Establishing a Shared Services Entity

Establishing a Shared Services Entity

Practical steps to setting up a Shared Services Organisation

WHYKnow why you are doing it!

Cost pressures Legislative change Provide a legal entity for existing collaboration Enhancing service Increasing compliance requirements Right environment Central Government encouragement / expectation New political geography to ‘navigate’ in Wellington

FundamentalsFoundation of mutual respect

Commitment to co-operation and collaboration.

Recognition that shared services is about ‘how’ things are done, not ‘why’.

Uniqueness not a value

Autonomy not an asset

Agree the purpose

What is the entity to achieve?

Outputs

Limitations

Resources

Establish the structureCharitable Trust

Company

Informal grouping

A Council Controlled Organisation can be any of the above and is subject to the Local Government Act 2002

Council Controlled OrganisationSpecial Consultative Procedure required.Constitution

Lodged with companies officeStatement of Intent

includes budgetProcess of annual circulation and approval

ShareholdersDirectors

Transparent appointmentCompanies Act compliance

GovernanceCEOs are Directors

Directors responsibility is to companyRole clarityStrategic View

Advisory Groups

Manage Activities

Governance.Decisions

WhoDirectorsSub groups (Advisory)Delegations

HowConsensusVote

Equal/proportional

GovernanceEBOP RDC WDC KDC ODC

WBOPDC

TCC Taupo GDC

BOPLASS LTD

The Board – 9 Chief Executives as directors

Executive Officer

Aerial photography

InsuranceProbity and

Auditteleph

onyunimarket

Soft ware

FinancesFunding the Entity

Transaction Levy Fixed contribution Other

Equal Proportional

Service Costs

Actual or cost plus

ReportingOperational and Financial reporting

Frequency?

Content and audience

Audit NZ – Mandatory

ShareholdersConstitution

Approve/amend

Statement of IntentSubmit on

Annual Meeting

6 monthly reports