Transcript The Machinery of Government in Canada

The Brave New World
of Shared Systems and
Shared Services
Presentation by:
Bruce Manion FCMA
Vancouver Chapter
June 20th, 2012
OUTLINE
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• 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
SOME DEFINITIONS
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SHARED SERVICES / SYSTEMS ARE:
• 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.)
THEY ARE NOT THE CENTRALIZED SERVICES AND
SYSTEMS WITHIN A SINGLE ORGANIZATION
A WIDE RANGE OF APPROACHES
• ‘BIG BANG’
• BY DECREE
• QUIET EVOLUTION (ORGANIC)
• RIGHT TIME TO CHANGE
• SYSTEMS FIRST
• BPR FIRST
• OUTSOURCING - Solicited / Unsolicited
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WHY ARE WE DOING THIS?
Evolution of Federal Resources
($ billions)
20072008
20082009
20092010
20102011
20112012
2012- 2013- 20142013 2015 2015
20152016
Budgetary
Revenues
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
9.6
(5.8)
(55.6) (36.2)
(32.2)
(19.4)
(9.4)
(0.3)
4.2
585.4
604.8
614.2
614.5
610.3
Surplus / (Deficit)
Other Income
Federal Debt
457.6
463.7
0.2
2.2
519.1
553.1
Source: Federal Budgets – Fiscal Framework
WHY 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
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WHERE WE’VE BEEN AND
WHERE WE ARE NOW
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• 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)
WHERE OTHERS HAVE
GONE BEFORE
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• 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.
KEY CONSIDERATIONS
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• 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
Future Perspectives
What’s on the Horizon?
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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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Common Fin Mgt Business Processes (FM-BP)
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?
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Common Enterprise Data Initiative (CEDI)
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?
CEDI
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Future Perspectives
What’s on the Horizon?
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Common Fin Mgt System Configuration (FM-SC)
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
Deliverables:
TBS Guidelines providing Standardized DFMS
configuration requirements which are:
•System-independent, modular, interoperable
•Common to all departments and agencies
Future Perspectives
What’s on the Horizon?
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Future Perspectives
What’s on the Horizon?
System/Service Transformation
NOW
• 5 DFMS
• 30 – 40 configurations
• Over 100 departmental charts of accounts
• Differing services and standards
• 1 DFMS used at a variety of service points
3-4 YEARS • 1 standard configuration
• 1 departmental chart of accounts
OUT
• Common services and standards
WRAP-UP
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• 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?