Corporate Administrative Shared Services CASS FMI Presentation on Financial Services November 24, 20

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Corporate Administrative Shared Services
(CASS)FMI Presentation on Financial Services
November 24, 2005

• Latest news on CASS Finance Shared Services
  Initiative

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Presentation topics

• Current process underway
• What to expect
• How to get involved
• Question Period

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Current process underway - CASS SSO-Finance

• Working on PPA Submission
• Define finance business requirements for CASS
• Plan for Preliminary Project Approval (PPA)
  including a CASS Business Case
• Provide depts sufficient information to enable
  departmental business cases and transition plans
• Ensure cross-functional integration
• Governance
• SFO Steering Committee (Bi-weekly)

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Current process underway (cont.)

• Whos part of wave 1

Environment Canada Fisheries and
Oceans Natural Resources Canada Agriculture and
Agri Foods Canada Canadian Food Inspection
Agency Health Canada Privy Council
Office Treasury Board of Canada
Secretariat Department of Finance Canadian
School Public Service Public Service Human
Resources Management Agency of Canada Citizenshi
p and Immigration
Science
Central Agencies
CIC
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Current process underway (cont.)

• Deliverables and PPA time line

1. Baseline
2. Process Improvement ID and Analysis
3. Business Model of SSO
4. Implementation plan CASS SSO
Fin Reporting Strategy
5. Departmental Implementation plan
6. Business Case
Chart of accounts
Cost Estimates
Impact Analysis
Qualitative Benefits
IS-IT Requirements
Quantitative Benefits
Mar 31, 2006
Oct 3, 2005
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Current process underway (cont.)

• Operating Principles

• Client Influences (Finance Community)
• Client (departments) identify whats needed to
  operate effectively and efficiently
• Client leads in defining requirements
• Client influences implementation planning to
  ensure objectives are realistic and achievable
• Service Provider (SSO)
• Bring external best practices
• Collaborate with client to ID services, processes
  and improvements
• Propose most effective way to deliver services

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Current process underway (cont.)

• Current efforts Baselining
• Validate and update 2004 ERC sweep data
• Standard templates and definitions completed and
  sent to departments
• Gathering current metrics and costs by location
• Data required for input to the business case and
  impact assessments
• Target SSO submission date Dec. 20th

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Current process underway (cont.)

• Current efforts Process Improvement ID and
  Analysis
• On critical path
• Identify target processes/ sub processes based on
  broad services agreed to by SFOs September 8/9 at
  CASS Finance Workshop
• Leverage public and private sector best practices
  including OCG analysis Finance and Materiel
  Management Design, October 2004
• Analyze and document findings using process
  improvement cards
• Target to complete end of March

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What to expect

• What we know at this point
• Process improvements
• Planning, budgeting and forecasting
• AR, AP, Asset Accounting
• General accounting
• Order to pay processes
• Revenue mgmt processes
• Mgmt reporting processes
• Standardization of financial processes and
  systems
• Improved financial information to improve
  decision support
• Availability
• Timeliness
• Accuracy

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What to expect (cont.)

• What we know at this point
• Changes in delivery model for finance activities
  will use shared services approach
• Finance activities may be redistributed towards
  different physical locations (TBD)
• Incremental changes as opposed to big bang
  approach
• Although significant, not all Enterprise Resource
  Planning (ERP) driven changes
• Considering other technology enablers such as
• Digitization
• Self-service application
• Reporting data warehouses

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What to expect (cont.)

• What we know at this point
• Finance role evolving to better meet end-client
  requirements
• Status-quo not a viable solution
• Significant training investments will be required
  for all finance resources (not just SSO
  resources)
• We are confident we can minimize impacts on
  workforce resulting from increased efficiencies
  through attrition
• Client and Service provider working at
  determining various role options for finance
  resources to choose from
• This will not happen overnight evolution not
  revolution
• This was done before in other organizations
  feasible and realistic

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What to expect

• What others have experienced
• Key emerging finance priorities
• Enhancing budgeting, planning and forecasting
  processes
• Standardizing data and business processes
• Upgrading finance resource skill set
• 40 of organizations moving towards
  single-instance ERP
• 30 of organization are consolidating existing
  regional shared services organisations into one
• Organizations are strengthening financial
  corporate services to enhance risk management and
  increase delivery of efficiency initiatives

Currently assessing similar priorities
Source CFO Working Council 2003 Surveyed 60
large companies
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What to expect

• What others have experienced
• Shared Services enabled opportunities to better
  structure delivery of 3 equally important finance
  services

Specialized Services
Transaction Processing
Decision Support
Currently assessing related opportunities
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What to expect

• What others have experienced
• Improving / standardizing processes and systems
  changed resource allocation

Decision support Specialized services
Less time on processing allowed more time for
decision support and specialized services
42
72
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Internal Control
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40
Transaction processing
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5 yrs projection
Source CFO Working Council 2003 Surveyed 60
large companies
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What to expect

• What others have experienced
• Improving / standardizing processes and systems
  enabled review and improvement of internal
  control framework

Opportunities to implement the right controls at
the right place while further automating their
execution
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What to expect

• What others have experienced
• Ranking of constraints on finance function

Internal finance cultural resistance
Key constraint in improving finance function
1
Providing new skills
2
Transparency and active participation of finance
community remain the most important critical
success factors
Operations support
3
Budget/funding availability
4
Sr. Executive Finance support
5
Source CFO Working Council 2003 Surveyed 53
Sr Finance Executives
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What to expect

• keep in mind for CASS SSO - Finance
• Shared services is not the end goal
• Shared services is a proven delivery approach
  enabling service level improvements
• Improving finances ability to support program
  delivery is the end goal
• This goal is achievable by leveraging
• Improved processes
• Improved systems
• Investments in people skills and knowledge
• Improved partner relationships with program
  delivery resources

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How to get involved

• Contact your SFFOs and let them know
• Participation not restricted to W1 employees
• Drop by and meet the PPA project team at 98 Eddy
  in Gatineau

Glynnis French Glynnis.French _at_ ec.gc.ca
Mark Conrad Mark.Conrad _at_ ec.gc.ca
Normand Séguin Seguin.NormandM _at_ tbs-sct.gc.ca
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Question Period

• Feel free to ask

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(No Transcript)