Enabling a high-performing and sustainable shared service: The journey of a management engineering and consulting group

Jodi L. Grimm, Janine R. Kamath, Jan C. Jasperson and Dorothy A. Larsen
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Jodi L. Grimm: Mayo Clinic, USA
Janine R. Kamath: Mayo Clinic, USA
Jan C. Jasperson: Department of Management Engineering & Internal Consulting, Mayo Clinic, USA
Dorothy A. Larsen: Mayo Clinic, USA

Management in Healthcare: A Peer-Reviewed Journal, 2020, vol. 4, issue 3, 231-247

Abstract: The value of a shared service organisation (SSO) is recognised in transactional functions across manufacturing, technology and finance. Successful application of an SSO in healthcare is limited, particularly in professional, non-transactional functions. This article explores the application, effectiveness and challenges of creating an SSO in a fast-paced, dynamic environment. The Department of Management Engineering & Internal Consulting (ME&IC), a team of engineering and consulting staff at Mayo Clinic, completed its SSO journey by leveraging lessons from Mayo Clinic and various industries. Methods to implement a successful SSO included a literature review, customer and leadership interviews, and cross-industry benchmarking. ME&IC converged and streamlined its services, expenses, infrastructure and service delivery; realised economies of scale; translated best practices; and optimised staff talent. The SSO enabled customer responsiveness and performance excellence by integrating talent, processes and technologies. An effective SSO supports policy standardisation, agile decision-making, strong change management, consolidation of shadow groups, resource alignment with strategic priorities and more accurate measurement and benefits realisation. To achieve success, SSO models must be adapted to organisation culture, leadership commitment and service delivery expectations. The systematic transition to an SSO and lessons learned by ME&IC are broadly transferable to professional groups across industries.

Keywords: benefits realisation; customer responsiveness; economies of scale; integration and alignment; shared service; talent (search for similar items in EconPapers)
JEL-codes: I1 I10 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aza:mih000:y:2020:v:4:i:3:p:231-247

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