Transformational Government

1
Shared Services
Shared Services Jo Clift Director Shared
Services Delivery and Transformation Group 7
February 2007
Transformational Government
Transforming Public Services. A Civil Service
that delivers
2
Shared Services

• Historical Drivers

• Current Focus
• Corporate services
• Specifically HR/Finance
• Doing nothing is not an option
• Sir Gus ODonnell

Gershon
Efficiency
3
Transformational Government

• Themes
• Customer centric services
• Shared services (includes infrastructure, data
  sharing)
• IT Professionalism
• Key facts
• 13bn spent on public sector IT every year
• 551 Central Government websites closed
• Sector Plans published

4
Why Shared Services?

• Continuous improvement in processes and service
• Better added value from the Governments top
  managers as they are freed from responsibility
  for transaction processing
• More flexible government with the capability
  and readiness to deliver future reform and
  change

Efficiency
Effectiveness
Employee Experience
5
Themes in Central Government

• Consolidation for the large Departments around
  central corporate functions
• Creating a service culture
• Important to service internal market first and
  earn trust from internal customers
• Opportunities to sell to others

6
Home Office

• Establishing shared services entity for all Home
  Office organisations
• Currently focusing on internal provision of
  services
• Prison service shared service centre in Newport
  operational Finance and HR
• Police shared services project underway in Met
  Police and a number of other police authorities
  are looking at a collaborative procurement

7
Health

• NHS Shared Business Service JV with Xansa.
  Provides financial services to NHS Trusts. 108
  signed up so far
• Success through a simple offering backed up by
  commercial incentives for all parties
• Options for HR are currently being considered.
  Would be the largest HR shared service in the
  world

8
National Health Service Shared Business Services
Trusts

• Finance
• 100 NHS Trusts operational
• 6-month transfer process for each Trust
• Guaranteed 20 cost reduction from inception
• 2 p.a. further cost reductions for length of
  contract
• Joint Venture with Private Sector
• 34 average saving upon signing up

SBS
9
Defence

• People, Pay and Pensions Agency provides civilian
  HR services and aims to save the MOD towards
  300m over 10 years
• Armed forces HR shared services is being
  developed
• Financial shared services also underway

10
Families

• Department for Environment Food and Rural Affairs
• Shared services facility being set up in York
• Natural England as first external customer
• Department for Transport
• All agencies and core depts using services from
  DVLA in Swansea
• Good case study in some of the hurdles to be
  overcome in sharing services within a family

11
Central Government

• Small/medium sized government departments and
  organisations agree that they will buy
  transactional corporate services in the future
• Identification of the sellers
• Migration to shared corporate service
  environments

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Buyers and Sellers

• Potential Sellers of services Potential Early
  Buyers of services

MOD
HMRC
HMT
DCMS
Defra
DfES
DWP
Cabinet Office
DCLG
NICS
DCA
OGC
DTI
13
Barriers

• VAT
• Cultural barriers
• Confidence and capability
• Procurement rules
• Cross government funding

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Where Next?

• Central Government Sector
• Create a market (internal and external)
• Sector plan monitoring
• Embed shared corporate services in the way
  government organisations operate