FM transformation program management office

Congratulations to all of our FY03 Transformation Task Forces. They each met their first major Transformation milestone with flying colors. During the April FM Executive Session at Bolling AFB, the Financial Management Transformation Senior Steering Group (FMTSSG) received briefings by the Task Force Leads on the Concept Designs for the FY03 initiatives and provided decisions for the Task Forces to take into the Detailed Design Phase. These briefings laid out the opportunities for improvement and the expected benefits of the change to the FM community and the Air Force. The next step is to complete the detailed process design, including a comprehensive business case, to compare the costs and benefits and to develop a pilot project to test the concept in a live environment. Keep watch on the SAF/FMT web site for more information as these initiatives progress.

Two Transformation initiatives took center stage at the ASMC PDI in New Orleans. FMT 03-5 FM Knowledge Management Concept and TDD 03-1 Establish an Automated Tools Forum provided demonstrations of their web-based solutions to hundreds of potential users from their booth in the exhibit area. The Knowledge Management initiative offers an opportunity to share information throughout the FM community in unprecedented ways. It is a comprehensive knowledge management tool (similar to the Defense Acquisition Deskbook) which includes a reference library, a vehicle to receive expert advice, a discussion forum, and much more. The Automated Tools Forum, hosted within the Knowledge Management system, includes many software tools in all of the FM disciplines that are available for immediate download (see the article in the April 2003 edition of this publication). These demonstrations gave PDI attendees the opportunity for a hands-on experience and to see for themselves some significant transformation successes. In addition, during Service Day, workshops were presented on these two initiatives as well as the FMT 03-2 Reengineer Acquisition Decision Support initiative which, in its initial phase, focuses in Phase 1 on reengineering acquisition cost processes.

President Bush, in his President's Management Agenda, has emphasized improved financial management--speed, reliability, relevance--and clean audit opinions. To implement that agenda, Secretary Rumsfeld has ordered a transformation in the way DoD does business, the Air Force is in the midst of a business and operational transformation, and Mr Montelongo published his FM Vision and launched an Air Force Financial Management Transformation. To make sure all of these elements fit together, the senior FM leaders participated in a series of strategic summits to develop the Financial Management Strategic Plan for 2003-2008. Our current transformation initiatives were mapped to this document and it is our guide to achieving the FM vision. As we complete our first round of initiatives and begin the next, an important measure of success will be the extent to which each initiative meets one or more of the 16 strategic objectives contained within the FM Strategic Plan. Those strategic objectives offer many opportunities for improvement and each of our current initiatives fits well within that structure. As we look to future transformation initiatives, we will evaluate the opportunities based on the strategic themes and perspectives. The three themes are:

   Warfighter Support: Focuses our efforts
   on deployed operations and, as a strategic
   partner will provide quality, timely, and
   accurate services to support commanders
   and other operational managers.

   Strategic Resourcing and Cost
   Management: Links systems, cost
   activities, outputs, and performance.

   Information Reliability and Integration: The
   catalyst for relevant, accurate, and timely
   financial reformation.

Within those themes, each initiative candidate will be evaluated from the perspective of the mission. the customer, internal processes, and our people. Only initiative candidates that meet one or more of these themes and perspectives will be considered for the FY04 cycle. For more information on the Strategic Plan, see Mr Montelongo's PDI speech published in the Armed Force Comptroller or visit the SAF/FM web site.

The Strategic Plan and Transformation are both about change. But not just any change. These efforts are focused on taking the FM vision and turning it into reality, It is imperative, however, each of us recognizes we must make these changes to continue to be relevant to the Air Force and America. Both industry and government are spending less and less on the routine transactions of paying vendors and people, substituting more efficient processes, and new systems for labor intensive work. All of this is aimed at providing more value to the organization in the form of analysis to help the organization make better strategic decisions. Through our research, we have found world class organizations spend less than one percent of revenue on financial processing. Further, while old school organizations may spend upwards of 90 percent of their financial management effort in processing transactions, control, and reporting, world-class organizations have turned the tables. Through more efficient systems and processes, these leading organizations may spend 75 percent of their effort on decision support with only a small amount of effort devoted to transaction work. This does not mean that paying our people or vendors is unimportant; it's just that it can and must be done more efficiently.

We also have the opportunity to make these changes our own. How often have you felt a change was imposed on you? How many times have you said to yourself, If only they'd have done it my way, everyone would be better off? How many times have you wished someone had asked your opinion because you knew a better way? Well ... we're asking. You have seen much correspondence about transformation. You've seen the SAF/FMT web site and the emails from the Air Staff and your MAJCOM. You know we are looking for people just like you to work on or with our task forces. We will be starting another round of initiatives in October and we need your help. You may not be able to devote a considerable amount of time, but you can be involved via team meetings, email, teleconferences, or suggestions to the PMO. Be a part of the Future of Financial Management, contact your MAJCOM Transformation representative or the PMO at fm.transformation@pentagon.af.mil.

COPYRIGHT 2003 U.S. Air Force, Financial Management and Comptroller
COPYRIGHT 2003 Gale Group