As an ALB gearing up for a future move to a shared service, what do you need to be prepared for, and what steps contribute to a successful ERP cluster transition?
The government’s shared services strategy (GSSS) has been running for several years – with the latest version published in March 2021. Within this strategy, five shared service centres (known as ‘clusters’) have been outlined, under which all government ministerial departments have been assigned. Each cluster has contracted an Enterprise Resource Planning (ERP) solution as the shared services platform, alongside associated contracts such as Systems Integrator (SI).
There is an expectation that Arms Length Bodies (ALBs) associated with each department will be onboarded onto the same shared service as its sponsoring department, having minimal control over the chosen technology solution.
Terri Williams
Timeframe for GSSS implementation
Each cluster operates on its own timeline for ERP implementation, with no uniform deadline imposed across all clusters. The timeframe for the transition of departments and ALBs varies, however it’s expected that some ALBs will not move to a shared service until beyond 2030.
GSSS: Key considerations for ALBs
Many systems in place within ALBs are quickly running out of contracted support or are not fit for purpose in the modern working world. Also, data is often being held on a variety of different systems - including spreadsheets - without any control, which can lead to costly mistakes, inefficiencies and dissatisfied internal customers.
Helena Sedgwick
Whilst ALBs will have to transition to a shared service, there are other options available right now to ensure continuity of services, whilst implementation of GSSS is in its early stages. That could be optimising your current ERP/HCM systems to maximise the benefit from the current investment if your timeframe to transition is many years away. Or, where you are years away from shared service migration and your systems are beyond optimisation, you should review the options available to you. And finally, if you are allocated to an early phase of GSSS, then you should look at your readiness for change and preparedness for transition, seeking informed advice on the likely challenges you may face across technology, data and change and how you can overcome them.
Looking ahead: Common challenges in transitioning to a government-shared service
The main challenge with significant change programmes like this is unrealistic expectations about timelines, costs, and benefits. Many programmes struggle due to over-optimism – underestimating the effort needed for business-as-usual (BAU) tasks alongside project work and overestimating how prepared the organisation is for change.
Some key risks to be aware of include the tendency to underestimate resource demands. Expecting teams to manage their daily operations alongside transformation initiatives can often result in delays. Additionally, a poor understanding of existing processes poses a challenge; when processes are insufficiently documented, system and business integrators can struggle to implement changes efficiently.
Data quality issues also present a significant risk, particularly when there is a lack of clarity around which data is clean and aligned with the requirements of a new system. This uncertainty can lead to unforeseen complications. Finally, there is the risk of misjudging standardisation. Government-wide frameworks, such as NOVA, require strict alignment, yet many departments assume they already comply when, in reality, further adjustments are necessary.
Over-optimism leads to shorter-than-realistic timelines, underestimation of the work required to bring processes and data to the necessary standard, and increased costs due to unforeseen complexities.
To mitigate these risks, you should focus on realistic planning, thorough process mapping, and ensuring data readiness. A well-prepared transition, rather than an overly ambitious one, is key to success.
GSSS: Unique risks for ALBs
Transitioning to an ERP shared service cluster presents unique challenges, as it brings together departments that have not previously worked closely. While some processes can remain unique, many must be standardised, requiring significant realignment.
One significant challenge is the divergence of departmental needs, as achieving consensus across major ministerial departments can be difficult and often results in delays. Additionally, there is a tendency to be overly optimistic about collaboration, with the assumption that departments will seamlessly align. This can lead to an underestimation of the complexities involved in standardisation.
Another key consideration is the need to maximise software functionality. Effectively leveraging vendor capabilities requires careful planning to ensure that systems are used to their full potential. Finally, having clear and robust requirements is essential. Aligning organisational needs with system design from the outset helps to prevent misalignment and ensures a smoother implementation process.
GSSS for ALBs: Driving a successful transition
To prevent cost overruns and delays, early preparation is crucial.
Effective resource planning is crucial to a successful transformation. Before commencing, it is essential to identify process flows, assess business change requirements, and ensure the necessary expertise is in place. A proactive approach is far more cost-effective than reacting to challenges later in the process.
Early investment in data readiness is equally important. Data cleansing and migration are resource-intensive tasks, and addressing potential issues at an early stage helps to prevent delays and avoid excessive costs associated with system and business integrators.
Strategic staffing should also be considered to manage workload spikes efficiently. This may involve bringing in short-term consultancy support or hiring temporary civil service staff to provide the necessary capacity at critical points in the project.
By planning ahead, securing resources, and addressing data challenges early, ALBs can significantly reduce risks and unexpected costs.
Support for ERP business change in ALBs
For ALBs, the cluster solution will not be a complete solution, you will need to consider your own processes, controls, reporting and data migration now, in relation to the cluster shared service.
At Civiteq, we are technology agnostic experts who possess the skillsets, experience and know-how to help you on your pathway to change, overcome the challenges you may face with data and change, and support you to optimise your current assets whilst you wait for your future move to your allocated cluster.