Transcript 2010-11 Executive Budget - New York State Comptroller

Office of Operations
2010 Fall Conference
Keynote Address:
Statewide Financial System
Ronald L. Greenberg
First Deputy Director
New York State Division of the Budget
2
Budget Gaps -- Historical Perspective (billions)
Outyear Forecast
25.0
"Base" Gap to be Closed
Remaining "Mid-Year" Gap (if any)
$22.2
$21.6
Increase to Gap During Fiscal Year
$19.7
20.0
$15.9
$15.6
15.0
$13.5
$11.2*
10.0
$9.2*
$8.2
$7.8
5.0
$7.6
$5.0
0.0
$0
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
* Includes budget shortfall carried forward from prior fiscal year.
3
The Problem
Projected Spending
+ 10.4 B
Projected Revenues
+ 2.2 B
4
It Could Still Get Worse?
• Level of economic growth and the resulting impact
on tax collections.
• Pressure on entitlement spending.
• Implementation of State agency reductions.
• Adverse Federal actions.
5
How can we help ourselves?
• Enterprise Wide View of State Government
▫ Breakdown SILOS Within Agencies and Across
Agencies
▫ Customer Based View: Improve programs and
operations
• Recommend Elimination of Non-Core
Functions
• Embrace Shared Services Across Government
▫ Horizontally Across State Agencies
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7
Shared Services – Partnering For
Our Future
What Is Shared Services?
The practice of having a single entity
(Shared Services Center) within a larger
organizational structure (State) to
provide services for the entire group
that were previously decentralized
across many units (State Agencies) .
8
The Shared Services Vision
• Cultural Change: The State must move from a system
driven by individual agency needs to a system that views the
entire State as a single enterprise working more efficiently
and effectively.
• Crisis Is Opportunity: The State’s fiscal situation will
require deeper cuts by agencies, but this also provides an
opportunity for agencies to streamline administrative
functions and better align operations with core customers.
• No More Excuses: The public sector must use every private
sector technique available to drive down costs while
improving customer service and increasing transparency.
10
What Are The Benefits?
Actions
Results
• Eliminate Duplication
• Better Service
• Streamline Processes
• Improve Operating
Efficiency
• Reduce Complexity
• Reduce Operating Costs
Projects Leading to Shared Services
• Real Estate Portfolio Optimization: Maximizing Assets
• Procurement/Strategic Sourcing: Continuous Analysis &
Improvement
• Information Technology Transformation: The Business Case
• Customer Service: Call Center Consolidations
• E-Licensing: One-Stop Shop
• Human Capital Management: One System Hire To Retire
• Statewide Financial Management: The Connective Tissue
11
A View From The Private Sector
Proctor & Gamble
• Employees: 127,000 FTEs
• Net Sales: $78.9 Billion
• Countries: 180
• Network: 500+ distributors to serve over 4 million
retail outlets every month.
http://www.annualreport.pg.com/annualreport2010/financials/index.shtml
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13
Proctor and Gamble Corporate Structure
GBUs
Focus solely
on
consumers,
brands and
competitors
around the
world.
Corporate
Functions
Ensure
ongoing
functional
innovation
and capability
improvement
MDOs
Charged
with
knowing
consumers
and retailers
in each
market.
GBS
Provide bestin-class
business
support
services at
the lowest
possible
costs
Opportunities For The State
Agency B
Agency A
Policy and
Programmatic
Level: What is
the agency
mission…are
there common
threads?
Shared
Services
Level: What
administrative
or back-office
functions are
common
across
agencies?
Non-Core
Functions
Core
Function
Non-Core
Functions
Common Cross Agency
Functions
Core
Function
Common Cross Agency
Functions
Shared Services Centers
Real Estate
Customer Service
Information Technology
E-Licensing
Procurement
Human Capital Management
Statewide Financial System
Other Considerations
• Executive Sponsorship
• Strategic Vision
• Multi-Year Plan
• Strong Governance
• Clear Communication
15
16
The Platform For Future Success
State Financial System Goals
• Enterprise Business Transformation
▫ Greater Efficiency: Near real-time transactions
▫ Greater Effectiveness: Statewide standards
▫ Higher Integrity: One Source of Truth
▫ Greater Accountability: Changing how the State
does business.
▫ Greater Transparency: Single statewide view
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18
How did we get here?
SINGLE STATEWIDE
Central
ENTERPRISE
APPLICATION
Accounting
System
The
Black
Box
Financial
STATEWIDE FINANCIAL
Management
SYSTEM
System
Let’s Reflect
• Unique Model: Two Independently Elected
Officials
• Partnerships Are Critical
▫
▫
▫
▫
Governance MOU’s
IT MOU’s
Steering Committee: Agency Representation
Vendors: Deloitte, IBM, KPMG and ORACLE
• No State Has Completed An ERP Of This Size
19
SFS Appointing Authority
• Legislature Approved Making SFS Appointing
Authority
• Model For Future Shared Services Projects
• New Culture Evolves Over Time
▫ Blending OSC,DOB, OFT and New Hires
▫ “culture isn't just one aspect of the game; it is the game.
In the end, an organization is nothing more than the
collective capacity of its people to create value. “
Louis V. Gerstner, Jr., , Former CEO IBM
“Who Says Elephants Can’t Dance”
20
Statewide Financial System (SFS) Program
Governance
Board
Steering
Committee
Legislature
KPMG
IV&V
Program
Director
PMO
Manager
Quality
Assurance
Manager
Deployment
and Change
Management
Manager
Integration
Manager
Business
Operations
Manager
Steering Committee – A Statewide Partnership
• Provides the SFS Program with expertise, advice and input
into decision-making through direct and regular interaction
• Provides the SFS Governance Board with strategic,
visionary advice and consultation regarding the SFS
program generally and the State’s overall strategy with
regard to the adoption and deployment of enterprise
solutions and systems, including Enterprise Resource
Planning (ERP) applications.
• Provides guidance to the SFS Program Director on
Program plans and implementation activities,
communications, training, organizational change
management and other stakeholder issues.
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Steering Committee – Voice of the Agencies
• Control Agencies
▫ OSC
▫ DOB
• Education
▫ SED
• General Government
▫
▫
▫
▫
OGS
OFT
Tax
GOER
• Health & Social Welfare
▫
▫
▫
▫
DOL
OTDA
DOH
OCFS
• Judiciary
▫ United Courts System
• Mental Health
▫ OMH
• Parks & The Environment
▫ PARKS
▫ DEC
• Public Protection
▫ DOCS
▫ DCJS
• Transportation
▫ DOT
• Economic Development &
Government Oversight
▫ Banking
Steering Committee Issues Raised
• Personnel Issues
▫ Overtime
▫ Hiring
▫ Leave Credits
• Agency Readiness
▫ Staff Support….212’s
▫ Prioritize Other Initiatives
• Other
▫ Transition
▫ SFY 2011-12 Budget Development
24
Key Financial Benefits
Summary
• Single Statewide Financial System = “One Source
of Truth”
• Standardization and End-To-End Improvements in
Process
• Near “Real-Time” Data
• Greater Reliability, Availability and Transparency in
Data
• Fewer Reconciliations
• Reduce Upfront Costs & Recurring Maintenance
Savings
25
Future Phases
4/1/11 Is Just The Beginning
• Data Warehouse
▫ Single Statewide Resource
• Human Capital Management
▫ From Hire To Retire
• Procurement
▫ Strategic Sourcing
• Asset Lifecycle Management
▫ All Assets In One Place
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Let’s Go-Live April 1
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