Presentation by: Bruce Manion FCMA Vancouver Chapter June 20th, 2012 The Brave New World of Shared Systems and Shared Services Presentation by: Bruce Manion FCMA Vancouver Chapter June 20th, 2012 Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

OUTLINE 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

DISCLAIMER

SOME DEFINITIONS 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

Evolution of Federal Resources WHY ARE WE DOING THIS? Evolution of Federal Resources ($ billions) 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2015 2014-2015 2015-2016 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 Surplus / (Deficit) 9.6 (5.8) (55.6) (36.2) (32.2) (19.4) (9.4) (0.3) 4.2 Other Income 0.2 2.2 Federal Debt 457.6 463.7 519.1 553.1 585.4 604.8 614.2 614.5 610.3 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

WHERE WE’VE BEEN AND WHERE WE ARE NOW 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 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.

No 2 designs or approaches the same Not just about technology KEY CONSIDERATIONS 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 Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? 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 Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? 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. Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? 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 Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? CEDI Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? 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 Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

Future Perspectives What’s on the Horizon? Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

System/Service Transformation Future Perspectives What’s on the Horizon? System/Service Transformation 5 DFMS 30 – 40 configurations Over 100 departmental charts of accounts Differing services and standards NOW 1 DFMS used at a variety of service points 1 standard configuration 1 departmental chart of accounts Common services and standards 3-4 YEARS OUT Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

No two organizational environments are truly alike WRAP-UP 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! Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca

QUESTIONS? Canada School of Public Service www.mySCHOOL-monECOLE.gc.ca