HISTORIA DE LA EDUCACIÓN SUPERIOR COLOMBIANA

This stage of planning shared services arrangements can be complex and is generally articulated in a comprehensive business case. In the first instance, however, a more principled approach may be required so that there is clarity between the parties on the following:

 what activities and considerations are in and out of scope  what functions remain in-house

 an understanding of the end-to-end processes involved in the proposed shared services

 what processes will need to be standardised and / or simplified  that service delivery can meet corporate client services and needs  what will be the basis of cost allocation. This consideration may be

finalised as part of the structure and governance arrangement.

Based on international and New Zealand experience, this planning process and getting agreement by the partners can be undertaken by various means. These include establishing a working party with appropriate expertise and

provide a report and recommendations. Another option is to establish a formal structure and resource this to project manage shared services planning and implementation phases.

Depending on the scale and nature of the shared services arrangements proposed, design considerations will be varied but numerous. A generic list of design elements is provided below.

5.7.1 Location

Will the services be provided from across the councils, within a single council, contracted out or from a new centralised location? The structure of the arrangement will be a determining factor here.

5.7.2 Finance

Establishing set-up and operational costs will be a priority for most councils, particularly where an objective of the shared services project is to reduce costs over time. The charging for services will be another consideration.

A challenge for many projects noted in the literature review has been getting agreement on funding contributions. Where a shared services project is between organisations of a similar scale and service needs, achieving an equitable funding arrangement will be easier. However, this is generally not the case, and scale, need and geographic spread can vary, making apportionment of costs and benefits more complex.

In New Zealand there is already considerable precedent in developing funding formulae for regional activities such as economic development, tourism, waste management and water supply. Similar approaches can be applied to other shared services projects. However, the difficulty of establishing a national shared services funding model is highlighted in the National Library ICT systems

examples outlined in section 3.6.

Cost allocation arrangements will vary according to circumstances and include equal allocation across all members, charges based on population bands, direct charge for services, and charge per transaction or by share of savings generated from procurement activities.

5.7.3 Technology

Where the shared services proposal is technology based there will be a

comprehensive plan developed in partnership with suppliers. However, for other activities, the technology implications may be less clear. Expertise will be

required to identify the interoperability, support arrangements, software packages used, supply agreements and the individual council requirements associated with any shared services project. Consideration will also need to be given to

scalability and the future delivery mechanisms for the activities being promoted for shared arrangements.

5.7.4 People

As identified in Part A, the management of, and communications with, staff associated with change processes is essential to the ultimate success of shared services arrangements. The threat of job losses or a potential change of roles can engender varying responses from existing staff, all of which will require change management systems to be in place.

Consideration will also need to be given to the roles required under a new delivery process, what existing expertise is available to be shared, what training will be required and whether existing human resource policies and contracts are reviewed.

5.7.5 Managing change

In addition to staff factors mentioned above, the whole process of managing migration to a new arrangement can be complex. The critical message from international experience is to allow ample time in this phase and to develop good communication mechanisms with all stakeholders. Thus identifying the change factors that need to be managed will form part of the project design process.

5.7.6 Governance and delivery structures

Options for these are covered in more detail in the next section. However, where there is not already a suitable and agreed collaborative arrangement in place to manage a shared services project, consideration of the appropriate models can be reported as part of the design recommendations.

5.7.7 Processes

Processes – while many council functions are relatively standardised and common across the country, internal arrangements and delivery mechanisms can vary. Where applicable, such variances in council requirements and delivery will need to be identified, as will options for a common approach.

5.7.8 Regulatory / legal implications

The legal framework within which councils can provide shared services is covered in the Local Government Act 2002 (LGA.) However, in the areas of procurement and environmental services there may be other regulatory and / or legal

considerations to be investigated. These will include trade regulations, commerce legislation and the ability (or not) to transfer delegated authority from central government as part of proposed delivery options for shared services.

Collating and reporting all the above design and delivery considerations to decision makers will be a timely exercise, but critical in ensuring the appropriate systems and structures are in place for the implementation phase. Without a clear understanding of all the above design factors and implications for the contributing councils, getting long-term commitment to shared services programmes will likely prove challenging.

Stage Outcomes:

1. For each activity being considered for shared services, a consolidated business case is developed and reported to councils.

2. Individual councils commit to progressing to a more formal shared services arrangement and provide the necessary resources.