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American Society of Military Comptrollers – Fort Meade Chapter Lessons Learned over a Career of Transitions by Karen Cleary Alderman
American Society of Military Comptrollers – Fort Meade ChapterLessons Learned over a Career of Transitions
by Karen Cleary Alderman
2 American Society of Military Comptrollers ― Fort Meade Chapter © 2009 Deloitte Touche Tohmatsu
Three Topics: Managing Change is the Key
• Financial Management Career Transitions
• Financial System Transitions
• Personal Transitions
3 © 2009 Deloitte Touche Tohmatsu
The DoD Accounting and Budget Profession – Fun Facts
Employment March 2009: • 41,795 End Strength; small increase since 2004• 45% over age 50; not getting any younger• Mix changing; technicians ↓; 501’s ↑
Employment in Maryland: • 1, 724 End Strength• 39% over age 50; average 17.4 YOS• 501 series = 45% of the work force
American Society of Military Comptrollers ― Fort Meade Chapter
4 © 2009 Deloitte Touche Tohmatsu
Your World is Changing
DoD-Wide Financial Management• Competency Expectations Expanding• Financial Systems in Flux
‒Internet changing everything• Performance/Accountability Expectations Increasing• Insourcing
Maryland Challenges• BRAC• Increasing SSA Workload with aging Baby-Boomers and SSI
workload
National Challenges – “It’s the Economy…..”
American Society of Military Comptrollers ― Fort Meade Chapter
5 © 2009 Deloitte Touche Tohmatsu
CFO Financial Management Competencies
CFO Council 2007 Report on Federal Financial Management Leadership Competencies:• Federal financial policy and organization• Strategy and change management• Performance management and accountability• Portfolio management• Business process and system integration• Financial systems security and internal controls• Federal appropriations law and ethics• Creation 21st century government/national security• Leadership skills, relationships and communication• Federal budget challenges• Acquisition challenges
DOD 2008 Response: Established the CFO AcademyAmerican Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu6
Financial Systems In TransitionPitfalls and Opportunities of Implementing New Financial Management Systems
American Society of Military Comptrollers ― Fort Meade Chapter
7 © 2009 Deloitte Touche Tohmatsu
Cumulative Costs of a Core Financial Management System for Mid-Sized Agency, by Scenario ($ millions)
American Society of Military Comptrollers ― Fort Meade Chapter
Cumulative Costs for Implementation Scenarios (in millions)
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Customdevelopment
CustomizedCOTS product
Pure COTSproduct
System operational date
8 © 2009 Deloitte Touche Tohmatsu
Few Systems Projects are On Time/Budget
Source: Standish Group, 365 respondents with 8380 projects
0%
10%
20%
30%
40%
50%
60%
70%
Average Org IT Projects
Large Org IT Projects
On Time & On Budget
Over Budget or Lower Functionality
Cancelled
American Society of Military Comptrollers ― Fort Meade Chapter
9 © 2009 Deloitte Touche Tohmatsu
The Ten “Go Live Surprises” Experienced by Executives Implementing ERP Solutions*
• Your Key Performance Indicators Plummet and Need to Be Rescued
• It Gets Worse Before It Gets Better--anticipate Nine Months of Total Anarchy
• Software Expectations Aren’t Fully Met
• You Are Now an ERP Hostage
• People Are Angry, Confused and Highly Irritable*Benchmarking Partners Report: “Ten Go Live” Surprises,” 1999
American Society of Military Comptrollers ― Fort Meade Chapter
10 © 2009 Deloitte Touche Tohmatsu
The Ten “Major Go-Live Surprises” Experienced by Executives Implementing ERP Applications*
• You Discover That Discipline is King
• You Think You Know Who Owns the Benefits--You Don’t!
• You’ve “Reengineered” Whether you Planned to Or Not.
• People Immediately Forget Everything They Learned in Training
• Your Entire Project Team is Resigning En Masse*Benchmarking Partners Report: “Ten Go Live” Surprises,” 1999
American Society of Military Comptrollers ― Fort Meade Chapter
11 © 2009 Deloitte Touche Tohmatsu
Top Ten Barriers to Success in an ERP Implementation --It’s Always About Change Management
Source: D&T CIO Survey
30%
41%
43%
44%
44%
46%
54%
65%
72%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Unrealistic Expectations
Resistance to Change
Inadequate Sponsorship
Poor Project Management
Case for Change Not Compelling
Project Team Lacked Skills
Scope Expansion/Uncertainty
No Change Management Program
Not Horizontal Process View
IT Perspective Not Integrated
Directly Related to Change Management Issues
Source: D&T CIO Survey
30%
41%
43%
44%
44%
46%
54%
65%
72%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Unrealistic Expectations
Resistance to Change
Inadequate Sponsorship
Poor Project Management
Case for Change Not Compelling
Project Team Lacked Skills
Scope Expansion/Uncertainty
No Change Management Program
Not Horizontal Process View
IT Perspective Not Integrated
Directly Related to Change Management Issues
American Society of Military Comptrollers ― Fort Meade Chapter
12 © 2009 Deloitte Touche Tohmatsu
Dealing With Change –It’s a Lifelong Requirement• Know change is inevitable; don’t fear it.
• Keep informed
• Continue your education; always….
• Get certified
• Get engaged/network
• Mentor and be mentored
American Society of Military Comptrollers ― Fort Meade Chapter
© 2009 Deloitte Touche Tohmatsu13
