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Are NHS Corporate Services Best Delivered by Shared Services?

May 12, 2010 in Uncategorized

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The public sector appears to be set for increasingly widespread use of shared services for back-office functions. Most business leaders agree the strategy is effective but not everyone agrees.

The NHS has some previous experience of shared services and uses some shared service solutions currently. Thinking of the needs of your organisation, are these the right solutions for HR, Finance, Estates and IT services? Read the rest of this entry →

New HR, Payroll and Finance Solutions for Northern Ireland

May 10, 2010 in Corporate Services, Public Services, Workforce Management

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In Northern Ireland, the Department of Health, Social Services and Public Safety (DHSSPS) is looking for new enterprise IT systems.

New systems are needed for human resources (HR), payroll, travel and subsistence, finance, procurement and logistics.

The systems form an important part of its efficiency and process-streamlining efforts for the Business Services Organisation (BSO), which provides shared services for Northern Ireland’s health and social care sector.

This plans are to introduce new, simplified and standardised business processes which facilitate the delivery of efficiencies savings using work flow and self-service.

The DHSSPS published its tender in the Official Journal of the European Union on 6 May 2010, anticipating a 15 year contract for a system to be used for services provided to ten organisations plus systems support including a help-desk. Read the rest of this entry →

Shared Services – Reviewing The Evidence

May 6, 2010 in Corporate Services, Leading and Managing Results, Shared Services and Outsourcing

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With the UK’s election result imminent, public sector bodies must soon return to the efficiency agenda.

Shared services or outsourcing solutions seem likely to be deployed for back-office services across much of the public sector.

Organisations with ready plans will probably face pressure to quickly turn blueprints into reality.

Those without plans will have to develop ideas quickly, recognising the pressure to maintain spending on front line services will dominate any discussion on these initiatives.

How can those who have to make decisions “see the wood for the trees”? What evidence is available to support decisions and help them reach judgements and make informed decisions?

HM Treasury’s 2009 report on operational efficiency examined evidence from the private sector before arriving at its targets for efficiency savings. It concluded that back-office savings in the range of 20-30% could be achieved from business process reengineering / shared services. Other revews have reached slightly different conclusions. Read the rest of this entry →

NHS Shared Services – A Rising Tide

April 29, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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While the 2010 UK General Election is underway, the convention of “purdah” prevents the development or official announcements of new policy.

Purdah avoids binding a future government to current policy it disagrees with. It also presenting challenges for people delivering strategy and companies seeking to work with the public sector.

It seems clear that public services will need to look for efficiencies in their back office functions. Currently, however, few decisions are being taken to help drive forward delivery on this agenda.

The DoH has established a dedicated national workstream under the Improvement and Efficiency Programme. “Back office efficiency and optimal management”, led by Tony Spotswood (Chief Executive, Royal Bournemouth and Christchurch Foundation Trust) doesn’t have the “catchy” title.

Public attention is likely to focus on changes to clinical services arising under the QIPP programme. It’s obvious however the conclusions and adopted mechanisms from any “back office programme” will be important for the future of shared service delivery in the NHS. Read the rest of this entry →

Will Shared Services Deliver Efficiency?

April 19, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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Public sector organisations are tasked with delivering significant savings through “efficiencies”.

A key strategy adopted by government is the adoption of shared services and outsourcing for back-office functions.

The strategy and its targets are based on conclusions derived from reported experience of both private and public sector organisations.

Yet, in his book “Systems Thinking in the Public Sector“, John Seddon concludes management fads, of which shared services are a good example, are rarely based on real evidence …. simply “plausible ideas”. Read the rest of this entry →

Rejecting Command and Control

April 11, 2010 in Change and Benefits, Leading and Managing Results

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Tripp Babbitt’s article “Killing Assumptions” explains how command and control thinking combines with management assumptions leading to new “fads” rather than successful innovation.

Simiarly, in his book “Freedom from Command and Control“, John Seddon concludes that many management concepts are poorly substantiated by research and evidence.

Seddon contends these solutions have been devised to sell technology to clients’ managers, having little impact on organisational effectiveness and efficiency.

Both highlight the needs to prevent being swayed by “plausible ideas”, generally ill-founded, fail to improve performance and accelerate the degree of waste flowing through organisations. Read the rest of this entry →

CBI Recommends Collaboration and Shared Services

April 7, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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The pressure for back office functions grows ever stronger as politicians struggle to find ways to protect front line services.

In their report “A Frontline Force”, the CBI recommends the government creates a national police agency to enhance collaboration.

Better procurement for the UK’s 43 police forces is expected to generate savings of £400m by 2014-15.

They also suggest shared services and outsourcing for police services covering HR, Finance, IT, estates and fleet management services could save £125m.

Sceptics might argue it should come as no surprise the CBI support outsourcing, which would provide fantastic business opportunities for the private sector. Others would also challenge or refute evidence that shared services deliver savings, or might express concern that service levels will suffer. Read the rest of this entry →

Public Service Companies in Whitehall’s Back Office

April 2, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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The Prime Minister announced, on 22nd March 2010, plans to create a number of “business service companies” to handle routine back office functions of Whitehall departments.

The Prime Minister suggested in the speech the future option of privatising such companies would provide “substantial capital receipts”.

As part of the programme to save £4bn by 2012-13, these new bodies will build on the model provided by the DWP shared services centre. Read the rest of this entry →

Shared Services – A Recipe for Waste?

March 31, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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The advice from many experts suggests the government should accelerate shared service implementation across the public sector.

The proponents of shared services claim this will reduce costs through economies of scale and improve  services through standardisation and improved performance management.

It’s clear the case for shared services is being increasingly well orchestrated, though independent evidence for success is not easy to come by and cases of both success and failure have been in the public eye.

Suggesting it is inappropriate to apply lessons and techniques from mass-production environments to service organisations, John Seddon, MD of Vanguard and professor at Cardiff university argues shared service operations are a recipe for poor service, waste and inefficiency. Read the rest of this entry →

IOD Push for Public Sector Shared Services and Outsourcing

March 29, 2010 in Corporate Services, Public Services, Shared Services and Outsourcing

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In a recent report, the Institute of Directors (IOD) suggests rapid moves to impove procurement, implement shared services and outsourcing services should reduce government deficits.

The IOD highlights the potential for outsourcing, to the private sector, services provided by a number of public service bodies, especially the operational agencies of government.

The IOD says the case for shared services is “self-evident” and encourages the government to accelerate widespread adoption across the public sector, suggesting that outsourcing can bring similar benefits to shared services while working faster. Read the rest of this entry →