1. Page 1 - 10/31/2001 Department of Defense Change Management Center Financial Management Business Reform Initiative Mary Margaret Evans Briefing October 31, 2001

2. Page 2 - 10/31/2001 AGENDA 1.Welcome Mary Margaret Evans 2.Change Management Center Mary Margaret Evans 1.What Is It 2.What It Covers "Horse blanket" 3.Scope of Initiative Faunce - Murphy - McShan 1.The Problem 2.The Solution 3.Membership 4.Objectives 5.Timeframe 6.Results To Be Achieved 4.Decision to Proceed - Go - No Go Mary Margaret Evans 1.Advisory Committee 2.E-Learning & Change Management 3.Meeting with Tom Bloom Department of Defense Change Management Center Financial Management Business Reform Initiative

3. Page 3 - 10/31/2001 EO 6166 FAIR CFO Act PCBCCMIAGMRAGPRAEFTEDI A- 76 JFMIP Regs Klinger Cohen 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 cannot be built and related advantages cannot 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.

4. Page 4 - 10/31/2001 Financial Management Business Reform Initiative Scope 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 todays systems and provide needed resources to the defense program structure. How do you rebuild the Fiscal Law foundation. With a vision of what needs to be done. With people who have the expertise and experience and understand the federal financial management process and the politics. By using modern technology and following a rapid prototype methodology in change management. By communicating goals and objectives, establishing key factors for measuring success, and empowering people to do what needs to be done.

5. Page 5 - 10/31/2001 Financial Management Business Reform Initiative Scope 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

6. Page 6 - 10/31/2001 Financial Management Business Reform Initiative Scope 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.

7. Page 7 - 10/31/2001 Financial Management Business Reform Initiative Scope of Initiative Timeframe Advisory 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 12/01/01 – 12/31/01 12/01/01 – 01/28/02 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 12/01/01 – 12/31/01 12/01/01 – 01/28/02 12/01/01 – 02/28/02 02/28/02

8. Page 8 - 10/31/2001 Financial Management Business Reform Initiative Scope 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

9. Page 9 - 10/31/2001 Financial Management Business Reform Initiative Decision 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

10. Page 10 - 10/31/2001 Financial Management Business Reform Initiative Tom Bloom Meeting E-Learning & Change Management Activity Agenda 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