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Modern Management Controllers Conference November 23, 2010.

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Presentation on theme: "Modern Management Controllers Conference November 23, 2010."— Presentation transcript:

1 Modern Management Controllers Conference November 23, 2010

2 What is Modern Management Modern Management is a set of management functions that ensures: Modern Management is a set of management functions that ensures: Ethical behaviour Ethical behaviour Conscious management of risks Conscious management of risks Clear lines of accountability Clear lines of accountability Stewardship of resources, and Stewardship of resources, and Reporting and evaluation of results against stated objectives. Reporting and evaluation of results against stated objectives. Modern Management is not an end-state but rather an on- going process that adjusts to changes in the business environment and adopts emerging management practices Modern Management is not an end-state but rather an on- going process that adjusts to changes in the business environment and adopts emerging management practices

3 Our Changing Management Environment The environment that we manage has been impacted by a variety of changes: The environment that we manage has been impacted by a variety of changes: Technological advances Technological advances Information/Knowledge access & sharing Information/Knowledge access & sharing Increasing public expectations w.r.t. transparency and accountability Increasing public expectations w.r.t. transparency and accountability Increasingly complex business relationships and partnerships Increasingly complex business relationships and partnerships These changes are having a profound impact on how we: These changes are having a profound impact on how we: Make decisions Make decisions Evaluate our programs and services, and Evaluate our programs and services, and Monitor and control the programs we deliver. Monitor and control the programs we deliver.

4 The Changing Paradigms of Management: Impacts on our Control Processes Managers design their own controls within the framework Controls to achieve compliance with rules Controls based on risk assessment Managers focus on compliance accountability & accountability &learning OLD WORLD Controls imposed from the centre NEW WORLD

5 Focus on resource utilization Focus on outcomes achieved with resources resources Measurement of financial results Balanced performance measurements OLD WORLD NEW WORLD The Changing Paradigms of Management: Impacts on our Evaluation Processes

6 Authority retained by a few The Changing Paradigms of Management: Impacts on our Decision Making Processes Authority delegated to all managers Integrated expert advice to decision makers Department-specificthinking Enterprise-wide thinking OLD WORLD NEW WORLD Isolated functional specialist advice to decision-makers

7 Fundamental Enablers of Modern Management Championship by Senior Management Championship by Senior Management Leadership from the top-down Leadership from the top-down Clear statements of roles and responsibilities Clear statements of roles and responsibilities Well trained and capable staff Well trained and capable staff Adequate staffing levels Adequate staffing levels Time to do a good job Time to do a good job Tools & Information to support staff and decision making Tools & Information to support staff and decision making Flexible approach that allows change as situations require Flexible approach that allows change as situations require

8 GNWT Management Assessment 2006/07 We looked at practices of other jurisdictions We looked at practices of other jurisdictions Treasury Board Canada developed an assessment tool called Comptrollership Capacity Check Treasury Board Canada developed an assessment tool called Comptrollership Capacity Check Government of Ontario adapted the Treasury Board tool and developed a web-based self-assessment survey that they called Controllership Capacity Check Government of Ontario adapted the Treasury Board tool and developed a web-based self-assessment survey that they called Controllership Capacity Check Government of Ontario offered the GNWT the use of their tool and the rights to alter it to suit our needs. Government of Ontario offered the GNWT the use of their tool and the rights to alter it to suit our needs. A consultant experienced with the Ontario tool was engaged to assist the GNWT in adapting the tool and implementing it within the GNWT. A consultant experienced with the Ontario tool was engaged to assist the GNWT in adapting the tool and implementing it within the GNWT.

9 GNWT Management Assessment Objectives were: The use of the Modern Management Capacity Assessment in GNWT was designed to: The use of the Modern Management Capacity Assessment in GNWT was designed to: Build awareness for modern management practices across the organization Build awareness for modern management practices across the organization Assist in the identification of corporate and departmental initiatives that support a Modern Management framework Assist in the identification of corporate and departmental initiatives that support a Modern Management framework Assist the FMBS in identifying how it can support modern management practices across the GNWT Assist the FMBS in identifying how it can support modern management practices across the GNWT What were the objectives of the assessment: What were the objectives of the assessment: Education & awareness Education & awareness Improvement of our modern management practices Improvement of our modern management practices Compare current management practices against industry best practices Compare current management practices against industry best practices Identify weaknesses with our current state in support of corporate current/future corporate Modern Management initiatives, such as: FIS Replacement, development of a risk management policy framework, Re- writes of the FAA and FAM, etc. Identify weaknesses with our current state in support of corporate current/future corporate Modern Management initiatives, such as: FIS Replacement, development of a risk management policy framework, Re- writes of the FAA and FAM, etc.

10 What we did… Undertook departmental workshops with Senior Management Teams Undertook departmental workshops with Senior Management Teams Undertook broad-based web survey with all levels of management, program/policy analysts, and financial staff Undertook broad-based web survey with all levels of management, program/policy analysts, and financial staff Review & compilation of results for departmental and government-wide planning purposes Review & compilation of results for departmental and government-wide planning purposes

11 Ranking by Importance – Top 10 Half of the Top 10 priorities identified through departmental workshops and through web survey are the same. Identified in Departmental Workshops Identified in Web Survey

12 Comparison of Greatest Gaps and Departmental Priorities The size of the gap between the current and desired states is not a predictor of the perceived importance of the criterion. Only 4 criteria are on both lists: Leadership Commitment Resource Allocation Modern Management Competencies Employee Satisfaction As identified in departmental senior management workshops Top 10 GapsTop 10 Priorities

13 Department Recommendations - Major Themes from Workshops GNWT needs to define management competencies and develop training/ orientation for managers GNWT needs to define management competencies and develop training/ orientation for managers Departments need improved service from some shared services, which so far have not all delivered anticipated results or savings Departments need improved service from some shared services, which so far have not all delivered anticipated results or savings Widespread support for new FIS Widespread support for new FIS

14 Observations from Web Survey Lack of understanding of the term Modern Management, although strong interest in many concepts, e.g. performance agreements, valuing people, managers sense of ownership/ control of results and resources, process improvement, management training Lack of understanding of the term Modern Management, although strong interest in many concepts, e.g. performance agreements, valuing people, managers sense of ownership/ control of results and resources, process improvement, management training Relevance of business plan to front line staff could be improved Relevance of business plan to front line staff could be improved Staff recommend willingness to shift resources to meet priorities – not simply the same as last year Staff recommend willingness to shift resources to meet priorities – not simply the same as last year Recognition that while good efforts have been made, progress in many areas can still be made, e.g. ethics statements, staff surveys, performance measurement Recognition that while good efforts have been made, progress in many areas can still be made, e.g. ethics statements, staff surveys, performance measurement Generally complimentary about financial staff but not about the current financial system (poor cost management info, financial information is late, confusing) Generally complimentary about financial staff but not about the current financial system (poor cost management info, financial information is late, confusing) Recommend more client surveys to understand service issues and service standards Recommend more client surveys to understand service issues and service standards

15 2006/07 Recommended Next Steps GNWT needs to be proactive in maintaining a focus on modern management practices GNWT needs to be proactive in maintaining a focus on modern management practices Use Modern Management practices as framework for corporate initiatives that promote good management, e.g.: Use Modern Management practices as framework for corporate initiatives that promote good management, e.g.: FIS, FAA and FAM rewrites FIS, FAA and FAM rewrites Increasing capacity for evaluation Increasing capacity for evaluation Improving business planning and resource allocation Improving business planning and resource allocation Maintain commitment to promoting modern management practices: Maintain commitment to promoting modern management practices: Encourage all managers to take web survey to improve awareness, begin change process Encourage all managers to take web survey to improve awareness, begin change process Redefine role of Directors of Finance and Administration Committee to champion modern management across the GNWT and within departments Redefine role of Directors of Finance and Administration Committee to champion modern management across the GNWT and within departments Continue DM level Committee oversight to guide implementation and ongoing review Continue DM level Committee oversight to guide implementation and ongoing review

16 2006/07 Recommended Next Steps Develop corporate action plan to tackle top priorities such as: Develop corporate action plan to tackle top priorities such as: Corporate management training program based on key competencies, beginning with financial competencies Corporate management training program based on key competencies, beginning with financial competencies New FIS New FIS FAA, FAM rewrites FAA, FAM rewrites Communicate with GNWT staff about survey results and corporate action plan Communicate with GNWT staff about survey results and corporate action plan

17 Benefits we expect to see Increased awareness and implementation of good management practices Increased awareness and implementation of good management practices Supports leadership role of Senior Financial Officers in good management practices and leads to better implementation of corporate initiatives such as SAM, Shared Services, risk management Supports leadership role of Senior Financial Officers in good management practices and leads to better implementation of corporate initiatives such as SAM, Shared Services, risk management Focus on top priorities to demonstrate progress Focus on top priorities to demonstrate progress

18 So where are we with Modern Management? Further actions were set aside in February 2007 while the GNWT focused its resources on SAM and FSSCs Further actions were set aside in February 2007 while the GNWT focused its resources on SAM and FSSCs SAM is now in service SAM is now in service FSSCs plans are moving towards implementation FSSCs plans are moving towards implementation

19 So where are we with Modern Management? Information gathered in 2007 dated but have things changed with respect to the areas we should focus on? Information gathered in 2007 dated but have things changed with respect to the areas we should focus on? Logical focus following the implementation of Financial Shared Services Centers (FSSCs) is to continue to focus on the capacity building that was identified previously Logical focus following the implementation of Financial Shared Services Centers (FSSCs) is to continue to focus on the capacity building that was identified previously Supports both the success of FSSCs and Department Program/Financial Advisory staff Supports both the success of FSSCs and Department Program/Financial Advisory staff

20 Next Steps Implement FSSCs – with Governance in place that supports continuous improvement Implement FSSCs – with Governance in place that supports continuous improvement Research opportunities to build risk and financial analysis capacity Research opportunities to build risk and financial analysis capacity Research opportunities to build budgeting capacity Research opportunities to build budgeting capacity

21 Appendix Detailed Survey findings Detailed Survey findings

22 Priorities as identified by each depart- mental workshop Departmental Priorities

23 Departmental Recommendations Recommendations to Central Agencies FMBS PW&S ENR Transportation Recommendations to Central Agencies FMBS PW&S ENR Transportation Recommendations to Central Agencies FMBS PW&S ENR Transportation FMBS Recommend corporate training in management practices Recommend corporate approach to policies and tools for risk management PW&Sno corporate work on competency assessment - recommend action to corporate HR suggestion to FMBS - GNWT needs to compete for new staff - may involve $, housing, etc. suggest employee satisfaction surveys as corporate initiative ENRGNWT needs FMBS to facilitate the approach to improving internal controls. Client satisfaction needs to be addressed at a central agency level. FMBS needs to be encouraged to demonstrate all the modern management practices, i.e. to "walk the talk" TransportationManual reporting of time on cards is archaic - we need a new way to track attendance. HR system needs significant improvements. The Modern Management Capacity Assessment tool places a lot of emphasis on formal surveys of clients and staff. The tool was built for the federal government, so formal surveys may be appropriate in that environment, but in NWT, a less formal approach is more appropriate and more effective. Corporate systems (e.g. FIS, HR) need to be integrated to provide better information for decision-making and monitoring. Central agencies need to ensure that new systems (e.g. for performance measurement, FIS, etc.) are user-friendly and provide added value. Managers are already very busy, so any new work they need to do needs to be justified.

24 Departmental Recommendations Finance FMBS should conduct training for staff using FIS to encourage data accuracy. PeopleSoft and TCA systems are not user-friendly or timely and do not deliver satisfactory management reports. FMBS needs to rectify this situation and determine how to avoid similar problems with the new FIS. IT/IS services were moved to TSE, however it is now much harder to obtain help. Management needs better information on its requests for assistance and resolution of problems. There is no confidence that problem patterns are identified and resolved to client satisfaction. Existing performance agreements with TSE are not being honoured. There is a lack of good management information in corporate systems. Departments cannot back out of IT service agreements or change the chargeback arrangement even though service has deteriorated and costs have not decreased. HR resources were pulled out of departments to form corporate resource, but the local manager's link with HR has now been lost, and managers have lost a lot of information on what is going on. There have been improvements in overall government standards, but service to departments has not improved and costs have not decreased. Housing Centralization has not proven to deliver the benefits anticipated. Service delivery has deteriorated and costs have not been reduced, particularly in IT and HR. HR support needs to be improved significantly. Management competency definition and training should be tackled by FMBS for the GNWT as a whole. The widespread practice of chargeback for services across departments should be replaced by departments having the resources to provide GNWT-wide services. Chargeback simply avoids scrutiny. There is no choice, service has declined and it adds unnecessary administrative work. It also does not foster a sense of teamwork, as departments will cross-charge for simply attending meetings. Departments have given up resources but not all the work the resources performed (e.g. HR staff did attendance management which now has to be done by departments.) Some departments have hired staff to perform work that has been centralized (e.g. HR, IT) in order to maintain service levels.

25 Departmental Recommendations Aboriginal Affairs and Intergovernmental Relations Executive Office needs to play a key leadership role in supporting and promoting Modern Management practices to ensure its success in GNWT. Centralization of certain services has not had the anticipated results. While some corporate standards have been established, overall, the delivery of services has failed. Departments have lost the resources they relied upon to deliver services, and the newly centralized services have not delivered promised results, nor have promised savings been achieved. HR services in particular are dysfunctional. Expertise in IT is varied at best. The business planning process needs improvement. Central agencies need to show departments how they can support departments in their program delivery and not be limited to a control role. As as example, FMBS is very credible in reviewing submissions and adds real value. There should be an automatic orientation for new GNWT managers, including their signing authorities and responsibilities and rules they are expected to live by. GNWT needs to develop a package of training for new managers and disseminate information about the availability of courses that are part of the package. Education, Culture and Employment As GNWT is developing a set of management competencies, skills and practices and preparing corporate training, additional human resource elements need to be considered in addition to the management responsibilities identified in the Modern Management Capacity Assessment GNWT has a unique opportunity and responsibility to reflect in the Modern Management Capacity Assessment criteria, such as Values and Ethics and Valuing People's Contributions, the values of the aboriginal community which GNWT serves. Corporate systems and services need to support department service delivery, or at least not interfere with it. GNWT needs to assess its government-wide systems to ensure they support government objectives, e.g. Business Incentives Policy. When developing corporate systems and processes, GNWT needs to consider the high turnover rate and ensure that systems and processes are easy to use and that instructions are clear and easy to follow without extensive training.

26 Departmental Recommendations Industry, Tourism and Investment GNWT could play valuable role in providing corporate training for new managers, e.g. supervisory role, expectations, responsibilities, etc. GNWT could promote its values and ethics codes to ensure wider understanding and acceptance. Departments are limited in their ability to improve the various components of the business planning cycle without a different GNWT corporate model. HR Employees want consistent treatment, so a common understanding of ethics and values is important. A consistent corporate approach would help managers manage properly. GNWT could provide some useful, concrete examples of what ethical behaviour means in the GNWT, e.g. not offering a new employee a salary level that is above the level for the position, and not taking outside work that might conflict with the employee's role in GNWT. There needs to be a corporate approach taken to improving business planning in GNWT. This would involve the business planning process itself, linking business plans to the GNWT strategic plan and developing budgeting and forecasting tools for departments. Departments need to build real and meaningful 3 year plans. Regarding specialist support, there should be further regionalization of IT. Finance should begin a shared service for transaction processing. Financial analysis services should be reviewed in terms of a shared service approach to ensure that departments don't keep the analytical resources but use them for transaction processing. IT experienced this problem when it centralized the maintenance function but left the analytical function with departments. These analytical staff were asked to do the maintenance that departments gave up to the central organization. It is critical for GNWT to select a financial system that is compatible with its current PeopleSoft HR system to facilitate file sharing. MACA Recommend to FMBS to improve business planning process - longer term strategic plan and more relevant business plan. Recommend to FMBS - there is a lack of capacity at central agencies to properly support departments in HR, IT and legal. Recommend to FMBS - there needs to be improved access to strategic planning data, such as resource development impact projections. Justice There is no tool kit for government managers, no required management competencies. A defined set of competencies would be most useful for hiring and training purposes.

27 Comparison of Web Survey Results (Senior vs. Non-Senior Management)

28 Web Survey Results (Gap/Priority Relationship)


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