Presentation by:Bruce Manion FCMAVancouver Chapter

June 20th, 2012

The Brave New World of Shared Systems and

Shared Services

G203OUTLINE

• Some Definitions• A Wide Range of Approaches• Why Are We Doing This?• Where We’ve Been and Where We Are Now• Where Others Have Gone Before • Key Considerations• Future Perspectives – What’s on the Horizon?• Wrap-Up

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DISCLAIMER

G203SOME DEFINITIONS

• Any activity or set of activities, or their supporting systems, that are performed or maintained on behalf of numerous and distinct corporate entities

• Not restricted to corporate (internal) services – can also be program or external service delivery activities

• Cover a very wide range of activities, operations and systems (Fin, IT, HR, Admin, Info Mgt, Materiel/Asset Mgt, Procurement, Security, Planning, Reporting, Program Delivery, G&C’s, etc.)

SHARED SERVICES / SYSTEMS ARE:

THEY ARE NOT THE CENTRALIZED SERVICES AND SYSTEMS WITHIN A SINGLE ORGANIZATION

G203A WIDE RANGE OF APPROACHES

• ‘BIG BANG’• BY DECREE• QUIET EVOLUTION (ORGANIC)• RIGHT TIME TO CHANGE• SYSTEMS FIRST• BPR FIRST• OUTSOURCING - Solicited / Unsolicited

G203WHY ARE WE DOING THIS?

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-2015

2014-2015

2015-2016

BudgetaryRevenues

242.4 233.1 218.6 235.6 249.1 264.4 281.2 298.6 309.2

Total Expenses 232.8 238.8 274.2 271.7 281.4 283.8 290.7 297.1 305.0

Surplus / (Deficit) 9.6 (5.8) (55.6) (36.2) (32.2) (19.4) (9.4) (0.3) 4.2

Other Income 0.2 2.2

Federal Debt 457.6 463.7 519.1 553.1 585.4 604.8 614.2 614.5 610.3

($ billions)

Source: Federal Budgets – Fiscal Framework

Evolution of Federal Resources

G203WHY ARE WE DOING THIS?

• Cost Avoidance• Reduced Complexity and Risk• Ease of Operation / Maintenance• Enterprise-Wide View• Data Integrity• Facilitate Training and Development• Political / Commercial Pressures

G203WHERE WE’VE BEEN AND WHERE WE ARE NOW

• Not New in the Federal Govt• A rich history in centralized services• Common Endorsed System Clusters and Central

Service Organizations (Early-to-mid 90’s)• Corporate and Administrative Shared Services

(2004)• Central Policy Changes (2004-05)• Admin Services Review (Budget 2010)• Shared Services Canada (Aug 2011)

G203WHERE OTHERS HAVE GONE BEFORE

• Govt of Nova Scotia SAP shared system (1997)

• State of Western Australia (2003-11)• Govt of Ontario – Ontario Shared

Services (2004) and E-Ontario (2005)

• State of Massachusetts (2009)• Service Canada, Service Ontario, etc.

G203KEY CONSIDERATIONS

• No 2 designs or approaches the same• Not just about technology• What about accountability?• Service, service, service• The tyranny of numbers• People issues are huge

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• Common Financial Management Business Processes (FM-BP)

• Common Enterprise Data Initiative (CEDI)• Common Financial Management System

Configuration Initiative (FM-SC)• Continued Evolution of Shared Service/ Systems

Organizations• Cross-jurisdictional sharing?• Impact of new technologies – Life in the Cloud

Future Perspectives What’s on the Horizon?

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Goal: To develop an integrated framework of ‘should be’ common processes that standardize and modernize the delivery of financial management.

Deliverables: 20 TBS Guidelines for GC depts.

Future Perspectives What’s on the Horizon?

Common Fin Mgt Business Processes (FM-BP)

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Goal: To establish a common financial language, provide governance and standards for financial information and data, and facilitate the delivery of policy instruments and repositories necessary to enable greater interoperability among stakeholders.

Deliverables: 6 TBS Standards & several TBS Guidelines

Future Perspectives What’s on the Horizon?

Common Enterprise Data Initiative (CEDI)

G203Future Perspectives What’s on the Horizon?

CEDI

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Goal: To identify a set of common financial management system configuration requirements for the Canadian federal government within the context of its legislative and policy framework, intended to apply all depts and agencies

Future Perspectives What’s on the Horizon?

Common Fin Mgt System Configuration (FM-SC)

Deliverables:

TBS Guidelines providing Standardized DFMS configuration requirements which are:

•System-independent, modular, interoperable •Common to all departments and agencies

G203Future Perspectives What’s on the Horizon?

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System/Service Transformation

Future Perspectives What’s on the Horizon?

• 5 DFMS • 30 – 40 configurations• Over 100 departmental charts of accounts• Differing services and standards

NOW

• 1 DFMS used at a variety of service points• 1 standard configuration• 1 departmental chart of accounts• Common services and standards

3-4 YEARS OUT

G203WRAP-UP

• A very complex issue• No two organizational environments are

truly alike• Continued fiscal pressure - continued

pressure to share• No one right way to do this

Mother was right …sharing your toys is the right thing to do!

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QUESTIONS?