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
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
GC financial transformation evolution
- a historical perspective
Common
Business
Processes
(FMBP)
And Data
(CEDI)
TBS Standard
on ERP
Systems
(CIOB)
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fmi*igf PD Week - November 26, 2013
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
fmi*igf PD Week - November 26, 2013
*Indicative
values, exact
values will vary
with time
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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.
(Tony Clement, Minister
of Treasury Board)
“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”
(Wayne Wouters – Clerk
of the Privy Council)
“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.”
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fmi*igf PD Week - November 26, 2013
(James Ralston,
Comptroller General)
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
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fmi*igf PD Week - November 26, 2013
FMT Opportunity Statement
Transform financial management…
…to enable:
•
Streamline, standardize and automate
business processes; increase selfservice for routine transactions
Better information
for decision-making
•
Integrate and standardize information
across processes, organizations and
back office functions (e.g. HR)
Act and react as one organization;
enterprise approach to financial
management of GC
•
Enterprise approach to financial
management systems
•
Enterprise financial management
service delivery model
•
Refocus resources on higher-value
advisory services; enhance skills &
competencies
More effective and efficient
financial management services
Efficiencies and Cost savings
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fmi*igf PD Week - November 26, 2013
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
Current-State
Value-added,
business
partner
services
Decision Support
Target-Model
Potential Savings
Control
Decision Support
Reporting
Control
Transaction
Processing
Routine,
process
oriented
services
Departmental
Financial Management
Systems
fmi*igf PD Week - November 26, 2013
Reporting
Transaction
Processing
GC Enterprise
SAP
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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.
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fmi*igf PD Week - November 26, 2013
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.
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fmi*igf PD Week - November 26, 2013
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.
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fmi*igf PD Week - November 26, 2013
FMT - Transformation Approach
•
•
•
•
Target Model
Fully Defined
•
•
Engage FMT
Governance
•
•
•
•
Timely, agile and responsive data.
Streamlined, and automated
processes.
Consolidated systems platforms.
Leverage foundation to accelerate standardization and
consolidation.
Rigorous investment plan and performance
measurement.
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.
fmi*igf PD Week - November 26, 2013
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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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fmi*igf PD Week - November 26, 2013
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
fmi*igf PD Week - November 26, 2013
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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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fmi*igf PD Week - November 26, 2013
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.
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fmi*igf PD Week - November 26, 2013
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
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fmi*igf PD Week - November 26, 2013
FMT - A Call To Action
• Governance
• Business model
• Pilot
• Open dialogue
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