Finance Transformation Strategic Approach

This deck include 27 slide and follow contents:
- Background of global survey
- Key findings in the public sector
- The imperative for finance transformation
- Understanding finance transformation
- The four faces of finance
- Mastering finance in government
- Taking your organization to the next level moving to mastery

Preview document (9 of 28 pages)

Finance
Transformation
Strategic Approach
Agenda
1. Background of global survey
2. Key findings in the public sector
3. The imperative for finance transformation
4. Understanding finance transformation
5. The four faces of finance
6. Mastering finance in government
7. Taking your organization to the next level –
moving to mastery
Background of global finance transformation survey
More than 200 responses from across the world
XYZ Research
conducted a global
survey to understand the
maturity of the finance
function in governments
across the world.
The survey results were
supplemented with
secondary research and
case studies.
Source: XYZ Research Global Study on Finance Transfromation
Key findings of the survey
• Significant gaps exist between current finance capabilities and
government needs.
• Most finance organizations do better in the tactical roles (Steward and
Operator) than at the strategic roles (Strategist and Catalyst)--the roles
that are the most critical to addressing many of government’s biggest
fiscal and operational challenges.
• The greatest need in government finance today is for a finance function
that can offer timely information and advice to government leaders on
key operational and strategic decisions.
• Twenty- four percent of respondents are “Finance Masters” who support
the business in making strategic decisions and act as a catalyst for
change, built on a foundation of excellence in finance stewardship and
operations.
Question # 1
When it comes to finance transformation, which of the
following is the most important priority for your organization?
•Improve decision-making ability
•Improve transparency and integrity of financial information
•Reduce transaction processing costs
•Reduce administration expenses
•Improve asset management
•Don’t know/not applicable
Many Challenges Are Increasingly Affecting
Government Budgets
“VA. Budget Shortfall May Mean Layoffs”
Kaine Considers Fee Increases, Too
“$50 million Dallas budget gap may require
- Washington Post September 18, 2007
service cuts”
-Pegasus News, May 22, 2008
“Predicting a Slowdown in Revenue, New
York Officials Prepare for a Tighter Budget”
- NY Times, September 18, 2007
“Illinois Senate budget officials
believe shortfall is closer to $395 million”
- Chicago Tribune, May 4 2008
“California faces a shortfall of
more than $17 billion”
- Reuters, May 21, 2008
“Wis. budget crunch means smaller raises
for state employees”
- Minneapolis Star Tribune, May 23, 2008
Question # 2
Which of the following barriers most impact overall
organizational performance, including financial
performance?
•Lack of up-to-date information for strategic decision making
•Lack of real time information for operations and execution
•Lack of process standards, clarity or discipline
•Lack of integrated risk management
•Don’t know/not applicable
Gap #1: Lack of up-to-date information for decision making
Lack Of Up-to-Date Information For Strategic Decision-Making
100
66 percent have
difficulty getting timely
t
n
e
and accurate
financial information
p
s
e
Not a barrier at al
Minor barrier
Moderate barrier Significant barrier
Source: XYZ Research Study, “Mastering Finance in Government,
Transforming the Government Enterprise Through Better Financial Management”
Gap #2: Inadequate information on costs
Program Owners Do Not Understand The Ful Cost of Their Services
Our Systems Find It Difficult To Support The
Including Asset Costs
Preparation of Costing Reports
100
100
Disagree
Neutral
Agree
Disagree
Neutral
Agree
The understanding of costs is missing and systems are not competent enough
to prepare cost reports
Source: XYZ Research Study, “Mastering Finance in Government,
Transforming the Government Enterprise Through Better Financial Management”