Dáil Éireann Debate, Wednesday - 23 January 2013
38. Deputy Robert Troy asked the Minister for Public Expenditure and Reform his plans for new shared services across the public services; the lessons that have been learned from recent experiences in respect of shared services; and if he will make a statement on the matter. [2830/13]
Amharc ar fhreagraWithin the Reform and Delivery Office, the Shared Services Transformation Unit is leading a number of key projects.
In May of last year, a formal decision was taken by the Government to set up a HR and Pensions Administration Shared Service Centre, called PeoplePoint, in Clonskeagh in Dublin. PeoplePoint will commence HR services at the end of March, 2013. It is estimated that with the establishment of PeoplePoint and post 2014, when all 40 Departments and Offices have transitioned and the shared service is stabilised that the annual cost of HR services for the civil service will be reduced significantly by €12.5m per annum.
- Payroll services administered by the Civil Service have been baselined and a business case to drive greater efficiencies and improved payroll services through Payroll Shared Services is well advanced.
- A project to gather data to baseline current Civil Service Finance Management and Banking activities has commenced.
- The Shared Services Transformation Unit in my Department is working with nominated senior officials to ensure that robust Share Services plans are developed and implemented in the other key sectors of Health, Education, Justice, Defence and Local Government.
Shared Services aims to achieve effective, cost-efficient internal non-core services, that delivers high-quality services and value for money.
Global studies on implementing Shared Services in the public and private sectors highlights that shared services projects are complex especially where there are multiple stakeholders and multiple ICT solutions in place.
The UK National Audit Office Report (2012) blamed poor co-ordination, costly IT systems, weak sanctions and demands for tailored services for the spiralling costs. The report recommended that strong governance, baselining, standardisation of processes, robust service management, benefits realisation tracking, change management and continuous improvement be implemented for all future projects.
In the Civil Service, we are seeking to implement the lessons learned from this report in the following ways:
1. Strong Programme Management and Governance: We are building capability in programme management and project management. A strong governance model is being developed to ensure transparent accountability and to ensure a compliant harmonious service oriented organisation.
2. Baselining: Our Shared Service methodology involves managing each Shared Services programme at a controlled speed. A business case is prepared for each Shared Service project. The financial and non-financial value of all possible options is considered to evaluate value for money to the taxpayer and to monitor the realisation of benefits.
3. Standardisation of processes: Learning from others our risk mitigation for lack of standardisation of processes is to design common standard efficient processes for implementation with minimal customisations. Processes are being designed in collaboration with Customer Departments and Public Service Bodies to ensure that their needs are understood and represented in any future design.
4. Service Management: The approach being taken to Service management includes the documentation of services to be provided by the Shared Services Centre; that there is a clear segregation of duties between the Shared Service Centre and the retained organisation; that all standards and measures of performance are documented within a Service Delivery Guide.
5. Change Management and Continuous Improvement: Shared Services requires the redesign and transformation of the remaining organisation and making staff changes after transactional work transfers to the Shared Services Centre. The change management activities are being led by an organisation design team as an integral part of each Shared Services programme.
Overall, I am satisfied with the progress being made. A robust transformation plan is being implemented for the Civil Service. The government’s reform programme is delivering results. The public service is changing. The introduction of PeoplePoint at the end of March will represent a very significant step in making Shared Services a reality across the public service.
