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30AccordingtotheNSWDepartmentofPremierandCabineta2009reviewof193publicandprivatesharedservicecentresintheUSEUandAsiaPacix1dcbytheHacke.GroupSharedServicesPerformanceStudyfoundthatSharedServicereformdeliversover20reduc-onincostwithimprovedlevelsofserviceandquality71ofSharedServicesOpera-onplantoachieveover20reduc-onincostsand61ofSharedServicesOpera-onshaveachievedover20insavings.TheDepartmentsaid20ReformofCorporateandSharedServiceswithintheNSWGovernmentox17ersasignix18cantopportunityforimprovementsinconsistencyofcustomerserviceandex19ciencybenex18ts.Achievingthesebenex18tsrequiressignix18cantchangeandthebringingtogetherofsimilarcapabiliesandreengineeringprocessestoleveragescaleincludingConsolidangICTplaormsx18xedcostspreadacrossgreateruserbasehigherulisaonofinfrastructurereducedmaintenancesupportperuserAmalgamaonofworkforcetoservicemulpleclientsincreaseddepthofskillsincreasedsupervisoragentraoincreasedulisaongreaterx1aexibilityofworkforceKnowledgeexchangelearnitonce-nottwicesupportsstandardisaonandmaintainsvisionLocaonandfacilityalignmente.g.consolidatedox19cespacelocaonbasedonskillsavailabilityIfdiversespheresofprivateandgovernmentac-vitycanachievegreaterex1eciencyandex1cec-venessthroughsharingserviceswithoutfullamalgama-onthensurelythesamecanbedoneinlocalgovernment.ASSESSINGALTERNATIVESTRUCTURESThelastwordonthesubjectofhowtostructurelocalgovernanceshouldcomefromtheAustralianCentreofExcellenceforLocalGovernmentACELGwhichin2011tookafreshandobjec-velookattheresultsofconsolida-oninlocalgovernmentbothinAustralasiaandtherestoftheworld.21ItconcludedthatOngoingchangeinlocalgovernmentisunavoidableandconsolidaoninitsvariousformswillbepartofthatprocess.Asageneralrulebenex18tsofsomesortdoaccruewhencouncilsadoptmechanismstocollaborateorconsolidatewithotherlocalauthories.Potenalbenex18tsarereducedorlostwhentheprocessisx1aawedduetoinadequateplanningandconsultaonorafailuretoconsideralltheoponsavailableandpreciselywhateachcouldachieve.Itsprimaryresearchx1dndingwasThereislileevidencethatamalgamaonwillautomacallyyieldsubstanaleconomiesofscale.Whatismoreobviousisthatvariousformsofconsolidaonhavethecapacitytoyieldeconomiesofscope.Economiesofscopecomefromsharingserviceswhereaseconomiesofscalecomefrompurelysize.Theverdictisinx13sharingservicesmakessensesimplygengbiggerdoesnot.Inexploringfuturestructuresoflocalgovernmentoneshouldnotconx1dneoneselftothebinarychoiceofstatusquoversusamalgama-on.ThereareotherchoicesinbetweentheseProfessorRonaldOakerson22iden-x1dedsevenpossibleavenuesfordeliveringservicessixofwhichinvolvetheprocurementofsharedservices.Theyarea.x18In-houseproduc-onx19whenalocalcouncilarrangesitsownproduc-onb.x18Co-ordinatedproduc-onx19wheretwoormorecouncilsco-ordinateproduc-onac-vi-esc.x18Jointproduc-onx19wheretwoadjacentcouncilsorganiseasingleproduc-onunitd.x18Intergovernmentalcontrac-ngx19whereonecouncilcontractsservicesfromanothercouncilorstateorfederalgovernmentagencye.x18Privatecontrac-ngx19whereacounciloutsourcestheservicetoanexternalprivateserviceprovider.f.x18Franchisingx19whereacouncilgivesacommercialproducertherighttoproduceagivenservicefromwhichresidentscanpurchasetheserviceg.x18Voucheringx19whereacouncilsetsstandardsandthelevelofprovisionallowhouseholdstoselecttheirownproducerusingavoucher.ProfessorBrianDolleryhasiden-x1dedsevenalterna-vemodelsoflocalgovernancethatcoverax1ccon-nuumgivenbythedegreestowhichpoli-calandopera-onalcontrolcanbecentralisedordecentralisedbetweenlocalcouncilsandtheneworganisa-onalen-tytheyjoinx1d.23Theyare20NSWDept.ofPremierandCabinetBlueprintforCorporateandSharedServicesintheNSWGovernment15thJuly2010page6h.pwww.dpc.nsw.gov.au__dataassetspdf_x1dle000397572100715_Blue_Print_for_Corporate_and_Shared_Services_in_the_NSW_Government.pdfpage621ChrisAulichetal.ConsolidaoninLocalGovernmentAFreshLookACELGMay2011h.pwww.acelg.org.auuploadOp-ons20for20Consolida-on20-20Flyer.pdf22R.J.OakersonGoverningLocalPublicEconomiesCreangtheCivicMetropolisICSPressOaklandCa1999pages17-18.SeealsoACELGLegalandGovernanceModelsforSharedServicesinLocalGovernmentInterimReportMay2012page723BrianDolleryAlexandraAkimovJoelByrnesSharedServicesinAustralianLocalGovernmentRaonaleAlternaveModelsandEmpiricalEvidenceAustralianJournalofPublicAdministra-onJune2009pages2008-2019.SeealsoACELGLegalandGovernanceModelsforSharedServicesinLocalGovernmentInterimReportMay2012pages6-7extremesthatcanachieveboththeex1eciencyofscalethroughserviceoutsourcingandscopeviasharedservicesandtheex1cec-venessofspecix1dcitybylocalplacemanagementandspeedfromcodix1dedprac-cewith-melimits.PART2THELOCALGOVERNMENTSECTOR