optimising performance through c3i (communication, coordination, collaboration, and integration) to...

8/8/2019 OPTIMISING PERFORMANCE THROUGH C3I (COMMUNICATION, COORDINATION, COLLABORATION, AND INTEGRATION) TO ENSURE HIGH FINANCIAL PERFORMANCE LEVELS

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SUNIL KOHLIINDIAN DEFENCE ACCOUNTS SERVICE

Joint Secretary And Financial Adviser

National Disaster Management Authority And

National Disaster Response Force(NDRF),

Ministry Of Home Affairs,

India

DEFENCE FINANCE AND ACCOUNTS DEPARTMENT

ENSURING COMPLIANCE AND PROPELLING PERFORMANCE

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OPTIMISING PERFORMANCE THROUGH

C3I(COMMUNICATION, COORDINATION,COLLABORATION, AND INTEGRATION)

TO

ENSURE HIGH FINANCIAL

PERFORMANCE LEVELS

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TALK TOPIC


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Broad Outline

Looking at the current situation- How do

stakeholders work with each other?

Can the collaboration be improved and how

does it affect the process in driving highfinancial performance levels

Explore strategies on communicating KPIs

to all levels; starting from below


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Agenda

Contextual ParametersCurrent Situation

Governance Framework

Performance ManagementRole of KPIs

How Public Sector is different?

Who are the Stakeholders?

Organization Structure

Role of Finance Managers

Issues for Optimizing Performance for Ensuring

Higher Performance Levels


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Agenda

C3I Approach

Coordination

Collaboration

CommunicationIntegration

Role of IT

Integrated Approach to address GRC Concerns

Strategies to communicate KPIs

Closing Remarks


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Contextual Parameters

Government, Public Sector Organizations and Corporateare the biggest entitieswhich affects the lives of the

citizens and the consumers.

Transparency, Risk and Compliance are the main attributesto ensureAccountability and Corporate Social

Responsibility.

Improved Collaboration among the stakeholders and

Leveraging Technology by these entities will ensureprocess improvement and drive high performance

levels beside Rebuilding Public Trust in these

organizations.


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Contextual Parameters: Role of IT

IT can play an important role in Information

Management, Risk Management, Better Pricing and

Accessibility of Products and Services and bringing

about greater Transparency and ensuringperformance.

In this environment of recession and slow down of

economy and fast rate of Technological Obsolescencecompanies can drive strategic advantage and

overcome competition by proactive deployment of

technology.


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CEOs cashed out prior to

economic crisis

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CEOs at major US financial and

real estate firms converted tens of

millions of dollars of overvaluedstock into cash prior to the

eruption of the current financial

crisis.Shocking Reality Check

Collapse of Financial Systems

Breed Culture of Macho

Management and Self interest

Block Information and Transparency.


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Context Drivers :

Four pillars of Good Governance

Accountability

Transparency Predictability

Participation

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Accountability

The major purpose for performance measurement in the

government and the public sector revolve around the

concept of enhanced accountability. Accountability Implies: -

Weeding Out Inefficiencies

Eliminating Wasteful Expenditure Improving Cost Effectiveness

Monitoring Outputs And Outcomes

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Transparency And Accountability Mechanisms


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Performance Measurement

Administrative Imperative than a choice Performance measurement itself is only a tool--it is not an

outcome in itself. To determine if government is meeting its objectives and

those of its constituents. Measures of performance include : -

Inputs (the resources allocated), Outputs (direct results of program activity), Efficiency measures (ratio of inputs to outputs), and Outcomes (broad results of program activities in the lives of

those served). Result Orientation and Cost Consciousness are key criteria for

designing the KPIs.

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PERFORMANCE MEASUREMENT

WHY?

ENHANCES DECISION MAKING

IMPROVES INTERNAL ACCOUNTABILITY

ENHANCES PUBLIC ACCOUNTABILITY

SUPPORTS STRATEGIC PLANNING AND

GOAL SETTING.

ALLOWS ENTITIES TO DETERMINE

EFFECTIVE RESOURCE USE

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KEY PERFORMANCE INDICATORS?

FOUR MAJOR PERSPECTIVES

FINANCIAL PERSPECTIVE KPIS SUCH AS FUND MANAGEMENT, RESOURCE ALLOCATION, % INCREASE IN

RETURN ON INVESTMENT AND RESOURCE UTILIZATION. THIS PERSPECTIVE PROVIDES FOCUS TOWARD EFFECTIVE UTILIZATION OF

FUNDS AND RESOURCES.

INTERNAL PROCESSES PERSPECTIVE KPIS LIKE NUMBER OF STREAMLINED PROCESSES, NUMBER OF SERVICEDELIVERY TARGETS MET, INSTANCES OF REPEAT SERVICES AND RESPONSE

ACCURACY.

CITIZEN FOCUS PERSPECTIVE KPIS LIKE PEOPLE ACCESS, CRITICAL ERROR RATE, SERVICE AND PRODUCT

COMPLAINTS AND CLIENT SATISFACTION LEVEL. IT HELPS IN KNOWING HOW WELL THE OPERATIONS ARE FOCUSED TOWARDS

THE PEOPLE THE ORGANIZATIONS IS SERVING. H.R. AND GROWTH PERSPECTIVE

KPIS SUCH AS % DECREASE IN STAFF TURNOVER, TRAINING DAYS PER MEMBER,AGENT COACHING RATIO, % INCREASE IN TRAINING BUDGET AND %IMPROVEMENT IN EMPLOYMENT LEVEL.

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PURPOSE AND GOALS OF GOVERNMENT

FINANCIAL MANAGEMENT

Three goals of government financial management as

identified# are: -

Fiscal management,

Resource allocation and

Efficiency of expenditure (Value for money).

Transparency and Accountability are identified as

advantages of good financial management.

# Budgetary Institutions and Expenditure Outcomes, Ed Campos and SanjayPradhan, World

Bank Policy Research Department, September 1996

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How Public Sector are different?

Uniqueness Of The Government

Operations

Performance Measurement InGovernment

Significant Operational Differences

Between The Public And Private Sectors

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Uniqueness of the Government Operations

Governments are committed to fiscalaccountability, a process that provides a

visible trail as to where resources come from

and where they go. Governments are creatures of law and as such,

they can do only what the law allows,(thethings that it is authorized to do) and using

the methods that are prescribed in contrastto organizations in theprivate sector that cando anything not prohibited by law

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Performance Measurement in Government

The motivational impetus are different. Introduction of more explicit measurable standards of

performance to improve the efficiency and effectiveness ofgovernment entities.

In particular, the initiative was designed to:

Cut government expenditure; Increase managerial accountability of government

operations; And

Strengthen the governments resource allocation andadministrative decision-making capabilities.

Framework of the Govt. has to confirm to

Legality,

Legitimacy of Law (Legitimate powers and regulations),

Legitimate use of powers (General interest orientation with

criteria of 3Es and Quality of service) and A roval b the citizens.

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PERFORMANCE CRITERIA.

ACCESSIBILITY OF GOVERNMENT DECISION MAKING TO

EXTERNAL INFLUENCE.

CONFLICT BETWEEN GOVERNMENT POLICYMAKERS AND

ADMINISTRATION.

THE EMPLOYMENT CONTRACT.

INTENSE SCRUTINY BY THE MEDIA AND PUBLIC INTEREST

GROUPS.

EMPHASIS ON STABILITY AND RELIABILITY.

ATMOSPHERE OF CONTROL AND MISTRUST. DIFFERENCE IN STATUS.

These describe a series of unique, personal problems that affect the attitudes of government officials. The

government manager is not only responsive to the usual personal and group behavioral pressures but also is

influenced by reactions to many of these factors.

SIGNIFICANT OPERATIONAL DIFFERENCESBETWEEN THE PUBLIC AND PRIVATE SECTORS

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Journey to Public Sector Transformation

Redefining the Role of State

Focus on Service, not thrift

Journey From Waste Elimination, Through

Efficiency Gains To StrategicTransformation Short Term Cost Reduction

Efficiency Improvement Strategic Transformation

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MOST CHALLENGING AREAS

FOR IMPROVEMENT

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Short Term Cost Reduction

Activities Cut expenses- No negative impact on services

Reduce Staff Cost

Delay Major Projects- A viable, short-term solution.

Positive Impact Fast results

Politically attractive

Results sound attractive

Negative Impact Short term impact

Repeated Reviews

Painful and not sustainable

Will it work: Insufficient

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Efficiency Improvement

Activities Improve Financial Management

Share Resources and Services

Improve Management of External advisors

Review HR Practices & Incentives Positive Impact

Fairly fast results

Effect last longer

Strong Foundation for Transformation

Negative Impact Insufficient for radical changes

Confined within existing structures

Will it work: Insufficient

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Strategic Transformation

Activities Reassess spending priorities

Focus on new sources of funding

Involve Private Sector in delivery of Public Services and achieve Public

services Transformation

Ensure effective Commissioning of Services and management ofContracts

Focus on Strategic Leadership

Positive Impact Long term impact

Drives structural Changes Route to financial recovery

Negative Impact Complexity

Delayed evidence of results

Potentially controversial

Will it work: Insufficient: Yes

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IMPERATIVES FACING THE

PERFORMANCE OF GOVERNMENT

The challenges now facing government are more complex andrequire a new set of imperatives for success.

These imperatives facing the performance of government inthe 21st century are:

A policy agenda that focuses more on problems than onstructures

Political accountability thatworks more through results than onprocesses

Public administration thatworks through networks rather thanthrough hierarchies

Political leadership that leverages action rather than simplymakes decisions

Citizenship that is based on involvement rather than remotenessSource:www.businessofgovernment.org

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http://www.businessofgovernment.org/http://www.businessofgovernment.org/


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Six Trends Transforming Government

Trends responding to these imperatives and is leading to improvedgovernment performance.

These trends, often in combination with one another, make it morelikely that government will be able to successfully respond to the ever-increasing and complex challenges it faces today and will continue to

face in the future. Trend One: Changing the Rules

Trend Two: Using Performance Management

Trend Three: Providing Competition, Choice, and Incentives

Trend Four: Performing On Demand

Trend Five: Engaging Citizens Trend Six: Using Networks and Partnerships

Source: Six Trends Transforming Government

By Mark A. Abramson, Jonathan D. Breul, and John M. Kamensky

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GOVERNMENT TRANSFORMATION

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Government Transformation are beingdriven,

in part, by advances in technology that have

resulted in significant changes in the operation

of organizations.

Technology should now be viewed not only

as a fundamental tool for government, but

also as a driver for transforming theoperations of government.

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Issues for Optimizing Performance for

Ensuring Higher Performance Levels

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Critical Areas For A More Proactive Approach

Overcoming Crisis Of Corporate Trust

Greater transparency about business practices.

Less risk associated with products and services.

Better pricing and accessibility of products and

services.

More emphasis on the development of socially andenvironmentally responsible products and services.

Based on McKinsey Research

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Issues for Optimizing Performance for

Ensuring Higher Performance Levels

1. Corporations Need to Rebuild and Strengthen

Stakeholder Trust

2. Pervasive Fragmentation Complicates the

Pursuit of Stakeholder Trust

3. Beyond a License to Operate: Trust

Contributes to Competitive Advantage

4. An Integrated Approach to Transparency is

EssentialBuilding Corporate Trust is Expensive but Makes Business Sense

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C3I Approach

C3I ApproachCommunication

Coordination

Collaboration

Integration

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Models For Enterprise Architect

These models are intended to facilitate

government wide improvement through cross-

agency analysis and the identification of

duplicative investments, gaps, and opportunitiesfor collaboration, interoperability, and

integration within and across government

agencies. Source: The GAO Report

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Effective Communication with

Stakeholders More people will be affected by a partnership than just

the public officials and the private sector partner.

Affected employees, the portions of the public

receiving the service, the press, public labor unions andrelevant interest groups will all have opinions and,

frequently, significant misconceptions about a

partnership and its value to all the public.

It is important to communicate openly and candidlywith these stakeholders to minimize potential resistance

to establishing a partnership.

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Communication Strategy

Establish a Communication Strategy to Create

Shared Expectations and Report Related Progress:

Creating an effective, on-going communication strategy

is essential to implementing a merger ortransformation.

Communication is most effective when done early,

clearly, and often, and is downward, upward, and lateral.

The new organization must develop a comprehensive

communication strategy that reaches out to employees,

customers, and stakeholders and seeks to genuinely

engage them in the transformation.

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Communication Strategy

In order to be successful, a communication

strategy relies on the following critical success

factors:

Timely sharing of information

Accurate and consistent messages conveyed to key

audiences

Realistic messages from trusted sources that setrealistic expectations.

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Challenges of Communication

Interoperability The inability to communicate is a problem that is:-

Technical (due to limited and fragmented radio spectrum and

proprietary technology),

Political (due to agencies and jurisdictions and different levels of

government competing for scarce dollars, inhibiting the

partnership and leadership required to develop interoperability)

Cultural (agencies natural reluctance to give up management and

control of their communications systems) and must be

addressed on all these levels.

A well defined interoperability governance model provides the

structure needed to bring the players together and promote an

environment that helps bridge the gaps created by these

obstacles.

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Benefits to Successful Interoperability

Better coordination among

responding agencies

Political benefit

More efficient law enforcement

and protection

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Collaboration: Technology as a Key

Enabler Whether collaborating horizontally across state

agencies, entering into a public-private partnership, or

crossing organizational boundaries between state-

federal or state-local levels of government, one mustcontinuously work to connect silos to increase

efficiency and improve citizen service.

With technology serving as a chief facilitator for

collaboration across organizational boundaries,engaging in cross-boundary collaboration is inevitable.

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Collaboration: Technology as a Key

Enabler Government, in order to be effective, must be user-

friendly, accessible and accountable to citizens.

Leveraged by investments in information technology,

crossing organizational boundaries between levels ofgovernment can be used as a way to increase

governmental effectiveness.

Citizen demand for streamlined, efficient

government often drives state agencies to seek out

opportunities to deliver traditional services in non-

traditional ways.


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The Challenge of Integration

Silos of information could be made accessible across

the enterprise in a secure, structured and collaborative

manner.

Such access could provide benefits that outweighimplementation costs, such as reduction of redundant

data entry, improved data integrity, increased accuracy

and immediacy, and improved decision-making.

On a more contextual level, integration is focused on

the sharing of data across organizations and domains,

within an established enterprise, based upon standard

formats.

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Integration: More than Just a

Technology Issue The technology provides the bridge for information

sharing.

In order to be successful in an integration initiative:-

A vision and business case needs to be articulated; A collaborative and trusting relationship between participants

needs to be established;

An outreach to community and funding sources must occur;

and A model for program management must be defined.

Integration is not just about sharing data, it is about sharing

information to achieve common business purposes across

disparate entities.

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Benefits of Successful Integration

Improved Communications

Improved Decision Making

Resource Savings Enhanced Service Delivery

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Distinctive Features Of IT

Trusted Interface

Critical Business Enabler

Competitive and Strategic Differentiator Reduces Costs by Optimizing Resources

Managing risks associated with data security and

regulatory compliance. Integrate different departments and disparate

internal controls systems

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WHY INFORMATION TECHNOLOGY?

Capable of comprehensive holistic IT Governance approach:Bridge Functional Silos.

Easy to adapt C3I Approach

Coordination; Communication; Collaboration; and

Integration

Process of Mutualism Collaborative Decision Making and

implementation to optimize Performance

Eliminate Ad Hoc Setup and Human Errors.

Overcome DRIP Syndrome

Align IT controls to corporate policies, and corporate policies to

regulations.

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HOLISTIC APPROACH TO

IT GOVERNANCE

Enables companies to dynamically manage and monitorkey IT enabled GRC activities such as: -

Information Protection and Privacy;

Configuration and Change Management; and

IT GRC management across multiple business units, geographies

and IT systems.

The result is IT governance that is sustainable, cost-

effective, and better aligned to the strategic andoperational demands of the business.

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Integrated Approach to address GRC

ConcernsAdopt an Integrated Strategy and a Comprehensive

Approach To Managing Governance, Risk

Management, and Compliance (GRC) solutions

To Address all regulatory and business related risks and achieve

compliance at a lower cost.

To differentiate itself and achieve greater agility by optimizing

your business processes and using risk intelligence for better

decision making.

Drive Business Predictability and Stakeholder

Confidence

Help improve relations with stakeholders and, ultimately,

facilitate trust

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THE FOUR DEGREES

OF FRAGMENTATION

GRC activities are typically fragmented across

four dimensions:

Organization

Systems

Regions

Internal GRC disciplines


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Definition of GRC

GRC is a system of people, processes, and technology that

enables an organization to:

Understand and prioritize stakeholder expectations.

Set business objectives that are congruent with values and risks.

Achieve objectives while optimizing risk profile, and protecting value. Operate within legal, contractual, internal, social, and ethical boundaries.

Provide relevant, reliable, and timely information to appropriate

stakeholders.

Enable the measurement of the performance and effectiveness of the

system.

GRC is to risk management as computer systems are to the payroll system

From: Open Compliance and Ethics Group:


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Flexibility In Decision-making In general, flexibility in decision-making is important in

order to achieve efficient and effective operationalperformance.

At thepolicy level, ministers should be given authority tomake decisions relating to their particular sector, providedthat theyfit the strategic policy objectives of thegovernment.

At the operational level, managers should have authorityto take decisions with their defined area of competence.

Flexibilities need to be balanced byappropriate rulesand standards of conduct, proper arrangements foraccountability, and control mechanisms.

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