What is the best operating model for your Corporate Services function?
What are the operating models of modern, transformative Corporate Services functions?
Corporate Services functions are responsible for delivering vital infrastructure and services that enable performance of their organisation’s core business functions. They play a crucial role in ensuring that the organisation’s workforce is trained, retained and supported, financial operations are sound, legal and compliance issues are managed, technology systems are functional and secure, and marketing and communications efforts are effective.
In an environment of increasing unpredictability and mounting expectation, and re-emerging calls to reduce ‘back office staff’, now more than ever it is critical that Corporate Services functions clearly define and articulate their operating model. Articulating a Corporate Services operating model is vital to support organisational performance and sustainability, promote a clear demonstration of value creation, and justify the priorities for additional funding, as well as optimise the return on any such investment.
In the absence of defining its Corporate Services operating model, critical elements in the function’s operating environment are not given the attention and investment they deserve, or worse, they are neglected altogether. As a result, Corporate Services leaders fail to deliver the value they’ve promised and enthusiasm and connection to the organisation’s strategy and pursuit of better outcomes is replaced by disillusionment, distrust, and indifference not just within the function, but across the organisation.
By developing and implementing an effective Corporate Services operating model, an organisation can optimise performance, reduce costs, improve customer satisfaction, and achieve sustainable improvement.
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What is a Corporate Services Operating Model in the Public Sector?
A Corporate Services Operating Model defines how administrative functions—such as finance, HR, IT, and procurement—are structured and delivered within a public sector organisation. It ensures these functions align with the organisation’s strategic objectives, optimise resource utilisation, and enhance service delivery to the public.
Why is Defining an Operating Model Crucial for Public Sector Agencies?
Clearly articulating an operating model helps public sector agencies demonstrate value creation, justify funding allocations, and optimise returns on investment. Without a defined model, critical elements of corporate services may be neglected, impacting organisational performance and sustainability.
What Are the Key Components of a Public Sector Corporate Services Operating Model?
The key components include:
- Governance and Leadership: Establishing clear accountability and decision-making structures.
- Service Delivery Models: Determining whether services are centralised, decentralised, or shared.
- Technology and Systems: Implementing digital solutions to enhance efficiency and effectiveness.
- People and Culture: Fostering a skilled and adaptable workforce.
- Performance Management: Setting metrics to evaluate and improve service delivery.
How Do Shared Services Models Benefit Public Sector Organisations?
Shared services models consolidate administrative functions across multiple agencies, leading to cost savings, standardisation of processes, and improved service quality. This approach allows agencies to focus more on their core missions.
What Challenges Should Be Considered When Implementing a Shared Services Model?
Challenges include:
- Cultural Resistance: Overcoming organisational inertia and resistance to change.
- Integration Complexities: Aligning different systems and processes across agencies.
- Governance Issues: Establishing clear roles and responsibilities.
- Service Level Expectations: Managing varying expectations across different stakeholders.
What Role Does Technology Play in Modernising Corporate Services?
Technology enables automation, data analytics, and digital service delivery, transforming traditional administrative functions into strategic enablers. This shift enhances responsiveness, reduces costs, and improves user experiences.
How Can Public Sector Agencies Ensure Their Operating Model Remains Fit-for-Purpose?
Agencies should regularly review and adapt their operating models to respond to changes in government priorities, technological advancements, and evolving community expectations. This proactive approach ensures continued relevance and effectiveness.
What Are the Benefits of Centralising Corporate Services?
Centralisation can lead to streamlined operations, standardised processes, and economies of scale. It simplifies governance and accountability structures, making it easier to implement consistent policies and procedures across the organisation.
How Does a Decentralised Operating Model Differ from a Centralised One?
In a decentralised model, individual departments or agencies maintain control over their corporate services, allowing for tailored solutions that meet specific needs. While this offers flexibility, it may result in duplication of efforts and challenges in standardising processes.
What Are the Key Considerations When Designing a Corporate Services Operating Model?
Considerations include:
- Alignment with Strategic Objectives: Ensuring the model supports the agency’s mission and goals.
- Stakeholder Engagement: Involving key stakeholders in the design process to ensure buy-in and address concerns.
- Scalability and Flexibility: Designing a model that can adapt to future changes and growth.
- Risk Management: Identifying potential risks and implementing mitigation strategies.
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