your financial partner @ work defense finance and accounting service dfas transformation update...
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YourFinancial
Partner@
Work
Defense Finance and Accounting Service
DFAS Transformation
Update
March 2003
Your Financial Partner @ Work2
Outcomes
Provide overview of DFAS Transformation Explain the process Outline the next steps
Your Financial Partner @ Work3
Why Transformation?
Transformation supports DFAS Mission and Vision Continue to drive best value for the customer through
– Greater effectiveness
– Increased efficiency
– Continued productivity gains President’s Management Agenda calls for improved
financial management, improved budget and performance integration, and better competition in commercial activities
Quadrennial Defense Review (QDR) concludes DoD must transform to meet future challenges
Defense Planning Guidance (DPG) required Transformation Roadmaps
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Transformation Principles
Leadership - Key vision and Transformation Goals provided by senior DFAS leadership
Inclusion - Transformation is a team effort Openness - The process is clear and
published Integration - Incorporate current and future
initiatives from Business Lines, Support Services, and HQ Elements into one plan
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Current State
Future State
• Customer Focused
• Value Driven
• Efficient
Transact
Process
Build
Own
Analyze
Advise
• Build & Operate System
• Process Transactions
• Respond to Customers
Current StateCurrent StateCurrent State
Future State
Transact
Process
Build
Own
Analyze
• Build & Operate System
• Process Transactions
• Respond to Customers
Establish transformation outcomes and business strategy
Implement collaborative process that leverages BCA activities to integrate transformation efforts across DFAS
Generate results based on best value to the customer
Partner
• Leverage operational excellence
• Develop client partnerships
• Deliver business solutions
Transformation Moving Forward
Integrate
Leverage
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DFAS transformation decisions will be based on Business Case Analysis (BCA) studies of Business/Product Lines
Theme - Business Process Improvement Key evaluation criteria is “best value”
Transformation - Our Strategy
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BCA Process
Identify Functionfor Transformation
TransformationOption
Decision
StartTransformation
Actions
Conduct BCA
6-Step BCA Process1. Identify Team2. Define Scope3. Define Current Organization4. Conduct Market Research5. Analyze Options6. Provide Recommendation
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BCA is an analysis tool used to present alternatives and supporting information to DFAS leadership for a decision
BCAs include:– Clearly defined organization with manpower,
cost, and resources– Options for consideration with an analysis of the
benefits and drawbacks, costs, personnel impact and risk assessment
– Recommended course of action
Business Case Analysis Results
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Conduct 20 BCAs from FY 2003-2006 Start with Marine Corps Accounting & Vendor Pay
Transformation Schedule - Long Term
Conduct BCAs
PL
PL
PL
PL
• A-76• MEO Plus• Competitive
Procurement (FAR Part 15)
• Public-Private Venture
Implement Transformation Actions
Feb 04Final Site Selection Criteria
May 05SECDEF Site
Selection
Jan 06ImplementBRAC
Dec 03 Draft Site Selection Criteria
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Transformation - Accomplishments
Submitted Transformation Roadmap to SECDEF on June 30, 2002
Publicized DFAS Transformation Strategy on Nov. 27, 2002
Commenced analysis of Product Lines to identify transformation options
Established Executive Steering Group (ESG) and Corporate Transformation Team to integrate DFAS long-term transformation actions
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Corporate Transformation
Team
Corporate Planning, Chair Accounting ServicesMilitary & Civilian Pay ServicesCommercial Pay ServicesSite Directors (2)Technology ServicesGeneral CounselCorporate Resources
• Resource Management• Human Resources• Acquisition Services• Administrative Services
Corporate CommunicationsUnion Representative
Corporate Transformation Team
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Next Steps
Continued communication and updates:– ePortal
Currently on Competitive Sourcing page Developing new “Transformation Central”
– Periodic briefings– “Ask the Expert”
Appoint Transformation ESG and Corporate
Transformation Team representatives Kick-off Transformation Team