Appendix 1: Change-management considerations

Setting up Central Agencies Shared Services.

We identified a range of lessons from the establishment and operation of the Central Agencies Shared Services. We combined these lessons with other good practice guidance from a variety of sources in this list of matters to consider when setting up a shared service. We hope this list will be of benefit to other organisations that are considering a shared services arrangement or carrying out a change management process.

Step Matters that need to be considered, where applicable
Establish a decision-making framework

Have you gained commitment and agreement from management for the decision-making framework for this new organisation?
Confirm existing business strategies and goals.
Establish clear and effective governance and management arrangements, with clearly mandated decision-making authority, and confirm commitment from leadership ("sponsorship").
Define the criteria for how you will measure and evaluate progress.
Carry out an analysis of the current range and level of services and how they are delivered

Have you gained a clear, detailed picture of the current situation and the areas for improvement?
Gather detailed data about the range and level of services, functional costs, and the level of effectiveness of the service functions, to provide accurate baselines for determining future investment and to measure progress.
Use appropriate industry or government standards to work out levels of capability in each function and to prepare processes.
Determine what the organisation or services will look like

Have you developed a clear shared view of what the new organisation or structure will become and by when?
Set out a clearly defined, shared view of the future operating model (in the near term and at significant future points), together with detailed change management plans to ensure an effective change process.

Determine which business processes, business units, and geographic locations will be included in the project scope.

Decide on which processes to include in the shared services.

Determine the path and phasing to create the shared services ICT infrastructure.
Assess "readiness for change"and identify what will support or form a barrier to change (strength and potential effectiveness of sponsorship, degree of prior experience of change, and the strength of culture of continuous improvement).

Consider the ethics involved with this change process and identify appropriate guiding principles for the change process.
Obtain agreement and support

Have you gained appropriate agreement and support for change and your vision?
Agree a clear role and strategic priorities for the organisation that reflect the strategic objectives of the businesses being served, to focus on how it is set up and operates, and to guide future business planning and development.

Establish clear sponsorship for change at the most senior levels.

Clearly identify leaders to drive and implement change through the organisation(s).
Consider all options

Have you carried out an options appraisal of the need for change and what is the right solution?
Carry out an options appraisal to determine the approach that is most likely to deliver the desired outcomes.

Assess whether the preferred option is achievable and affordable.
Produce a business case

Have you developed a robust business case for the preferred solution or option?
Identify all feasible options in the business case and seek agreement on the preferred approach.

Include clear costings and a clear shared view.

Determine costs of processes, implementation, and delivery.

Refine the preferred option.
Produce an overarching change plan and detailed design

Have you developed an overarching change plan and other detailed plans to support it?
Define clear operational objectives matched to the strategic objectives of the businesses being served, set measurable performance targets, and accurately and promptly report against those targets to monitor progress.

Include customised change management plans, with targets and timelines.

Produce a risk management plan.

Allocate clear roles and responsibilities.

Ensure that plans are adequately resourced.

Produce clear communication and consultation plans.
Have you developed an effective approach to implementing your change plans? Ensure that your approach will be well executed and well resourced, including effective communication and consultation, retaining essential skills and knowledge, and clear processes for recruitment and the transfer of functions or activities.

Keep staff informed of the vision for change.

Ensure that changes are communicated well and lead the process.

Identify and seek feedback from all parties involved in the change.

Gather robust baseline information on changing functions, costings, and levels of performance.

Determine resourcing.

Action your plans effectively, and be flexible and able to adapt during the process.
For functions such as human resources, ensure that adequate attention is given to respecting and supporting the different cultures within the agencies and, where appropriate, bringing together those different cultures in a more standardised approach.
Consider where working toward common processes and systems before establishment might help to speed up transition and ensure that a higher level of service is delivered.
Have you produced strategic implementation plans to ensure that implementation continues to be effective during and after the change? Put a strategy in place to move from establishing change to transformation into the vision, including mechanisms for measuring progress.

Measure progress against agreed milestones in the change process and identify and mitigate risks.
Develop an Information and Communications Technology strategy to ensure that the technology work programme is prioritised to meet strategic business needs.
Ensure that leadership and change managers reinforce and support behaviours that support the change and new approach, together with new cultures.
Monitoring the change process
Are you able to measure change consolidation/ progress of change?
Ensure that you are able to use baseline information to measure progress against agreed objectives.

Use good information about costs to provide a baseline to estimate savings accurately and set realistic future targets for further savings.
Have you determined an accurate measure of when you will have completed the change process and transformation to business as usual? Build the foundations for business as usual and ensure that the shared services are running smoothly and effectively, before considering enhancements, expansion, or modelling as an example to follow.
Are you able to measure when you have reached strategic and operational goals? Establish clear milestones and indicators for achieving business as usual for the shared services.
Do you have a clear reporting and evaluation framework? Establish clear reporting lines and a timetable for monitoring, review, and evaluation reports.

Evaluate change, including in consultation with service users, and communicate change outcomes to service users.

Apply lessons learned from evaluations and reviews.

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