1. PRE-CONDITIONS FOR REGIONAL SHARED SERVICES
Creating an environment for regional collaboration
Don Phillips
North-West, South-West & Central Regional Asset Management Group STEP Coordinator
Associate CT Management
National Local Government Asset Management and Public Works Conference. May 2013

2. Victorian Asset Management Regions

3. Levels of Service
And now
Shared Services

4. The Shared Services Holy Grail
Well known benefits can be achieved through collaborative approaches, such as:

5. Mid – Long Term Benefits
Expenditure savings through
Increased use of equipment and other assets
Joint contracts
Greater capability of achieving best practice through
Improved decision making
Improved access to technology
Sharing of risk
Better use of limited council resources and skills
By reducing duplication
Through skill and knowledge sharing
Sharing of employees

6. Immediate Benefits Documents can be produced quicker
Only a single plan need be produced
Better documents can result by pooling skills, knowledge and technology

7. If so Great, Why No Action?
We recognize sharing opportunities must exist, so why has there been so little success in implementing shared services?
Councils still do AM, so no sense of urgency and a subsequent lack of support?
Concern often over governance issues
Jobs threat to local staff
Perceived loss of local control

8. Journey for Wimmera Councils

9. Attempt #1 Past history with Shared Services
2008 attempt at regional cooperation with asset systems
Failed, dramatically
Why? For all the reasons stated above

10. Attempt #2 During 2012 another opportunity developed
Started with the Regional Asset Service AMP template
14/17 councils from the North-West and South-West Regions are utilising the regional template
The Wimmera group of Councils at officer level elected to work together to complete their own first Recreation & Open Space AMP

11. Common AMPs
Soon realized since starting from scratch, rather than create separate plans, it was easier to work on one plan with the same processes, methodologies, hierarchies with provision for local input
Then realized could apply the same approach to other AMPs, so revisited
Can lead to shared opportunities

13. Wimmera Discoveries
Can work but requires cooperation and a willingness to compromise
eg the Road hierarchy problem
The Councils can demonstrate they are undertaking the same activity, in the same manner
Opportunities for the sharing of services can then be identified

14. How to Proceed? Develop a step-by-step Shared Services process
Take one step at time
Don’t jump to the end and look for reasons not to continue
Emphasis that this is not take-over but a ‘knowledge base’ to support local decision making
Be prepared to compromise

15. Proposed Process “IF YOU BUILD IT, HE WILL COME”
Identify the sharing opportunity
Demonstrate ‘sameness’
Identify the aligned Councils
Review skills capacity and resources available
Establish the alliances
Identify the tools and resources to create the shared service
Document the benefits
Form the alliance

16. 1. Identify Sharing Opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Sharing opportunities may include:
Condition assessments
Renewal forecasting
AM reporting
AMPs
LTFP

17. 2. Demonstrate ‘Sameness’
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Sameness may be demonstrated through common
Hierarchies
Processes
Methodologies
Systems

18. 1 Identify sharing opportunity 5 Establish the alliances
3. Align Councils
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Council choose to participate
Aligned Councils may initially be those that demonstrate ‘sameness’
Although this does not preclude a council expressing an interest and being prepared to make changes and align itself with other councils. This is not about exclusion.

19. 4. Skills, Capacity & Resources Review
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Assesses each council’s current internal available skills and capacity to deliver the identified sharing opportunity
Any shortfall may indicate a sharing opportunity between councils
Any available skill may be an opportunity to share an employee

20. Skills, Capacity & Resources Review

21. Internal Capacity & Skills Matrix

22. 5 Establish the Alliances
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Alliances may be:
Formed to address the specific skills and capacity deficiencies
Formed to address an under-performing activity
Vary in the number of the interested councils

23. 6. Identify the Tools & Resources
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Skill location may be:
External provider (contract), or
Internal provider (shared employee)
 Tools, equipment required:
Joint specification
Equipment purchase/sharing
Software purchase/sharing

24. 1 Identify sharing opportunity 5 Establish the alliances
7. Document Benefits
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
Benefits may be realised through:
Cost savings
Improved service delivery

25. 1 Identify sharing opportunity 5 Establish the alliances
8. Form Alliance
1 Identify sharing opportunity
2 Demonstrate 'sameness'
3 Aligned Councils
4 Skills, capacity & resources review
5 Establish the alliances
6 Identify the tools and resources required
7 Document benefits
8 Form alliance
In forming the alliance councils will consider:
Governance structures
OH&S etc

26. Current Progress Facilitated through the STEP program
Discussion on opportunities held at Victorian South-West, North-West and Central AM regional group meetings
Condition rating easy and obvious first test of the process
South-West selected bridge assets
North- East and Central selected building assets
Forums conducted to research and discuss options and select a common approach

27. Regional Forums Outcomes
Develop a common brief, condition rating manual
Options of ‘shared employee’, joint contract, software raised immediately
Next steps, continue with shared services process
May lead to software development

28. Summary We all struggle with resourcing and effective service delivery
We do so many things the same, the opportunities for regional collaboration must be there
A simple, step-by-step process, working from the bottom up has been developed
END