Public Sector Ethos and Private Sector Legitimacy: The Paradox of Political and Managerial Rationalities in a Shared Service Organisation

Abstract: By concentrating its service activities in a shared service organisation (SSO) at a site specially chosen for the purpose, a company can reduce costs, focus on its core competencies, standardise processes and apply the best technology appropriate to a service business. Drawing on evidence from the creation of a shared service organisation within the UK public sector the paper explores its contribution to the institutionalisation of new working practices and how a range of stakeholders make sense of a number of ideological, political and management paradoxes that arise from the ‘New Commercial Agenda’. Some implications for management accounting and management accountants are noted.