Overview

Shared services allow cooperatives to pool resources, reduce costs, increase operational efficiency, and expand service offerings without losing their local autonomy or cooperative identity. By designing intentional shared services agreements, cooperatives can achieve economies of scale while reinforcing the cooperative principle of cooperation among cooperatives.

This best practice outlines how to create a shared services model that supports sustainability, member value, and long-term resilience.

Core Tactics:

• Identify Common Operational Pain Points.
  Shared services work best when they address real operational needs, such as:
  • Accounting and finance
  • IT infrastructure and cybersecurity
  • Human resources and training
  • Marketing and communications
  • Purchasing and supply chain management

Start with a Needs Assessment Across Potential Partners.

• Create a Formal Shared Services Agreement.
  Key elements include:
  • Clear description of services covered
  • Cost-sharing formulas
  • Governance structure (e.g., steering committee, advisory board)
  • Performance metrics and reporting requirements
  • Dispute resolution process
  • Opt-in/opt-out clauses

• Design Shared Governance for the Shared Services Entity.
  Ensure fair representation and transparency by establishing:
  • Rotating leadership roles
  • Equal voice in strategic decisions
  • Reporting structures to all participating cooperatives

• Pilot Shared Services Before Full Rollout.
  • Start with a 6–12 month pilot project for one or two services.
  • Gather feedback and adapt the model before expanding.

• Celebrate Early Wins and Communicate Regularly.
  • Share cost savings, service improvements, and new capabilities with members and boards.
  • Highlight how cooperation among cooperatives strengthens everyone.

Share ideas and continue the discussion on this topic.