The Transformational Government strategy has its critics – most of whom say that while the plan is sound, nothing is actually happening.

But the outcome of last week’s Civil Service Steering Board (CSSB) appears to have put paid to such scepticism. The CSSB agreed that two of the larger departments are ready to provide human resources (HR) and finance functions as a shared service. And the Cabinet Secretary is writing to smaller departments to encourage them to sign up to the scheme.

The potential benefits of shared services are not to be sniffed at. Last year the government estimated annual savings of 20 per cent, or £1.4bn, through sharing HR and finance alone.

But putting the plan into practice will be neither quick nor painless.

The biggest problem will be one of timing. Any suggestion that savings can be made in even the medium term is not only unrealistic, it is a dangerous step down the well-trodden path towards project failure.

Business change programmes cannot be rushed, and unrealistic expectations have been a key factor in past IT disasters. So the worryingly prevalent view of shared services as a quick route to efficiency savings within the next three-year budget round presents a double whammy of potential disaster.

Personnel reductions will be the other major sticking point.

Discussions about the benefits of shared services tend to gloss over the staffing implications of removing a chunk of administrative function. But the predicted 20 per cent cost reduction includes a similar proportion of job cuts going hand-in-hand with cash savings, a figure likely to further anger the Public and Commercial Services union.

Anything that improves the performance of the public sector is a good thing, and last week’s developments look like genuine progress. But the government must not expect too much too soon. And Whitehall must be ready for a bumpy ride.