support in this area, by building on the establishment of the Shared Services Sectoral Leaders Network, and increasing communications to build awareness of the tools and guidance available. Further, in consideration of the challenges experienced to date related to the capacity and capability to deliver multiple complex shared service initiatives, the current timelines for benefits realisation across shared services initiatives should be re-evaluated to determine whether adjustments are required. Approach One of the most significant challenges public sector organisations face when implementing shared services is managing stakeholder complexity. Compared with the private sector, public sector shared services leaders must effectively engage with a multitude of stakeholder groups, each with their own competing priorities. This can pose a challenge to moving forward with decision making and potentially derail a shared services initiative. The most effective approach for the implementation of shared services, single function versus multi- function and mandated versus voluntary, is one that is aligned to stakeholder, political and economic environments. The public sector shared services initiatives examined for this report are examples of this.
The review found that all sectors have undertaken and developed detailed business cases including cost and performance baselines, as well as processes for the review and challenging of business assumptions. As the Health sector’s shared services initiative emerged following a restructuring, there was no business case for shared services developed at the time, however, cost and performance baselines have been documented. Across sectors, business cases are independently scrutinised and a balance of private and public sector benchmarks used where available. It is still too early to effectively measure the extent to which cost and timeline assumptions included in business cases were found to be accurate across sectors. However, a number of stakeholders commented that the initial timelines established for the Civil Service shared services implementations were too ambitious. Ambitious timelines were said to have been due in part to pressures from stakeholders to deliver in a shorter timeframe, but also due to operational challenges experienced such as the ability to secure skilled resources internally. Conclusion The extent to which the sectors have adopted a structured approach to business case development is in part evidence of the effectiveness of guidance provided by the NSSO and driven by the reform agenda. However, awareness of the NSSO’s overall shared services methodology was not found to be widespread. Therefore, the NSSO should ensure continued support in this area, by building on the establishment of the Shared Services Sectoral Leaders Network, and increasing communications to build awareness of the tools and guidance available. Further, in consideration of the challenges experienced to date related to the capacity and capability to deliver multiple complex shared service initiatives, the current timelines for benefits realisation across shared services initiatives should be re-evaluated to determine whether adjustments are required. Approach One of the most significant challenges public sector organisations face when implementing shared services is managing stakeholder complexity. Compared with the private sector, public sector shared services leaders must effectively engage with a multitude of stakeholder groups, each with their own competing priorities. This can pose a challenge to moving forward with decision making and potentially derail a shared services initiative. The most effective approach for the implementation of shared services, single function versus multi- function and mandated versus voluntary, is one that is aligned to stakeholder, political and economic environments. The public sector shared services initiatives examined for this report are examples of this.
Examination-of-Shared-Services-report-DPER-Nov-2015.docx