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Unmasking Transparency: Gaining Greater Operational Insight Through Financial Metrics. Presenting Organizations: Navy Reserve Force Defense Information Systems Agency (DISA) Deloitte Consulting LLP. June 4, 2010. Introductions. Paul Branum Comptroller, Navy Reserve Forces
Navy Reserve Force
Defense Information Systems Agency (DISA)
Deloitte Consulting LLP
June 4, 2010
Comptroller, Navy Reserve Forces
Paul leads the finance organization for the $1.7B Navy Reserve Operations and Personnel Budget.
Chris is a lead Principal in the delivery of Finance Transformation and Service Delivery Transformation engagements for DoD clients.
Business Systems Executive, Defense Information Systems Agency
Nathan leads the integration and evolution of Agency business systems.
Introduce the foundational concepts of performance management
Define and explain common performance management terms providing relevant examples
Explain the four critical components of performance management
Explain how management can align people’s behavior with their corporate strategy through operational goals
Present case studies that illustrate the concepts in actionSession Overview
The Shift From Value Preservation...
...to Value Creation
Corporate Performance Management
Value Based Management
Strategic Enterprise Planning
Business Enterprise Planning
Scorecarding and dashboards
Strategic Cost Management
One such method to accelerate “value creation” is to improve the effectiveness of performance management in our organizationsPerformance management is characterized by many names in the Federal marketplace and several slightly different definitions
Performance management consists of a set of management and analytic processes, supported by technology, that enable organizations to define strategic goals and then measure and manage performance against those goals.
What is the objective?
The objective of any performance management process is to bridge strategy and execution by linking corporate strategy with people’s behavior through operational goals and rewards
What is the value?
How is it done?
Combining the power of information, people, process and technology through all stages of the management cycle
The types of information required for decision making depends on:
Integrated, Relevant Information
External Stakeholders – OMB, Congress,
Level 1 Executive Committees
The Regulators –
Level 2 Senior Managers
Level 3 Middle Managers
Other Middle Managers and Supervisors
Value of information to decision making
A more balanced performance measurement model uses measures, metrics, and indicators defined from different perspectives in the organization
Cost per Voucher
Total Cost of Voucher
Total Customer Experience (TCE)
Line of Accounting
*The Balanced Score Card: Measures that drive performance HBR, July 2005
“Doing what matters”
“Pulling in the same direction”
“Talking the same language”
“With everybody on board”
Tools and Tech
Commander, Navy Reserve Force (CNRF)
Financial Metric Maturity Within the Navy Reserve
Support for Wars
Case for Change
Defense against Budget Marks
Greater Scrutiny of Training Funds
Support of Active Fleet
Strategic Performance Measurement
CNRF developed a Field Level FEI Scorecard to institute a more aggressive focus on financial performance.
Changing requirements, added demands, and fiscal constraints directly impacted the Military Personnel budget - estimates have declined by $300 million between FY 2007 - 11. This trend holds true forReserve Personnel Navy (RPN) with budget estimates declining by $45.1M.
FY07-10 Unexpended Congressional Marks to the RPN account were $54M.
Source: Pres. Bud. Book
Evolving demands began to require overall organizational focus to shift from routine reporting to evaluation of funds management performance
Military Personnel Budget Estimate Reductions
OCNR 2010 Strategic Plan
OCNR Strategic Plan
ASN (FM&C) FEI
Analysis of preliminary enterprise-level metrics led to the identification of key focus areas for improving the financial performance of the overall organization.
CNRF began to align with these changing priorities by making strategic decisions about evaluating critical programs and measuring performance
Identified Focus Areas
Legacy Financial Systems
Further evaluation of enterprise-level financial metrics led to the identification of specific improvement objectives within the identified focus areas
RPN Travel Tool
Aviation Fuel Tool
Workforce Competency Development
Next Steps: -Continue to integrate and automate performance measurement tools into CNRF operations - Initiate workforce competency assessment to identify key financial management skill set requirements
Depth of Analysis
Mr. Nathan Maenle
Business Systems ExecutiveOffice of the CIO
Info & Knowledge Mgmt
Leaders enabling information dominance
Manually developed data
Limited to Excel & PowerPoint
Data obtained from multiple supporting systems with no defined business rules
Time shifted from data gathering to data analysis
Improved consistency, access, and timeliness
DISA’s capabilities have matured over time. Advances in technology, evolution in thought, and external drivers fuel the need & ability for continuous improvement.
Order Entry/Order Mgt Service Catalog
Budget to Report
Order to Fulfill
Time and Labor
Procure to Pay
Acquire to Retire
DISA Enterprise Procurement System