To receive the Shared Services Strategy and agree the next steps of the programme.

The Deputy Chief Executive Interim presented the report on the Shared Services strategy and programme.  Cabinet was reminded of the key drivers which underpinned the Shared Services and Herefordshire Connects work, and the work undertaken in exploring and taking forward a shared services study and formal business case which had been supported by PA Consulting.  Political groups had been kept informed of the approach during group meetings.  Members were advised that the business case provided a strong case for change and that the status quo was not an option.  Cabinet was advised that whilst 11 services had been in the scope of the shared services study, consideration would be given to whether additional services should be explored; though Members were assured that service improvements were being undertaken externally to the formal shared services programme.  It was stated that a shared service approach would be a proactive sustainable option to ensuring good and effective services rather than the reactive approach of cutting posts which created smaller and weakened support.  Cabinet was advised that the aim of developing a shared services approach was to ensure the highest possible quality of support at the lowest cost, and ensuring the delivery of services in the longer term.

The Director of Resources advised Cabinet that the savings that would be realised through a shared services approach, had been factored into the Council’s finances and would be an important element in balancing future budgets.

In discussion the Cabinet raised the following points:

·         Several staff and Trade Union briefings had been held and would continue to be arranged.

·         Whilst the standardisation of tasks and more effective ICT would require fewer personnel, both the staff and public need to be given assurance that the quality of service would be maintained and improved.  This provided a good opportunity to modernise systems and processes.

·         The shared services approach provided for clear savings and more efficient use of public money to deliver public services; the approach needed to be done swiftly, but in the right way.

·         The establishment of the Business Transformation Board had been vital to ensure tight project management of the shared services programme; failure to deliver would have huge impact on the authority’s budget.

·         It was acknowledged that the business case for Shared Service and its recommendations had been accepted by the Joint Management Team.

·         It was noted that the scoping of services had not yet been completed.

·         Working in partnership with NHS Herefordshire and the Hereford Hospital Trust provided both functional and financial future viability for all three partners.

The Chairman of Overview and Scrutiny stated that it was vital to use new technology in an efficient way to support the savings expected of the partnership.

RESOLVED   

THAT Cabinet:

(a)   accepted the business case for shared services and confirmed its support for the development of shared services to realise the benefits outlined;

(b)   noted there were three models under consideration for fully implementing shared services;

(c)   agreed that the Council should continue to develop the Shared Services using one or more of these models as appropriate;

(d)   noted that the Business Transformation Board would be responsible for implementing Shared Services; and

(e)   authorised the Deputy Chief Executive to progress negotiations with partner representatives and to provide a further report seeking formal decisions from the Cabinet and/or individual Cabinet Member(s) as necessary.