DFAS Transformation

1
Defense Finance and Accounting Service

• DFAS Transformation
• Update
• March 2003

2
Outcomes

• Provide overview of DFAS Transformation
• Explain the process
• Outline the next steps

3
Why Transformation?

• Transformation supports DFAS Mission and Vision
• Continue to drive best value for the customer
  through
• Greater effectiveness
• Increased efficiency
• Continued productivity gains
• Presidents 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

4
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

5
Transformation Moving Forward
Future State
Future State

• Leverage operational excellence
• Develop client partnerships
• Deliver business solutions

Customer Focused
Implement collaborative process that leverages
BCA activities to integrate transformation
efforts across DFAS

Value Driven

Efficient
Generate results based on best value to the
customer
Transact
Transact
Analyze
Analyze
Partner
Process
Process
Advise
Establish transformation outcomes and business
strategy
Current State
Current State

Build Operate System

Build Operate System
Build
Build
Process Transactions
Process Transactions


Respond to Customers
Respond to Customers


Own
Own
6
Transformation - Our Strategy

• 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

7
BCA Process

8
Business Case Analysis Results

• 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

9
Transformation Schedule - Long Term

• Conduct 20 BCAs from FY 2003-2006
• Start with Marine Corps Accounting Vendor Pay

10
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

11
Corporate Transformation Team

• Corporate Planning, Chair
• Accounting Services
• Military Civilian Pay Services
• Commercial Pay Services
• Site Directors (2)
• Technology Services
• General Counsel
• Corporate Resources
• Resource Management
• Human Resources
• Acquisition Services
• Administrative Services
• Corporate Communications
• Union Representative

12
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