Sharing UK local public services

With unprecedented pressure on UK local authorities and other local public service providers, there has never been a better time to consider working across organisational boundaries. However, history shows that the promise of cost savings and the other benefits of sharing are not easy to achieve. 

Cost saving is the big prize for sharing local services but the journey requires focus and determination. A range of issues need to be tackled, including some that may be uncomfortable. It is crucial to prepare for the long game, resist getting drawn into the detail too early and maintain a sense of realism about what success means.

Why should you share? 

Different organisations have different motivations for sharing, of which cost reduction is only one. Ensure these are openly expressed and understood early and test what is said to confirm what is meant. A recent sharing initiative between three local authorities collapsed when one partner admitted they couldn’t give up a particular IT system; had that been made clear sooner, the solution could have been adapted to take account of it.

What should you share?

Both ‘hard’ issues like scale of return versus scale of investment and ‘soft’ issues such as organisational culture, stakeholder relationships and service resilience need to be taken into account. This may lead to a service that does not necessarily generate the largest financial impact being selected. However, use this to prove the concept, get everyone engaged and deliver a practical example before tackling more lucrative but challenging options.

How should you share? 

Discussions about delivery models and legal status are important, but starting too soon can draw attention to thorny issues like executive control, apportionment of benefits and residual liabilities. These should only be addressed once the case for sharing is made. If the benefits at stake are sufficiently great, it will be much easier to instruct the legal teams to make it work.

Who should you share with?

Sharing is, by nature, a collective endeavour, but this doesn’t mean that every participant need make the same contribution or receive identical benefit. At the heart of every strong team is mutual respect for what each party can bring to help achieve the common purpose. It is important to focus on contributions to the outcome rather than individual contributions to facilitate a more open dialogue.

When to share?

Getting several sovereign bodies to act under collective control requires fortitude. Quick wins can be achieved, but real scale of opportunity needs to be planned and prepared for - benefits delivery will come down the line. Look to build a portfolio of sharing opportunities with short, medium and longer term payback. This creates swings and roundabouts, enabling partners to be pragmatic about what and when they contribute.

To build firm foundations for a sustainable shared services function, you should focus on the outcome, evaluate options ‘in the round’ (both hard and soft factors), accept that returns may be unequal and tackle the detail only when the benefits are clear. This process requires effort and endurance, so be realistic about how long it will take to achieve success.

To learn more about how PA can help you set up your shared services, please contact us now.