Transcript IBM Presentations: Smart Planet Template

9 September 2100
Overview of the Case Study (UVA OM 1447)
USAF - IBM Financial Management
© 2010 IBM Corporation
Scenario
Air Force Financial Management
The Air Force Financial Management community has contacted IBM after hearing about our
success with large-scale transformation efforts. Presently, each of the approximately 100
Air Force Bases around the world has its own local Financial Services Office that provides
pay and travel processing and customer support. Similar processes are performed at each
location. Staffing and quality assurance are managed locally, and legacy systems have
been modified over time in response to local preferences. Following a Presidential Directive,
the Air Force Financial Management community is under pressure to significantly reduce
manpower while continuing to deliver high-quality customer service to Airmen and their
families.
© 2010 IBM Corporation
Air Force Installations
The bulk of the service delivery
model resided in 93 separate
base-level Financial Services
Offices (FSOs) at bases
allocated around the world
© 2010 IBM Corporation
Base Financial Service Offices (FSOs)
 Personnel utilized this walk-in facility for
pay inquiries and related financial services.
 Functions performed were largely
transactional in nature.
 Services ranged from generic requests for
information to customized service inquiries.
 Staffed by Air Force personnel - trained
within the Air Force FM career field and
were not dedicated experts in any one
process.
 Workload and staffing varied from base to
base and typically corresponded to the
population of the base (i.e. higher volume).
© 2010 IBM Corporation
Primary Customers
Active Duty
Airmen
Reservists and
National Guard
Civilians
Families/Retirees
Mail (5%)
Travel, Mil Pay and Related Data
Senior leaders/
Commanders
FSO
Inquiry Channels
FSO
Customer Service
(Lobby)
Face to face
interaction with
customer
• Answer Customer
Inquiries
Face To Face (65%)
• Assist with
document prep
• Verify paperwork
is complete
Phone (20%)
• Route work to
customer support
for processing
FSO
Customer Support
(Back Office)
Outside Support
(If required)
Process
documents
FSO Accounting
Liaison Office
Pay
1. Separation &
retirement
2. Mil/Civ pay
3. Mil leave
4. Pay audit
Defense Finance &
Accounting Service
(DFAS)
Travel
5. TDY processing
6. Mil/Civ PCS
7. PCS In & Outprocessing
8. Travel Audit
Mil: Military
Misc
Limited IT Systems
(10%)
9. Casualty cases
10. Civ timecards
11. Debt mgmt
Processing time varied for each type of document or review. Often, paperwork
was not submitted correctly and was routinely returned for rework.
The customer could be required to visit several times prior to completion.
© 2010 IBM Corporation
Civ: Civilian
TDY: Temporary
Duty
PCS: Permanent
Change of
Station
Pay Processes
 Ensure all military and civilian personnel were paid accurately and in a timely manner.
– This could include up to several dozen pay-related sub-processes; dependent upon the
requirement of the customer as each entitlement required a separate and unique
process to ensure proper payment.
 Documents were completed and processed at the FSO and were frequently forwarded to
other organizations for further processing.
 Incorrect or delayed documents led to the disruption of pay and other entitlements.
 Other pay-related processes included
– Payment upon separation or retirement from the military or government service.
– Pay documents pertaining to military or civilian leave (i.e., vacation hours).
– Verification, review or auditing of pay related documents.
Military
& Civilian
Pay
© 2010 IBM Corporation
Military
Leave
Separation
&
Retirement
Pay
Audit
&
Review
Travel Processes
 Ensured military and civilian personnel received timely and accurate reimbursement for
travel related expenses. FSO personnel processed all documents relating to military and
civilian temporary duty (TDY). The percentage of vouchers returned for corrections or
rework also varied.
 Other processes included:
– Pay and entitlements due a military member or civilian employee who made a
permanent change of station (PCS) move.
– PCS in & out processing for inbound & outbound base personnel
– Reviews and audits pertaining to travel and expense documents.
Military
& Civilian
TDY
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Military &
Civilian PCS
PCS In & Out
Processing
Audit
&
Review
Miscellaneous Processes
 FSO personnel routinely performed other finance-related functions.
 Upon the death of a military member, FSO personnel determined entitlements due to the
next-of-kin. Within a few days, personnel prepared and (personally) delivered the
entitlement to the deceased’s beneficiary.
 FSO personnel also received, reviewed, and processed timecards for civilians located at
their respective base and executed procedures related the voluntary and involuntary
collection of debts. Document processing ranged from garnishing or holding pay to
processing fines and forfeitures resulting from punitive action.
 Personnel also advised military and civilian members on debt management issues.
Casualty
Cases
© 2010 IBM Corporation
Civilian
Timecards
Debt
Management
Survey Results
Customer Feedback:
“My questions and problems get fixed.
However, it often takes a number of trips and
FM is rarely proactive in providing me with
status updates.”
“I have friends who work in the FSO, or I
have developed a knowledge of who does
what in the FSO and I use them directly
without going to the counter.”
“FM personnel are not trained enough to
handle problems.”
“ FM processes seem to work differently at
every base I go to – even the same forms
when filled out the same can have different
results”
“When I PCS or TDY, I know my pay will be
messed up.”
© 2010 IBM Corporation
Employee Feedback:
(From a supervisor) “I only have personnel for
2years, by the time they are fully trained, they
are about to transfer to another base.”
“There is lack of training prior to coming to
work at the FSO”
“We receive so many documents a month we
are unable to let individuals know where they
are in the process”
“Customers are not educated on how the
FSOs do business”
Fiscally Constrained Environment
 Following September 11th 2001, President Bush recognized
that the nation’s defenses would need to evolve to meet a
rapidly-changing national security landscape. In 2002, the
President’s Management Agenda (PMA) was released.
 Initiatives included the establishment of a DOD Office of
Force Transformation – designed to integrate transformation
into the national security strategy
 In 2005, the Office of the Secretary of Defense issued
Program Budget Decision (PBD) 720 - directed the services
to reduce manpower and resources.
 The Air Force would be required to reduce their force by
40,000 Active Duty, Guard, Reserve and civilian full-time
employees.
In order to realize cost savings and efficiently
shape the future of the financial management
community, significant transformation would be
necessary.
© 2010 IBM Corporation