Performance Improvement in the Public Sector
UK Shared Business Services Limited (UKSBS) engaged PwC to enhance its public sector shared services by improving processes, data visibility, and operational culture, resulting in a 161% ROI and significant improvements in cost savings and service quality, ultimately positioning UKSBS to lead in delivering better value for taxpayers and driving productivity across the civil service.
UK Shared Business Services Limited (UKSBS) provides shared services for the UK’s public sector, including HR & Payroll, Finance, Procurement, and Digital. Its vision is to be the UK’s leading provider of public sector business services, and deliver better value for taxpayers. With the UK trailing the G7 average since 2008, any plans to improve productivity by streamlining back-office operations would be welcomed by the government – and would save the taxpayer billions.
If UKSBS could be successful in reducing costs, improving productivity and driving enhanced service quality, it would improve the performance of its own organisation, andwaso drive productivity benefits across its customers, by freeing up civil service capacity to focus on policy and delivery objectives. But this would require the data to identify, quantify and measure further future cost or performance improvement opportunities.
UKSBS therefore commissioned PwC to deliver on its vision, by improving its processes, data, cost visibility and forecasting, and driving a step change in culture and attitude to change. From the outset, PwC established a ‘one team’ ethos with UKSBS, codified in a Partnership Charter. They built strong and trusted relationships at all levels, from junior UKSBS staff and PwC graduates, through to C-suite and senior programme leadership.
At the heart of the programme’s success was PwC’s unique Perform Plus approach to rapid operational excellence. It uses data and smart technology to help operational teams prioritise their activities, improve productivity, and sustain morale and momentum through major transformation programmes. By using Perform Plus to tackle the biggest areas of inefficiency first, PwC not only delivered early cost savings, but also created impetus and built enthusiasm.
A capability assessment of UKSBS’s Executive Committee helped build customer confidence in the future of the UKSBS organisation, and a review of its governance model identified and remediated blockers to effective decision-making – both within UKSBS and across its wider client ecosystem. These activities, in combination with a growth strategy and pricing model review, helped UKSBS adopt a more commercially focused mindset, and apply best private sector practices to deliver public benefits and system efficiencies. The approach delivered huge benefits for UKSBS internally, as well as improved service quality for its customers – as recognised in the programme’s nomination at the UK Customer Satisfaction Awards in the Employee Engagement category.
Cost baselining and forecasting was another important workstream, not only to help UKSBS drive major improvements and build its resilience, but also to align with Treasury desire for more robust forecasting across public spending.
UKSBS has adopted PwC’s cost control model into its everyday business practice, and accelerated improvements to its charging and reporting processes. With its new leadership capabilities, the organisation continues to embed the Perform Plus approach, to drive further operational benefits.
Overall, the programme delivered a 161% ROI for PwC’s client, based on financial benefits alone, which excludes improved service quality and reduced risk exposure. The impact has been so great that elements of the work are being shared as best practice across Whitehall and internationally.
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