Critics of Shared Services
The management thinker and inventor of The Vanguard Method, Professor John Seddon claims that shared service projects based on attempts to achieve 'economies of scale' are a mix of the plausibly obvious and a little hard data, brought together to produce two broad assertions, for which there is little hard factual evidence. He argues that shared service projects fail (and often end up costing more than they hoped to save) because they cause a disruption to the service flow by moving the work to a central location, creating waste in handoffs, rework and duplication, lengthening the time it takes to deliver a service and consequently creating failure demand (demand caused by a failure to do something or do something right for a customer).
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