Financial Management Transformation - fmi update fmi PDWeek_e.pdf · Objectives To provide an overview on Financial Management Transformation (FMT) in the federal government of Canada,

Financial Management Transformation Sector

Office of the Comptroller General of Canada

Financial Management Transformation

(FMT)

Presentation to fmi*igf PD Week 2013

“Transformation for Innovation”

November 26, 2013

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

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fmi*igf PD Week - November 26, 2013

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GC financial transformation evolution

- a historical perspective

TBS Standard

on ERP

Systems

(CIOB)


Common

Business

Processes

(FMBP)

And Data

(CEDI)

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*Indicative

values, exact

values will vary

with time

113 Departments and

agencies

500+ Applications related to

financial management

1,400 Towns and cities

throughout Canada

377,000 Self-service users

100s International Locations

Government of Canada (Current State of Financial Management)


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“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”

2013 - 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.

“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.”

(Wayne Wouters – Clerk

of the Privy Council)

(Tony Clement, Minister

of Treasury Board)

(James Ralston,

Comptroller General) fmi*igf PD Week - November 26, 2013

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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

FMT Opportunity Statement

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Transform financial management…

• Streamline, standardize and automate business processes; increase self-service 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:

Act and react as one organization; enterprise approach to financial management of GC

More effective and efficient financial management services

Efficiencies and Cost savings

Better information for decision-making


• 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

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Transaction Processing

Reporting

Control

Decision Support

Transaction Processing

Reporting

Control

Decision Support

Potential Savings

Routine, process oriented services

Value-added, business partner services

Current-State Target-Model

Departmental

Financial Management Systems

GC Enterprise

SAP

Optimizing the value of the GC

financial management function


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Overview of the FMT Program

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.

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.


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• 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.

Back to basics

What is an ERP?


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The common business model must support many other resource management and program delivery functions tightly coupled with financial management.

Overview of the complexity of

Financial Management in the GC


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• 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.

• 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.

• Leverage foundation to accelerate standardization and consolidation.

• Rigorous investment plan and performance measurement.

• Timely, agile and responsive data.

• Streamlined, and automated processes.

• Consolidated systems platforms.

FMT - Transformation Approach

Engage FMT Governance

Target Model Fully Defined


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

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• 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

Where we are on this journey?


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.

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• 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.

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FMT - Challenges


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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


FMT - A Call To Action

• Governance

• Business model

• Pilot

• Open dialogue

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Documents

Financial Management Transformation - fmi update fmi PDWeek_e.pdf · Objectives To provide an overview on Financial Management Transformation (FMT) in the federal government of Canada,