Characteristics of a successful shared services centre in the Australian public sector

Abstract

PurposeOrganisations are increasingly looking to establish shared services centres (SSCs) yet there is limited guidance available. The paper aims to propose a structured framework that will form the basis for identifying a series of characteristics associated with a successful SSC.Design/methodology/approachBased upon Scott‐Morton's organisational framework a series of dimensions were proposed for the analysis of SSCs. A case study was then presented as a starting point for identifying specific characteristics along each dimension associated with a successful SSC.FindingsBased on the framework, a case study highlights characteristics associated with a successful SSC. Specifically, the SSC is given responsibility for demonstrably reducing costs through economies of scale and process improvement of multiple transaction‐oriented tasks. An enterprise resource planning system is seen as key to realising those savings. Use of the SSC is compulsory and charged for. SSC management feels they require a good understanding of each task under their remit and are focused on leading change and developing an appropriate human resource base.Research limitations/implicationsThe research is exploratory in nature and limited by the empirical work consisting of a single case study. Additional case studies are required to determine if the findings are generalisable.Originality/valueA structured framework for the analysis of successful shared services is provided. A case study illustrates the application of that framework. Together, the theoretical and empirical components of the paper enhance understanding of the requirements for a successful SSC.