Changing Shared service arrangements

Shared services have the potential to enable related organisations to maintain a critical mass of capability that is not possible on a stand-alone basis. But when expectations diverge and things don’t go to plan, sometimes it becomes necessary to unwind a partnership.

We were asked to scope the implications and possible knock-on effects of a change in the membership of a shared services initiative.  This included whether the new arrangements would be sustainable from a critical mass and financial perspective. As a starting point for discussion, we identified a set of principles to apply to the parties in the process of implementing new arrangements.  These included the risks and opportunities as a result of the change being shared appropriately between all parties, and cost sharing being perceived as fair and reasonable, pragmatic, and easy to implement. We also identified how the new arrangements could be implemented on a financially sustainable basis, as well as the need to consider the approach from ownership, purchase and taxpayer perspectives.