Shared Services Answers

Answers to Questions

Question 1 What is Shared Services about?

Answer 1

The Scottish Government is committed to improving the quality of public services and the productivity of the public sector in Scotland by reducing waste and duplication. The Government believes that all public bodies, even those that are already working in an efficient way, can work more efficiently still. By operating more efficiently, public bodies can release resources which can be recycled into supporting public services. This is particularly important in the current economic climate, where increased efficiency can provide a means of offsetting cuts and protecting jobs and services.

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Question 2 What areas are you looking at?

Answer 2

The Shared Services framework will apply to all public sector organisations in Scotland. There are examples of Shared Centres of Expertise across the public sector - in Procurement, Internal Audit, Trading Standards, Building Standards and developments are underway in social care.

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Question 3 What will be done with the money saved?

Answer 3

It will be up to individual organisations to decide how to reallocate savings, but all efficiency gains will be directly reinvested in frontline services and help deliver our goal of good quality public services that are valued by their customers and ensure that efficiencies are applied consistently and proactively across the whole public sector, and across all corporate / common services.

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Question 4 Is this about cuts?

Answer 4

No - this is about releasing resources for frontline delivery with an emphasis on effectiveness and affordability. We will need to work as effectively as possible within the financial resources available. However, it is recognised that there will be less money available in the future and that all organisations will have to identify ways in which proper priorities can be asserted and costs reduced where possible.

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Question 5 How many jobs will be lost?

Answer 5

The focus is not on job losses and there will be no specific targets for redundancies. Maximising efficiencies through Shared Services opportunities will ultimately lead to fewer people required to deliver back office, transactional and administrative functions as you increase automation. This should be seen in the context of an ageing workforce and the flexibility to redeploy where possible to frontline service delivery.

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Are we adopting a private sector fad?

Answer 6

Whilst shared services did indeed originate in the private sector, it is now a mainstream concept and has been in use for over 20 years. It has been implemented successfully in the public sector at home and abroad. As with any change programme, it can be done well or badly, and we are committed to learning lessons in order that any transition be made as effectively as possible. There are numerous examples of shared services approaches adopted by a range of organisations in the public and private sector.

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Is this about privatisation or outsourcing?

Answer 7

We have no preferred models for sharing. The correct model for one service or organisation may not work as well, or at all, in other circumstances; the model is likely to vary with the situation. It is unrealistic to assume the public sector can deliver everything, so we want to consider the best way to leverage private sector expertise and funding. There is no ideology behind this - what counts is what works. We are open minded and everything is on the table. We want to get the best outcome for the people of Scotland.

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Question 8 Does this me an jobs leaving my local area?

Answer 8

Shared Services do not require displacement of jobs from local areas. The ability to simplify, standardise and share with trained staff, common business process and technology can facilitate remote sharing and flexible opportunities to support local economic conditions.

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Question 9 How does this fit with other areas such as Best Value and Public Service Reform?

Answer 9

There are a number of linked initiatives, all aimed at supporting the drive for more efficient and effective public services.

Public Service Reform - the government's overarching purpose is to focus government and public services on creating a more successful country, which offers opportunities for all of Scotland to flourish through increasing sustainable growth. There are five strategic objectives underpinning that purpose - that Scotland should be wealthier and fairer; smarter; healthier; safer and stronger; and greener.

Best Value balances quality and cost considerations in improving the performance of public service organisations. It centres on economy, efficiency, effectiveness, equal opportunities arrangements, and sustainable development. Best Value principles underpin the operation of public service organisations and are a key component of the public service reform agenda in Scotland. It is a central, enduring foundation for continuous improvement across the public sector.

Efficient Government programme brings a practical focus on freeing up resources for frontline delivery. Shared Services are part of this and will put in place an adaptable, flexible, efficient infrastructure to support whatever model of frontline delivery is in place.

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Question 10 How much consultation has taken place?

Answer 10

Shared Services is an area which has been consulted on from first principles. It is imperative that the public sector takes ownership of this agenda. Expert advice from a range of key stakeholders was gathered and contributed to the development of the Shared Services public consultation document, which set out a direction for the next 10 years. The Scottish Government will inevitably play a leadership role in facilitating cross cutting debate, but we are keen that communities within the public sector take ownership of delivery.

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Question 11 Is this about centralisation?

Answer 11

We have no favoured model for delivery. In some cases a centralised approach will be the best approach (for example with national procurement in NHS Scotland) whereas in others a distributed virtual shared service may be more appropriate. What counts is what works, and we recognise the diversity in public sector organisations in Scotland. The customer will be at the heart of any decisions about the provision of their support services.

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Question 12 What does it mean for the public?

Answer 12

We must achieve good quality public services that are valued by their customers - the Scottish public - and ensure that efficiencies are applied consistently and proactively across the whole public sector, and across all corporate / common services.

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Question 13 Are your expectations unrealistic?

Answer 13

We do not ask the impossible of the public sector. There are already excellent examples in the public sector, and we want to bring everyone up to these standards. Every member of the public deserves as good an experience as the best.

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Page updated: Monday, March 15, 2010