Monday, November 7th, 2011 - 10:24
Monday, November 7, 2011 - 09:16
This is the final blog in our series on shared services. The message in the blogs is clear; consolidating back-office functions saves money.
Savings through shared services have been achieved at agencies including United States Environmental Protection Agency (EPA), Labor, United States Department of Health and Human Services (HHS), United States Postal Service, and the Air Force. In his blog, John Vonglis, former Air Force Chief Financial Officer, discusses the Air Force’s approach to shared services and the $200 million in savings achieved. With tightening budgets, the question is not whether to move to shared services, but what functions to consolidate and how.
Jeff Koch, Associate Partner, IBM Strategy & Transformation Practice, addresses the first part of this question in his blog. He recommends that agencies initially focus on back office functions that have the biggest problems, e.g., uncontrolled cost, poor customer service, aging technology, and/or a declining workforce. Jeff also provides guidance to help agencies decide whether to consolidate functions within the agency, use a government Center of Excellence, or outsource to the private sector.
Next in the blog series, Adam Jelic, also an Associate Partner in IBM’s Strategy & Transformation Practice, presents tips for successful transition to shared services. His tips include:
The blogs reveal that most agencies realize benefits from shared services beyond cost savings, additional benefits include improved customer service, strengthened controls, greater agility, and increased focus on the mission. We hope you found these blogs on Shared Services useful.
Steve Watson, CPA, CGFM, CMA, is a partner in IBM’s Global Business Services, Public Sector Financial Management Practice. He has 30 years experience helping federal agencies improve financial management. He is also a recipient of the Association of Government Accountant’s Andy Barr award, which recognizes a private sector leader for his / her contribution to improved public sector financial management.
Steve Watson (email@example.com)