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Department of Defense

Change Management Center

Financial Management Business Reform Initiative

Mary Margaret Evans

Briefing

October 31, 2001

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AGENDA1. Welcome Mary Margaret Evans 2. Change Management Center Mary Margaret Evans

1. What Is It2. What It Covers "Horse blanket"

3. Scope of Initiative Faunce - Murphy - McShan1. The Problem2. The Solution3. Membership4. Objectives5. Timeframe 6. Results To Be Achieved

4. Decision to Proceed - Go - No Go Mary Margaret Evans1. Advisory Committee2. E-Learning & Change Management3. Meeting with Tom Bloom

Department of Defense

Change Management Center

Financial Management Business Reform Initiative

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EO 6166

FAIR

CFO Act

PCBC

CMIA

GMRA

GPRA

EFT

EDI A-76JFMIP Regs

KlingerCohen

Financial Statement

Audits

FASAB Standards

B&A Act 1921

BPA Act 1950

The current Federal Government financial management process has been built on a patchwork of Fiscal Laws that have been enacted since the formation of the nation. Like snowflakes, these Fiscal Laws have fallen and have built upon one another to form an ineffective foundation upon which modern technology can not be built and related advantages can not be achieved.

Pete Aldridge, USD (AT&L) Wednesday, August 15, 2001 – “…the real problem is, and that is if you look at the tooth-to-tail ratio in the department, we have far more tail than we do tooth .The overhead structure is out of balance with the procurement structure and the force structure. And that the challenge within the departments is to go after those overhead activities that they would find to be marginal and to reallocate those resources back to procurement and the things they need for readiness.”

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Financial Management Business Reform InitiativeScope of Initiative

The solution is to rebuild the Fiscal Law foundation to produce a modern structure upon which modern technology and systems can be built to achieve efficient and effective financial management systems that can reduce the overhead burden of today’s systems and provide needed resources to the defense program structure.

How do you rebuild the Fiscal Law foundation

1.With a vision of what needs to be done.

2.With people who have the expertise and experience and understand the federal financial management process and the politics.

3.By using modern technology and following a rapid prototype methodology in change management.

4.By communicating goals and objectives, establishing key factors for measuring success, and doing what needs to be done

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Financial Management Business Reform InitiativeScope of Initiative

Membership

Advisory Committee Activity

Proposed Members

• John Cherbini

• Frank Derville

• Irvin Faunce

• Gerald Murphy

• Anthony McCann

• Clyde McShan

• James Reid

• William Shelton

• Frank Sullivan

• Ronald Young

Former Federal Position

GAO, Deputy Director, Accounting & Financial Management

House of Representatives, Chief Financial Officer

Treasury, Deputy Commissioner, Financial Management Service

Treasury, Fiscal Assistant Secretary

DHHS, Assistant Secretary Management & Budget

Commerce, Deputy Chief Financial Officer

Energy, Deputy Controller

Veterans Affairs, Associate Deputy Assistant Secretary, Financial Policy

Veterans Affairs, Deputy Chief Financial Officer

Federal Accounting Standards Advisory Board, Executive Director

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Financial Management Business Reform InitiativeScope of Initiative

Objectives

Advisory Committee Activity

E-Learning & Change Management Activity

1. Identify legislative changes that will support improvements in the efficiency and effectiveness of DoD financial management systems.

2. Draft legislation that will facilitate the implementation of technological and process changes in the operation of DoD financial management systems.

1. Implement a Prototype E-Learning & Change Management system that will capture and distribute the financial management knowledgebase to current and future DoD/DFAS staff.

2. Capture and distribute the Financial Management Business Reform Initiative Advisory Committee knowledgebase to improve the dissemination of information and improve the effectiveness of the change management process.

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Financial Management Business Reform InitiativeScope of Initiative

TimeframeAdvisory Committee Activity

E-Learning & Change Management Activity

1. Develop F/M Plan

2. I/D Goals & Objectives

3. I/D Key Success Factors

4. I/D Legislative Changes

5. Develop Risk Assessment Analysis

1. 12/01/01 – 12/31/01

2. 12/01/01 – 12/31/01

3. 12/01/01 – 01/28/02

4. 12/01/01 – 02/28/03

5. 12/01/01 – 02/28/03

1. Courseware Acquisition

2. Software Installation

3. Prototype System Operation

4. Prototype System Evaluation

5. Curriculum & Content Development

6. Go – No Go Prototype Operation

1. 12/01/01 – 12/31/01

2. 12/01/01 – 12/31/01

3. 12/01/01 – 01/28/02

4. 12/01/01 – 02/28/02

5. 12/01/01 – 02/28/02

6. 02/28/02

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Financial Management Business Reform InitiativeScope of Initiative

Results To Be Achieved

Advisory Committee Activity

E-Learning & Change Management Activity

• Identification of Fiscal Laws Impeding F/M Technological Changes

• Identification of F/M Technological and Process Changes

• Consult with Central Financial Agencies and Congressional Staff

• Draft Legislation to Support F/M Technological and Process Changes

• Install Prototype E-Learning & Change Management System

• Track Advisory Committee Activities In CMS Knowledgebase

• User Test Prototype E-Learning System with 1000 DFAS Users

• Develop F/M Curriculum and Author Two E-Learning Courses

• Implement & Evaluate E-Learning System

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Financial Management Business Reform InitiativeDecision To Proceed

Advisory Committee Activity

E-Learning & Change Management Activity

• Project: ___ Go – ___ No Go

• Sponsor: _____________________ - ___Go – ___ No Go

• Steering Committee Chairman: _________________

• Project: ___ Go – No Go

• Sponsor: DFAS – Tom Bloom – ___ Go – ___ No Go

• Schedule Meeting: ___ Go – ___ No Go

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Financial Management Business Reform InitiativeTom Bloom Meeting

E-Learning & Change Management ActivityAgenda

1. Purpose - Review Project Goals & Objectives and Obtain Sponsorship and Funding for E-Learning & Change Management Activities

2. Fiscal Laws Project Objectives

3. Scope of E-Learning & Change Management Activities

4. Objectives:

5. DFAS Participation in Fiscal Laws Change Management Process

6. Prototype E-Learning for Financial Management Training

7. Timeframe

8. Results To Be Achieved

1. Advisory Committee Activity - Change Management Knowledgebase

2. Provide DFAS Prototype for Financial Management E-Learning Training