Financial Management Transformation (FMT)

Transcription

1 Financial Management Transformation (FMT) Presentation to fmi*igf PD Week 2013 Transformation for Innovation November 26, 2013 Financial Management Transformation Sector Office of the Comptroller General of Canada

2 Objectives To provide an overview on Financial Management Transformation (FMT) in the federal government of Canada, including: Overview and Context Vision and Approach What you can expect A Call to Action 2

3 GC financial transformation evolution - a historical perspective Common Business Processes (FMBP) And Data (CEDI) TBS Standard on ERP Systems (CIOB) 3

4 Government of Canada (Current State of Financial Management) 113 Departments and agencies 500+ Applications related to financial management 1,400 Towns and cities throughout Canada 100s International Locations 377,000 Self-service users *Indicative values, exact values will vary with time 4

5 Strategic Guidance We are determined to shift departments away from owning and operating different systems that meet similar back office needs," said Minister Clement. "This will free up resources that can be reinvested in modernized applications. My intention is to have government act more like the enterprise it truly is. Identify common issues, develop a roadmap, and work with the private sector to implement new solutions. (Tony Clement, Minister of Treasury Board) (Wayne Wouters Clerk of the Privy Council) To ensure that we continue to offer Canadians excellent service we must make silos, as an organizational structure, a thing of the past. We must do our utmost to present our elected representatives with accurate and timely information to ensure that they have the best background possible upon which to base their decisions. On Blueprint 2020 A whole-of-government approach that enhances service delivery and value for money As I describe it, the enterprise approach discards the notion of departments as independent corporate entities in favour of the notion of departments as divisions of Canada Inc. We expect financial information to be more complete and consistent; more timely and useful with an increased ability to perform financial analyses. (James Ralston, Comptroller General) 5

6 What Direction Has Been Given? TBS Policy on the Stewardship of Financial Management Systems Common business processes, data and configurations TBS Standard on ERP Systems identifying SAP as the common solution for financial management Government Administration Sub-Committee has endorsed a strategy for an Application Management Services (AMS) approach for GC Enterprise Systems Increase Partnerships with the Private Sector Support low complexity departments and agencies at the outset 6

7 FMT Opportunity Statement Transform financial management Streamline, standardize and automate business processes; increase selfservice for routine transactions Integrate and standardize information across processes, organizations and back office functions (e.g. HR) Enterprise approach to financial management systems Enterprise financial management service delivery model Refocus resources on higher-value advisory services; enhance skills & competencies to enable: Better information for decision-making Act and react as one organization; enterprise approach to financial management of GC More effective and efficient financial management services Efficiencies and Cost savings 7

8 Optimizing the value of the GC financial management function Streamline and automate routine transactions; integrate information and processes across functional boundaries Redirect resources to higher value services Increase overall value provided to the business Value-added, business partner services Current-State Decision Support Control Reporting Target-Model Potential Savings Decision Support Control Transaction Processing Reporting Routine, process oriented services Departmental Financial Management Systems Transaction Processing GC Enterprise SAP 8

9 Overview of the FMT Program FMT is a business-led effort across the Government of Canada to fundamentally change the way the financial management function supports enterprise management and decision-making to support effective program delivery and service to Canadians. FMT will deliver a streamlined, consolidated and integrated enterprise system for financial management in the Government of Canada. FMT will include enhanced financial management services and will support enterprise back office management efforts to modernize, rationalize and find efficiencies, particularly as it pertains to departmental financial management systems. 9

10 Back to basics What is an ERP? Enterprise Resource Planning (ERP) systems enable the flow of information across the organization, in end-to-end business processes, through a comprehensive set of interconnected modules. ERP systems are packaged application software suites, which enable the common business processes, functions and data for the systems of record in an enterprise. The Enterprise is the entire Government of Canada. 10

11 Overview of the complexity of Financial Management in the GC The common business model must support many other resource management and program delivery functions tightly coupled with financial management. 11

12 FMT - Transformation Approach Timely, agile and responsive data. Streamlined, and automated processes. Consolidated systems platforms. Target Model Fully Defined Leverage foundation to accelerate standardization and consolidation. Rigorous investment plan and performance measurement. Engage FMT Governance Harvest and re-use solutions (e.g. ESDC), and support initiatives building core capability. Assess alignment: continue, re-vector and halt on-going initiatives as appropriate. Initiate transparent performance measurement. Continue to tighten policy requirements for process and information. Increasing momentum towards standardization (FM-BP, CEDI, FM-SC); progress is hampered by decentralized current-state model. Redundant investments in process and system changes continue; operational support costs remain high. 12

13 Services Transformation Approach A key outcome of meeting Government direction and CFO expectations is to review Financial Services Delivery. Options under consideration include internal and external models such as : Shared Services Private Sector Partnership Centralized Services Consolidated Services 13

14 Where we are on this journey? Spring 2013 Project Team launched Assistant Deputy Minister level advisory board implemented Summer 2013 Program Outreach initiated Government of Canada Business Requirements gathering Fall 2013 DM level TBS co-ordination committee started Director General level enterprise oversight committee launched Work closely with Low Complexity Depts & Agencies 14

15 Next Steps Fall 2013/Winter 2014: Complete FMT business case Accumulate high level business requirements Develop GC FM model Summer 2014 (estimated) GC SAP configuration for less complex organizations Summer/Fall 2014 Work with departments to confirm potential convergence date, develop readiness workplan. 15

16 FMT - Challenges Understanding the complexity of the government of Canada Communications and Stakeholder Engagement Significant Change Management Departmental focus versus Government of Canada enterprise view Culture / experience of leading similar initiatives needs to be overcome or results will be compromised SAP is seen as an IT commodity Current data on service levels and costs of financial management is limited. 16

17 Key Messages for Today Establishing central leadership, clear government of Canada Enterprise governance; with comprehensive engagement are critical FMT and the Financial Management Community need to work together in order for us all to collectively succeed It is about enterprise lens balanced with departmental view FMT is not about technology, it is about an integrated solution that involves systems, services and tools The success of FMT and other enterprise initiatives are interdependent and can not done in isolation 17

18 FMT - A Call To Action Governance Business model Pilot Open dialogue 18

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