An AT Kearney 2007 study on shared services in government. The image of the public sector as slow to innovate is rapidly becoming a thing of the past as governments are using advanced technology to consolidate back-office functions, concludes this new report. This study, conducted independently by A.T. Kearney with sponsorship from Cisco®, has uncovered major service improvements and cost reductions as a result of "shared services".
Shared Services in Government 2
BUILDING A PLATFORM FOR BETTER
PUBLIC SERVICES AT LOWER COSTCONTENTS
PREFACE..................................................................................................................................................1
THE PUBLIC SECTOR HAS NOW RECOGNISED THE OPPORTUNITY OF SHARED SERVICES ..................2
INTRODUCTION TO THE NEW RESEARCH ..............................................................................................3
INCREASINGLY CHALLENGING TIMES FOR GOVERNMENT SERVICES...................................................4
DRIVERS ..................................................................................................................................................5
GETTING IT RIGHT - HOW SUCCESSFUL SHARED SERVICES ARE BEING IMPLEMENTED ......................8
SHARING SERVICES 'DELIVERS GREAT BENEFITS'..WE THINK!.......................................................18
THE FUTURE - TECHNOLOGY WILL SET THE SUPPLY AGENDA ..........................................................20
THE FUTURE - MATURITY AND INFORMATION MANAGEMENT NEEDS WILL DRIVE DEMAND .........23
GREAT OPPORTUNITY FOR THE SUCCESSFUL INNOVATORS AND EARLY IMPLEMENTERS...............25
ACKNOWLEDGEMENTS ........................................................................................................................26
REFERENCES..........................................................................................................................................26
PREFACE
In our previous research on Shared Services in Government, we noted the case for change and the historic opportunity facing the public sector. In the private sector, shared service best practices in operating models, organizational structures and ways of working had all continued to evolve. Central and local government organizations were ideally positioned to leverage this experience to leap directly and safely to 'best-in-class' shared services. In this paper, two years later, we have conducted research to examine: how:
. Governments around the world are adopting shared services.
. Business cases are standing the test of time.
. Major challenges are being overcome.
. Opportunities in management of change and technology are being leveraged.
. Predictions of the future are shaping up.
We find that although cost reduction remains the most significant driver for government organizations to combine and share back and front office functions, improving services to citizens is becoming increasingly important. We detect that Canada is taking a lead in many facets of transformation, including the introduction of front-office shared services. The business case is much better than previously thought, with benefits being targeted in the 15-25% range. However, this optimistic view needs to be tempered with caution as detail proves hard to measure and disclose. Through our discussions with executives we discover that although introducing shared services into government has similar challenges as transformation in any complex organization, best practice is evident. From this, we offer a framework on enablers for success. This includes differentiating factors relating to vision, scope and stakeholder management and deployment of technology. Finally, we present perspectives of the future from both the technology supply and market demand sides of shared services and peer into our crystal ball to predict what the next generation of shared services may be.
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THE PUBLIC SECTOR HAS NOW RECOGNISED THE OPPORTUNITY OF SHARED SERVICES
In our last research paper on 'Shared Services in Government - Turning private-sector lessons into public-sector best practices(1)', we concluded that reducing government costs was a necessity, not an option. Shared services were perceived as a viable, proven approach to achieving the necessary rationalization of typical 'back-office' functions such as Human Resources, Finance, IT and Procurement. We stated that business cases had the potential to typically target at least 5-15 per cent in cost reduction, together with significant improvements in service levels for citizens. With government finances under pressure and treasury departments increasing their drive f... [download for more]
