Standarized Efficiency
Shared services, which encompass several back office and administrative functions, play a crucial role in supporting operational departments. These functions include finance/accounting, HR, IT, legal, customer service, and purchasing and procurement (or supply chain management).
Only sometimes, but often, designating an individual expert or team of professionals to support most of the operating departments ensures consistency and efficiency.
Not all support functions (such as treasury and legal) are in the same organizational unit as operations. Still, leveraging the expertise of these functions minimizes business risk and tightens financial controls (for example).
At times, one or more of these functions is distinctly unique to a given department compared to other departments. In those instances, it makes sense to manage the function within the department itself. Usually though, the processes and policy can be combined from multiple operational departments.
These seem to be less urgent for the moment
- Finance – we need to emphasize cost savings and grant matching
- Accounting – we need to put in some standard controls (e.g., web purchases)
- Information Technology – this function appears well run for the moment
- Billing – while this needs some attention, I don’t yet have suggestions
These seem to be the most urgent for upskilled staff and processes
- Human Resources
we need SHRM certified staff - Project Management
we need PMP certified staff - Customer Support
we need FCR and CMM initiatives - Procurement
we need APICS certified staff
Special Note: I wrote a white paper to explain financial controls.
(November 7, 2024). I received a lot of questions about financial controls, like “What are they?” This term is common in business and government. We all know it’s important to keep an eye on spending and that sometimes people take things that aren’t theirs. When I talk about financial controls, I’m referring to a mix of processes, technologies, smart strategies, and practical ideas that help prevent wrong behavior. Down load my white paper— Strategies to Combat Fraud.
While the topic is a bit dry, my paper introduces the subject well including a few quick win ideas.
I want to make it very clear that I am NOT accusing the City of Sallisaw of any fraudulent activity. I’m responding to some people who think there might have been some problems before. This is a response, not an accusation. It’s really important for me to emphasize this. Thank you.
Summary
Shared services can play a vital role in supporting operational departments. A well-run shared services function benefits operational departments through a team of experts to ensure consistency and efficiency. Leveraging expertise in support functions minimizes business risk and tightens financial controls, among other benefits.
John Honeycutt – Sallisaw City Manager Applicant