GFOAz Winter Conference
City of Mesa and our
CityEdge Change Journey
What is CityEdge?
• A citywide replacement of multiple Financial
and Business systems with a true ERP system.
– Performance Budgeting and Management
– General Ledger, Treasury, & Receivables
– Accounts Payable, Cost Accounting, & Fixed Assets
– Project & Grant Accounting
– Purchasing, Inventory & Contracts Management
– Timekeeping, Recruiting, HR, & Payroll
Where were you in 1981?
Mesa’s Major Financial Systems
• Mainframe, COBOL Accounts Receivable and
Timekeeping System.
• Desktop automation happened circa 90’s –
Access Database Budget System developed.
• Users got educated in PC and Microsoft tools –
“shadow” system developed.
• To date, there are over 1000 of these systems!
And then, finally, 25 years later…
• New City Manager – Chris Brady, arrives in 2006
and logs on to the AR and Budget systems and
immediately starts a reserve fund for a real
system. He has since, never logged on again.
• Manager of Technology and Innovation hired –
Me, in 2008. CityEdge project formally begins.
Project Initiation
• Hired a business management consulting firm to
be our guide.
– Knowledge of financial and business process #1
qualification
• Hired fulltime internal Project Management
team – 6 new staff.
• Developed and execute an RFP – 18 months
from start to vendor contract.
• Start change management – Work with Council
to “sell” the project.
Project Initiation
• $34 mm total project budget – Includes staff
and consulting resources.
• Capitalized the project as much as possible to
minimize impact on general fund.
• Unique components of requirements
– Vendor to roadmap and cost change management
and organization development
– Staffing, backfill and rewards included in budget
Council Approves!
• Council Approval on consent!
– Lots of work in the background.
– Individual briefings for all Councilmembers and
Mayor.
– Presentations to Audit, Finance and Sustainability
Committee.
– Presentations delivered by Controller and Budget
Director.
Current Major Milestones
• NEOGOV Online Recruiting
– Went live in May 2011
– Streamlined approval process
– Improved applicant screening
• Performance Budgeting and Management Live
• Financials & Payroll, Purchasing, Kronos – Live
on 7/1/2012, or else!
• HR and Learning Management Q3 2012, 2013
Project Timeline
Project Phases
J
Phase 1 - Performance Budgeting
& Management
Phase 2 - Financials
Kronos Timekeeping
Phase 2A - Vendor Self Service
Phase 3 - Human Resources and
Payroll
Recruiting - NEOGOV
Phase 4 - Meridian Learning
Management
Phase 4 - Employee Self Service
Envision
Build
Achieve
Go-Live
2011
F M A M J J
A
S O N D J
2012
F M A M J J A S O N
D
J
2013
F M A M J J A S O
All we are doing and changing, is
EVERYTHING!
AMS Advantage - Financial Applications
Financial Module Highlights – It’s All About the Numbers!
Accounts Receivable/Revenues
• Decentralizing Customer Invoicing
• Decentralizing Customer Set-up
• Decentralizing Customer Maintenance
• INovah No longer Used for Cash Receipting by
Cemetery, Convention Center and Mesa Arts Center
Accounts Payable
•
•
•
•
Centralized Input of Vendor Invoices.
Daily Check Runs for Vendor Payments.
EFT Transactions Offered.
Centralized 1099 processing.
Grants
• Grant Lifecycle Management Module
• Grant Programs Provide Tracking of all
Revenues and Expenditures
• Grant Expenditures are Subject to Budget
Control
• All Grant Activity Moved to a New Grant Funds
Payroll
• 50+ Modified Payroll, and Personnel Rules
Requires Council Approval
•
•
•
•
Stability Pay Paid on Bi-Weekly Basis
Payroll Expenses Recorded on Bi-Weekly Basis
Positive Pay
Kronos Time Terminals
Fixed Assets
• Overall Better Recording and Reporting of
City’s $2.5 Billion Fixed Assets.
• Able to Track Fixed Assets by Location.
• Funding Included as Part of Asset Information.
• Interfaces to City Works work management
systems
General Accounting
•
•
•
•
New Chart of Accounts Structure
Cost Allocations Occur on Bi-Weekly Basis
Still Maintaining Two Year-End Close Periods
All Debt Service Activity Moved Out of
Programs
• Expanded Use of Electronic Banking
Purchasing
• Encumbrances
– Budget Reserve (New)
– Pre-Encumbrance (New)
– Encumbrance
• New processes on PO’s
• Purchase Orders will now require:
– NIGP Commodity Codes (6800+ Codes to choose from) Includes services
– Detailed descriptions
• Maintaining partially-decentralized model
– <+$5,000 PO’s issued by departments
– >$5,000 - $25,000 quotes/proposals by departments – input requisition
– >$25,000 input requisition – Formal solicitation
• Requisition replaces Request for Bid Assistance form
• Cut-Off Date for Data Conversion – No Purchasing in June 2012!!!
Contracts
• All contracts will go in Advantage
– Collecting data on existing contracts to be uploaded during
conversion
– Contract documents will be scanned in and be attached to
award document
– Contract payments will then be initiated from that contract
– Contract receivables cannot be linked in the same way
– Does not include Falcon Field leases being billed through CIS
• Contract entry will be initiated by department using a
requisition, sent through workflow and upon final approval
put into an Advantage award document by Purchasing
• Contracts can then be tracked, reported on and have
notifications (insurance, bonds and expiration)
Vendor/Customer
• Vendors and Customers in single table in
Advantage
– Consolidating 7 different databases and systems
– Self-maintenance of vendor information
– Begin process of having vendors update their
information and re-register for bid commodities
– Set themselves up for EFT payments
– Download bid opportunities
– On-line vendor bid responses
• Workflow will be all new!
If That’s Not Enough!
• Replacing PeopleSoft HCM with AMS
Advantage.
• Sympro Application Used to Manage Debt
Service, Investments and Cash.
• NeoGov Used for Staff Recruiting
• Meridian Used for Learning Management
• Kronos Time Keeper and Time Terminals
Successful Change Management
Highest Level of Commitment
• City Manager is #1 Advocate with a clear
message.
– Don’t pave the cow path!
– We will change business processes, Mesa is not
that unique.
– We will implement best and standard practices.
– Be fully engage now or you can’t complain later.
– The City’s number 1 priority.
Executive Staff
• Executive Steering Committee – All City
Manager’s Direct Reports
• Meets at least monthly.
• Reviews and approves policy decisions in
meetings.
• Weekly Briefings to all Department Heads in
City Managers weekly meeting.
Move the individuals in the Organization to…
It’s an Individual Process
Denial
• Future vision
• Strategic need
• Current reality
Anger
• Allow outflow
• Support and counsel
• What is in it for me
Exploration
Adoption
• Small victories
• New role
• New skills
• Integrate learning and role
• Show new benefits
• Celebrate successes
Communications is Key
Targeted communications – Surveyed staff and
overwhelming need for sharing tangible impacts to
targeted audiences is the most effective approach.
• Microsoft Live meeting Q&A session.
• Face to face workshops for over 144 budget
liaisons and performance analysts.
• 75 Readiness coaches
• Largely, email continues to be the most effective
method for communicating updates, direction,
etc. to targeted audiences; this will continue to
be the primary method.
Extended Communications
• Citywide updates – Real-time InsideMesa web news
stories and updates.
• CityEdge SharePoint - updates and project repository
• Readiness coach - issues communications at
department meetings
• Executive/ mid-management meetings – from agenda
reviews to mid management meetings, we can discuss
the specific topics or updates that will be presented
through Go Live. .
• City Council – Briefings to our Audit and Finance
Committee and full Council during study sessions.
Can’t over Communicate!
Prepare the Staff
Assessment (needs
analysis)
Learning climate (prepare
environment)
Training
Ensuring human capacity
But, we also need to Move the
Organization
Influence culture – “the way we do
things here”
Communication, commitment,
credibility
Leadership and
Sponsorship
Builds high performance climate
Accountability, empowerment,
performance
Team and Leadership Development
is Critical
• Created a work space for Team. 50+ offices
and cubicles.
• Multiple break out rooms.
• 3 “training rooms”, with space for over 150
• Project Team assigned to this space for
duration of project.
• Regular assignments backfilled.
Consistent Project Messages From
Management
• Accessibility, timeliness, and clarity of data
– Empower managers with the tools and access
needed to make timely business decisions
– Be part of the process or you can’t complain
about it later
• Today’s transactions, tomorrow’s report
– Expenditures
–
Payables & Receivables
– Purchase Orders
– Hours Worked
Backfill and Management
• Team members 100% dedicated, backfill their
existing jobs.
• All levels
– Budget Director, Controller, Purchasing Director
and HR Director.
– CIO, Payroll Manager, Budget Analysts, HR
Analysts, Materials Manager.
• Backfill from internal as well as external staff.
Oops!
• Backfill uncovers weaknesses in some
departments.
– Middle management
– Single points of knowledge
– Succession planning
– 35% of Directors and Mid-managers retirement
eligible in a 5 year widow.
Project Messages
• Adopting best practices in context of the Mesa
way
– Automated timekeeping, consistent application of
Fair Labor Standards Act (FLSA)
– Delivering individual accountability at all levels of
the organization
– Grant lifecycle management
– We just don’t want to follow best practices, we
want to be the best practices others follow.
Putting Together – People and the
Organization
Roles
Governance
and
Compliance
Create culture of
compliance
Responsibility
Define and Measure the Change
Performance Management
New Department Created
• Office of Management and Budget
– Combination of Budget and the Management,
Performance and Accountability Departments.
– Direct reporting to City Manager .
– Enhanced reporting and performance metrics.
– Continuation of our MesaStat program using AMS
Advantage Performance Budget module.
– Citywide survey developed to measure change
expectations and improvements.
Put it All Together
New
Business processes
New
Measures
Aligning
New
Process roles
New
Management roles
New Organization Structure
Citywide Involvement
• Participation and feedback from 600+
employees from every department
– Citywide process reviews of Performance
Budgeting and Chart of Account impacts
– Citywide Timekeeping Assessments
– Readiness planning with Departmental Coaches
– Financial reviews with Extended Team members
– Executive decision panel
It’s Got to Be Real and Fun!
Budget for team
building events
Rewards for key
milestones and
accomplishments
Performance and
accountability
tied to
compensation
Incentives and Rewards
Budget for the Fun!
• Regular recognition at key project milestones
– Small gift cards presented by City Manager
• Exceptional Merit rewards for Key staff.
• Group Events
– Tickets to Mesa Arts Center events
– Group Getaway to Cubs Spring Training game
Project Status - On time, on budget!
And then a miracle happens
and your done!
Or are you?
Initial Post-Implementation Stuff
Issues
Initial Settling
Trouble- Down
shooting
Fine
Tuning
Go Live
PIR
Final
Improvements
Time
When it’s over,
Then We Start
Positive
Benefits
Fine
Tuning
Initial
Troubleshooting
Negative
Impacts
PIR
Final
Improvements
Time
Settling
Down
It’s a Change Management
Project !
People first !
Processes always !
Then Technology
Questions?