Financial Management Transformation

Transcription

1 Financial Management Transformation Financial Management Institute of Canada November 24, 2015 Financial Management Transformation Office of the Comptroller General

2 Overview Recall: FMI 2014 Government of Canada Enterprise Transformation Enterprise Enabling Services Financial Management Transformation Changing Landscape Work to Date and Next Steps 2

3 Long Term Target State FMI 2014 Moving to a modern, more streamlined and standardized enterprise model for FM, similar to those adopted successfully by many others. From: decentralized, customized Information constrained within departmental and functional silos. Customized, often manual processes. Decentralized, rules bound services. To: Enterprise Enterprise information, reporting and analytics solution Modernized delivery model for financial management services $ $ $ $$ $ Complex, costly systems landscape Single enterprise platform for financial management 3

4 Transforming the FM Business Culture State FMI 2014 Not just about efficient operations; also, and more importantly, about being effective. Move from transactional and operational management to strategic and value-added management; FM personnel should be both business strategists and financial advisors. Technology should be an enabler of transformation; use the tools in new ways to support the required cultural shift. COMPONENTS FROM TO Services Focused primarily on financial administration Additional emphasis on strategic and advisory services (e.g., planning, forecasting and resource allocation) that add broader business value Organization Departmentally focused, autonomous Enterprise finance function People Back office specialist Business partner Process Department-specific, risk-averse, manual mindset Enterprise standard and optimal, automated, built-in controls Technology Incompatible systems and data Enterprise data model and systems Location In departments Balanced strategic sourcing, shared services Moving from the status quo to the target state will be a challenge that will require a significant cultural shift in the FM community that is supported by a comprehensive strategy and plan. 4

5 Enterprise Lens: A Broader View 5

6 The GC Enterprise Operating as one; a whole-of-government interoperable approach in support of coherent and consolidated service delivery. The enterprise enabling services that directly support delivering service to Canadians. Human Resources Management Shared Travel Services Financial Management Information Technology Pay Administration Information Management Pension Administration IT Infrastructure Learning and Training Assets and Real Property 6

7 The Government s Back Office A portfolio of technologyenabled processes, services, systems and resources that directly support the delivery of government programs that serve Canadians. It s almost impossible to provide good external service if your organization is not providing good internal service. - Benjamin Schneider, University of Maryland 7

8 Crucial to the Delivery of Government Programs that Serve Canadians 8

9 GC Back Office Transformation Strategy Near term plan as of winter 2014, guided by the long term vision o o o HR transformation is the priority Lay the foundation for FM transformation Develop the plan for Information Management Phased implementation Clear direction and timing regarding adoption of enterprise systems and services Gates provide opportunities to adjust direction and pace Gated/Phased Transformation Continued ministerial oversight and direction Workforce of the future December 2014 Near-term plan & priorities Target Enterprise Model Fewer, less costly systems More responsive administrative services, reduced business risk, Better information for decision-making 9

10 Lessons Learned Success Factors Flexible funding models Achieve and measure benefits Realistic expectations, timelines and pace of transformation Strong engagement with Departments and Agencies Principal Challenges Need for GC wide Strategic Governance and Plans Self-funding approach leads to longer time to benefits Acquiring necessary skills and expertise Significant change management efforts required Managing risks and impacts to Departments and Agencies Recent Actions Taken to Support the Transformation Leadership and Enterprise Program Management Office within TBS Enterprise program benefits realization strategy Strategic Governance: DM Level Committee - Enterprise Plans & Priorities Enhanced Operational Governance 10

11 Shaping the Workplace of the Future TBS has a leadership role in establishing a platform for enterprise transformational initiatives as outlined in the Program Alignment Architecture (Program 3: Government-wide Programs, Design and Delivery) OCG is working with the FM Community to advance Finance transformation by building the framework and vision. True transformation happens day-to-day within departments. 11

12 Continuing the Journey Holding the Path

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14 Changing Landscape for Financial Management Transformation FMT Funding Client-centric service approach Small Departments and Agencies (SDA) priority Data-driven direction from the government Cloud-first strategy 14

15 Drivers for Change OBJECTIVES Assembling useful GC-wide information is costly, slow and difficult Better Information for decision making DRIVERS Highly customized and department-centric FM business processes, information and systems. High level of manual processes and redundant activities around FM processes and services. Departments expending significant amounts on FM systems projects, many of which are duplicate efforts. Enhanced financial and resource management services More efficient financial management services Reduce on-going costs of supporting financial management systems Increased valuefor-money from on-going investments 15

16 Transformation Objectives Past / Current TRANSACTIONAL Providers of operational support Strategic Partnership & Business Advice Clients First / User - Centric Services Future BUSINESS ADVISORY Trusted advisor to the business; provider of decision support Transactional services Supporting planners and strategic advisors Enterprise Attitude Finance Function in siloes Coordinated government-wide approaches Risk Management Manual / ad-hoc intervention Predictable, reliable, automated controls Disparate cultures across the GC; no unifying vision and target Enabling Culture / Building Talent Tone is set from the top; sustained target for shaping the workforce of the future. Sophisticated Tools Multiple systems, multiple data models Powerful, optimized, standard tools, common environment 16

17 Change Innovation Transformation CHANGE INNOVATION TRANSFORMATION Incremental improvement Creating something new. Innovation differs from usual improvements about doing something different rather than doing the same thing better. Bringing new possibilities into reality; improving something for the better Transformation is more than replacing a system 17

18 How We Are Advancing the FMT Program Foundational Activities Stakeholder Perception Baseline Communications & Engagement Partnering with departments for resourcing Ongoing program planning, coordination, and reporting Getting More Value from SAP Establishing the relationship with SAP as a strategic partner SAP Knowledge Sessions to understand roadmap Focus on Priority Areas Maturing GC FM Model - Defined and validated approximately 70% of GC FM Functions with key departments Advancing Enterprise Information Reporting and Analytics capability (i.e. confirming information model, preparing for pilot) Enterprise Solution o Completed options analysis for implementation of an FM system for Low Complex Organizations (LCO) o Finalize functional scope of LCO solution o Workshops held with departmental representatives to initiate blueprint for the new SAP solution for financial management Renewing governance for existing FM system clusters Led horizontal consultations across TBS to assess progress of Pay Mod initiative 18

19 How We Will Continue to Advance FMT Move Beyond Foundational Activities Mature governance Broader stakeholder engagement Building the FMT team skillsets and capabilities Robust Organizational Change Management (OCM) program Getting More Value from SAP Product roadmap, optimization and use through a user-centric lens Strategic partnerships and renewed commercial agreements Focus on Priority Areas Aligning investments Enterprise Information, Reporting and Analytics capability, information model, pilot preparation Learning complexities of GC financial management Completing the design of a new SAP solution for financial management targeting needs of Low Complexity Organizations (LCOs) Advance HR and Finance considerations 19

20 Questions & Comments Lynn Gibault A/ Director, FMT 20