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Smart Service Delivery in Challenging TimesShared services – what does it mean for you?
Alan Higgins
Chair, CIEH Council
Director, Environmental Health Matters Ltd
What do we mean by Shared Services
Can take many forms:
• A group of authorities agreeing to cooperate to deliver a
service e.g. waste partnerships
• Individual or range of services provided by one authority to
another e.g. stray dog service, out of hours
• A number of authorities sharing a service usually hosted or
managed by one of them or outsourced e.g. contaminated
land, building control, regulatory services
• The establishment of a local authority company to provide
services to an individual or group of authorities
• The establishment of a social enterprise to provide services
to an individual or group of authorities
Why Share Services?
• Partnership working encouraged by Government, the Audit
Commission and LGA
• Local Government Boundary Commission consultation on
Principal Area Boundary reviews
• Cooperate to provide expensive infrastructure e.g. waste disposal facilities
• Cost reductions through efficiencies – effects of CSR
• Cost reductions by sharing management costs, support
services and other overheads
• Share regulatory services at different levels of government
• Share expertise particularly in areas of shortage or for smaller authorities
Other Potential Benefits of Shared Services
• Improve delivery to customers
• Greater resilience
• Economies of scale
• Consistent approach in service delivery across a wider
area
• Reducing burdens on businesses by standardising
performance, quality, policy & processes
• Business transformation improving self-service and
reducing avoidable contact
Legislative Controls
• The Local Authorities (Goods and Services) Act 1970
• Section 101 of the Local Government Act 1972 and sections 19
and 20 of the Local Government Act 2000
• Section 111 of the Local Government Act 1972
• Section 113 of the Local Government Act 1972
• The Local Government Act 2000
• Local Government Act 2003
• Local Government and Housing Act 1989 and the Local
Authority (Companies) Order 1995.
• The Local Government and Public Involvement in Health Act
2007
• Section 31 of the Health Act 1999 and the NHS Bodies and
Local Authorities Partnership Arrangements Regulations 2000
• Local Government and Public Involvement in Health Act 2007
Governance Arrangements for Shared Services
• In house• Public Sector Partnerships
- Service level agreement
- Joint Committee/Board• Simultaneous Executive meetings• Joint Waste Authorities • Company arrangements
- Wholly owned local authority company
- Joint venture company• Partnering Agreement/Contract• Outsourcing – client arrangements in house
Employment Formats for Shared Services
• Provision of service by one authority to another authority – staff remain employed by provider authority • Joint management by one authority – staff remain employed by original employer • Management by a host authority with staff seconded from the other authority/authorities • Management by host authority and staff transfer from other authority/authorities • Transfer to a private organisation, a joint venture, a new LA owned organisation or a social enterprise
Employment Issues for Shared Services
• Transfer of Undertakings (Protection of Employment)
Regulations 2006 – TUPE
• Staff who opt not to transfer
• Changes for economic, technical or organisational reasons (ETO reasons)
• Different terms and conditions
• Differing pension arrangements
• Differing benefits – lease cars, PRP
• Responsibility for redundancy costs
Other Issues for Shared Services
• Differing ICT systems
• Cultural differences
• Political differences
• Support service provisions
• VAT and taxation issues
• EU procurement requirements
• Customers Services Centres
• Accommodation and public access
• Power to delegate authority and enforce
Some Key Issues for Staff in a Shared Service Consideration
• Consultation on changes to working arrangements
• Contractual arrangements - TUPE
• Effects on pension
• Reductions in staffing – redundancy, filling of continuing or new posts, workload
• Continuing management and reporting lines
• Relocation – working area
• Delegated authority
Risks for the Shared Service Approach
• Insufficient funding of implementation
• Timing of ICT infrastructure and integration
• Savings and returns on investment not being realised
• Impact on corporate support and resilience in all
participating authorities
• Performance levels not being realised
• TUPE, HR issues and staff engagement
• Licensing Act limitations – continuation of separate
Licensing Committees
Ingredients for Success of Shared Arrangements
• Good existing relationships – TRUST!• Experience of successfully working together in the
past/on other projects (an incremental approach)• Clarity about objectives• Buy-in from staff and members• Flexibility• Honesty • Same political control/unlikely to change• Similar demographics and issues• Services where there are national standards, e.g. H&S
and food safety inspections, which are easier to integrate• Similar ICT systems
Smart Service Delivery in Challenging TimesShared services – what does it mean for you?
Questions
Smart Service Delivery in Challenging TimesShared services – what does it mean for you?
Alan Higgins
Chair, CIEH Council
Director, Environmental Health Matters Ltd
