Information Technology Challenges

1
Information Technology Challenges

• Information Technology Association of America
• Enterprise Solutions Division
• Audrey Davis
• Chief Information Officer
• Defense Finance and Accounting Service
• November 7, 2003

2
The DFAS Mission and Vision

• Mission Provide responsive, professional finance
  and accounting services for the people who defend
  America.
• Vision Best value to our customers
• World-class provider of finance and accounting
  services
• Trusted, innovative financial partner
• One organization, one identity
• Employer of choice, providing a progressive and
  professional work environment

3
DFAS Magnitude of Operations

• 5.7M military, civilians, retirees, annuitants
  paid
• 7.3M travel payments
• 11.2M invoices paid
• 346.6B in disbursements
• 124M accounting transactions
• 1.45T total liabilities
• 12.5B in foreign military sales
• 176B Retirement Trust Fund manager
• 267 active DoD appropriations

Worlds Largest Finance and Accounting Operation
4
DFAS at a Glance
Total Workforce
OAS Overall Ratings -- 2000-2003 Results
5
Total Work Force
25 Decline in Total Workforce since July 1999
6
DFAS Locations
7
DFAS Operational Infrastructure
8
Previous DFAS Organizational Structure
Circa 1999
9
DFAS Business Evolution
Becoming a strategy-based, customer-focused,
metric-driven organization
YesterdaysGeographic Focus
TodaysBusiness-line Focus

• Maintain Status Quo
• Geographical Organization (Centers/OPLOCs)
• Site Reductions
• Systems Reductions

• Competitive, Best Value
• Strengthened Customer Partnerships
• Business-line Organization
• One Organization, One Identity

10
Todays Organization
Customer Service Matrix MAJOR CUSTOMERS
Army Navy Air
Force Marine Defense
Corps Agencies DFAS CLIENT
EXECUTIVES
Accounting Services
Commercial Pay Services
Military Civilian Pay Services
Business Lines
Support Services
11
Our Strategy and Metrics Management
Mobilize Change through Executive Leadership
Translate the Strategy to Operational Terms
Make Strategy a Continual Process
Balanced
STRATEGY
Scorecard
Make Strategy Everyones Job
Align the Organization to the Strategy
The Balanced Scorecard is the organizing
framework at the center of the process
From Balanced Scorecard Collaborative, Inc
12
DFAS Strategic Direction

• Customer
• Deliver Best Value Services
• Focus on Customer Satisfaction
• Internal
• Re-engineer End-to-End Processes to Eliminate
  Rework/Redundancy
• Deploy Modern Integrated Systems
• Right-size Overhead and Infrastructure

• Human Capital
• Recruit and Retain a Highly Trained, Motivated
  Workforce
• Optimize the Mix of Military, Civilian, and
  Contractor Workforce
• Embrace Continuous Learning
• Metrics-Driven
• Benchmark Operations and Compete Functions
• Live the Balanced Scorecard
• Cascading Accountability and Visibility

13
Corporate Balanced Scorecard Map
Best Value
Customer
Improve client/customer satisfaction

• Improve

• satisfaction

• customer

Deliver competitive services through
transformation
Financial
Reduce cost to

• Reduce cost to

the client/ customer

• the customer

Internal
Improve and
Encourage
Deliver system

• Encourage

• Improve and

• Deliver systems

leverage quality

• innovation

• leverage quality

• solutions

innovation
solutions
Growth
Enhance ability to retain and recruit DFAS talent
Increase

• Increase

• Enhance corporate

Develop a climate

• Develop a climate

employee

• employee

• capability and

Learning

• for action

for action

• satisfaction

• intellectual capital

satisfaction
Enhance

• Increase

• employee

employee

• competence

competence
14
Competition Generates Value
Competition
Customer Choice
Customer Perceived Value
Generate Value
DFAS has chosen to TRANSFORM the Agency in order
to increase value to the customer
15
DFAS Transformation - Options
16
Transforming DFAS through Lean Thinking

• Lean Thinking -- tool for stopping waste and
  creating value
• 5 principles of Lean Thinking
• Customers determine value
• Identify the value stream
• Make the process flow
• Let customer demand pull the process along
• Drive for perfection
• Progess comes in bursts (kaikaku) and incremental
  improvement (kaizen)

17
Electronic Tower of Babel
Where We Started
It was evident from the start that the DFAS
technology challenge was large and the journey
would be long
18
Challenges
19
Challenges identified by Gartner
20
DCII Architecture
(DFAS Corporate Information Infrastructure)
Strategy

• Facilitate cross-functional process integration
• Promote standardized data and reporting
• Brings edits up-front
• Facilitates standardized business practices
• Reduces cost of business operations
• Provides timely information for decision making

SOCOM
The DCII is the umbrella architecture that brings
everything together
21
Summary

• Transformation to World Class Underway
• IT Community must
• Know the Business of DFAS
• Understand Business Needs and Requirements
• Align IT with the Business of DFAS
• Assist DFAS to Achieve Strategy and Vision

Customer-Focused, Strategy-Based, Metrics-Driven
22
DFAS Your Financial Partner _at_ Work