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Shared
services in Local Government
Local government needs to start creating a proactive environment, rather than a reactive one. This is according to Joe Mazibuko, Managing Director at CSIPER Consulting.
Speaking at ForgeAhead’s ICT in Local Government Summit in the NorthWest last year, he said issues and challenges facing Local Government include the nonexistent transparency for regulatory compliance, Municipal Acts and the inability to enforce by-laws.
“Local government is dependent on national and provincial grants and they have limited self-generated funds and revenue management capabilities. There are also limited or ineffective strategies to drive down operational costs of local government,” he says.
To this effect, Mazibuko notes: “If one were to consider local municipalities as business entities, one would realize that they are faced with a number of challenges that Shared Services can adequately resolve.”
Even though there are four different types of Shared Service models, he says a good model is dependent on the maturity of participating organisations. “For local government it may be prudent to start with the basics and upgrade from there. This would enable the realisation of reduced cost whilst improving service delivery capability,” he says.
While the Shared Services opportunity is not unique to the South African local government environment, the concept has been implemented successfully in both private and public entities.
“The implementation of any major project has inherent risks. The challenge is always how to manage these risks effectively, whilst ensuring that mitigating strategies and action plans are implemented and monitored. Change Management is one of the key issues that need Executive Management's attention and drive,” he says.
To maximize the benefits of Shared Services, he says municipalities need to start focusing on creating Virtual Private Networks (VPNs) to ensure that these networks get used not only for the transmission of data, but for video and voice as well. “Voice over IP has produced huge cost savings for a number of entities, both in the public and private sector,” he adds.
Mazibuko says when creating the best Shared Services model, municipalities need direct sponsorship from the Mayors, endorsement by the Mayoral Committees, relevant portfolio heads, the municipal managers and executives of the district and local municipalities.
“They should also develop compelling rationale and business cases for change and getting the necessary buy-in - establishing a small but high impact joint Executive Steering Committee focused on driving the business case and project,” he says.
“Communication is vital. Significant emphasis should be put on change management techniques to ensure acceptance and traction of delivered results. Also, it must be ensured that a selection of a strong team skill-set, breadth of experience and diversity of perspective as well as ensuring rigorous scope and associated cost management process are built into project approach,” he concludes. |
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• Provincial & Local
Government
• National Government
• SADC Governments |
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