Senior buy-in, sense of ownership and communication key to shared service success

31/10/2011

Capita’s software services division reveals the top three key components necessary for the successful delivery of shared services. A survey conducted with the support of SOCITM, the association for ICT professionals working in Local Authorities, the Public and Third Sectors and their suppliers, shows that:

  • Nearly 64% of respondents rated strong leadership as essential
  • Over 57% agreed that buy-in from the top was necessary 
  • 49% stated that good communication across the organisations involved was vital

The survey also reveals that between 20% and 34% of respondents are actively considering or planning a shared services implementation (across waste/recycling/street cleansing, ICT technical support, infrastructure and applications, or HR & payroll) It is seen as a viable way to achieve the cost savings required in the current financial climate, with operational savings and lower operating costs ranked the highest in terms of the benefits expected.

Ian Gates, divisional director at Capita, said: “We have seen from our own experience in supporting 25 shared services arrangements that having key senior individuals on board is the best way to communicate the benefits of the operating model to the rest of the workforce.  Communication from above enables everyone involved to feel a sense of ownership, which can make or break a partnership. This style of visible leadership can also help when it comes to the question of accountability, where trust between all parties involved is key.”

The report also highlights some surprising revelations about the types of issues that are considered as ‘non essential’ to a successful shared services arrangement, which include:

  • Similar cultures
  • Geography (being physically close) 
  • Organisations which have the same political control and technological

Each of these components scored less than 10% in the ‘essential’ category, suggesting that there are few boundaries to a successful partnership if all parties involved work towards similar outcomes, such as cost and time savings or an increase in service levels.

Paul Taylor, director of change & communities at Tunbridge Wells Borough Council, part of the Mid-Kent Improvement Partnership, added: “Shared services continue to represent just one option for organisations and the decision to enter such a model should never be taken lightly. We undertook a thorough assessment before deciding whether or not to use software to underpin an in-house service delivery, or go down the full outsourcing arrangements with the private sector. We believe that we made the right decision, not just for us as an organisation but for our customers and in the first year, we hope to see a more responsive and resilient service. Additionally we will introduce a more complete online offering giving customers more choice as to when and how they access services, meeting both the changing customer expectation and organisational need to develop migration to lower cost automated services.”

To request a copy of the report, please email shared@ukauthority.com

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Notes to editors

The first steps: building a culture of trust to deliver shared services was developed in partnership with SOCITM and UKAuthorITy

Capita’s software services business attributes its position as the leading supplier of software solutions to the public sector and housing marketplace, to its strong partnership approach. It works closely with customers to provide tailored systems in the disciplines of customer services, mobile technology, payment collection, income management, integrated housing management, revenues and benefits processing and services and policy training. Capita’s customers benefit from a bespoke service, helping them to streamline their processes and deliver a high performance citizen-centric service.

As a division of The Capita Group Plc, the company has experienced strong and consistent growth since its inception in 1994 and works with over 70 per cent of local authorities in the UK. Further information on Capita Software Services can be found at: www.capita-software.co.uk

The Capita Group Plc is the UK’s leading provider of BPO and integrated professional support service solutions. With 45,000 people at more than 350 sites, including 64 business centres across the UK, Ireland, the Channel Islands and India, the Group uses its expertise, infrastructure and scale benefits to transform its clients’ services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2010 of £2,744 million. Further information on The Capita Group Plc can be found at: www.capita.co.uk