24/10/07 : Brave new collaboration
BHP has agreed for their Chief Executive to manage neighbouring Arms Length Management Organisation (ALMO) Kensington and Chelsea TMO (KCTMO) for the next year. Helen Evans will share her time between the two organisations leading each separately but representing both at national or government meetings.

This arrangement is the first of its kind for two ALMOs and was precipitated by the departure of KCTMO's Chief Executive Gordon Perry leaving for a new job in the North of England. KCTMO opted for a temporary arrangement because they are in the middle of a formal stock options review, the outcome of which won't be known until the end of next year. The shared arrangement gives them the flexibility to adapt their long term recruitment plans to what ever the result of the stock options review is.

But what is in it for BHP? Company Chair, Kathy Ellison explains: "Part of BHP'S long term strategy to maintain resources for front line services is to generate external income and share back office costs with other organisations. This arrangement achieves both these objectives. It also consolidates the other shared services that we have already agreed with KCTMO which include Human Resources, Communications and Health and Safety. Everybody is talking about shared services but BHP and KCTMO are actually doing it.

"This arrangement generates savings for both ALMOs and provides unprecedented opportunities for us to learn from each other and share best practice. We will still be two completely separate organisations with our own identities, but where we can, we are sharing back office costs."

Helen Evans added: "I am confident that this arrangement can work well for both parties and it is representative of the bold and innovative nature of our organisations that we are prepared to give it a try."