Appendix 2: Lessons learned for setting up shared services

Setting up Central Agencies Shared Services.
Lesson Paragraphs
1 A clearly defined future operating model together with detailed change management plans are essential to ensure an effective change process. 2.5-2.14
2 Clear and effective governance and management arrangements are important for successful change. 2.15-2.18
3 An effective change management process needs to be well executed and well resourced, and should include effective communication and consultation, retention of essential skills and knowledge, and clear processes for recruitment and transfer of functions or activities. 2.19-2.26
4 It is essential to gather detailed data about the range and level of services, functional costs, and the level of maturity of the service functions, to provide accurate baselines for determining future investment and to measure progress. 2.27-2.32
5 Define clear operational objectives (matched to the strategic objectives of the businesses being served), set measurable performance targets, and report accurately and promptly against those targets to monitor progress. 3.3-3.5
6 Working to get processes and systems before establishment helps to speed up transition and ensure that services are delivered better. 3.12-3.15
7 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. 3.16-3.19
8 Use appropriate industry or government standards to work out existing levels of capability in each function and to prepare processes for addressing agency needs. Develop an Information and Communications Technology strategy to ensure that the technology work programme is prioritised to meet strategic business needs. 3.20-3.31
9 Good information about costs is needed to provide a baseline to estimate savings accurately and set realistic future targets for further savings. 3.32-3.38
10 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. 4.2-4.6
11 For a shared service to succeed, governance arrangements need to be clear and sufficiently mandated to provide independent and effective decision-making. 4.7-4.11
12 Build the foundations for business as usual before considering enhancements, expansion, or modelling as an example to follow. 4.12-4.16

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