‘Shared Services’ no laughing matter

Columns

Discussion

December 5, 2009

Anonymous The Meridian Star Sat Dec 05, 2009, 11:01 PM CST

By BILL CRAWFORD

guest columnist

George Carlin’s word skits made me laugh…and think. The one about “shell shock” morphing to “battle fatigue” then to “post-traumatic stress disorder” lampoons how we have come to use less disturbing, more benign words to camouflage reality. It came to mind when the Governor made his budget proposal.

Not much camouflage there! But he did say ‘shared services’ and I thought, “Gosh, that sounds so much less disturbing and more benign than ‘consolidation’ or ‘merger.’”

Still, public CEOs did not smile when Haley Barbour said, “There is no reason for each of the 15 community and junior colleges to have its own ‘back room’ operation, such as payroll, insurance, and purchasing. A single such administration operation should be set up, preferably combined with the same functions for IHL universities. ‘Shared services’ saves money.”

NASA and commercial banks appear to agree.

As a deputy director of the Mississippi Development Authority, I was part of the team that competed to locate the NASA Shared Services Center at Stennis Space Center. In 2001, NASA began to study the benefits and costs of forming a Consolidated Business Services Organization to serve its 10 facilities across the country. By April 2003, NASA concluded that such consolidation could improve efficiency and save money. NASA decided to use public-private competition to implement its plan, a process it called “competitive sourcing.”

Mississippi and Louisiana joined with Stennis Space Center to compete. Computer Sciences Corp. (CSC), an eminent information technology (IT) and business process outsourcing company, became our private partner. In 2005, this partnership won the competition based on both the best price and CSC’s strong performance record. To NASA, who was to do the work was as important as price.

Today, NASA still has 10 facilities performing numerous tasks, but its one shared services center in South Mississippi is saving taxpayers millions of dollars annually.

What services were consolidated? Accounts payables and receivables, payroll, travel reimbursements, HR services and training support, IT services, and procurement.

Commercial banks figured this out long ago. There are still banks and bank presidents galore, but very few back room operations. Central operations centers provide back room services to multiple banks, sometimes in multiple states…consolidation that has saved banks millions in overhead costs without reducing market presence.

These examples (there are others) indicate there are no operating or financial reasons for eight universities and 15 colleges – or 142 state agencies, 152 school districts, 82 counties, and 200 plus municipalities for that matter – to maintain separate back room operations. The obvious lesson is that public CEOs could save lots of money through 'shared services' with no harm to teaching or service functions.

A no-brainer, right?

On the contrary, my College Board/Legislature/Agency experience is that public CEOs like to control their own stuff. Since ‘sharing’ lessons control, don’t expect them to smile at any of this.

“You wouldn’t want somebody to come by and take some of your stuff?” smirked George Carlin to get a laugh.

No one laughed or smiled at the Governor’s disturbing budget proposals. Shell shocked legislators, unable to camouflage reality, are looking hard for solutions more benign than ‘consolidation’ and ‘merger.’ In this environment, ‘shared’ services may get the last laugh.

Bill Crawford runs a non-profit organization in Meridian. Email: crawfolk@gmail.com.

Text Only

Columns

Today’s need — $3,893.76
Today’s need concerns eleven circumstances. The first need is a couple in their forties working all the hours they can. The husband’s paycheck has been running low because he has not been receiving the hours at work he was accustomed to. With $274.38 we can keep their utilities form being cut off.

February 4, 2012
Killer, the cat ...
February 3, 2012
Counsel fight remains a political cold war
The ongoing legislative battle over the so-called “outside counsel” or contingency fee law remains a political cold war between the state’s trial lawyers and the state’s business and medical interests – and it’s a story that has two sides.

February 1, 2012
Travel technology
After leaving the Trapani Salt Flats on the western coast of Sicily on a late November afternoon, I maneuvered our vehicle down yet another remote, unmarked dirt road and passed dozens of vacant houses. No one was on the streets. It had been 10 minutes since we had seen another car. Sunlight was at a minimum. We had been warned several times about remote areas of Sicily.

February 1, 2012
Restoration spurs renewal in East Miss.
Choctaw tribal chief Phyliss Anderson restored and reopened Phillip M’s at the Pearl River Resort last week. She also signaled her intent to renew the economic policies so successfully implemented by the restaurant’s namesake.
"Under the visionary leadership of our late Chief Phillip Martin, our tribe realized great progress and today I am proud to honor his legacy with the re-opening of Phillip M's," said Anderson, flanked by members of Martin's family.

January 30, 2012
Today’s need — $2,393.77
1 JOHN 3:17 - “If anyone has material possessions and sees his brother in need but has not pity on him, how can the love of God be in him?” Praise belongs to God as every need in 2009, 2010, 2011 and 2012 has been met. Thanks to everyone who has generously given over the years to change lives physically, financially, and spiritually. Each week I stand in awe of God as I witness God’s provision in our lives.

Today’s need concerns six circumstances. The first need is a lady in her fifties just released from the hospital. Her sister she was living with died a few months ago. She is trying as hard as she can to pay the mortgage to keep her sister’s house. She has been able to maintain all her expenses so far but does not have money for her prescriptions. These prescriptions are necessary to keep her physically well. With $300.00 we can provide her much needed medications.

January 29, 2012
Gratitude
As I sit down to write this first column in a wrap-up series of the six-month, 17-country, two-continent research tour through Europe, I am struck by an overwhelming feeling of gratitude.
I am grateful to the employees and managers of our restaurants who did an excellent job keeping the wheels in motion during my absence. I am grateful to our customers who helped make 2011 a record sales year for the company. I am grateful to longtime friends, new friends, and friends we have never even met for their prayers of support and well wishes. I am also grateful to the friends we met along the way.

January 25, 2012
Today’s need — $3,250
Today’s need concerns seven circumstances.

January 21, 2012
Family travel in France
While staying the City of Lights, I could write about the Louvre, Versailles, and French food. But as I start to wind down this six-month trip, I catch myself in a reflective mood looking back over the journey.
Back in Greece, I watched several college-age kids ride up the ramp of our ferry on motorcycles ready to cross the Adriatic Sea. I regretted not taking time off during my college years to backpack around Europe. I was always working.

January 18, 2012
The Tebow dilemma
January 15, 2012
More Columns Headlines

Columns

Search Results

Discussion

‘Shared Services’ no laughing matter

Site Map

Contact Us