The Paekakariki Express emails from outer Dagestan where he is currently selling second hand, slighty-used cluster bombs to the locals to re-open a Caucaucus front for Putin to deal with:
The heads of agreement mention a shared services arrangement. Do you have any idea what this means and what has been implemented?
Stop me if I’m telling you what you already know;
Typically, a shared services department may perform all of the common services an organisation or group of organisations have, starting with the transactional (AR, AP, Admin of HR and Recrruitment, Payroll processing, purchasing, asset management, IT support, etc.) and then as it matures it will pick up the more bespoke and higher-skilled services such (payroll configuration and changes, IT infrastructure and applications, procurement category management, etc.).
If the shared services department is implemented well, you should see big efficiency gains from moving, say, 3 accounts receivable teams into one. There should have been an inevitable headcount reduction too, at least a third in the example you give.
Yes, indeed. Unfortunately Venture Southland is not so much Shared Services as A Retirement Waiting Room For Ageing Local Body Employees. However, me old tin plate from Paekak then raises an interesting point (italics my emphasis):
Of course, the next thing to look at once you’ve stabilised the new department and services, is hitting the KPIs you’ve been set and then hunting out process efficiences to over-achieve these or hit them with fewer staff.
Ah, performance targets. Here’s an example of Venture’s KPIs:
In other words, they don’t have any. Or none that are worth a knob of goat shit.
I hereby offer the prize of one large box of Cadbury chocolates to the first Council that puts Venture under a proper reporting scheme and introduces proper measurement of input versus output. Two boxes of chocolates if you get the other Councils to buy into it, do a strategic review and make part (or all) of their budget contestable (I mean, let’s face it, they spend a lot of money now on feel-goods, how about we get some real goods?)