American Society of
Military Comptrollers –
Fort Meade Chapter
Lessons Learned
over a Career of Transitions
by Karen Cleary Alderman
Three Topics: Managing Change is the Key
• Financial Management Career Transitions
• Financial System Transitions
• Personal Transitions
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
The DoD Accounting and Budget Profession – Fun Facts
Employment March 2009:
• 41,795 End Strength; small increase since 2004
• 45% over age 50; not getting any younger
• Mix changing; technicians ↓; 501’s ↑
Employment in Maryland:
• 1, 724 End Strength
• 39% over age 50; average 17.4 YOS
• 501 series = 45% of the work force
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Your World is Changing
DoD-Wide Financial Management
• Competency Expectations Expanding
• Financial Systems in Flux
‒Internet changing everything
• Performance/Accountability Expectations Increasing
• Insourcing
Maryland Challenges
• BRAC
• Increasing SSA Workload with aging Baby-Boomers and SSI
workload
National Challenges – “It’s the Economy…..”
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
CFO Financial Management Competencies
CFO Council 2007 Report on Federal Financial Management
Leadership Competencies:
• Federal financial policy and organization
• Strategy and change management
• Performance management and accountability
• Portfolio management
• Business process and system integration
• Financial systems security and internal controls
• Federal appropriations law and ethics
• Creation 21st century government/national security
• Leadership skills, relationships and communication
• Federal budget challenges
• Acquisition challenges
DOD 2008 Response: Established the CFO Academy
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Financial Systems
In Transition
Pitfalls and Opportunities of
Implementing New
Financial Management
Systems
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Cumulative Costs of a Core Financial Management System
for Mid-Sized Agency, by Scenario ($ millions)
Cumulative Costs for Implementation Scenarios
(in millions)
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
Custom
development
Customized
COTS product
Pure COTS
product
System
operational
date
Y
ea
r1
Y
ea
r2
Y
ea
r3
Y
ea
r4
Y
ea
r5
Y
ea
r6
Y
ea
r7
Y
ea
r8
Y
ea
r
Y 9
ea
r1
0
$0
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Few Systems Projects are On Time/Budget
70%
60%
50%
On Time & On Budget
40%
30%
Over Budget or Lower
Functionality
20%
Cancelled
10%
0%
Average Org IT
Projects
Large Org IT Projects
Source: Standish Group, 365 respondents with 8380 projects
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
The Ten “Go Live Surprises” Experienced by Executives
Implementing ERP Solutions*
• Your Key Performance Indicators Plummet and Need
to Be Rescued
• It Gets Worse Before It Gets Better--anticipate Nine Months
of Total Anarchy
• Software Expectations Aren’t Fully Met
• You Are Now an ERP Hostage
• People Are Angry, Confused and Highly Irritable
*Benchmarking Partners Report: “Ten Go Live” Surprises,” 1999
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
The Ten “Major Go-Live Surprises” Experienced by
Executives Implementing ERP Applications*
• You Discover That Discipline is King
• You Think You Know Who Owns the Benefits--You Don’t!
• You’ve “Reengineered” Whether you Planned to Or Not.
• People Immediately Forget Everything They Learned in Training
• Your Entire Project Team is Resigning En Masse
*Benchmarking Partners Report: “Ten Go Live” Surprises,” 1999
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Top Ten Barriers to Success in an ERP Implementation -It’s Always About Change Management
Resistance to Change
82%
Inadequate Sponsorship
72%
Unrealistic Expectations
65%
Poor Project Management
54%
Case for Change Not Compelling
46%
Project Team Lacked Skills
44%
Scope Expansion/Uncertainty
44%
No Change Management Program
43%
Not Horizontal Process View
Directly Related to Change
Management Issues
41%
30%
IT Perspective Not Integrated
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Source: D&T CIO Survey
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
Dealing With Change –
It’s a Lifelong Requirement
• Know change is inevitable; don’t fear it.
• Keep informed
• Continue your education; always….
• Get certified
• Get engaged/network
• Mentor and be mentored
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American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu
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© 2009 Deloitte Touche Tohmatsu