Shared Services – taking account of the emotional perspective

On the 22nd November East Lothian Council and Midlothian Council approved the first phase of sharing operational and management support for education and children’s services.

This was the culmination of 12 months work by a huge number of people to address the issues and challenges which emerged in the course of that process.

That work included research into governance, tax, human resources legislation, accountability, service redesign, and a range of other pragmatic issues. Yet if there was one factor which was not covered in sufficient depth it was the emotional response to shared services.

That response can be characterised as a deep personal concern for the future, where the current certainties are replaced by fear and uncertainty. That is not to say that there are any certainties for anyone involved in delivering public services in Scotland, the UK, or Europe for that matter, it’s just that shared services provides a concrete focus upon which people can attribute their fears.

That’s why it’s interesting to reflect upon a recent research report into the perceptions and realities of employees regarding shared services.

The research surveyed the opinions of over 100 UK public sector representatives, from functions spanning HR, payroll, finance, purchasing and IT.

The majority of respondents (72%) were from government and education, with blue light services and health organisations also included.

Organisations generally anticipated more negative impacts than proved to be the case for those who had already implemented shared services.

This negative perception was most significant for areas like job security, where 67% of respondents felt that sharing services would impact negatively. This figure increased significantly for operational employees where 8 in 10 feared for their jobs. In contrast, out of those that had already implemented shared services, over half reported a positive effect on job security (51%) and career development (53%), while the positive effects on skills development (81%) and job satisfaction (74%) were even more convincing.

This research seems to show the tendency for organisations and individuals to overestimate the difficulties of shared services and to underestimate the benefits that can be delivered. Those organisations not sharing anticipated that a shared service would be significantly less positive in areas that are closest to employees’ hearts than those already sharing had experienced.

If there is a lesson from such research for those of us who are embarking, or about to embark on shared services, it is that the emotional perspective is vitally important and that it should be considered throughout the change process. That’s not to say that we should decide whether or not to proceeed with shared services on an emotional whim, but that rather we should recognise and continually address the emotional response it generates.