Transactional Support Services Review
Client Context
Cheshire West and Chester Council and Cheshire East Council operate a Transactional Shared Service (TSS), delivering transactional Finance, HR, Payroll, Recruitment and ERP system support. The service was established as part of Local Government Reorganisation in 2016 but had not kept up with the pace of change in both councils. A comprehensive review was commissioned to ensure it remained efficient, cost-effective and aligned to the current needs of both councils. With the upcoming re-procurement of the ERP support contract, this review was critical to determining the balance of in-house and external resources, while assessing opportunities for improvement, greater use of technology and alternative delivery models.
Our Approach
Working collaboratively with staff in both councils and the shared service, we:
Engaged with senior leadership to understand the current priorities and future needs of the councils.
Engaged widely with stakeholders, including service leads, operational staff, senior leadership, internal and external customers to understand opportunities and challenges, both strategically and in terms of day-to-day frustrations.
Gathered internal data and conducted external research to benchmark the service against comparators. Benchmark metrics included performance data, capacity, demand, staff turnover, sickness absence and customer satisfaction.
This allowed us to compile a detailed assessment of the as-is, drawing on quantitative and qualitative insights to set out the strengths, weaknesses, opportunities and risks for the service.
This fed into a strategic options appraisal, evaluating a range of potential delivery models, including in-house, outsourced, traded and hybrid models. A detailed appraisal was undertaken using a modified Five Case approach, assessing the cost, quality, technical feasibility, risks and benefits of each option.
Alongside this, we undertook a detailed assessment of governance and support arrangements for the council’s ERP system, preparing for exit from the existing contract and transition to a new model.
Outputs and Outcomes
Key outputs and outcomes included:
A clear decision to retain and invest in the current model, underpinned by a detailed Target Operating Model to deliver an improved customer experience within a sustainable budget envelope through enhanced use of technology.
A decision to stop providing some services, where the councils were subsidising external customers, leading to net cashable savings.
A new single front door for the service, providing triage to filter out lower-level demand, freeing up technical teams for more complex work.
Process efficiencies across transactional Finance and HR.
A detailed plan for the insourcing of the ERP support contract, with to-be structures and job profiles for the in-house team.
About Us
Human Engine is a leading management consultancy with specialisms in strategy, transformation, digital, commercial, procurement and projects.
Founded in 2018, we have partnered with more than 50 local authorities, central government, NHS organisations and national charities to help transform their strategies, operations and cultures.
Our mission is to help individuals and organisations to do the best work of their lives. We do this by blending first-hand, practical experience of the problems we help our clients solve with award-winning consulting expertise and an approach based on trust, collaboration and partnership.