Summary
Lincolnshire County Council has a population of 686,200 and is situated in Lincolnshire. In 2007/08 the council spent £866.9 million on all council services. During SR04 the council began to work with the seven district councils in Lincolnshire to develop shared services in back office functions and front line services. This enabled the council to develop better two tier partnership working with the district councils in Lincolnshire and could create £4.2 million of efficiency savings for the eight councils by the end of CSR07.
The situation
In September 2005 the Lincolnshire Chief Executives Group decided to explore the opportunities for shared services between the eight councils. The group commissioned research to look at the current trends in shared services between councils in Lincolnshire and across England. The report proposed a number of opportunities for shared services between the Lincolnshire councils including:
- Joint procurement contracts
- Street cleaning
- Revenues and benefits transactions
- Asset management
- Car parking
- Staff training and development
During the research Lincolnshire CC received the results of an inspection report that stated the council needed to work in closer partnership with the seven district councils. The proposals put forward by the research provided the opportunity for the council to do so.
Approaches used and efficiencies realised
Deciding upon shared services
In 2006 the Lincolnshire councils met to decide which services were most appropriate to be shared between the eight councils. The councils selected six back office functions and three front line services from a shortlist of 30 services. The back office functions that were selected were:
- Property management
- Training
- Information and communications technology (ICT)
- Legal services
- Procurement
- Building control (district councils only)
The three front line services that were selected were:
- Customer services
- Street scene services
- Revenues and benefits processing (district councils only)
Establishing a shared services partnership
The councils established a partnership called 'Lincolnshire Shared Services Partnership' (LSSP) to develop shared services in Lincolnshire. Lincolnshire CC did not become the lead council for the LSSP, because the council wanted to develop better trust and partnership working with the district councils.
The arrangement enabled the eight councils to work together to establish the governance arrangements for the partnership. These arrangements comprised:
- Senior Officer Programme Board that developed the nine shared services workstreams
- Member Management Board that scrutinised the proposals for the shared services
- Leaders Group that took the final decisions about which services were to be shared amongst the councils
The LSSP received £700,000 of funding from the East Midlands Regional Centre of Excellence to enable the partnership to establish the shared service workstreams.
Plans for CSR07
Making shared services a reality
The LSSP commissioned the Senior Officer Programme Board to take forward legal services and procurement as the first shared services to be established in Lincolnshire. The LSSP agreed to the Senior Officer Programme Board's recommendations that both shared services should be hosted at Lincolnshire CC at the beginning of CSR07.
The LSSP is looking to develop the other shared service workstreams during CSR07. This could provide £4.2 million of efficiency savings for all of the Lincolnshire councils by the end of CSR07.
Learning points
- Lincolnshire CC took a transitional approach to back office efficiency during SR04
- The eight Lincolnshire councils commissioned research to understand what services could be shared between the councils
- Lincolnshire CC entered into the LSSP to engender better two tier partnership working with the seven district councils in Lincolnshire. The council is part of the partnership but is not the lead council
- Lincolnshire CC is hosting the procurement function and legal service unit for the LSSP during CSR07
- The eight Lincolnshire authorities are considering sharing six back office functions and three front line services. These shared services could provide £4.2 million of efficiency gains by the end of CSR07
Questions to consider for your council
- What approach has your council taken to back office efficiency during SR04?
- Transactional
- Transitional
- Transformational
- How might this case study enable you to take a transformational approach to efficiency during CSR07?
- Have you used commissioned research to explore the opportunities for making back office efficiency savings?
- If yes, how has this research been used? Has it resulted in changes to services and efficiency savings?
- If no, would you consider using research to explore opportunities for making back office efficiency savings?
- Do you share any back office functions or front line services with other councils or public sector organisations?
- If yes, have you considered how the shared services will provide efficiency savings and VFM?
- If no, have you explored the opportunities for sharing back office functions and/or front line services with other councils or public sector organisations?