Public Services Reform : Zooming in on the Risks of Implementing Shared Services

Looking back, this is worth a read. It’s one of my most popular blogs.

Dr Alf's Blog

Map showing top-level local authorities in Eng...

Shared Services Canada
Image by m.gifford via Flickr

1. INTRODUCTION

With the Coalition Government scheduled to deliver the Public Services Reform White Paper after this week’s elections,  this week I zoom in on the risks of Shared Services Implementation. Many organizations are calling in major consulting organizations to help them design a Shared Services solution that will provide the necessary cost-cutting. Best Practice in the Private Sector would be 40% plus cost savings, before looking at cost arbitrage from offshoring to lower labour cost countries. In Local Authorities, projected cost cutting of circa 20% is being considered acceptable BEFORE evaluating the financial impact of risks crystallising. This week, we take a closer look at the risks.

2. STRATEGY:

After introducing effective Shared Services in its own global organization, Oracle concluded that effective Shared Services needs to be part of the organization’s strategic approach to products and services. Oracle argued that Shared Services…

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