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Association of Colleges Shared Service Awareness Seminar July 2010 1.

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Presentation on theme: "Association of Colleges Shared Service Awareness Seminar July 2010 1."— Presentation transcript:

1 Association of Colleges Shared Service Awareness Seminar July

2 Association of Colleges Ray Poxon 2

3 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’ 3

4 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? 4

5 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

6 Shared Service Architecture Ltd Emanuel Gatt 6

7 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 7

8 The Burning Platform What is driving colleges to consider shared services? 8

9 Drivers for Change 9 Extract from Vince Cable letter to SFA – 17 th June

10 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 10

11 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 11

12 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% 12

13 What do CIPFA say? 13 “ 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

14 Shared Services Where are the shared service opportunities in FE? 14

15 FE Sector Shared Services 15 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

16 Hotspots of shared service activity across the sector Who’s sharing now? 16

17 Current hot-spots OrganisationsShare 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 CollegesExploring 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 pilotsShared procurement funded via LSC 17

18 Business Models and Vehicles for Sharing What are the most appropriate business models and vehicles for sharing? 18

19 Joint Initiative Lead Department Commissioning Strategic Partner Federal Structure Outsource Sovereign Member organisations within a shared governance umbrella. Shared services delivered via member fees Merger 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)

20 Commission Collaborate Outsource Share Integrate Merge Merge – 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. Cooperate 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 organisations Outsource – 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 Compete © 2009 Shared Service Architecture Ltd

21 Barriers to sharing What are the lessons from local government? 21

22 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 22

23 When is it right to share? Getting it right first time 23

24 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 24 Source: Shared Service Architects

25 Shared Service Pre-Flight Checklist Quick assessment of where your shared service partnership is 25

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27 Pre-flight check list 27

28 Ongoing help and support Ray Poxon Association of Colleges 28

29 Q&A Session Ray Poxon Emanuel Gatt 29

30 Close Ray Poxon Association of Colleges 30

31 Shared Service Architects Emanuel Gatt Managing Director M: E: 31


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