1. The Changing Face of Government National Association of State Comptrollers Conference Annapolis, Maryland March 25, 2009 Donald E. Edmiston Robert L. Powell Senior Government Advisor Senior Advisor-Government Policy BearingPoint, Inc Cansler Fuquay Solutions, Inc.

2. Economic Impact on States 3. Economic Impact on States

Center on Budget and Policy Priorities

March 13, 2009 Update

Estimated combined total for budget deficits of more than $350 billion through fiscal year 2011

4. Short Term Solutions 5. Short Term Solutions Short-term solutions Reduce budgets Increase revenues Draw down reserve s Cut funds for health and welfare programs Decrease spending on education programs Reduce workforce Raise taxes Increase fees Tap into rainyday funds Utilize other availablereserve funds Lack of change-driven enterprise solutions Create negative effect on constituents and the economy 6. Long Term Solutions 7. Long Term Solutions Long-term solutions Make government efficient and effectiveReduce operating costs Modernize and standardize infrastructure Consolidate data centers Upgrade networks Standardize desktop hardware andsoftware Standardize e-mail Standardize servers/databases Restructure government Develop communities of practice Implement shared services Consolidate constituent programs Consolidate agencies Establish common business processes Revise or issue administrative policies and procedures Restructure business rules Realize short-term gains Automate processes Institute spendmanagement controls Implement inventorymanagement tools Improve complement control of funded vacant positions Roll out shared services Improve financial return on investment Reallocate to constituent programs/rainy day fun d Change-driven enterprise solutions Increase public return on investmentMaintain and improve constituent services Organize a continuous improvementmanagement and productivity unit for ongoing identification, evaluation and implementation of enterprise-wide management and productivity improvements 8. Meeting The Needs Of Leadership 9. Meeting The Needs Of Leadership

Governors Want Fast and Accurate Data

Do your current systems allow this and are they sustainable in the years ahead?

Are your business rules standardized; is information collected consistently; who controls the accuracy of the data; is the data in disparate systems?

Are you competing with private interests with information more current and relevant than yours?

Can your systems provide you the level of service needed for the Federal Stimulus Package??

Will you be the one in control (responsible) when systems die?

10. Re-engineering in Times of Change 11. Re-engineering in Times of Change

Enterprise Solutions---Legacy Systems OutERPs In?

-Legacy Systems: Outdated; Losing Support; High Risk

-Enterprise Solutions: Current data; Integrated; Efficient

Cost vs ROI---Short Term/Long Term

-Significant Up-Front Investment

-ROI Can Be Recaptured Through Efficiencies

Statutory/Policy/Culture Changes

-Break Down Barriers

-Policies/Business Practices Must Conform to Enterprise

-Elected Officials Must Buy-Into the Program

Managing the Change to the ERP

-Engaged Committee Structure

12. Why Make The Changes In Technology And Business Processes? 13. Why Make The Changes In Technology And Business Processes?

Better information---FASTER! Return on Investment!

• • Inventory Management

• • • -Reduction in Warehousing/JIT Inventory; PA saved $4M

• • • -Centralized Control Results in Faster Closing of FY

• • Spend Management

• • • -Qualify for DiscountsNYCHA Projects Savings of $2M per year

• • • -Reduced Maverick SpendingNYCHA Expects $19M Savings

• • Procurement Management

• • • -Eliminate Double Ordering

• • • -Shared Services Center Aids in Procurement

• • • -Reduced Processing Costs

• • Improved Fiscal Stability and Accountability

14. Closing Remarks 15. Closing Remarks

ACHIEVE EFFICIENCIES THROUGH LESSONS LEARNED

-DO YOUR PLANNING AND ANALYSIS

-SELECT SOFTWARE RIGHT FOR YOUR ORGANIZATION

-SECURE ENTERPRISE SUPPORT-GOV./LEG.

-ENGAGED COMMITTEES W/STRONG KNOWLEDGE BASE

-FOCUS ON KNOWLEDGE TRANSFER

-STRONG TRAINING PROGRAM

-STRONG POST IMPLEMENTATION SUPPORT

-INVEST BEFORE CRISIS HITS

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