Franko Group Policy Blog

Shared Services in Early Childhood

July 9, 2008 on 12:18 am | In early childhood, shared services | No Comments

A relatively new topic in early childhood is shared services or collective management. The idea behind this concept is for early care and education providers to capitalize on economies of scale by joining forces. There are typically several ways this might happen.

Under a “corportate merger” approach, a number of independent providers actually merge into one corporate entitity that then handles all human resources, purchasing, administrative and financial operations for the collective.

Another approach is for providers to come together as partners in a “program alliance” where an umbrella organization still manages many of the same business functions described above, but the individual providers maintain more programmatic independence.

Still another strategy allows involved providers to select financial, HR and administrative services from a menu of options provided by a third party set up for that purpose.

All of these ideas have been explored by national early childhood experts and are detailed on the local Merage Foundation website. They are worth checking out, particularly for communities and groups of providers who are looking for ways to make the business side of early care and education more efficient.