A fireside chat with Terri Williams, Civiteq’s Customer solutions lead for central government ERP
As Arms-length bodies (ALBs) gear up for a future move to a shared service, what can be expected and how can the well-known reputational risks associated with such a large-scale change be mitigated? In this blog you’ll read the views of Civiteq’s Central Government shared service expert, Terri Williams, as Terri shares guidance on identifying the failures and avoiding them, to achieve a successful transition.
Q: What are the common failures when transitioning to a shared service?
I wouldn’t say failure exactly. When transitioning to a shared service, the main challenge is not outright failure but unrealistic expectations about timelines, costs, and benefits. Many programmes struggle due to over-optimism – underestimating the effort needed for business-as-usual (BAU) tasks alongside project work and overestimating how prepared the organisation is for change.
Key risks to point out include:
- Underestimating resource demands – Expecting teams to balance day-to-day operations with transformation tasks can lead to delays
- Poor process understanding – Insufficiently documented processes make it difficult for system and business integrators to implement changes efficiently
- Data quality issues – A lack of clarity on what data is clean or aligned with new system requirements can create unexpected hurdles
- Misjudging standardisation – Government-wide frameworks like NOVA require alignment, but many departments assume they already conform when, in reality, adjustments are needed
Over-optimism leads to shorter-than-realistic timelines, underestimation of the work required to bring processes and data to the necessary standard, and increased costs due to unforeseen complexities.
To mitigate these risks, finance leaders should focus on realistic planning, thorough process mapping, and ensuring data readiness. A well-prepared transition, rather than an overly ambitious one, is key to success.
Q: What unique risks do ALBs face when transitioning to an ERP shared services cluster?
Transitioning to an ERP shared service cluster presents unique challenges, as it brings together departments that have not previously worked closely. While some processes can remain unique, many must be standardised, requiring significant alignment.
Further risks to consider:
- Diverging departmental needs – Achieving consensus across major ministerial departments is difficult, leading to delays
- Over-optimism about collaboration – The assumption that departments will seamlessly align can underestimate the complexity of standardisation
- Maximising software functionality – Leveraging vendor capabilities effectively requires careful planning.
Success depends on realistic expectations, clear governance, and strong cross-departmental coordination.
Q: What are the key signs an ERP programme is failing against its cost or time targets?
Again, I wouldn’t say failing; a programme isn’t necessarily failing but may be in danger of missing cost or time targets.
Key warning signs include:
- Shifting scope or expectations – Changes in what the central organisation or system integrator will deliver can impact individual department business cases
- Gaps in integration and data migration – If assumptions made in early planning do not match contractual realities, unexpected costs and delays arise
- Unclear business change responsibilities – Departments may underestimate their role in transformation, expecting more from the central programme than planned
- Lack of proactive risk management – Waiting for external reviews (e.g., IPA assessments) to highlight issues rather than addressing risks early can lead to a crisis.
To mitigate risks, continuous monitoring, early flagging of issues, and proactive resourcing are essential.
Q: What is the best way for ALBs to monitor programme effectiveness?
Good programme governance is essential, but success also depends on dedicated resources and early engagement. Key factors include:
- Allocating subject matter experts and decision-makers – They must have the time to focus on the programme, with backfilling for their BAU tasks
- Early involvement in design and testing – Identifying issues early prevents last-minute crises before cutover
- Proactive risk management – Waiting until the end to flag problems can lead to high-profile failures
A well-monitored programme balances strong governance, resource planning, and early intervention to avoid costly delays and reputational damage.
Q: How can ALBs mitigate the risks of cost overruns and delays in shared services programmes?
To prevent cost overruns and delays, early preparation is crucial. Key actions include:
- Comprehensive resource planning – Identify process flows, assess business change needs, and plan for necessary expertise before starting. Reacting late is far more expensive than proactive preparation
- Early investment in data readiness – Data cleansing and migration are resource-intensive; addressing issues early prevents delays and excessive system and business integrator costs
- Strategic staffing – Consider short-term consultancy support or temporary civil service hires to manage workload spikes efficiently
By planning ahead, securing resources, and addressing data challenges early, ALBs can significantly reduce risks and unexpected costs.
Q: What other key factors should ALBs consider?
I think the biggest piece is about open and honest communication. Clear and honest communication is critical for ALBs transitioning into shared service clusters.
Key considerations include:
- Engaging with governance forums – Every cluster has structured governance, and ALBs must stay actively involved to ensure they receive the necessary support
- Understanding departmental relationships – ALBs should clarify their reporting lines, the role of their ministerial department, and what support they can expect versus what they must handle independently
- Proactive issue escalation – Raising concerns early prevents last-minute surprises that can lead to costly delays or even make transition unfeasible
While transitioning may be challenging, strong communication mitigates risks and reduces complexity.
Seeking strategic guidance
For ALBs, the cluster solution will not be a complete solution, you will need to consider your own processes, controls, reporting and data migration now, in relation to the cluster shared service.
At Civiteq, we are technology agnostic experts, who can help you on your pathway to change, to overcome the challenges you may face with data and change, and support you to optimise your current assets whilst you wait for your future move to your allocated cluster.
Get in touch or book a meeting with our Account Director, Bryan Gibb, to discuss your shared services journey with us.