Transcript 2011-08 CNIC Process Improvements Ric Voigt

UNCLASSIFIED
Commander, Navy Installations Command
Financial Management Process
Improvements
Presentation to:
American Society of Military Comptrollers - Washington Chapter
Mr. Ric Voigt, CNIC Comptroller
August 17, 2011
UNCLASSIFIED
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Purpose
 Provide an overview of the depth/breadth of Commander, Navy
Installations Command (CNIC)
 Present CNIC N8’s approach to process improvement and
development of standardized, repeatable and auditable financial
management processes
 Demonstrate ProcessQuik, our online process document repository
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Commander’s Guidance
Mission:
Deliver effective and efficient readiness from the shore
Vision:
Be the sole provider of shore capability, to sustain the Fleet, enable the
Fighter, and support the Family
Guiding Principles
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Collaborate through teamwork
Practice transparency
Deliver best value to our customers
Be accountable
Develop our people
Embrace change
Improve continually
Foster innovation
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Navy Shore Domain Today
SWA MERGED
WITH CNRE
DEC 2008 TO
FORM
EURAFSWA
JOINT REGION
MARIANAS
POPULATION SERVED
328K Active Duty
65K Active Reserves (SELRES)
425K Family Members
575K Navy Retirees
5/9/11
13 Flags / 7 SES Direct Reports
$135B PRV (Structures, Utilities)
31.6K Bldgs, 24.7K Structures, 13.1K Utilities
63.3K pers.: military 24.1K, civilians 34.6K, KTRs 4.6K
$12B resources (appropriations, NAF) - FY10 @ 9/30/10
11 Regions…72 Bases…1.9 Million Acres
125 Runways… 358 Piers/Wharves…$135B Plant Replacement Value
$12B Resources: Fortune 200 in Size
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Shore Facts
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Shore Readiness Funding Profile
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$FY08
Baseline (OMN and OMNR)
FY09
Suplemental
FY10
Housing
Reimburse
FY11
BRAC
FY12
Other
ARRA
Primary drivers of increased requirements: Energy, Joint Basing, Child Care, and Collateral Equipment
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CNIC N8’s Process Improvement Landscape
Controls
Continuous Process Improvement
MIC
FIP
ProcessQuik
LSS
(Risk Management
Tool)
(Auditability Tool)
(Documentation
Tool)
(Analysis Tool)
 Driver: OUSD(C), CNIC
N8, CNIC IG
 Scope: Identify,
document, and test
Managers’ Internal
Control points
 Approach: Process
owners develop MIC
Plans to assess internal
controls on an annual
basis
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Driver: FMO
 Scope: Identify,
document, and test
financial internal
control points for key
end-to-end CNIC N8
financial management
processes
 Approach: Process
discovery and
validation, SBR
Segment Control
Testing, Business
Segment Analysis,
and Financial Impact
Statement
Process Improvements
 Driver: CNIC N8
 Scope: High level reengineering of key endto-end CNIC financial
management processes
(current focus is on HQ)
 Approach: Conduct AsIs &To-Be focus groups
to re-engineer
processes, identify risks
& control points, post
products to
ProcessQuik, develop &
implement process
change plans & internal
controls test plans
Continuous Process
Improvement Board (CPIB)
 Driver: ASN, CMO,
CNIC N8
 Scope: Targeted
improvement for
specific portions or
steps within key endto-end CNIC N8
financial management
processes
 Approach: Value
Stream mapping &
analysis, develop &
execute Improvement
plan using scalable
DMAIC processes
Results
 Auditability/SBR
 Standardization
 Operational
Efficiency
 Statement of
Assurance
 Testing Results
and Commandlevel FIP progress
reports
Implement
Process Improvements
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ProcessQuik
 ProcessQuik is:
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An online central repository that houses CNIC N8’s standardized process information
Accessible to CNIC employees enterprise-wide via CNIC’s Portal
A SharePoint application
 ProcessQuik provides:
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Interactive process documentation eliminating the need to update paper-based processes or
procedure binders
Standard forms and templates in one repository
A standardized method for training staff
A mechanism for continuous process improvement and encourages employee involvement
One location for internal controls information
Desk guides and Standard Operating Procedures that support transactional level activities
 Each posted process includes:
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A process narrative that contains: a process definition, timeline of key events, SIPOC model,
outline of roles and responsibilities of each process performer, and links to applicable systems /
desk guides / rules / policies / regulations
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An interactive, MS Visio process map diagram that contains: process steps with control points
indicated, “clickable” details behind each process step to include descriptions of the control
activity, links to test plans, and links to applicable systems/desk guides/rules/policies/regulations
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CNIC N8’s Reengineering Methodology
Document
Current State
Scope
Determine the Scope
of the Process
 Define the scope of the
process (purpose of
process, boundaries,
process performers,
stakeholders)
 Collect relevant
documentation
(instructions, policies,
existing process maps,
etc.)
Conduct Focus Groups
to Capture the As-Is
Process
 Conduct collaborative
interviews/focus groups
with Subject Matter
Experts (SMEs) to:
– Define the process
(definition, SIPOC
model, process
measures)
– Develop As-Is
process map and
dictionary (if
needed)
– Identify process
improvement
opportunities
Design Future
State
Conduct Focus
Groups to Reengineer the
Process
Validate ReEngineered
Process
Assess To-Be
Process, Define
Controls, and
Validate
 Evaluate and select
process improvements
 Define measurement
criteria
 Conduct collaborative
focus groups with
SMEs to:
 Conduct collaborative
risk assessment on ToBe Process from an
internal controls
perspective
– Develop To-Be
process maps,
dictionaries, and
narratives
– Document process
change items
 Obtain buy-in and
approval from
leadership on the reengineered process
 Integrate MIC internal
controls; add additional
controls if needed
 Develop process
change implementation
plan
 Develop control test
plans
 Establish deployment
approach and address
process impacts
Implement the
New Process
Manage
Implementation
 Post to ProcessQuik
 Create Educational briefing
for Process Owners to
educate staff on process
changes
 Deliver Training
 Complete Implementation
Items
 Rollout new
policies/procedures
 Test controls & document
results
 Conduct CPIB meetings to
ensure processes are
operating effectively,
internal controls are being
tested, and process
documentation is current
Leadership, Process Owner, and Subject Matter Expert involvement
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CNIC N8’s Maturing Process
Improvement Effort: 2008-2010
 2008:
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Gathered feedback from Headquarters Program Managers, Regions, and internal N8 staff that
revealed a need to standardize our processes and procedures
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Committed to process improvement/reengineering of our key financial management processes
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Prioritized 19 key financial management processes for reengineering
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Developed our initial methodology for process improvement/standardization
 2009:
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Reengineered four processes
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Began formal collaboration with Regions and Headquarters Program Managers
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Developed ProcessQuik, our online process documentation repository tool
 2010:
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Reengineered seven additional processes
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Fielded ProcessQuik on the CNIC Gateway and implemented 11 processes
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Integrated FIP and MIC into process improvement methodology
•
Identified control points on process maps with links to test plans and test results
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CNIC N8’s Maturing Process
Improvement Effort: 2011
2011:
– Expanded to the Regions, now doing enterprise-wide process improvement
– Employed the integrated approach to reengineer three additional processes
– Developed and implemented a holistic strategy to prepare CNIC to attain auditability of
Statement of Budgetary Resources (SBR) by the end of CY12
• Matured the MIC Program
• Are incorporating FMO FIP controls and MIC controls into our processes
• Are developing transactional-level SOPs and Desk Guides
• Are developing an Internal Controls and Testing Page on the ProcessQuik site
• Began to explore financial control points with CNIC’s supplying partners (NAVFAC, etc.)
– Established the CPIB to provide governance of process improvement/standardization efforts
and ensure integration of FIP/MIC program requirements
– Implemented an improved Civilian Labor budgeting process
• Used actual execution data as basis for projecting requirements to derive the budget
(pricing, etc.) from actual accounting data at the Installation and Program level
– Began aligning ProcessQuik with workforce development initiatives
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Leadership & Workforce Involvement
 CNIC N8 Leadership (Region N8s and HQ Division Directors):
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Identifies and prioritizes key end-to-end financial management processes
Acts as process owners accountable for reengineering their processes
Communicates progress with the Enterprise N8 workforce
Ensures that ProcessQuik contains approved process documentation to serve as a training and
workforce development tool
Participates on the CPIB to prioritize and integrate CNIC N8 Process Improvement efforts –
currently HQ Division Directors
 CNIC N8 Enterprise Workforce:
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Participates in process reengineering focus group sessions as subject matter experts
Enacts the reengineered processes, provides feedback on their functioning, identifies additional
improvement opportunities, and conducts control testing
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Live Demonstration of ProcessQuik
ProcessQuik is accessed from
the “Tools Menu” found on the
CNIC Portal homepage under
“My Workspace”
ProcessQuik is found under the
“Accounting and Financial” section of
the Tools page
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Reimbursable Management
 CNIC N8 reengineered both Incoming and Outgoing Reimbursable
Management processes using our integrated approach to address:
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Lack of standardization
Poor overall management of reimbursables
Inadequate controls and compliance metrics
 History:
FY06
Roles and responsibilities were defined, but process was not standardized
FY06-FY08
FIP effort expanded scope to include Grantor side; however, a lot of effort spent in
“discovery” with minimal effort to reengineer process
FY08-FY09
Audit Findings required CNIC to include mechanisms to validate reimbursables
against Interservice Support Agreements (ISA’s) and Memorandums of
Understanding (MOU’s)
FY11
CNIC N8 integrated efforts of BPR, LSS, FIP and MIC into one consolidated
approach; recent guidance to attain auditability has been included
FY11
FMO issued a “system agnostic” version of reimbursable processes (pure process
steps without specifics like STARS-FL or ERP); CNIC N8 ensured alignment
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Overview of Changes
Incoming Reimbursable Management
Process (RWO-P)
Outgoing Reimbursable Management
Process (RWO-G)
Old
New
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Integration of FIP and MIC Controls
Outgoing Reimbursable
Process Map
Internal Controls Template
Process Dictionary
Internal Controls and Testing
Page on ProcessQuik
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Key Discoveries
 Started out as more of a Lean Six Sigma approach to improve processes, but
then learned that it is an excellent vehicle to document internal controls for
FIP and MIC auditability
 Robust vehicle to discover process improvements and to document
standardized processes across the enterprise
 Bringing all of the SMEs together enhances communications and improves
each group member’s understanding of the entire process, not just their
piece while building camaraderie amongst the participants
 Integrates the FIP and MIC with improved financial management processes
 Clarifies and documents the path toward auditability
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Way Forward
 Achieve auditability of Statement of Budgetary Resources
 Continue to reengineer and standardize processes enterprise-wide in
coordination with Region N8s
 Provide our employees with new workforce development tools and resources
 Continue to promote the use of ProcessQuik throughout the Command
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