WHITEHALL

The Xmas spirit of sharing

Anthony Brand sees shared services as the only way of delivering efficiencies the Government is demanding

Anthony Brand sees shared services as the only way of delivering efficiencies the Government is demanding.

The 2007 Comprehensive Spending Review will task public bodies with saving 3% a year.
The review will require further streamlining of back-room processes, greater use of technology to improve efficiency, and smarter procurement.
A transformation of services and policies is needed, and with councils on the frontline of service delivery, local government is central to this transformation.
The pressure to improve, compounded by Gershon and increasing citizen expectations, leaves local authorities pushing harder than ever for efficiency savings. Many have already responded magnificently, and are stealing a march on enforcing efficiencies.  
The local government White Paper emphasises joint working as a means of delivering these ambitious cost savings and creating improved and seamless public services. And a core element of joint-working is the implementation of shared services, with the potential savings of sharing across government back-room HR and IT services alone estimated at £40bn over 10 years.
The challenge is that unless local government navigates successfully towards efficient partnering with other authorities, the Comprehensive Spending Review risks forcing councils to change the way they do business. Some in local government remain unconvinced that shared services can offer significant cost savings. The evidence currently available within the public sector can be tenuous and inconsistent, while some remain cautious about using private sector expertise in the area.
There are also legitimate concerns that simply cutting costs will not ensure the continued delivery of excellent public services.
NLGN's new report, The politics of shared services, highlights a range of these internal, environmental and relationship challenges which need to be addressed.
It also shows that these are not insurmountable. Concerns around local government reorganisation can be addressed – a balance is possible between local flexibilities and cost efficiencies, and it is possible to create more and better incentives to drive forward the agenda.
In fact, a successful shared services project can be an innovative solution for transforming services provision across the board. It not only cuts costs significantly, but can increase service resilience, reduce lead times, create simpler access for citizens, and improve customer service.
Those left behind may find shared services forced on them by legislation and financial necessity.
The politics of shared services notes the belief among shared services trail-blazers, that failure to act now would put them at a huge disadvantage in coming months. Those councils which have been most pro-active with shared services believe they can make it work best for them and their citizens if they do it now on their own terms.
Getting in early means they can tailor the new systems to their own particular needs, taking the time to develop the best-possible solutions without undue pressures and constraints.
There are other benefits, too, to being first. If shared services are going to happen on a wider scale, and the consensus is that they will, then those who lead the charge can benefit from having the systems, experience and know-how to offer others. Some authorities are even taking these skills to market and trading them to bring in extra funds. Others may not be so lucky.
In the end, a greater understanding of shared services and their impact is needed. Only greater clarity around the goals and challenges of shared services will allow the agenda to progress.
But, once we reach that stage, those who got there early may well be waiting with a smile on their faces, saying, ‘I told you so'.
Anthony Brand is a researcher at NLGN and author of The politics of shared services

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