association of colleges shared service awareness seminar july 2010 1
TRANSCRIPT
Association of CollegesShared Service Awareness Seminar
July 2010
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Association of Colleges
Ray Poxon
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Objective of the day
To: fast track your strategic awareness around the emerging opportunities for shared services in further education as a means to deliver efficiencies, service improvement and organisational resilience’
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Outcomes from today:
You will leave with a deeper appreciation of the following: ‒ What is driving colleges to consider sharing services?‒ Where are the shared service opportunities?‒ Who’s sharing now?‒ What are the most appropriate business models and
vehicles for sharing?‒ How to spot the key constraints?‒ When is it right to share?‒ Where’s the support and help?
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AoC – An evidence based approach:
Kathy Bland – Research report into shared services in FE – ‘Shared Services Further Education-Centric’ – March 2010
Emanuel Gatt – Research into the key skills required to successfully initiate shared service projects – ‘The Shared Service Architects Toolbox’ – September 2009
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Shared Service Architecture Ltd
Emanuel Gatt
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About us:Shared Service Architects
30 shared service projects researched and 20 practitioners interviewed.
Top 20 skills and knowledge required to successfully initiate a shared service
Developed ‘how to’ tools, templates and knowledge bank to support shared service practitioners
First Post Graduate Qualification in shared service architecture
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The Burning Platform
What is driving colleges to consider shared services?
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Drivers for Change
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Extract from Vince Cable letter to SFA – 17th June
Time for Change – It’s not just you!
Local Authorities across the country are actively seeking service improvement and efficiencies through smarter collaborations and shared services.
From Counting Cumbria to Total Place
From ‘compete to spend’ to ‘collaborative to save’
FE Colleges can learn much from Local Authority experience of shared services
‘all options back on the table’
Pace quickening – 4/24 rule
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What is a Shared Service?
Def: The shared provision by more than one organisation of a specific service or function
It can be sovereign or federal
Back or front office
Operated through a variety of vehicles from joint committees to separate legal entities
Shared services is not outsourcing
Shared services is not merger
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Why shared services?
Deliver efficiency savings beyond the scope any individual organisation
Spur to innovation and real service transformation
Improved customer offer
Opens new commercial opportunities
Retain independence whilst securing organisational resilience
Potential savings of 20-40%
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What do CIPFA say?
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“Although much of the advice and support discussed in this guidance are of a technical nature, this should not disguise the fact that effective collaborative working is first and foremost a human and political
challenge.” Chartered
Institute of Public Finance and Accountancy 2010
Shared Services
Where are the shared service opportunities in FE?
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FE Sector Shared Services
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•Finance•HR Management•Parts of academic registry•MIS/Data unit/ICT•Procurement•Examinations•Customer Relationship management• Recruitment•Quality systems•Safeguard (trip management processes)
•Continuous professional development•Archiving (electronic document management)•Governance • Property and facilities management•Pooling and training of teachers• Overseas commercial opportunities• Library management •Student Services (education maintenance allowance processes) •Marketing•Curriculum design and delivery
Areas of service provision worthy of consideration:
Sources: Shared Service – Further Education Centric- Kathy Bland, Shared Service Architects
Hotspots of shared service activity across the sector
Who’s sharing now?
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Current hot-spots Organisations Share Service areas
FE Sussex (12 colleges) Quality Assurance, HR Services, Management Development, CPD training, induction, Health and Safety, examination fees
Association of Eastern Colleges (ACER) CPD via the Essex professional development centre, strategic HR (7 colleges), regional procurement (15 colleges)
Federation of Lincolnshire Colleges Exploring sharing Finance
City of Sunderland, South Tyneside, Northumberland and partners
Exploring sharing Finance, HR, MIS and associated processes
Warwickshire College, Stratford-upon-Avon Colleges
Sharing front line delivery (Hospitality & Catering) delivered by Stratford
10 FE college pilots Shared procurement funded via LSC
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Business Models and Vehicles for Sharing
What are the most appropriate business models and vehicles for
sharing?
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Joint InitiativeJoint Initiative
Lead Department
Lead Department
CommissioningCommissioning
Strategic Partner
Strategic Partner
Federal StructureFederal
Structure
OutsourceOutsource
SovereignSovereign
Member organisations within a shared governance umbrella. Shared services delivered via member fees
MergerMerger
A contractual arrangement with a third party provider to provide shared services. (e.g. College A and private company)
Joint procurement of services based on a shared strategy and common processes and designed to provide shared services to its partners (e.g. LSC collaboration Fund projects)
An agreement between two or more organisations to set up and operate shared services (e.g. College A and College B establish a separate shared service vehicle/department)
Continuum of Collaboration and Control
Collaborative business models
Significantly less control more risk/barrier
Greater control less risk/barrier
Source: Shared Service – Further Education Centric- Kathy Bland
Centralising a business service that will be shared by other organisations (e.g. College A shared finance with College B and College B shares HR with College A)
CommissionCommission
CollaborateCollaborate
OutsourceOutsource
ShareShare
IntegrateIntegrate
MergeMergeMerge – the merging of two or more organisations into one. Operating under a single governance structure to one vision with one team and one infrastructure.
Integrate – A federal model with member organisations operating within a shared governance umbrella to common policies and integrated processes. Organisations retain independent legal status and local discretion on business opportunities but are fully accountable via local boards to federal governance.
CooperateCooperate
Share – Agreement between two or more organisations to join together to share resources typically people and services. The shared service is owned and governed by the participating organisationsOutsource – The contracting out a business function or unit to a third party under a long-term contract. Establishing a strategic relationship with the supplier. Commissioning – The joint procurement of services based on a shared strategy and harmonised business processes.
Collaborating – The working in partnership with other organisations to a common agenda. Jointly funded activities and work groups operating under SLA’s. Some sharing of best practice.
Cooperating – Informal arrangements and networks. Willingness to share some information and work together when in self interest.
Compete – See’s other organisations as competitor in the market and seeks to secure a winning advantage over them.
The Shared Service Architects Collaborative Route Map
CompeteCompete
© 2009 Shared Service Architecture Ltd
Barriers to sharing
What are the lessons from local government?
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Why are shared services so difficult?
It can take too long to initiate (4/24 rule)
Reduced control and issues of trust
Lack of a genuinely shared vision
Its political
Hokey-Cokey partners
Lack of in-house skills to successfully initiating shared services
Get it wrong at the start – difficult to get back on track
Technical factors‒ Legislation ‒ EU Procurement‒ VAT‒ Trade Unions‒ Data protection‒ TUPE
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When is it right to share?
Getting it right first time
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When is it right to share?
Evidence of partnership willingness
Evidence of strong levels of trust
High strategic intent
Evidence of compatible cultural fit
Clear partnership ambitions
Convergent sense of direction
Clear partnership horizons
Willingness to share knowledge and know-how
Equitable approach to risk and reward
Offers high resource allocation
Healthy leadership cultures
Evidence of commitment
Seeks shared outcomes
Reward and recognition culture
Works to build strong governance
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Source: Shared Service Architects
Shared Service Pre-Flight Checklist
Quick assessment of where your shared service partnership is
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Pre-flight check list
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Ongoing help and support
Ray Poxon
Association of Colleges
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Q&A Session
Ray Poxon
Emanuel Gatt
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Close
Ray Poxon
Association of Colleges
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