Shared Services Now

What is the Shared Services Leadership Coalition?

The Shared Services Leadership Coalition (SSLC) is a single-purpose, IRS-approved 501 (c) (6) non-profit coalition of companies, nonprofits, and individuals providing educational and government relations support for legislation to accelerate shared services implementation in the Federal Government.

What are Shared Services?

“Shared Services” is a business model for delivery of common back office administrative services, e.g., human resources (HR), financial management (FM), purchasing, etc., and common mission-support services, e.g., geospatial services, in which customer organizations receive services from third party providers with high capacity platforms who can serve multiple customers more cost-effectively than individual customers can serve themselves. After decades of evolution, shared services has become the default delivery mode for common business transactions in leading public and private sector organizations throughout the world. Global experience demonstrates typical cost savings of 25% to 40% and better service over self-service models. The advent of “cloud” technologies is creating ever-increasing opportunities to drive “commodity” transactions to shared service business models.

SSLC Vision of Future State Federal Shared Services

The SSLC shares and supports realization of the future Federal shared services marketplace envisioned by industry and government reform leaders as articulated by the Partnership for Public Service’s Shared Services Roundtable:

“Federal shared services should operate in an open, dynamic, smartly governed marketplace wherein larger scale, highly modernized and higher-performing government and commercial shared service providers compete and collaborate in the business of serving customer agencies, and customers are empowered to freely choose their providers based on reliable market information. The market should operate and be governed by sound, consistent and transparent business rules and best practices that will drive the market towards increasingly higher states of shared service utilization, performance, innovation, accountability, cost-savings and customer service.”

Partnership for Public Service, Shared Services Roundtable, November 2014

Why is legislation necessary?

Shared services implementation has been underway in the Federal Government for decades with support from Presidential Administrations of both parties. Progress has been excruciatingly slow and discontinuous across administrations. The leading success story to date has been Federal payroll – but it has taken 26 years to consolidate from dozens of agency-specific platforms to today’s four government-wide platforms. This glacial pace of progress is unacceptable and fails to meet the needs of a 21st Century government. The absence of a legislative mandate has been a critical missing success factor. As noted by US Comptroller General Gene Dodaro, “Successful management reforms in the Federal Government need to have legislative underpinnings so they have permanence and consistency over time, no matter who’s in the White House or who’s leading departments and agencies.” To realize the SSLC vision, legislation is necessary to:

  • Create a vision, roadmap and timetable for modernization and full-scale implementation
  • Establish consistent, transparent business rules, performance metrics and governance to enable providers to compete fairly and customers to make informed choices
  • Remove statutory barriers to shared service modernization and cross-agency  business transactions
  • Authorize government shared service providers as businesslike, high performance organizations
  • Secure an appropriate role for the private sector as direct and indirect providers in the shared services marketplace
  • Oversee and enforce timely implementation and cost savings realization (i.e., a strong compliance mechanism).

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