Driving Shared Services Excellence in the Public Sector   Driving Shared Services Excellence in the Public Sector         ...
Driving Shared Services Excellence in the Public Sector                                  Executive SummaryDriving Shared S...
Driving Shared Services Excellence in the Public Sector                                  Executive SummaryPresentation:Joh...
Driving Shared Services Excellence in the Public Sector                                  Executive SummaryHowever, this sk...
Driving Shared Services Excellence in the Public Sector                                                 Executive SummaryR...
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Whitepaper - Driving shared services excellence in the public sector


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In June 2011, an Oracle Shared Services Forum was held in London. IT and Finance leaders from across the public sector gathered to talk about the challenges and opportunities they face in Shared Services programmes.

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Whitepaper - Driving shared services excellence in the public sector

  1. 1. Driving Shared Services Excellence in the Public Sector Driving Shared Services Excellence in the Public Sector Oracle Public Sector ForumDriving Shared Services Excellence in thePublic SectorCustomer Shared Services Forum IIOracle Public Sector ForumJune 2011
  2. 2. Driving Shared Services Excellence in the Public Sector Executive SummaryDriving Shared Services Excellence in the Public SectorOn 16 June, an Oracle Shared Services Forum was held at St Ermin’s Hotel in London. IT and Financeleaders from across the public sector gathered to talk about the challenges and opportunities they face inShared Services programmes.The Oracle Shared Services Forum is a quarterly event offering delegates an opportunity to share ideas andexperiences with each other in a relaxed, informal setting. To facilitate the discussion, short presentationswere delivered by John Quinn from the Department for Work and Pensions, Bob Telford from NHS NEP,and Andrew Blake-Herbert from London Borough of Havering.Attending the discussion were:• John Quinn, Chief Operating Officer, Department for Work and Pensions• Bob Telford, Programme Director, NHS NEP• Andrew Blake-Herbert, Group Director Finance and Commercial, London Borough of Havering• Ann Beasley, Director General, Finance and Commercial, Ministry of Justice• Paul Blantern, Chief Executive, Directorates of Cambridgeshire and Northamptonshire County Councils• Stephanie Favell, Programme Manager, Project Athena• Dr Hannah Goodman, Solutioning Director, NHS Shared Business Services• Christine Holland, Head of Shared Services, London Borough of Hounslow• Robin McBurnie, Managing Consultant, PricewaterhouseCoopers• Chris Sayers, Director of Global Services, British Telecom• Neil Serjeant, CEO Network Shared Services, DEFRA• Martin Styles, Programme Manager, Cornwall Council• Seonaid Colville, Programme Manager, Ministry of Justice• Karen Clarke, Oracle• Luke Ellis, Oracle• Debbie Green, Oracle• James Peckham, Oracle• Ann Smith, OracleThe discussion was chaired by Karen Clarke, Regional Director for Public Sector UK & Ireland at Oracle andAnn Smith, Business Development Director, Shared Services at Oracle.Karen Clarke welcomed the delegates and spoke briefly about the importance of sharing experiences andviews on the way ahead from a variety of organisations and from programmes at different stages of maturity.The guest speakers were then introduced by Ann Smith. 2
  3. 3. Driving Shared Services Excellence in the Public Sector Executive SummaryPresentation:John Quinn, Chief Operating Officer, Department for Work and PensionsJohn opened his presentation with an overview of the Department for Work and Pensions (DWP) SharedServices programme’s journey so far. DWP operate the largest Shared Services programme in centralgovernment, with more than 130,000 users spread across the UK. It incorporates Shared Services for HR,manager self-service, payroll, statutory and management reporting, and procurement, as well as offering debtmanagement services that recover up to £300 million each year. Shared Services also helps govern billions ofpounds of benefit payments to citizens.Over the last five years, the programme has helped the DWP to realise savings of around £150 million, andin 2008 the DWP also began to acquire a customer base for its Shared Services programme which nowincludes the Cabinet Office, the Child Maintenance and Enforcement Commission (previously the ChildSupport Agency), the Department of Education, the Department of Health, and a number of localauthorities.John went on to say that changes in the DWP’s focus in the last 12 months, with a number of key reformsdue to be implemented, have meant that the use of Shared Services have become central to the Department’sagenda. He added that although the Department’s current offering has enabled huge achievements, there is aneed for investment to ensure it continues to do so and to encourage further organisations to join theexisting customer base.John highlighted the key drivers for change in the DWP’s Shared Services. The Department facesunprecedented budget cuts of around 40% during its Comprehensive Spending Review (CSR) period at atime when private sector organisations are looking to get in to the public sector Shared Services market. Toremain an attractive proposition to prospective customers, the DWP has decided to upgrade its existingtechnology and is also looking at its future operating model which might include starting joint ventures withexternal providers.In conclusion, John proposed that the future for Shared Services in central government will probably see adrive towards ‘soft mandation’, with a smaller number of approved internal and external vendors and jointventures providing a platform not just for shared back office savings, but for a truly shared environment thatenables smarter government.Presentation:Bob Telford, Programme Director, NHS NEPBob spoke about the importance of moving on from providing simple back office transaction processingsavings to deliver added value in frontline services through a Shared Service model. He began by highlightingthat organisations like the NHS that are composed of many independent bodies face a unique set of issues.The key to driving Shared Services adoption in such an environment is to make the proposition as attractiveas possible and sell the tangible benefits of membership.When the drive towards Shared Services in NHS began ten years ago, the prevailing view was that althoughthere were minimal savings to be made in recruitment and retention there was a clear lack of technical skillswithin the organisation. The plan was to create a collaborative process that would provide a platform todevelop these skills and enable collaborative transaction processing. 3
  4. 4. Driving Shared Services Excellence in the Public Sector Executive SummaryHowever, this skills shortage still exists in the NHS today, not in back office services but in technical andclinical skills. Bob gave as an example the shortage of radiologists in the NHS. Rather than become involvedin a bidding process for skilled radiologists, technology could be used to overcome this shortfall in the NHSskills base. By implementing teleradiology, images could be transferred quickly and simply to radiologistsanywhere in the world, allowing the NHS to shape the market for these services rather than be shaped by it.Bob added that, as a Foundation Trust, NHS NEP has a duty to look for commercial opportunities, andthese types of technologies could help the organisation to build a skills bank to provide services such asteleradiology to other NHS Trusts. He also suggested other ways in which technology could assist not justwith frontline services such as the management of long-term conditions using Customer RelationshipManagement (CRM) systems.These sorts of services cannot be done cost-effectively on an individual practice basis, but a Shared Servicesmodel would allow consortia of GP practices to realise huge savings in the time and cost of diagnosis andtreatment. These benefits in delivering frontline services, in addition to the traditional back office savings,should make Shared Services programmes an undeniably attractive proposition to all organisations within theNHS.Presentation:Andrew Blake-Herbert, Group Director Finance and Commercial, London Borough of HaveringAndrew spoke about the new Shared Services implementation in the London Borough of Havering, as wellas the steps being taken by Project Athena to achieve the vision of increased collaboration between allLondon boroughs.With funding cuts of 34%, the London Borough of Havering had to develop a new model for essentialbusiness processes. They realised that although CRM and financial management applications were in place,they were chronically under-utilised. In October 2009 a business case was drawn up for implementing anERP system to eliminate paper-based processes and give a reduced number of managers the tools and skillsthey need to do their jobs effectively. By building a strong business case to optimise the combination oftechnology, processes and people the Shared Service ERP implementation was completed in ten months andhas realised savings of £2.5 million in the first year of operation.Andrew went on to discuss the work of Project Athena, a London-wide collaboration project involving all 33boroughs. The project is based around ‘One Groups’; users of specific technologies working together in anintegrated way across London. Andrew has been working with the One Oracle Group, which has the goal ofimplementing a single instance of Oracle technology for the whole of London.At present, three boroughs have signed a memorandum of understanding to move towards a single instanceof Oracle technology. Three others are in talks to join during the first phase of the implementation, and allother Oracle users across the boroughs have asked to be named in the agreement, allowing them to join theprogramme when its value has been demonstrated. The One Oracle project aims to go live in 2012, with theultimate goal of creating a Shared Service not just for back office functions but for end-to-end businessprocesses. 4
  5. 5. Driving Shared Services Excellence in the Public Sector Executive SummaryRoundtable DiscussionsWhen the presentations were concluded and dinner was served, Ann Smith thanked the speakers andencouraged delegates to ask a question, or share experiences, insights and opinions in roundtable discussionsbetween courses.Many of the delegates picked up on the issue of moving Shared Services on from its traditional province ofback office processes to provide additional value in frontline services, with one delegate highlighting thatthere is a great opportunity for rethinking the way services are delivered. The delegate added that with theadvent of superfast broadband, there are exciting possibilities for technology to not only transform the wayorganisations share and collaborate, but to make fundamental changes in how they operate.Some delegates expressed concern that focusing on the provision of next generation web-enabled servicescould leave older citizens disenfranchised, and that public sector bodies have a duty to ensure services areaccessible to everyone. One delegate argued that the drive to provide service in new channels risks creating agap in society between those with the mean to access theme and those without.This point was accepted, but it was also pointed out that preparations must be made now to provide servicesfor an aging population that will be increasingly technologically capable in years to come. One delegateproposed that we need to think about citizens in a different way, suggesting a combination of multi-channelstrategies to reduce the need for face-to-face contact and a network of physical locations to enable access forall.Another delegate highlighted that public sector bodies cannot afford not to change, and that a shift towardsjoined up government is essential. The delegate asked how Shared Services providers could overcomebarriers to adoption in frontline services. A number of ideas were suggested, with one delegate suggestingthat public sector leaders and policy makers must be shown unarguable evidence of the value of SharedServices in order to make change not just attractive but inevitable. It was proposed by one delegate that anyShared Services project, whether back office or frontline, depends on strong leadership to see it through to asuccessful conclusion.Overall, there was a general consensus that demonstrating the value of Shared Services in back officefunctions was just the first step on a long journey, but that it did provide a solid foundation to push thebenefits of collaboration into other areas of each organisation’s core business.With the evening drawing to a close, Karen Clarke thanked the delegates for sharing their views and insights.She said that future events would focus on specific topics within the field of Shared Services, and welcomedany suggestions for particular areas of interest to be covered.Further informationFor more information on Oracle’s Shared Services Forum, please contact:Ann Smith, Business Development Director, Shared Services, Public Sector Oracle Corporation Ltd,Blackness Road, Springfield, Linlithgow, EH49 7LR UK or on + 44 (0) 1506 673757 mobile: +44 (0) 7774613928 or e-mail: ann.smith@oracle.com Copyright © 2011, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective ow ners. Published July 2011 5