Transforming the Public Sector: The Changing Face of the Public Sector CFO. Phil Pareezer, Grant Thornton Australia

Transcription

1 Transforming the Public Sector: The Changing Face of the Public Sector CFO Phil Pareezer, Grant Thornton Australia

2 The Approach

3 Approach - Outcome Survey Think-tank sessions Roundtable facilitated discussion 'Investment' Logic Mapping (IMS v5.0) Individual follow-ups Trends Insights Tackling Current & Future Challenges

4 Survey respondents Agency type 34% 2% 22% Federal State Local Other (please specify) 42%

5 The CFO Role

6 The CFO Executive Membership 41% 59% Yes No Survey question: Are you a member of the Executive team?

7 The CFO outside of finance Grants Asset Management Human Resources Fleet Management Document Management Information Technology Payroll Procurement Other (please specify) Survey question: What aspects of the department / agency sit under you as CFO? Finance function not displayed on this slide.

8 Key CFO focus areas 35% 28% 21% 11% Innovator Strategic Business Partner 5% Custodian Provider Other Survey question: What percentage of your time would apportion against each role

9 Key CFO focus areas RESPONDENT QUOTE: [The position is] increasingly seen as a critical part of the executive. The role of the CFO across the public service will become increasingly more important - the comparison is with the key role of the CFO / Director of Finance in large parts of the UK public sector and the private sector world wide.

10 The CFO Role is changing: How do we respond?

11 CFO Shift Compliance Commercial A g e n c y C u r r e n t C F O s F u t u r e C F O s CFO as; Executive Member Strategic Advisor Major Programs Change / Relationship Manager 'Soft skills' Commercial and Operational based skills

12 The Finance Workforce is changing: How do we respond?

13 Workforce Transactional Value-adding (Knowledge-based) A g e n c y C u r r e n t C F O s F u t u r e C F O s Agency Finance Capability Statement Workforce Strategy Integrated systems, tools & applications Communities of Practice Professional Designation Work with Business Leads 'Hot desk' 1. Very Unimportant 2. Somewhat Unimportant Survey question: How important do you believe it will be for your finance staff to have a professional designation over the next 3 to 5 years? 43% 45% 3. Neither Important nor Unimportant 4. Somewhat Important 5. Very Important

14 'Government' is changing: How do we respond?

15 Meeting Challenges 'Big' Government 'Small' Government A g e n c y C u r r e n t C F O s F u t u r e C F O s Multi-agency collaboration Business Transformation Managing range of service delivery models Process re-engineering Enabling technology

16 Meeting challenges 50% 45% 40% 35% 30% 45% 45% 25% 24% 20% 15% 10% 5% 2% 12% 16% 16% 10% 12% 6% 2% 2% 4% 6% 0% Shared services Re-engineering of business processes Organisational restructure Investment in technology Reduction in Full Time Equivalent (FTE) Alternate workforce models Other (please specify) Current Year Next 3-5 years

17 Highlights Context CFO role is changing Finance Workforce is changing Government is changing Responses CFO role is transitioning to strategic partner Workforce Strategy / Communities of Practice Change (Re-engineering)

18 Checklists CFO EFFECTIVENESS CHECKLIST 1 Does the CFO provide input into key strategic and operational decisions? Is there sufficient opportunity for them to do so? CAPABILITY CHECKLIST REENGINEERING CHECKLIST MULTI-AGENCY COLLABORATION CHECKLIST 2 Does the CFO demonstrate the capability to provide strategic advice and analysis? 3 Does the CFO have the capacity to provide strategic advice and analysis? 4 Do the functional areas under their responsibility of the CFO align with their skill set? 5 How well does the CFO understand and engage with the operational areas of the agency?

19 Checklists CFO EFFECTIVENESS CHECKLIST 1 Make sure tools, systems and applications are seamless and efficient to support the quality, accuracy and timeliness of CFO and the finance teams functions and reporting to the executive leadership. 2 Be a catalyst for change. Lead by example explore opportunities to develop outside traditional CFO roles, expand professional relationships and networks. CAPABILITY CHECKLIST 3 Create an agency finance capability statement that sets the tone for a standard and culture for finance team performance. REENGINEERING CHECKLIST 4 Establish a workforce strategy that promotes agility and responsiveness that relates to the cyclical nature of the public service. MULTI-AGENCY COLLABORATION CHECKLIST 5 Establish a public sector community of practice to provide a shared knowledge platform. The think tank session used in this research has demonstrated value. 6 Increase the time spent with business leads to build partnerships that deliver benefits aligned to agency and government priorities.

20 Checklists 1 Keep abreast of technology and data developments to drive continuous improvements in business processes and outcomes. Technology updates should be business-led ensuring business processes are redesigned in parallel to extract the most value. CFO EFFECTIVENESS CHECKLIST CAPABILITY CHECKLIST REENGINEERING CHECKLIST 2 CFOs need to step away from the day-to-day noise and work with strategic leadership to define a clear vision of success for the future state. This needs to embrace the required business reengineering, continuous improvement and change management skills. 3 Generally, CFOs are supporting, not leading the reengineering of business processes. Their ability to partner effectively with the rest of the business is crucial. CFOs must act as a champion and communicator of change, ensuring all benefits are owned and captured including behavioural and cultural benefits. MULTI-AGENCY COLLABORATION CHECKLIST 4 Shared service and outsourced contracts should be reviewed on a regular basis to ensure services are being met. Ongoing monitoring and assessments should be undertaken to determine that the benefit remains active and viable. 5 Ensure that staff members remain objective throughout business process reengineering projects. There is a significant risk that staff working on the change become attuned to the project over time and lose their objectivity.

21 Checklists CFO EFFECTIVENESS CHECKLIST 1 Instigate a community of excellence internally and include middle and frontline staff, as this is where some of the practical fixes and applications lie. CAPABILITY CHECKLIST 2 Establish a regular and ongoing forum amongst similar agencies, based on size, function or location. There are lessons to be learnt and experiences to be shared. REENGINEERING CHECKLIST MULTI-AGENCY COLLABORATION CHECKLIST 3 Reduce duplication with multiple use products, such as whole-of-government compliance and regulatory reporting. Find synergies with similar agencies to reduce work. 4 Share and collaborate with resources. Sharing a subject matter expert, for example, could result in savings across the whole of government and increase customer service.

22 CPA Australia Grant Thornton Report TRANSFORMING THE PUBLIC SECTOR The role of the CFO in driving change OCTOBER

23 Contact Details Grant Thornton Phil Pareezer Senior Manager Business Transformation E phil.pareezer@au.gt.com T Jason Sorby Partner & Qld Public Sector Lead E jason.sorby@au.gt.com T