Standardise - then share, urges Cipfa
Author: Local Government Chronicle - Jan 20, 2010
Councils need to simplify and standardise their underlying processes before they are consolidated into a single shared service, according to a new report.
The study by the Chartered Institute of Public Finance and Accountancy and the Society of District Council Treasurers identifies a series of issues councils should take on board before embarking on a shared services programme.
Highlighting the cost-saving opportunities available to councils through shared services and management teams, the study says that collaborative working is only one of the improvement tools available to organisations.
"They will not be the answer to every problem or opportunity. Where they are relevant, they will normally be used in combination with other methods, such as lean and process redesign."
As an example of standardisation, the report says that collaborating parties should migrate to a common technology platform to cut out the complexity and inefficiency that multiple IT systems can cause.
It recommends that organisations benchmark themselves, particularly against potential collaborators, in order to identify the scale of opportunities from service sharing.
And it says that the delivery of shared services will demand leadership and drive from senior executives and elected members.
"While there is a range of risks and legal issues to be addressed in sharing services, given political will and the willingness to invest resources, these can be dealt with in a managed way. They should not be seen as insurmountable barriers to change."
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