TO:	Executive Cabinet Agencies      Small Agency Cabinet

FROM:

Christine O. Gregoire

SUBJECT:

SHARED SERVICES DIRECTIVE

On Monday, February 9, I announced our Government Reform Package. One of the key components of this package is movement to a shared services model of delivering many of the "back office" functions that support the work of your various agencies - areas such as information technology, property and building management, motor pool and human resources.

Other states and private sector organizations have achieved significant benefits through the use of shared services - the practice of having a single group provide back-office administrative services or customer-facing activities for multiple agencies or departments. Sharing administrative functions between agencies will allow you to focus on your core missions of providing essential services to Washingtonians. I expect that our new shared services approach and governance structure will capture the benefits of economies of scale in a way that ensures good customer service to the client agencies. The service providers must be accountable for delivering a defined quality of service for a specific cost to the client agencies.

By this directive, I am requesting that each of your agencies provide full assistance and support in the development and implementation of a shared services model for how we operate. I have requested the directors of the following offices and agencies to lead this effort:

•	Governor's Executive Policy Office
•	Department of Information Services
•	Department of Personnel
•	Department of General Administration
•	Office of Financial Management

Between now and the end of this calendar year, the directors will work in partnership with state agencies to create shared service centers with expertise in the following operational areas. These centers would gradually become responsible for administering the following consolidated lines of business across state government:

Information Technology. The Department of Information Services will focus on using common infrastructure and services - including consolidation of e-mail services and expansion of the statewide data center - to reduce costs and improve information security and the collection of management information across state government.

Fleet Management. The Department of General Administration will assume operational responsibility for smaller motor fleets currently managed by state agencies. Consolidating fleets will eliminate under-used vehicles, improve maintenance, reduce costs to agencies, and result in a "greener" fleet that consumes less fuel and produces fewer emissions.

Property Management. The Department of General Administration will assume operational responsibility for a statewide facilities management system that reflects a comprehensive and integrated way to plan, manage and evaluate real property and asset improvements.

Human Resources. The Department of Personnel will identify the most cost effective way to establish a single point of entry for our citizens to find job opportunities with state government. The Department of Personnel will further explore how the state can better integrate its existing human resource systems and coordinate employee benefits, labor relations training, recruiting and time and attendance.

As we move forward with a shared services model, there will undoubtedly be additional functions identified where the model could produce enhanced customer service and efficiencies. I encourage all of you to be thinking along these lines and offer up your recommendations for a second phase of implementation.

My thanks to each of you for the spirit in which you have embraced our common goal and determination to reform Washington State government to make it more nimble and more relevant to the 21st Century needs of the customers we serve.

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