Shared Services The national scene'

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Shared Services The national scene.

• Ray Tomkinson
• 5th December 2007

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• Shared services.
• Some concepts
• Some trends
• The national picture
• A review of benefits
• The future?

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A definition. the shared provision by more
than one local council of a specified service in
which service aims and objectives are mutually
shared and for which local people are the end
customers
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Shared Services change delivery.
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Intended Benefits.
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• Who is sharing?
• By 2004-5 nearly 20 of local councils say that
  they are already operate an average of 1.4 shared
  services of some kind - a third were in a shared
  procurement arrangement - significant majority
  were District Councils.
• In July 2006 the DCLG (National Procurement
  Strategy Two Years On)
• 59 - of councils - (31 in 2004) are involved in
  joint commissioning of services (not including
  health and social care)
• 32 of councils are involved in creating a shared
  procurement function
• 29 of councils are creating other shared
  corporate service functions
• 25 working on other shared services.
• Between 2004/5 and 2007/8 the number of sharing's
  will have at least doubled

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• There are still barriers..
• RSM Robson Rhodes in 2006 suggested
• Only 20 claimed to have a fully operational
  sharing project
• Ambition was limited
• Drivers for sharing arent self generated
• Capacity isnt high
• Mediasurface, (Feb. 2007) found fear of change
• 38 of councils agreed that internal employees
  fear of change would prove to be the biggest
  hurdle for the implementation of Shared Services.
  
• Other barriers were listed as
•  25 lack of political synergies within the
  councils members
•  19 blamed potential failure to agree
  priorities
•  9 believed loss of individuality and lack of
  guidelines alike would be obstacles to Shared
  Services.

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• There are cost benefits.
• Ongoing Savings
• Cost of waste collection for all district
  councils rose by an average of 45 between 2001/2
  and 2005/6, the average cost for 3 shared
  services were 15, 32 and below 10.
• Maccesfield B.C./Congleton B.C. achieved
  procurement savings in the first year of 35,000
  for Congleton and to Macclesfield of 107,000.
• The Anglia Revenues Partnership by 2004 had
  achieved a nett saving of 170,000 per annum.
• Penwiths partnership with Kerrier District
  Council to collect abandoned vehicles has
  delivered savings of approximately 4,000 per
  annum.
• Cost Avoidance
• The Anglia Revenues Partnership had achieved a
  saving from the capital costs of Forest Heath not
  having to have invested in a new IT system of
  100,000.
• The SurreyJobs sharing is estimated to save a
  middle sized partner a 48,500 annual saving for
  advertising 135 jobs. Further savings have been
  made on IT training and developing the website.
• The Pan London Contract Team has impacted on
  price rises which slowed from an average of 9.2
  per annum to 3.2. This is estimated at 11.2
  million.

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• There are performance benefits.
• Anglia Revenues improved processing of new
  Benefits claims, the accuracy of claims and of
  Council Tax collected faster than the average of
  all councils.
• Penwith and Kerrier now collect abandoned
  vehicles in 3 hours, not 3 days.
• The Kent Benefits Partnership (KBP) has increased
  council tax benefit take-up by around 1,500
  successful claims.
• The Devon Building Control Partnerships
  Partnerships performance indicators (PIs) have
  improved.
• Suffolk County Council and Mid Suffolk District
  Councils Joint Venture Company has improved the
  percentage of enquiries resolved at first point
  of contact from the previous 41 per cent to 67
  per cent during 2005. Customer satisfaction
  ratings of 88 per cent have been achieved.

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• There are quality benefits.
• Pan London Contract Team - clear standards are
  set against which providers are monitored,
  avoided duplication and speeded up the
  contracting process.
• The SurreyJobs website has speeded up recruitment
  processes and increased in the number of
  applications.
• The Pan London Admissions Service claims that
  there are 64 fewer unplaced children 93 of
  parents are allocated preferred school place and
  14 of secondary applications are made online
  across London.
• The Derbyshire Partnership - The average process
  time from the closing date of applications to the
  appointment has reduced from 40 days to 29 days.

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There are customer benefits. The East London
Lettings Consortium providing a choice based
lettings system for member councils. Tameside
and Pension Service joint team saw an increase in
the number of pension credit and attendance
allowance claims. London connects - able to
report street problems online, not restricted to
making the report during council opening times
nor identifying the borough where the street
problem is and able to see if the street problem
has already been reported.Many boroughs have also
implemented a customer feedback system to
indicate progress to the reporter.
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• The Market view
• The Outsourcing and Shared Services in Government
  IT Management report predicts spending on shared
  services across the US and Europe combined will
  hit 76bn by 2012 compared to 57.4bn this year.
• Shared services spending in the UK public sector
  is forecast to hit 1.27bn in 2012 compared to
  just 311m this year, according to analyst
  Datamonitor.

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