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Navigating in the Wake of Change

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					     journal  Sharing Best Practices in Managing Public Sector Resources




                                                     Navigating
                                                     in the Wake
                                                     of Change
                                                     Public Sector
                                                     Management Workshop
                                                      June 1-3, 2003
                                                      Victoria Conference Centre
                                                      Victoria, British Columbia




WINTER 2003                    VOLUME 14, NUMBER 2
journal Win a Trip to Charlottetown!       The Alan G. Ross Award for Writing Excellence is awarded annually to the individual(s) who
                                           contribute the best article (feature or column) to the fmi journal during the year. The award
The fmi journal is Canada’s leading
                                           is a plaque and a complimentary trip to the FMI’s annual Public Sector Management Work-
magazine for public sector profession-     shop. If your article is printed in the Spring or Fall 2003 or Winter 2004 issue, you will
als involved in the field of public sec-   become an eligible contestant for a trip to Charlottetown, Prince Edward Island in the Spring
tor financial management.                  of 2004.

Its major articles, columns and news       The fmi journal editorial team look after, at a minimum, the subject areas following their
cover a broad range of government          names:
                                               aRKay - fINANClAL mUSlNCS & iNSlGHTS
accounting, auditing, and financial
                                               Ron Ashworth - Personal Financial Planning - (613) 760-3403
management topics of concern to pro-
                                               Bill Boston - Financial Management - (613) 954-6400
fessionals.                                    Bruce Hirst - Federal Financial Management - (613) 943-8763
                                               David Jones - Office and Home of the Future - (613) 946-3083
fmi journal readers hold influential           André Robert - Audit Management - Internal - (613) 952-3141
positions in public accounting, and            Martin Ruben - Audit Management - External - (613) 995-3708
have responsibilities in a variety of          Michael Van Herk - Electronic Commerce and Information Technology - (613) 277-1950
areas: financial management, infor-            Stacy Van Humbeck - Human Resources - (613) 759-6752
mation systems, administration and
                                           These editors welcome timely and relevant articles from you. Feature articles are generally
human resource management to
                                           2500 to 4000 words. Other articles or input to a regular column are normally shorter (500
name a few.                                to 2500 words). Letters to the editor are also welcome.

Its authors are individuals who hold       Please address your correspondence to any of the team members or to Norma Hubley,
senior or experienced positions within     Managing Editor:         fmi journal
government and the private sector.                                  Financial Management Institute
These individuals share their experi-                               P.O. Box 613, Station B
                                                                    Ottawa, Ontario K1P 5P7
ence and expertise in areas of concern
to professional public sector account-
                                           If you wish to be considered as an editor of the journal, please write to the Managing Edi-
ants and managers with financial           tor, and indicate your area of expertise and the type of articles or column to which you wish
responsibilities.                          to coordinate or to which you would like to contribute on a reasonably continuing basis.

Virtually any topic of interest to the     The recommended form of input is a 3.5” diskette in Microsoft Word or WordPerfect formats,
financially-oriented public sector         accompanied by original laser-quality hard copy. It is preferable that the documents be in bilin-
executive may be found in the fmi          gual format. Graphics must be kept separate (not inserted into the text). Advise what software was
                                           used to produce the graphic. The author’s photo and short biography are also requested.
journal.
                                           The FMI can no longer supply quantities of additional copies to readers. Reprints, howev-
A non-profit organization, the FMI         er, are available at a reasonable price. The minimum order is 50 copies.
has opened 13 chapters across Canada
in the past 40 years. Today, the fmi       Subjects of Interest to Our Readership
journal enjoys a readership of more        ✔Accountability                             ✔ Human Resource Management
than 2,000 professionals.                  ✔Asset Management                           ✔ Humour
                                           ✔Audit Practices                            ✔ Information Management
                                           ✔Banking & Cash Management                  ✔ Planning & Resource Allocation
The organization hosts two annual
                                           ✔Best Practices                             ✔ Precis of Recent Government
national conferences: PD Week based
                                           ✔Business Planning                          ✔ Leaders’ Publications or Speeches
in Ottawa and held in late November,       ✔Career Advice                              ✔ Public Service Renewal
and the Public Sector Management           ✔Community Profiles                         ✔ Revenue Management
Workshop which takes place in May          ✔Electronic Commerce                        ✔ Salary Management
at a different location each year.         ✔Expenditure Management                     ✔ Summary/Highlights of Conferences or Seminars
                                           ✔Federal/Provincial/Municipal Reviews       ✔ Systems
                                           ✔Government Accounting Policy               ✔ Technology Trends
journal
     Winter 2003                Volume 14, Number 2
                                                               inside fmij
      The Financial Management
         Institute of Canada                                   Departments
                                                                2    Message from the President
                   Managing Editor                              3    From the Desk of the Managing Editor
                   Norma Hubley                                 4    FMI Board of Directors 2002-2003
                                                                5    fINANCIAL mUSINGS & iNSIGHTS
            Assistant Managing Editor                           34   Chapter News
                   Bryn Weadon                                  44   PSMW 2003
                   Editorial Board
                                                               Features
                        aRKay
                                                                 8    The Ontario Government’s Journey to World Leadership
                    Ron Ashworth
                                                                      Through I&IT
                     Bill Boston
                                                                        Laurie Sweezey
                     Bruce Hirst
                                                                 14   E-Payments in Canada: A fast-forward evolution
                     David Jones
                                                                        Carol Armatage
                    André Robert
                                                                 16   The Benefits of Integrated Risk Management and One Effective
                    Martin Ruben
                                                                      Approach to Make Them Happen
                  Michael Van Herk
                                                                        Paul Fontaine
                 Stacy Van Humbeck
                                                                 18   Interface Communications Protocols, or, How We Got the Technical
           Advisory Board Chairperson                                 Whizzes and the Business Bosses to Understand Each Other
                 Richard Neville                                        David G. Jones
                                                                 20   Internal Audit meets Information Technology: Audit and
             Advisory Board Members                                   Evaluation Branch goes OPTIC™
                   Jim McCarter                                         Ian Hlavats and Sherill Minns
           Steve McLaughlin (Secretary)                          22   How Natural Resources Canada (NRCan) is Looking at its
                 Pierre-André Paré                                    Management Information Needs
                     Ron Smith                                          Anne Grebenc and Shelley Senova
                Germain Tremblay                                 24   The Importance of Prices in the Evolution of Local Government
                                                                      Service Production
                    Cover Photo                                         Robert L. Bish
                   Tourism Victoria                              26   Steering by Remote Control: Planning, Performance
                                                                      Measurement, Accountability and Learning
                  Desktop Publisher
                                                                        Paul G. Thomas
                     Ian Culbert
                                                                 30   Performance Management: The British Columbia Context
                 FMI Administrator                                    Focussing on Results
                  Joanne Steadman                                       Beth James and Brenda Eaton

 The fmi journal is published three times a year. All rights   Columns
 reserved. Reproduction in whole, or in part, without           37   PSAB Perspectives: Keeping Up to Date
 written permission from the publisher is prohibited.                on Public Sector Accounting Standards
 Opinions expressed are not necessarily those of the                 Beyond Annual Results: PSAB wants financial statement readers
 Financial Management Institute of Canada.                           to look at more than just a government’s annual surplus/deficit
                                                                       Martha Jones Denning
 Publications Mail Agreement Number 40040265.

                                                                 42     Personal Financial Planning
 The fmi journal is published by the
  Financial Management Institute of Canada
                                                                        Budgeting: The Foundation of a Successful Personal Financial Plan
  P.O. Box 613, Station B, Ottawa, ON, K1P 5P7                            Ron Ashworth
  Telephone: (613) 569-1158 Fax: (613) 569-4532
  Email: national@fmi.ca
  WWW English section: www.fmi.ca
  WWW French section: www.igf.ca                                  For marketing opportunities, please contact Tom Ritchie at (613) 523-0487 or tomritchie@rogers.com


WINTER 2003                                                                                                                                    FMI JOURNAL             1
president
MESSAGE FROM THE




O
          ur 40th anniversary year continues to be one of unparalled success. Professional
          Development Week (PDWeek) was held from November 26th to 29th, 2002 and
          was the best ever. It is a matter of some debate, but we believe that the first
PDWeek, as we know it today, was held in November 1976 under the guidance of Alan Ross             Bruce Jamieson
and Paul Gauvin. From those humble beginnings we have continued to grow and develop.                  President
This year we had over 2,000 participants who enjoyed the benefits of a wide range of out-
standing presentations. Our sincere thanks to our Co-chairs, Nicole Campeau and Mark
Huard, and their dedicated committee of volunteers. We also wish to thank our sponsors
and exhibitors for bringing their leading edge products and processes to us and adding to
the overall quality of the event.
   At a special reception during PDWeek we presented many of our Past-Presidents with
honourary lifetime memberships in the FMI. We were extremely pleased that 16 of our Past-
Presidents were able to attend in person and many others, who were unable to attend, sent
their best wishes. Their certificates will be presented by their local chapters at a later date.
   In addition to Past-Presidents, the FMI also may provide honourary life memberships to
persons who the FMI feels have made an outstanding contribution to public sector finan-
cial management practices and processes. In the past, the FMI has only so honored one per-
son, and that was Raymond Dubois. This year we have added Andy Macdonald, the former
Comptroller General of Canada, for his leadership and direction in public sector financial
management.
   The organization is almost complete for the upcoming Public Sector Management Work-
shop (PSMW), which will be held June 1st to 3rd, 2003 in Victoria, BC. The theme for
this year’s workshop is Navigating in the Wake of Change. They have a very exciting pro-
gram lined up under the able leadership of Derek Greer, Bruce Hirst and an enthusiastic
team of volunteers. The BC government’s Employee Learning Service has thrown its sup-
port behind the workshop so there will be a high demand for this program and space may
have to be limited. Register early to avoid disappointment. Program and registration infor-
mation is available on our website.
   We are continuing to grow as an organization. We are pleased to welcome Newfoundland
as a new chapter and the return of the Prince Edward Island chapter after a period of inac-
tivity. Our primary objectives as an organization are to provide continuous learning and net-
working opportunities to our membership. I urge each of you to take full advantage of these
opportunities at both the chapter and national levels and to become even more actively
involved in their day-to-day activities. See you in Victoria! ■




2   FMI JOURNAL                                                                                             VOLUME 14, NO. 2
managing editor
FROM THE DESK OF THE




T
         he Winter issue of the fmi journal is   quoted the October 12, 1999 speech from
         generally the opportunity to reflect    the Throne...”By 2004 the goal is to be
         on the recent Professional Develop-     known around the world as the government
ment (PD) Week and to speculate on the           most connected to its citizens, with Cana-                  Norma Hubley
Spring Public Sector Management Work-            dians able to access government informa-                    Managing Editor
shop (PSMW). PD Week again surpassed             tion on-line at the time and place of their
previous events in attendance and expecta-       choosing”. Will Canada achieve this goal?
tions. Our congratulations to the organiz-       Undoubtedly the answer is yes. In our         late data and communicate globally, in an
ing committee for the excellent, interesting     everyday lives as citizens technology is      instant. Daily, technology offers more
and timely presentations and seminars.           ubiquitous. In fact, Canada has been          options. We have a wide array of articles
   Victoria is welcoming PSMW from June          ranked number one in terms of E-govern-       illustrating just how technology is tran-
1-3,2003, with co-chairs Arn van Ersel,          ment leadership in a recent study. Within     forming our lives.
Comptroller General of British Columbia          Canada, British Columbia is ranked first,        I am pleased to introduce a new member
and Mr. Robert Emond, Assistant Deputy           followed closely by Ontario.                  of the editorial staff. Ron Ashworth has
Minister, Finance Corporate Services for            The Ontario Government has recently        agreed to provide a column on Personal
the Department of National Defence.              received awards at the prestigious E-Gov      Financial Planning. Ron brings with him
   The PSMW organizers have chosen the           2002 Exposition in Washington, DC for         over 30 years experience in the financial
theme ‘Navigating in the Wake of Change’.        two projects: CLAI Maps, which provides       sector and has started with a back to the
How appropriate as this year promises to be      information on mining claims, and the         basics column on budgeting.
one of continued rapid change and techno-        Business Transformation Project, which has       And finally, a welcome back to Stacy Van
logical advancements.                            transformed the social assistance delivery    Humbeck who, after a one-year absence,
   We have dedicated this issue to technolo-     system.                                       has agreed to return to the editorial staff
gy, the generation & management of infor-           In our professional lives, technology is   with the responsibility for Human
mation, and have several key articles.           enabling us to more efficiently access and    Resource Managment. ■
   The Spring 2001 issue of the fmi journal      store information; manipulate and extrapo-




                                             Interested in receiving the
                                             fmi journal electronically?

                                                        Send an e-mail to:
                                                         national@fmi.ca
                                                         with your views.




WINTER 2003                                                                                                           FMI JOURNAL        3
HEADER
                           FMI Board of Directors 2002-2003
    Executive and Management Sub-Committee                    Phone              Fax                 Email
    President                   Bruce Jamieson                (506) 458-5251                         emu999@nb.sympatico.ca
    Vice-President              Nicole Campeau                (613) 947-1801     (613) 947-4661      nicole.campeau@irb.gc.ca
    Treasurer                   Terry Coyle                   (613) 995-9377     (613) 947-4661      terry.coyle@irb.gc.ca
    Secretary                   Ronald Smith                  (204) 983-0184     (204) 983-4694      ron.smith@wd.gc.ca
    Past President              Germain Tremblay              (613) 995-3741     (613) 996-2151      gertremb@nrcan.gc.ca
    Administrator                   Joanne Steadman           (613) 569-1158     (613) 569-4532      national@fmi.ca
    Executive
    Assistant Treasurer             Jim Quinn                 (613) 838-4352                         hyak@travel-net.com
    Marketing and Development       Bruce Meredith            (613) 992-7624     (613) 947-4661      bruce.meredith@irb.gc.ca
    Editor, FMI Journal             Norma Hubley              (613) 759-6809     (613) 759-6023      hubleyn@agr.gc.ca
    Assistant Editor, FMI Journal   Bryn Weadon               (613) 945-0672     (613) 945-0688      weadon.bm@forces.gc.ca
    Chapter Liaison                 Roland Letarte            (418) 622-5214                         watsonletarte@hotmail.com
    PD Week Chairs                  Nicole Campeau            (613) 947-1801     (613) 947-4661      nicole.campeau@irb.gc.ca
                                    Marc Huard                (613) 954-6226     (613) 941-2675      mark.huard@ccra-adrc.gc.ca
    PSMW Chairs                     Derek Greer               (250) 387-4117     (250) 356-9637      derek.greer@gems6.gov.bc.ca
                                    Bruce Hirst               (613) 943-8763     (613) 996-2151      bhirst@nrcan.gc.ca
    Directors
    Liaison East                    Fred Donaldson            (902) 426-6124     (902) 426-0507      fred.donaldson@psc-cfp.gc.ca
    Liaison West                    Wolf Boehm                (204) 945-7006     (204) 945-2385      wboehm@gov.mb.ca
    Professional Liaison            Jean Laporte              (819) 994-8004     (819) 997-2239      jean.laporte@tsb.gc.ca
    Director                        Serge Boisseau            (418) 648-2488     (418) 648-4234      serge.boisseau@pch.gc.ca
    Chapter Presidents
    Alberta                         Patrick Stewart           (780) 435-7354     (780) 435-7359      pastewar@nrcan.gc.ca
    Capital                         Barb Thompson             (613) 947-2547     (613) 958-7051      thompson.barbara@tbs-sct.gc.ca
    Fredericton                     Mike Gagnon               (506) 453-5614     (506) 457-4840      Mike.Gagnon@gnb.ca
    Halifax                         Kevin Malloy              (902) 424-2424     (902) 424-0635      kdmalloy@gov.ns.ca
    Manitoba                        Gord Courage              (204) 986-5171     (204) 947-2284      gcourage@city.winnipeg.mb.ca
    Montreal                        Mario B. Roy              (450) 923-6700     (450) 923-7016      mbroy@ville.longueuil.qc.ca
    Prince Edward Island            Robert W. Hamilton        (902) 566-8320     (902) 368-0411      rwhamilt@vac-acc.gc.ca
    Québec                          Louise Rheault            (418) 644-2835     (418) 644-0902      louise.rheault@meg.gouv.qc.ca
    Regina                          Bob Cochran               (306) 780-6750     (306) 780-7555      bobcochran@accesscomm.ca
    St. John’s                      Sonya Janes               (709) 722-4175     (709) 722-8805      sjanes@rcmp-grc.gc.ca
    Vancouver                       Arvind Reddy              (604) 264-2726     (250) 264-3521      areddy@rcmp-grc.gc.ca
    Victoria                        Peter Bray                (250) 356-8588     (250) 356-7517      peter.bray@leg.bc.ca
    Marketing Coordinator           Tom Ritchie               (613) 523-0487                         tomritchie@rogers.com


                                             FMI Membership
                                      Have you renewed your membership?
    If you have not received your renewal information, contact your            Contact your local Chapter President for information
    local Chapter. Do not delay! There is an exciting year planned. To         regarding mailing addresses and program activities.
    be eligible for preferred member rates, your membership must be      Calgary              $30.70    Prince Edward Island     $50.00
    current. Remember the benefits FMI membership offers:                Fredericton          $32.35    Regina                   $25.00
    • Networking opportunities with over 2,000 professionals in the      Halifax              $50.00    St. John’s               $50.00
       finance field across Canada;                                      Montreal             $30.00    Victoria                 $20.00
    • Professional development conferences, seminars, workshops at       National             $32.10    Vancouver                $25.00
       preferred rates;                                                  Ottawa/Hull (Capital)$26.75    Winnipeg                 $20.00
    • Eligibility for awards and recognition;                            Quebec               $25.00
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    • fmi journal;                                                                       FMI — P.O. Box 613, Station B
    • And much, much more!                                                                   Ottawa, Ontario, K1P 5P7

4      FMI JOURNAL                                                                                                     VOLUME 14, NO. 2
fINANCIAL mUSINGS &


iNSIGHTS
CRISIS!: Our stocks of AOL CD’s are run-        MORE ECCLESIASTICAL ADVERTIS-
ning low - you could make a difference. Just    ING: That “Love Thy Neighbour” thing...
imagine if everybody left it up to someone      I meant it.” -God OR “Have you read my
else. PEOPLE ARE DYING ! ! ! Send your          #1 best seller? There will be a test.” -God
CD’s in now!                                                                                                            aRKay
                                                A TOAST TO THEE: Poor Willy Shake-               aRKay, who also refers to himself as “your obedient
COPS ARE NEAT: Ever notice on the               speare, could not get a drink anywhere in        servant” (yos), was born to a family of wolves, who
                                                                                                 later abandoned him. He was then taken in by a band
news when the cops make a big weapons           town. Surely you heard that he was Barred        of nomadic, itinerant, wandering auditors who treat-
bust, they take a few days to lay them out      in Avon?                                         ed him as one of their own. From these humble begin-
                                                                                                 nings, he developed a deep and abiding respect for the
on a table in precise patterns? Very neat.                                                       science (art?) of financial management, leading to his
Seems they could spend that time looking        ISN’T THAT NICE? If you think there is           work being published in no less than the fmij!
                                                                                                    He would love to receive your comments and sug-
for more guns.                                  good in everybody, you obviously haven’t         gestions.
                                                met everybody.
BON MOOOO: 2 cows in a field, One
says “Moooo”. Other says “Gee, I was just       WORD TO THE WISE GUY: You have                   are adrift for several days. A bottle floats by,
going to say that.”                             the right to remain silent, so please shut up!   they pick it up and rub it. Out pops a genie
                                                                                                 offering one wish. “We want something to
AT THAT AGE: Ever notice you become             JUST A MINUTE: Fellow staffer at fmi             drink.” The genie, knowing their tastes goes
21, you turn 30, you’re PUSHING 40, you         confided to a sex therapist that he and          POOF and the entire ocean now consists of
REACH 50, MAKE it to 60, HIT 70! After          spouse had been married for a long time          beer. “Great says one, we now have to pee
that it’s a day-by-day thing, like you HIT      and sex was routine. (Lucky guy you say? -       in the boat.”
Wednesday!                                      Routine). He was advised to get into role-
                                                playing - “Play doctor for an hour.” That        THE TOP TEN FASCINATING
WINNER LOSE: Listen to sports                   night he kept his wife waiting for 45 min-       THINGS ABOUT ACCOUNTANTS:
announcers, particularly during the             utes.                                            10. 9. 8. 7. 6. 5. 4. 3. 2. 1.
Olympics. The athlete who finished in first
place “Won gold.” The person in third           WORDS OF WIS-DUMB: Take our                      IT AIN’T FAIR: Expecting the world to
place “made it to the podium and captured       advice - we’re not using it anyway.              treat you fairly because you are good is like
bronze.” But the poor competitor who beat                                                        expecting the bull not to charge because
everyone in the world except one had to         WHO THAID THAT? Whose cruel idea                 you are a vegetarian.
“settle for silver.”                            was it to put the ‘s’ in lisp?
                                                                                                 FOOLS RUSH IN WHERE...: Who puts
IMPROPER FRACTIONS: At what age                 SHORTS: Was called to the boss’s office for      those “Thin Ice” signs out there?
do we stop using fractions? Remember            debriefing. We said “NO - our underwear is
when you were 7 and ONE HALF?                   our own.”                                        KEEP YOUR FINGERS CROSSED:
Nobody is ever 48 and one half. It seems to                                                      Don’t believe in superstition - it brings bad
cut in again post-mortem. We often hear of      DOWN DOWN DOWN: The boss is like                 luck.
the deceased being 102 years, 2 months and      a Slinkie . . . well-constructed, not really
3 days.                                         good for anything, but we do smile when          DO YOU SEE WHAT WE SEE?: It’s not
                                                we see him tumble down the stairs.               an optical illusion it just looks like one.
MADISON AVENUE ENDS AT THE
PEARLY GATES: Organized religion is             WHETHER OR NOT: Take a lesson from               ONLY WINE AGES WELL: Was giving
advertising. Road signs (true!) like the fol-   the weather. It pays no attention to criti-      the head of Accounting a listening-to and
lowing are appearing on some highways:          cism.                                            we realized that the older he gets the better
What part of “Thou Shalt Not...” didn’t                                                          he used to be.
you understand?” -God. OR “Keep using           WATER WATER NOWHERE: Two fish-
my name in vain, I’ll make rush hour            ermen in a boat on the ocean - storm comes       GET ME OUTTA HERE: On a recent
longer.” -God                                   up - they get tossed all over the place. They    business trip we noticed that when the

WINTER 2003                                                                                                                   FMI JOURNAL            5
FINANCIAL MUSINGS AND INSIGHTS

plane lands people go into stampede men-        WISDOM FROM THE DMV: Page 236                    AND YET EVEN MORE WISDOM OF
tality. Whether it was a 30-minute or a 7-      says: “If a motorist cuts you off, just turn     WORDS: How come rain drops but snow
hour flight they just gotta get off the plane   the other cheek.” We know someone who            falls?
immediately. You’d think that the last one      tried it and got arrested for mooning.
off the plane had to clean it.                                                                   HOW’S THAT AGAIN?: Sign in store:
                                                ETHICS 101: Conscience never stops you           Semi-Annual after Christmas Sale
TO BE PRECISE....: Once again aRKay             from doing anything. It stops you from
must step in and correct some false impres-     enjoying it.                                     BUSINESS NEWS: Recent mergers: 3M
sions. Heard a guy say he was going to put                                                       & Goodyear are now mmmGood; Grey
his boat “in the water” recently. WRONG!        GRAMPS ALWAYS SAID....: All things               Poupon & Dockers Pants are now Poupon
His boat was going “on the water.” Like-        come to those who wait. Unfortunately its        Pants; Swissair & Cheseborough-Ponds
wise, the news stated that a submarine was      always the things left by those who got          become Swisscheese; and Zippo Manufac-
going “under water.” WRONG!. The sub-           there first.                                     turing & Audi & Dofasco & Dakota Min-
marine was actually in the water. Burrowing                                                      ing will be known as Zip Audi Do Da.
worms (and the Chunnel) go under water.         WISDOM OF WORDS: We say the alarm
                                                clock goes “off ” when it actually turns “on”.   PHILOSOPHY 101: Eternity is very, very
TRYING TO DIET? (DYING TO TRY                                                                    long, especially towards the end.
IT?): “STRESSED” is “DESSERTS”                  MAJOR FLAW: The professor on Gilli-
spelled backwards?                              gan’s Island made a radio from a coconut.        CRIME AND PUNISHMENT: Reading
                                                Why couldn’t he fix a hole in a boat?            about a murder trial - we don’t buy tempo-
SAVE WATER: Be sad. The more you cry,                                                            rary insanity defence. People kill people.
the less you have to pee.                       MORE WISDOM OF WORDS: The air                    Breaking into someone’s home and ironing
                                                conditioner is on, the room is too cool. Do      all their clothes is temporary insanity.
INSTANT GRATIFICATION: The boss                 you turn the air conditioner “up” or
told us that hard work has a future payoff.     “down”?                                          DEAR ABE: Advice to the lovelorn column
We believe that laziness pays off NOW.                                                           said “Guys have feelings too. But like... who
                                                EVER WONDER? Why doesn’t a chicken               cares?”
LOOK AT THE TIME: Some can tell                 egg taste like chicken?
time by looking at the sun. We can’t make                                                        THE RETURN OF WISDOM OF
out the numbers.                                LOOK IT UP IN YOUR THESAURUS:                    WORDS: Have your cake and eat it too -
                                                What’s the opposite of “opposite”?               it’s cake, what else are you going to do with
DIE HEALTHY: Office guru keeps push-                                                             it?
ing health foods. We told him he was going      SOMETHING WRONG HERE: We got
to feel stupid someday, lying in hospital       the dog “fixed”. Now he doesn’t work.            WORDS TO LIVE BY: “Live life to the
dying of nothing.                                                                                fullest.” (Think of all the people on the
                                                STILL MORE WISDOM OF WORDS:                      Titanic who passed up chocolate dessert.)
ARE YOU BLUE?: Start breathing again.           Why? Inside they are “stairs”, outside they
                                                are “steps”.                                     LAST WORDS: If the shoe fits, get anoth-
DRIVING AND KNITTING: Car driver                                                                 er just like it. (Now go back and gotta think
was knitting while driving. Cop pulled up       BELIEVE!: Fellow staffer at fmi Inc. read        about that title.)
alongside and hollered “Pull over!” The         there’s a trillion stars in the universe, and
reply: “Actually it’s a cardigan but thanks     believed it. Same guy who saw a sign that        AGAIN! WISDOM OF WORDS: We are
for asking.”                                    said “Wet paint” and had to touch it to          told to “think outside the box.” Think of
                                                make sure.                                       what that would do to a goldfish.
HE SAID TO HIS TRUE LOVE...: Do
not walk behind me, I may not lead. Do          REMEMBER...: Birthdays are actually              EVER WONDER AGAIN?: What was the
not walk ahead of me, I may not follow. Do      good for you; the more you have, the longer      best thing before sliced bread? ■
not walk beside me, just leave me the hell      you live.
alone.
                                                T-SHIRT WISDOM: I am an explosives
IF YOU WOULD SUCCEED...: Follow                 expert – if you see me running, try to catch
your dream! Unless it’s the one where you’re    up.
at work in your underwear during a fire
drill.                                          EVER WONDER EVEN MORE?: If you
                                                try to fail and succeed, what did you just
                                                do?

6   FMI JOURNAL                                                                                                          VOLUME 14, NO. 2
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 The Ontario Government’s Journey
to World Leadership Through I&IT
                                   Laurie Sweezey




T
         he Ontario government is trans-         ernment decision-making through the
         forming itself into an “e-govern-       use of emerging technology – primarily
         ment” to meet the challenges and        the Internet; and                                               Laurie Sweezey
expectations of the 21st century. With an      • Streamlining internal government opera-
increasingly technology-savvy public that        tions.                                         Laurie Sweezey is the Head of E-Government for the
                                                                                                Province of Ontario, reporting to the Office of the
expects to be served through various chan-                                                      Corporate Chief Information Officer at Management
nels, we’re in the midst of a journey to       Electronic service delivery                      Board Secretariat.
                                                                                                   Throughout Laurie’s career, she has worked across
apply information and information tech-           ESD is the most visible aspect of e-gov-      business areas, seeking out opportunities to solve com-
nology (I&IT) to all functions of govern-      ernment. It comprises the myriad ways the        mon business problems through innovative applica-
                                                                                                tion of technology in support of fundamental business
ment to make it more efficient, cost-effec-    Ontario government serves and communi-           reengineering. In her current role, she is directing the
tive and user-friendly. The Ontario govern-    cates with the public through electronic         implementation of the Government of Ontario Feder-
ment is determined to do everything we can     channels. These new electronic channels are      ated Portal program.
                                                                                                   Laurie joined the province in August, 2000, having
to make Ontario the best place to live,        delivering services in a more seamless, con-     spent the proceeding 18 years with the Canada Cus-
work, learn, visit and do business. Informa-   venient and customer-centred way for both        toms and Revenue Agency (formerly Revenue Cana-
                                                                                                da.).
tion technology is a huge component of         individuals and businesses.
this goal.                                        In fact, we’ve made a commitment to           per cent of the services the provincial gov-
   To this end, we’ve made some exciting,      increase public satisfaction with govern-        ernment delivers now use an electronic
tangible and durable progress over the past    ment services by becoming a world leader         channel.
few years. New information links are driv-     in delivering services electronically in 2003.      On the education front, parents can get
ing fundamental reform of major public-        And we’re well on our way to achieving this.     standardized test results for local schools
sector systems such as health care, educa-     The work in this area is transforming pub-       through the Internet. Students can now
tion, justice and transportation. New elec-    lic service in Ontario and has the potential     register for enrolment at an Ontario college
tronic avenues for citizen engagement in       to touch every citizen in the province –         or university online and also apply for
the democratic process are opening up.         from people in remote communities to             financial aid from the Ontario Student
Internal government processes are being re-    children in our schools.                         Assistance Program (OSAP) electronically.
engineered and sophisticated information          Some of the strategy’s principles about       In fact, about 88 per cent of OSAP applica-
tools support policy-making and planning.      access to information and services include:
For many Ontarians, electronic service         • Being organized by citizen needs;
delivery (ESD) is quickly becoming the         • Assuring clients of privacy, confi-
avenue of choice when doing business with         dentiality and appropriate securi-
their government. In short, we’re making          ty;
tremendous strides in meeting – and            • Being accessible 24/7;
exceeding – the modern needs of our citi-      • Enabling convenient access
zens.                                             from home, the workplace
   Becoming an e-government means                 and public access sites such
applying I&IT to the workings of govern-          as schools, libraries, gov-
ment in an all-encompassing way to serve          ernment information cen-
the public more efficiently and effectively.      tres, and community
This transformation has four key dimen-           information centres; and
sions:                                         • Offering easy-to-use deliv-
• Creating and using electronic channels          ery channels for clients with
   for direct service delivery – ESD;             special needs.
• Reforming large public sector systems           During the past two years, more
   such as health, education, justice and      than 200 ESD initiatives have been
   transportation;                             undertaken across the government –
• Enhancing public participation in gov-       including 83 new e-services. More than 70

8   FMI JOURNAL                                                                                                               VOLUME 14, NO. 2
                                                                                                    WORLD LEADERSHIP THROUGH I&IT

tions were processed electronically for the
2002/03 school year.
   Through MyBis information service, busi-
ness people can electronically select areas of
interest and receive e-mail with information
links on topics ranging from training and
taxation to exports and R&D. Through Vir-
tual Trade Missions, small and medium-
sized enterprises can interact with potential
business partners overseas – without leaving
home. And businesses can now e-file tax
returns for the Provincial Sales Tax, Corpo-
rate Income Tax and Employer Health Tax.
Electronic filing of corporate tax returns
resulted in annual savings of $3.5 million
and eliminated paper, data entry, file collat-
ing and telephone communication.
   Property owners can file complaints
about their property assessment with the
Assessment Review Board, pay fees elec-
tronically and monitor the status of their
complaint online. All government statues
and legislation are also accessible online.
   Chiropractors and physiotherapists can        ers, update addresses, pay fines and much        transformation with several sectoral reform
submit invoices online to the Workplace Safe-    more.                                            initiatives.
ty and Insurance Board. Online billing makes        More than half of our recent ESD initia-         Ontario now has the most modern welfare
it easier to invoice and payment is faster.      tives provide enhanced information services      delivery system of its kind with the Business
   The Ministry of Consumer and Business         that involve transactions between govern-        Transformation Project (BTP), which revolu-
Services has entered into an innovative          ment and individuals or businesses, such as      tionized the way social assistance is delivered
partnership with a private sector consor-        online registration or application. Our          in the province. The BTP replaced a 30-year-
tium led by Bell Canada to integrate rou-        objective is to increase customer satisfaction   old system under which caseloads had almost
tine transactions for individuals. Through       – not just get services online. We are tailor-   tripled, annual costs had risen dramatically
this initiative, 24 high volume transactions     ing service delivery to user needs and giving    and business processes were largely paper-
from four ministries will be accessible any-     customers as much choice as possible.            based and labour-intensive, leaving little time
time anywhere through a single portal.              Ontario is also setting the pace in inte-     for caseworkers to serve clients. Working
These transactions will include such things      grating services to provide seamless access      with municipalities and ministry and front-
as outdoors card renewal, vehicle plate          from the customer’s perspective. For exam-       line staff, the BTP created one huge and effi-
renewal, publication ordering and address        ple, the government’s central website            cient automated system that includes seven
changes. This is exciting for Ontarians          (www.gov.on.ca) now has an integrated vir-       municipally-operated call centres across the
across the province – and it will set Ontario    tual service centre featuring Life Event bun-    province, an automated telephone system
apart internationally. The multi-channel         dles. Services are organized around such         through which clients may use secure PIN
infrastructure will support not only the         topics as Getting Married, Having a Baby,        numbers to receive instant information about
Internet but also public access terminals        Getting Ready to Retire, Moving, Manag-          their personal case files and a new web-based
and call centres - and more transactions will    ing Your Debt and the Lost Wallet.               system for reviewing and verifying current
be added in the future.                                                                           social assistance cases. The project has gener-
   Overall, the Ontario government is at the     Transforming public sector systems               ated almost $200 million in savings above
forefront for the breadth and depth of              Our economic prosperity and quality of        and beyond all project costs and it’s estimat-
delivering services electronically. Our elec-    life depend on large public sector systems       ed that substantial annual savings will con-
tronic channels include interactive voice        such as health, justice, education, social       tinue as the system matures.
response systems, fax-on-demand and pub-         services, transportation and resource man-          Through Smart Systems for Health we
lic access terminals – as well as e-mail and     agement. To produce the best outcomes for        are building a province-wide information
the Internet.                                    Ontario citizens, these complex systems          infrastructure for Ontario’s health care pro-
   In fact, ServiceOntario kiosks are located    must improve the way they are managed            fessionals. Soon, doctors, hospitals, phar-
in more than 35 cities across the province.      and deliver services by capitalizing on          macists, public health units and other parts
The kiosks are automated, self-service tools     I&IT. The Ontario government, as an e-           of the health care system will be able to
that allow users to renew licence plate stick-   government, is leading and supporting this       exchange appropriate information electron-

WINTER 2003                                                                                                                FMI JOURNAL          9
WORLD LEADERSHIP THROUGH I&IT

ically. It also means doctors can consult         ways to improve parent access to children’s       and yielding better value for money. New
with each other more quickly and efficient-       school information.                               electronic tools make employees more pro-
ly. A doctor in rural Ontario, for example,                                                         ductive and jobs more rewarding – helping
can consult a specialist in downtown              Citizen engagement                                the Ontario Public Service (OPS) attract
Toronto using secure, two-way videocon-              Research reveals that the people of            and keep quality staff.
ferencing. And, ultimately, more timely           Ontario want to be more closely involved             The Shared Services Bureau (SSB) has
information will lead to better health for        with government decision-making. And              created an internal, secure personalized
the people of this province.                      since more than 60 per cent of Ontario            electronic service delivery channel –
   The Major Case Management System is            households are connected to the Internet,         MySSB – that fundamentally changes the
another example of how technology is help-        the province is a ripe climate to build upon      way Ontario public servants obtain busi-
ing us become more efficient. This system         work in e-citizen engagement.                     ness and employee services. The bureau
was developed following the conviction of            So far “digital democracy” in Ontario          delivers business support services to min-
Paul Bernardo for murder in 1995. It helps        involves posting detailed information about       istries and agencies across the province,
police share and co-ordinate information          changing or prospective government pro-           replacing the former system where min-
across jurisdictions to help track serial pred-   grams online and providing a forum – e-           istries provided these services themselves.
ators. This system is implemented in all          mail or online forms – for the public and         SSB finds that employees increasingly pre-
police services across the province. More         other stakeholders to provide their feedback.     fer to point and click rather than interrupt
than 1,500 major cases have been entered             E-citizen engagement has great potential       their work to seek out old-style, in-person
into the system and 845 officers are trained      to connect with people in a meaningful            services. Through MySSB, for example,
to use the system.                                way. It helps the government gain insight         staff can file employee travel expense
   Land Information Ontario has estab-            into what the public and stakeholders are         claims, book rental cars, buy rail tickets,
lished an Ontario land information infra-         thinking while creating opportunities for         order business cards and office supplies,
structure designed to ensure that important       them to learn about the process of govern-        apply for a purchasing card and link to the
geospatial data sets exist and are easily         ment decision and policy-making.                  Workforce Information Network to update
accessible to those who need them. The               Though Ontario is still in the prelimi-        their attendance.
potential uses of the land information infra-     nary stages of e-citizen engagement, many            We also now have an integrated and co-
structure by Ontario ministries are vast. It      ministries have already made significant          ordinated system for Inspections, Investiga-
can be used to produce web-enabled maps           strides in one of the most cutting-edge           tions and Enforcement (II&E) across the
for land-use planning, information for the        dimensions of e-government.                       province. More than 5,000 staff in 13 min-
convenient and efficient routing of school           The Ministry of Environment has an             istries deliver II&E services that protect
buses, a register of economic development         online emissions registry called OnAIR that       Ontarians, such as inspecting food, ensur-
sites, records of air quality over time, a dig-   gives the public immediate access to air pol-     ing the safety of our roads and workplaces
ital road network to redirect ambulances          lution reports that are required of industry      and protecting our environment. This proj-
and data to develop forest fire scenarios. To     across the province.                              ect links all of these ministries and employ-
cite one example of benefits already real-           The Ministry of Transportation was             ees so they can share information to better
ized, Elections Ontario has used land infor-      ahead of its time when, several years ago, it     protect the public.
mation to define its polling areas and elec-      launched its Online Aggressive Driving               The Integrated Financial Information
toral boundaries and track voter movement.        conference. The public site gave people an        System (IFIS) is a single system for all min-
In doing so, it has significantly reduced         opportunity to respond to issues and pro-         istries to process financial information. IFIS
enumeration costs and the time required           pose solutions online. Resources about this       was rolled out to the Ministry of Finance
for enumeration.                                  subject are still on the site and available for   and the Ministry of Northern Develop-
   The Ontario Knowledge Network for              public and government use.                        ment and Mines on a pilot basis in fall
Learning involves a comprehensive strategy           The Ministry of Municipal Affairs and          2002 and will be similarly rolled out to the
to integrate new information technology           Housing has had numerous online consulta-         rest of the OPS in a series of waves. IFIS is
into the learning environment. Objectives         tions, including web-based submissions, on        expected to reduce administrative costs and
are to improve learner achievement,               important issues like Smart Growth and the        boost efficiency while increasing the gov-
enhance teaching and give students the            Oak Ridges Moraine. In fact, most of the e-       ernment’s capacity to exploit new technolo-
education opportunities they need to suc-         mails received on the Oak Ridges Moraine e-       gy and creating more options to improve
ceed in the knowledge-based economy. So           consultation reinforced that the project was      service delivery, meet customer expecta-
far, seven “pathfinder” schools have been         moving in the right direction. The online         tions and ensure accountability.
funded, distance courses have been devel-         feedback contributed to policy development.
oped for high school mathematics and Eng-                                                           IT infrastructure
lish and online courses for teacher profes-       Streamlining internal government                    This incredible array of IT accomplish-
sional development have been created.             operations                                        ments would never have been achieved
Plans include developing projects with              E-government transforms internal man-           without the proper architecture underpin-
more pathfinder schools and exploring             agement processes, streamlining operations        ning all four dimensions of e-government.

10   FMI JOURNAL                                                                                                            VOLUME 14, NO. 2
                                                                                                   WORLD LEADERSHIP THROUGH I&IT

Corporate, enterprise-wide systems,
resources, policies and standards – includ-
ing a secure common I&IT infrastructure,
privacy safeguards and e-government
enablers such as financial systems and e-
commerce processes – are integral to our
continuing successes.
   In our I&IT organization, we concen-
trated on architecture, common infrastruc-
ture and enablers to get started. An inte-
grated approach has been the key to our
success. In the days before our I&IT strat-
egy was introduced in 1998, the govern-
ment had many different computer sys-
tems – information silos – that could not
talk to each other electronically. The I&IT
strategy was designed to change all that.
And it has.
   Under the strategy, integration was at the
heart of the bold organizational and gover-
nance structure that grouped government
ministries into business clusters for the pur-
poses of I&IT. This encouraged the devel-
opment of integrated I&IT solutions that:         ation technology infrastructure, a common      to provide what the public wants – simple,
• Serve common businesses or clients;             technical footprint will be implemented        secure access to government. The security
• Provide economies of scale and scope;           over the next three years. This will be made   strategy is creating a secure electronic oper-
   and                                            up of basic technology platforms including     ating environment that will enable e-gov-
• Create challenging projects that retain         desktop computers, application servers and     ernment initiatives and reinforce public
   and attract IT professionals to govern-        support processes. A common footprint will     confidence in our capacity to protect per-
   ment careers.                                  mean a consistent operating environment        sonal information.
   Common infrastructure is our top prior-        across the whole OPS. The objectives are to       Privacy protection is another key compo-
ity because it permits information links          reap the benefits of standardization and       nent of e-government. We have important
within and beyond the government to               economies of scale, get the most value for     work under way to protect privacy through
enable integrated, customer-centred servic-       money and improve the quality of service.      such measures as privacy impact assess-
es across program and jurisdictional lines.                                                      ments of new technology projects. Togeth-
Common infrastructure is also critical            Privacy and security                           er, security and privacy safeguards give citi-
because it is cost-effective. It reduces dupli-      Of course, the security of the govern-      zens confidence that their personal infor-
cation, driving down unit costs for I&IT          ment’s information and knowledge assets is     mation is protected and their transactions
and freeing scarce resources for other key        paramount. In fact, it is one of the corner-   secure. In pursuing these initiatives, we are
business priorities.                              stones for e-government. To that end, early    building the public trust on which the suc-
   One of our most exciting infrastructure        in 2002 a corporate I&IT security strategy     cess of e-government depends.
accomplishments is the government-wide            was approved – the culmination of much            We’ve also enhanced the Information
integrated network – the primary technology       previous work in this area.                    Protection Centre to operate around the
enabler of all major application renewal and         Our security strategy deals not just with   clock. The IPC, as it’s called, monitors the
strategic transformation projects. The inte-      I&IT systems but also with the facilities      Ontario government network in a proactive
grator model enables ministries to satisfy        that house them and the people who run         way. Incidents are assessed for potential
business requirements through a modern net-       and use them. September 11, 2001 rein-         risks and counter measures are developed
work at competitive pricing and with virtual-     forced the lesson that we must address secu-   and implemented to deal with those inci-
ly limitless capacity. What’s more, program       rity in a comprehensive way. Ontario’s cor-    dents. One of the significant steps for this
areas are now able to implement network-          porate security strategy is a high level map   group is to raise the awareness of security
based solutions not previously possible.          for how the government is meeting the          requirements among our OPS staff. We will
   With the first generation of technology        commitment to protect the confidentiality,     provide employees with information about
infrastructure almost complete we are shift-      integrity and availability of the Ontario      security policies and best practices and
ing emphasis to the second wave as well as        government’s I&IT assets. It reflects our      inform them of their responsibilities in
to application and information infrastruc-        determination to enable secure transactions    making security effective. Everyone has role
ture. To sustain and advance the first-gener-     over open networks. We are working hard        to play in this.

WINTER 2003                                                                                                               FMI JOURNAL 11
WORLD LEADERSHIP THROUGH I&IT

   We also work with external security mon-     regarded Bertelsmann Foundation in Ger-              Research tells us that businesses want
itoring agencies and with the federal gov-      many recently ranked Ontario third in their      seamless services across government lines.
ernment and other provincial governments        global benchmarking study, Balanced E-           As a step in this direction, Ontario is a part-
on security matters. Ontario has what we        Government. A recent Accenture study             ner with the federal government in Business
call ‘mission critical’ systems in such pro-    ranking countries around the world in            Registration On-line, available through the
gram areas as OHIP, child care, family sup-     terms of e-government leadership placed          Canadian Customs and Revenue Agency
port and offender management. Any poten-        Canada in first place for the second year in     website. This integrated online service lets
tial vulnerabilities which could affect our     a row. Within Canada, Ontario was in sec-        businesses complete electronic applications
systems must be assessed and then the           ond place behind British Columbia.               for eight government programs – such as
appropriate measures can be taken to help          In June 2002, two Ontario projects            registering or renewing a business name
mitigate against evolving threats to them.      received awards at the prestigious E-Gov         with the Ontario government, registering
                                                2002 Exposition in Washington, D.C. –            for a federal business number and applying
World leaders already                           CLAIMaps, which provides information on          for various permits and accounts. In short,
   The world is watching as Ontario             mining claims, and the Business Transfor-        it’s one-window service.
advances. More than 130 nations have vis-       mation Project, which has transformed the            Ontario is a leader in developing new
ited Ontario to learn about our best pro-       social assistance delivery system.               ways of working with the private sector and
grams and the majority of them are keenly          In September 2002, the OPS was award-         of sharing risks and rewards. With respect
interested in our technological advances.       ed the much-coveted Commonwealth                 to our ongoing outreach activities, we pro-
Similarly, Ontario is continually being         Association for Public Administration and        vide considerable information on our web-
invited to conferences around the world to      Management (CAPAM) Gold Internation-             sites and we are working to enhance our
share our strategy. Management Board Sec-       al Innovations Award for 2001-2002.              communications with private sector part-
retariat’s (MBS) corporate chief strategist,       The winning submission focused on four        ners. For example, we have held CIO
Joan McCalla, is one of the Ontario gov-        OPS achievements:                                roundtables to provide a forum for a strate-
ernment’s most in demand speakers on e-         • The creation of the Integrated Service         gic look ahead with respect to upcoming
government. In March 2002, she was invit-          Delivery Division in the Ministry of Con-     I&IT procurements which should help
ed by the South African government to par-         sumer and Business Services to integrate      vendors prepare in advance to respond to
ticipate in a conference attended by 500 of        the delivery of transactional services;       potential opportunities. And we have taken
the top civil servants in the country. In       • The creation of a virtual network to con-      important steps to review and revise our
Durban, McCalla gave an overview of                nect the inspections, investigations and      standard contract terms with respect to lim-
Ontario’s progress on e-government. In Pre-        enforcement function across ministries;       itation of liability as well as new approach-
toria, she made a presentation about            • Co-ordinating policy and planning in           es to intellectual property in custom soft-
Ontario’s challenges and successes.                clusters of ministries; and                   ware development projects.
   In October 2002, McCalla was invited to      • Using enterprise-wide models to deliver            The private sector is an essential partner
be a guest speaker at a CIO conference in          internal business support services.           with the Ontario government to develop
China as part of a delegation organized by         The OPS has also been the recipient of        new technology solutions and deliver elec-
Centennial College. She shared with the         the Award of Merit from the Canadian             tronic services. We continue to rely on pri-
country’s CIOs the OPS’s experiences and        Council for Public Private Partnerships and      vate vendors to deliver the innovative tech-
practices in e-government, e-commerce and       the CIO Canada Information Technology            nologies we need to stay ahead. We know
IT education. More recently, McCalla trav-      Excellence Award – two additional indica-        that our most potent asset for attracting
elled to Stockholm to present at the Cisco      tors that we are achieving excellence            vendors to do business with us is our deter-
Public Services Summit during Nobel             through our commitment to public service.        mination to succeed and our ability to do
Week 2002.                                                                                       so – which in turn reflects well on them.
   Many other Ontario government repre-         We don’t work alone                                  We are also taking part in a working
sentatives are also frequently invited to          In the early stages of our journey, we con-   group with Alberta and the federal govern-
share Ontario’s e-government journey at         centrated on putting information online          ment to define a national information man-
conferences across Canada and the United        and implementing behind-the scenes but           agement framework. As part of this effort,
States, including staff from MBS’s E-gov-       crucial enablers – such as legislation, archi-   we are working with Nunavut on the devel-
ernment Branch, Office of the Corporate         tecture and common infrastructure.               opment of national Extensible Markup
Chief Information Officer and other min-        Through the collaborative efforts of OPS         Language standards for tombstone data.
istries, such as the Ministry of Consumer       staff and our private and public sector part-    Such common standards will support the
and Business Services.                          ners, e-government is becoming not just a        more efficient and effective use of informa-
   Clearly, Ontario is on the world stage       vision but a reality. In the process, our gov-   tion as appropriate across jurisdictions.
when it comes to e-government. We consis-       ernment’s relationships with partners in the         Municipalities are an important element
tently rank in the top 10 jurisdictions glob-   broader public sector, other levels of gov-      in the equation. The Ontario government is
ally according to third-party benchmarks –      ernment, the not-for-profit sector and the       working with the Municipal Information
and we intend to stay there. The highly         private sector are also being transformed.       Systems Association to formulate an action

12   FMI JOURNAL                                                                                                          VOLUME 14, NO. 2
                                                                                  WORLD LEADERSHIP THROUGH I&IT

plan for co-operation on e-government by the province and
municipalities.
                                                                  Given a second chance,
A Look Ahead                                                       would your employer
   We have reinforced the drive toward integration through
continuing governance and organizational change. Our chal-
                                                                     hire the manager
lenge now is to sustain the momentum toward e-govern-                 you are today?
ment. To maintain the impetus for continued success, the
government will continue to channel its I&IT investments
in four broad directions:
• Constructing common infrastructure;                                                            efore
                                                                                        Best
                                                                                             b
                                                                                                             003
• Maintaining and renewing ongoing business solutions;
                                                                              d                    SEPT 2
                                                                         Hire
                                                                                       994
• Progressing on strategic business transformation initiatives
   in major public sector systems; and
• Offering even more ESD initiatives in a variety of chan-
                                                                                FEB 1
   nels to the Ontario public and businesses.
   Ontario also intends to become a world leader in deliver-
ing seamless government services through portals. A portal is
a front door to all the information and services an organiza-
tion offers. We are working on an Enterprise Strategy for
Portals to enable all Ontario government portals to join
together in a client-centric federation that ensures no-                     Invest in your skills.
wrong-door access.                                                 Choose one of our professional programs
   We are constructing an electronic service delivery infra-
                                                                           for working managers.
structure through business re-engineering, renewal of ongo-
ing applications and emphasis on appropriate technology
and standards to enable integrated services to individuals
and businesses.
   Another significant area we are continuing to work on is         CMA Executive Program
learning and development among our own staff. This is very               Concordia University (in English)
important because our success depends on people as well as
technology. We need to make sure our workforce has the
skills they need to succeed and to meet our goals. So, we are
making sure staff have opportunities to learn the skills they
need and we will continue to provide training as well as          CMA-MBA Executive Program
internships to support our business objectives.                     Université du Québec à Montréal (in French)
   A further priority is to make common components an
integral part of applications development, as well as of appli-         Université du Québec en Outaouais
cations that have been implemented. The use of common                         (in English and French)
components is simply common sense. It will result in faster,
more effective and less costly development, higher produc-
tivity, greater consistency across the OPS and reduced sys-
tem complexity. Twenty-two common components have                                             Accelerated path
been identified, including registration, authentication, a                                    for CAs and CGAs
shopping cart and a product catalogue. We will build and
expand the infrastructure we need to continue to provide
superior electronic services.
                                                                             www.cma-quebec.org
E-government a priority                                                           1 800 650-ECMA
   E-government is certainly a priority of the Ontario gov-
ernment. In transforming ourselves using I&IT, we will con-
tinue to contribute to Ontario’s economic competitiveness
and quality of life. We will keep our commitment to quality
as well as quantity. And we will continue to work toward
shaping our world through technology and making Ontario
the best place to live, work, learn, visit and do business. ■

WINTER 2003                                                                                           FMI JOURNAL 13
                E-Payments in Canada:
                A fast-forward evolution
                                     Carol Armatage




G
          etting people to abandon old,           way by 2005. Its efforts are showing results.
          familiar practices in favour of         In 2001 and 2002 Canada ranked first in
          something new can be a hard sell –      the Accenture organization’s annual survey                       Carol Armatage
and nowhere more so than in money han-            of the state of e-government in 23 industri-    As Director General, Banking and Cash Management,
dling matters. Which explains the special         alized countries.                               Public Works and Government Services Canada, Ms.
                                                                                                  Armatage is responsible for directing the development
interest financial industry experts take in          Within that context, over the past           and implementation of approaches, processes and pro-
the speed and enthusiasm with which               decade, an array of new electronic payment      cedures for managing: all public money passing
                                                                                                  through the Consolidated Revenue Fund; the govern-
Canadians have embraced new electronic            options has become available to Canadians       ment’s banking facilities and compensation to the
payment options.                                  for transactions with the federal govern-       financial institutions; the development and delivery of
                                                                                                  payments products; the implementation of direct
   Statistics indicate the scale of the transi-   ment. The milestones include:                   deposit; payment standards; functional direction for
tion: 68% of Canadian businesses now use          • Direct deposits of income security pay-       payment operations in regional offices; the opera-
the Internet for business transactions and           ments and tax refunds and credits, intro-    tional delivery of payment services in the National
                                                                                                  Capital Area; and automated testing, office automa-
70% percent of consumers use debit cards             duced in 1989.                               tion, and Internet support services for GOS.
to make purchases.                                • The use of debit and credit cards to pur-        Since joining the public service, Ms. Armatage has
                                                                                                  held various positions in PWGSC, including Director
   The transformation is reflected in the            chase government products and services.      of Payment Projects and Director of Payment Prod-
changing mix of electronic and paper trans-       • Electronic filing and payment of income       ucts and Services.
actions flowing through the Canadian Pay-            tax. The Canadian Customs and Rev-              She holds an honours B.A. in English from Queen’s
                                                                                                  University, an M.A. in Drama from the University of
ment Association’s Automated Clearing                enue Agency (CCRA) now offers the fol-       Toronto, and a Diploma in Public Administration
Settlement System (ACSS), a multilateral             lowing options to taxpayers:                 from Carleton University.
net settlement system that handles mostly            • E-FILE On-Line, for use by profession-
retail transactions. Between 1990 and                  al tax consultants to transmit their       RGBB was to give government depart-
2001, in terms of volume, the proportion               clients’ income tax returns to CCRA.       ments a cost-efficient and simple way to
of e-payments rose from 13% to 68%. This               A high-traffic variant, E-FILE On-Line     offer the option of online credit card pay-
reflects the fact that Canadian consumers              Plus, allows simultaneous transmission     ment to clients.
use debit cards more frequently than their             of up to 60 returns.                          The existing options were neither of
counterparts in other countries, with 63.5           • NETFILE, an increasingly popular           these things. To accept credit card pay-
transactions per person each year. In second           service that allows taxpayers to file      ments on the Internet, a government
place is France, at 54.5 transactions.                 income tax returns from their own PCs      department had first to contract with a
   Even more interesting than the speed and            using CCRA-approved software and           third-party service provider to provide the
scale of the e-payment evolution in Canada             unique identification numbers.             necessary interface with the credit card
is the question of what’s driving it.                • Online payment of income taxes using       company. Design of this customized system
   Experts point to several factors. An obvi-          PC banking.                                was costly – and the expenses did not end
ous one is industry structure: Canada’s              • Income tax payment by preauthorized        with design. When contracts expired and
financial institutions operate nationally              debits. Businesses and individuals who     contractors changed, departments faced the
rather than within the limits of provincial            pay taxes in quarterly installments can    expense and dislocation of changing the
boundaries. Together with the industry’s               now authorize CCRA to draw the             interface to suit the new provider.
high level of automation, this makes it eas-           money out of their bank accounts elec-        With the RGBB up and running,
ier to offer and sustain services nationwide.          tronically every three months.             PWGSC is now looking to capitalize on its
   A less obvious but significant driving         • The Receiver General Buy Button               potential as a platform on which to build
force has been the readiness of the federal          (RGBB), introduced by Public Works           new online payment services and to add
government to take the lead, not only in             and Government Services Canada               functionality to existing ones. In a current
exploiting new e-payment processes for its           (PWGSC) in 2001, is an important step        project for example, PWGSC is working to
own transactions, but, more generally, in            forward, not only in terms of immediate      combine the Buy Button with the protec-
instituting “e-government.” Ottawa’s stated          usefulness but because of its potential as   tion of The Secure Channel, an on-line
goal is to make all key programs and servic-         a platform for new payment options.          government-wide network for Internet-
es that are deliverable on-line available that       PWGSC’s objective in developing the          based transactions with advanced privacy

14   FMI JOURNAL                                                                                                               VOLUME 14, NO. 2
                                                                                                               E-PAYMENTS IN CANADA

and security features that became opera-       ject to some provisos: the mechanism           not face-to-face) payments and pave the
tional in 2002.                                should be compatible with the require-         way for the new services the government is
   The Buy Button also figures prominent-      ments of all intended users, it should use     developing.
ly in two other PWGSC e-payment devel-         new and existing capabilities, and the price      Issues under study include authentica-
opment projects:                               must be right.                                 tion of the payer, authorization to pay, stan-
                                                                                              dards for the integrity of data, the liability
Corporate Payments                             Consumer Payments                              of parties to the transaction, and a formula-
   One is the development of an on-line          In another current project, PWGSC has        tion of Best Practice Requirements for the
mechanism other than credit cards that         been looking to expand the range of online     preservation of security.
government and business organizations can      options (presently limited to credit cards)       In reviewing Canadian progress in these
use to receive payments of $5,000 and up.      for making payments of less than $5,000.       and other areas of electronic purchasing, it
The mechanism PWGSC has in mind                Most of the payments the federal govern-       is noted that the federal government’s adop-
would allow companies and individuals to       ment receives for products and services fit    tion of new e-payment processes for its own
make payments on-line from their deposit       into this category. As part of the project,    transactions tends to expand their more
accounts and also provide simultaneous,        PWGSC is conducting a survey to gauge          general use.
on-line authorization to pay from a finan-     public willingness to use other payment           One reason is market stature. The feder-
cial institution.                              mechanisms.                                    al government’s customer base is 30 million
   Driving this project is concern about the                                                  Canadians and its transactions account for
prohibitively high costs of credit card use    The Regulatory Environment                     10% of the total flow and 15% of electron-
(merchant discount rates in particular) for       The development of new electronic pay-      ic transactions between financial institu-
large-value transactions. For government       ment options requires the parallel formula-    tions. When the financial industry weighs
departments, another problem is the lack of    tion of regulations to govern their use –      the pros and cons of introducing a new
adequate revenue-accounting information        which is where the Canadian Payment            service, this can be enough clout to tip the
accompanying other forms of electronic         Association (CPA) comes in.                    scales in favor of viability.
payments, including wire transfers.               The CPA is a not-for-profit organization       Finally, there is consumer confidence –
   The project began with a research study     established by Parliament to manage the        often the decisive factor in the success of a
to define security and other requirements      systems through which money flows              new service. As polls have confirmed,
and also to determine whether a business       between financial institutions. CPA is         Canadians feel safe about doing business
case existed for its development.              working with financial institutions and the    on-line with government. That makes it
   The study concluded that it did and         federal government to formulate a regulato-    easier for government to pioneer new serv-
found that government and business organ-      ry framework that would govern the elec-       ices and for financial institutions to get
izations would welcome such a service sub-     tronic handling of one-time “remote” (i.e.     them into general use. ■




                                                                      Strategic cost management
                                                                      Performance management
                                                                      Activity Based Costing
                                                                      Activity Based Planning and Budgeting

         60 Vaudreuil
         Hull, Quebec              PART OF          THE TEAM – PART OF THE SOLUTION
         J8X 2B9
         Tel: (819) 595-9144
         Fax: (819) 595-9725
         Michael Tinkler: tinkler@synerma.com
         Daniel Dubé: dube@synerma.com                                             Ottawa – Montreal – Toronto




WINTER 2003                                                                                                            FMI JOURNAL 15
      The Benefits of Integrated Risk
      Management and One Effective
     Approach to Make Them Happen
                                      Paul Fontaine


I
     n today’s environment, it is sometimes      practicing integrated risk management on
     surprising to see organizations asking      an organization-wide basis.
     themselves: what are the benefits of risk                                                                     Paul Fontaine
management? This basic question usually          Defining risk and integrated risk               Paul Fontaine is a Senior Manager in the Enterprise
seems to require a sophisticated answer, one     management                                      Risk Services of Deloitte & Touche in Ottawa. Paul is
                                                                                                 a Chartered Accountant and an MBA graduate of the
that is sometimes difficult to articulate. But      There are many definitions of risk, but      University of Ottawa. He is also a Certified Manage-
is this really the question that should be       most definitions focus on concepts relating     ment Consultant and a Certified Internal Auditor.
                                                                                                 Prior to joining Deloitte & Touche in 1996, Paul was
asked? Perhaps a better way to determine         to uncertainty of outcomes. Treasury Board      internal auditor with a large public sector organization
whether risk management is a worthwhile          Secretariat has defined risk as “the uncer-     and worked in financial auditing with another major
                                                                                                 accounting firm. His area of focus with Deloitte &
exercise is to ask the following question:       tainty that surrounds future events and out-    Touche is with the public sector, and includes inte-
what are the potential implications of not       comes.”1 While future events and outcomes       grated risk management, management control frame-
managing risks?                                  are never certain, risk management can          works, modern comptrollership, and internal audit
                                                                                                 services.
   On a personal basis, asking about the         proactively reduce the likelihood that risks
implications of not managing risks is simi-      will occur, or help manage the impact of        about making strategic decisions that con-
lar to asking about the implications of not      risks should they materialize.                  tribute to the achievement of an organiza-
leading a healthy lifestyle, not protecting         Risk management is “a systematic             tion’s overall corporate objectives.”3 Inte-
family and personal assets, and not wisely       approach to setting the best course of          grated risk management has four main
taking advantage of the many opportunities       action under uncertainty by identifying,        components:
life has to offer. On a personal basis, risk     assessing, understanding, acting on and         • Identifying important risks and priorities
management is second nature, very much           communicating risk issues.”2 Risk manage-          for risk management.
part of every day living. Whether they are       ment can also be referred to as the various     • Establishing roles and responsibilities for
protecting what they have, or focussing on       mechanisms and controls that create stabil-        risk management.
what they want to achieve, successful peo-       ity from understanding and managing the         • Applying an effective risk management
ple are usually quite effective at carefully     implications of choices and decisions made         approach or process.
managing risks and thoughtfully taking           by the organization. Such mechanisms and        • Developing a risk management culture
risks. For personal matters, no one seems to     controls are aimed at making the organiza-         and learning from experience.
question or doubt the benefits of risk man-      tion effective at achieving objectives, reli-      Integrated risk management involves the
agement. On an organizational basis how-         able at reporting information, and compli-      integration of various risk management
ever, the benefits of risk management are        ant to laws and regulations.                    efforts with planning, decision-making and
often not as clearly understood.                    Integrated risk management is becoming       performance management activities on an
   Many organizational decisions and             a best practice for public sector organiza-     ongoing basis. Integrated risk management
actions reflect efforts to manage risks. How-    tions. Recognizing the need to integrate        is broader than strictly the protection of
ever, organizations often find themselves        risk management into federal government         Canadian citizens or Canadian interests.
having to deal with the results of unantici-     organizations, Treasury Board Secretariat       Consistent with the Treasury Board Secre-
pated risk exposures. While it is not realis-    published its Integrated Risk Management        tariat framework, integrated risk manage-
tic or desirable to try to anticipate and        Framework document in April 2001. The           ment involves “many different types of risk
avoid all risks, informed decisions and          framework supports the commitment of            (e.g. policy, program, operational, project,
appropriate actions can mitigate the nega-       Results for Canadians to strengthen risk        financial, human resources, technological,
tive implications of risk and ensure a better    management within the federal public serv-      health and safety, political). Risks that pres-
chance of success. To fully achieve this         ice. Integrated risk management is also one     ent themselves on a number of fronts.”4
potential, organizations need to practice        of the pillars of the Modern Comptrollership
integrated risk management.                      initiative.                                     Understanding the benefits of integrated
   The purpose of this article is to highlight      Integrated risk management is “a contin-     risk management
some of the benefits of integrated risk man-     uous, proactive and systematic process to          The heightened focus on effective gover-
agement for organizations, and propose an        understand, manage and communicate risk         nance demands that organizations under-
effective approach for implementing and          from an organization-wide perspective. It is    stand their risks and make informed deci-

16   FMI JOURNAL                                                                                                               VOLUME 14, NO. 2
                                                                                                        INTEGRATED RISK MANAGEMENT

sions about how those risks should be man-      approach to implement and practice inte-          framework) is normally required to provide
aged. Organizations must be proactive in        grated risk management. An approach can           guidance and direction on how to apply
identifying and managing risks in order to      be adopted, which involves a progression of       integrated risk management concepts con-
be successful. An integrated approach is        activities from determining the extent to         sistently across the organization. Develop-
required for risk management, to ensure         which integrated risk management may be           ing a model for integrated risk management
that important risks are identified, assessed   practiced, to developing and implementing         typically involves defining principles, roles,
and acted upon. Effective risk management       a management model. Specifically the fol-         responsibilities, process, information, and
includes early warning systems to avoid sur-    lowing five steps can be used.                    reports. It is also possible to have a distinct
prises, and the planning of responses to           1. Conduct a diagnostic. As a first step,      technology to support process and informa-
limit the impacts of risks that may occur.      organizations should conduct a diagnostic         tion requirements. The model should be
Integrated risk management enables organ-       or baseline study to determine the extent to      customized and should provide a user-
izations to gain:                               which integrated risk management prac-            friendly approach to enable the practice of
• A true recognition that risks should be       tices are in place. The diagnostic may be         integrated risk management across the
   identified and managed proactively to        conducted in relation to best practices for       organization.
   provide a better chance of achieving         risk management, which can be aligned                5. Pilot and implement the model.
   objectives and desired outcomes.             with the four pillars of integrated risk man-     Once the risk management model has been
• A greater awareness and understanding         agement as presented by the Treasury Board        developed, it should be piloted with one
   that risk management is everyone’s busi-     Secretariat in its Integrated Risk Manage-        component of the organization (e.g.
   ness, and that managing risks does not       ment Framework document. By conduct-              branch, division, directorate). The purpose
   necessarily mean avoiding risks.             ing a diagnostic, gaps and improvement            of the pilot is to refine the content and for-
• A better linkage between risk manage-         opportunities are identified, and a direction     mat of the model where appropriate, and
   ment and other processes such as busi-       can be set to strengthen risk management          test the extent to which it can be imple-
   ness planning, decision-making and per-      across the organization.                          mented effectively. Based on the feedback
   formance management.                            2. Develop a risk profile. It is important     received, the model can be updated to
   With integrated risk management,             for the organization to gain an understand-       ensure that it properly integrates within
organizations can improve their perform-        ing of the types of risks it faces. A risk pro-   other organizational processes and func-
ance and operation efficiency by spending       file is an inventory of risks applicable to an    tions on an ongoing basis. Communication
less time on damage control and more time       entire organization or one of its compo-          and change management are also important
pursuing value added activities and oppor-      nents (e.g. branch, division, directorate). As    to create awareness for risk management,
tunities. Many other benefits materialize       part of the risk profile, potential risks are     explain the benefits of applying the model,
from having risks discussed openly and          identified, defined, assessed and prioritized     and provide assistance for its adoption.
acted upon systematically. For example,         for action. Mitigation strategies are devel-
planning may become more focussed and           oped to reduce risk exposure to an accept-        Conclusion
resources may be better allocated to activi-    able level, and the assessment results can be        Today’s environment and the heightened
ties key to the achievement of objectives.      presented in a manner designed for action.        focus on effective governance demand that
The analysis of risk can be used to support        3. Assess organizational culture. Recent       organizations understand their risks and
business cases for expenditures and invest-     failures in governance have reinforced the        make informed decisions about how those
ments. The communication of risk infor-         need to strengthen organizational culture.        risks should be managed. Organizations
mation across the organization may create       Effective risk management is highly               have traditionally managed risks more intu-
greater awareness for the importance of         dependent on people and accordingly, cul-         itively, not always using a structured
managing risks, which in turn may improve       ture is a key component of integrated risk        approach. Integrated risk management is a
ability to anticipate and respond to change.    management. Risk culture can be assessed          structured approach, which allows organi-
   These are just a few examples of the ben-    in relation to the four elements of Purpose,      zations to fully realize the benefits of effec-
efits of integrated risk management. Inef-      Commitment, Capability, and Learning              tively managing risks, and reduce exposure
fective risk management increases exposure      and Monitoring, consistent with the Guid-         to negative outcomes. ■
to negative outcomes, which may include         ance on Control framework of the Canadi-
failure to achieve objectives, inability to     an Institute of Chartered Accountants. Fol-       References
seize opportunities, financial loss, damaged    lowing the assessment of organizational cul-      1. TBS Integrated Risk   Management Framework,
reputations, low employee morale, etc.          ture, recommendations can be developed to            April 2001, p.8.
                                                foster and sustain a supportive environment       2. TBS Integrated Risk   Management Framework,
                                                                                                     April 2001, p.9.
Using an effective approach to realize the      for risk management.                              3. TBS Integrated Risk   Management Framework,
benefits of integrated risk management             4. Design an integrated risk manage-              April 2001, p.10.
                                                                                                  4. TBS Integrated Risk   Management Framework,
  Organizations will not fully realize the      ment model. Many organizations identify              April 2001, p.10.
benefits of integrated risk management          risks but few implement integrated risk
unless they are willing to adopt an effective   management. A model (i.e., management


WINTER 2003                                                                                                                 FMI JOURNAL 17
     Interface Communications
   Protocols, or, How We Got the
 Technical Whizzes and the Business
  Bosses to Understand Each Other
                                      David G. Jones
                                                                                                                   David G. Jones


O
          ne day, reading an article on where     gram delivery. No manager in any organiza-       David G. Jones is a federal executive whose interests
          information technology (IT)             tion of any size today would bring forward       are in Information and Knowledge Management (IM
                                                                                                   and KM). He is a member of the Interdepartmental
          salaries were heading, I noted that     a business plan that did not have an IT fac-     Knowledge Management Forum, and an academic
human resources (HR) professionals had            tor identified and spelled out. That’s just      advisor to the Royal Roads University KM program.
identified several factors they looked at         how it is now.
carefully when they set technology salary            Given that Information Management             common understanding in place so that we
levels.                                           (IM) and IT are everywhere now, it’s fitting     can improve both our effectiveness and effi-
   It goes without saying, I should think,        that we should ask how well we are manag-        ciency?
that technologists and technology managers        ing it. The general consensus in the trade          The question for me was – where to start?
ought to be rather well educated given the        magazines, in the reports of auditors, and in    One can produce a lexicon of business and
complexity of the field and its rapid rate of     the hearts and minds of our senior man-          technology terms and sends folks away to
change. And if you think about it you             agers is – not very well. Why should that        study them. But that step assumes there is
would likely agree that these same folks          be? We now have seasoned professionals on        already a common understanding of what
ought to be good at both financial and            both the technology and business sides and       the problem is. When I examined this
technical planning, project management,           years and years of experience in dealing         assumption, I found that maybe the parties
administration, and also have some skills in      with technology issues. We have both             involved here do not know what is causing
client relations among others. But the key        knowledgeable business clients who know          some of the communications problems. To
point made by HR administrators and               something about IM and IT, and IM /IT            present a solution before the problem has
recruiters in this article was that these         service providers who know something             been defined is not the best way to deliver a
workers had to have high quality commu-           about the clients they serve.                    project. The best way, most everyone
nication skills if they ever hope to reach the       I will argue that a key issue is exactly as   agrees, is to get the issues out on the table,
upper echelons in their field.                    noted by the HR professionals. We have a         strive for consensus and then attack the
   And to start, these HR people were say-        communications problem. And that prob-           problem energetically and collaboratively.
ing that technology workers had to start by       lem is a costly one in terms of both money          Therefore, in the interests of getting the
improving their spelling! Now personally, I       and time. Because there is a comprehension       communications issues on the table, here
don’t deny the importance of good spelling        and communications gulf between the              are some terms and concepts to think
and confess to a certain obsession with such      providers and the clients, it takes longer to    about. Business managers and technologists
things as the proper use of it’s, its and its’;   get things understood and done, and often-       use these words, but the meanings vary
however, spelling would not be the number         times things neither get understood, or          considerably. If we can agree that this is the
one item I’d bring up under communica-            done.                                            case, then perhaps we can urge each other
tions. The issue for IT personnel is more            This problem exists at what is called the     to move on to the stage where we can estab-
serious than simply that of getting their         business-technology interface. It is a play-     lish some language protocols.
grammar right. And the problem is not iso-        ing field (and sometimes a battle ground)           So, for your entertainment and enlight-
lated to just the technical side. The com-        where it has been said the business man-         enment, here are my “Trouble Terms.” In
munications issue is, in my view, all about       agers and technologists all use all the same     my view, they continue to cause misunder-
the need for plain language and shared            words, but they mean different things.           standing and confusion, when business
understanding.                                       It occurred to me that aspiring business      meets technology round the development
   Today, information technology is ubiqui-       program / technology project developers          and administration tables.
tous. It is an integral part of everything we     and managers might want to think about              System. A business line manager doesn’t
do. It is not just in word processing, voice      issues around vocabulary and meaning. If         use this as the short form of “computer sys-
mail and video conferencing, all of which         technology is going to be part of the way we     tem.” To him / her, it means something that
are elements of IT, but it is in our account-     are going to be doing things, is it not          operates systematically. When a business
ing, our planning, and our business or pro-       important that we get a better degree of         manager says she/he needs a system for han-

18   FMI JOURNAL                                                                                                               VOLUME 14, NO. 2
                                                                                          INTERFACE COMMUNICATIONS PROTOCOLS

dling customer complaints, she/he may be            Information is not “content.” Content is   helped by the availability of IT. Some IT
thinking of using a ring binder to log calls.    soup in a can. Information is a purpose-      may even support knowledge processes.
   Network. This should not be considered        driven business asset. When an IT profes-        (Business) Application “requirements”
the same as “computer network.” A client         sional says, “we now need to focus on con-    are used by many IT professionals as a syn-
looking to enhance networking in the office      tent,” the business manager may wonder,       onym for “technical specifications.” Busi-
may be talking about a real water cooler,        “What have you been doing up till now?”       ness managers on the other hand are much
not a virtual one. She/he may be looking at      Information is purpose driven, and valued     more cautious in their use of the “require-
the furniture and divider arrangement so         according to its function in ensuring busi-   ments” word. To them, it is something that
technologists should not run out and buy         ness sustainability. Its management cannot    must be done. They establish requirements
workgroup computing or a new operating           be separated from the business.               based on cost and benefit and priority.
system. IM/IT professionals should have a           Knowledge is also not “content.” In the    Many IT projects have gone off the cost
quiver full of hard and soft ideas and poten-    emerging domain of Knowledge Manage-          control rails because the specifications were
tial solutions that can be brought to the        ment (KM), information is one variable –      thought to be “required.” In fact, they were,
table when such needs are identified.            albeit an important one – that plays a role   and should remain options.
   Backbone. The computer science mental         in performance, function and effectiveness.      Valuing Information Technology. Every
model for this term is complicated and           Clients who are talking about knowledge       IT manager has done business cases and
robust: it means static yet adaptive, stable     are much more likely to be approaching it     justifications. Yet, when their findings are
yet flexible, supportive yet integrative, dis-   from the people side, though they recognize   presented, they are often couched in a lan-
tributed yet contiguous. A good backbone         that technology may eventually play a part    guage of operational necessity, not business
is elegant and dynamic. It can deliver the       in its management. Knowledge managers         benefit. Business generalists see the IM/IT
business goods and adapt to changing con-        are not entirely interested in building       system / network as just another business
ditions. Every IT architect knows that with-     greater information repositories. Instead,    variable seeking resources. If they are to
out a solid backbone you have nothing.           they are excited about work place transfor-   weigh merits, they need to have proposals
Those with general arts backgrounds, if          mation.                                       from all sectors speaking to the bottom
they use the term at all - use it to mean a         Knowledge work does not (necessarily)      line.
hunk of the skeleton, or a metaphor for          mean working with a computer, and                Client. Business people believe this
courage. Technology folks who speak of           “knowledge workers” don’t only work in        means people “for whom the job is done.”
“backbone” as a critical network investment      offices. Farmers, parking garage attendants   They sometimes call them “customers.” In
during the annual budget review, will have       and hotel receptionists are knowledge         the IT field, a “client” is sometimes a
their passion lost on an audience who do         workers. It can be argued that all work has   machine.
not share the IT mental model.                   a knowledge requirement. Some work is                                  …see Jones, page 21




WINTER 2003                                                                                                            FMI JOURNAL 19
     Internal Audit meets Information
     Technology: Audit and Evaluation
           Branch goes OPTIC                                           ™




                          Ian Hlavats and Sherill Minns


W
             hen a senior evaluator and I met    determine which officers are available for
             last April to discuss the infor-    future projects and allows AEB to allocate
             mation management issues sur-       resources more appropriately.                                     Ian Hlavats
rounding audit and evaluation work at               As a groupware application, OPTIC™           Ian Hlavats is the designer and programmer behind
Industry Canada, it became clear that rely-      encourages AEB to work as a team by divid-      the OPTIC™ Information Management system. He
                                                                                                 started his first Web design company, Tarantula
ing on memory alone to prepare annual            ing work into tasks and responsibilities        Designs, in 1996, and graduated with honours from
plans and to maintain accurate information       owned by officers, administrators, informa-     Carleton University’s Bachelor of Humanities pro-
                                                                                                 gram in 2001. He gained experience in the high tech
on the status of projects was not adequate.      tion coordinators and management. A             industry through an internship with a software engi-
We agreed to solve the problem, and Taran-       guest account capability has also been          neering firm, and then worked on an Intranet pilot
                                                                                                 project for Health Canada. Ian signed his first con-
tula Designs was awarded a contract to do        designed that would allow users outside the     tract with Industry Canada’s Audit and Evaluation
so. Six months later we launched                 branch to access information on projects        Branch in November, 2001. He lives in Ottawa,
OPTIC™, an Online Project Tracking,              from the branch Intranet site. Once they        Canada, and continues to serve as AEB’s Information
                                                                                                 Manager.
Information and Communications System            login to the system, seekers of information
for the Audit and Evaluation Branch (AEB).       can find projects fast by querying the
   My analysis found that the AEB business       searchable database on hundreds of proj-
model is based on a five-phase project man-      ects.
agement process that involves collaboration         As an information management tool,
between auditors, evaluators, consultants,       OPTIC™ integrates seamlessly with the
administrators, and colleagues within the        branch’s information classification system
department. These five phases, namely            and enables staff to manage files and folders
planning, activation, going public, follow-      more easily. Documents are classified by
up, and archiving, represent a series of mile-   type and managers are prompted to store
stones for which different employees are         them in the appropriate folders as these
responsible at different times. Furthermore,     documents are produced. Since electronic
many milestones are not compulsory, so the       documents are classified with the same
lifecycle of every project is unique. As such,   numeric code that is used for hard copy
AEB’s business problem required a knowl-         records, this provides consistency between                       Sherill Minns
                                                                                                 Sherill Minns is Director General for the Audit and
edge management solution to be used col-         hard copy and electronic versions of a doc-     Evaluation Branch of Industry Canada
laboratively by the branch and its internal      ument.
partners.                                           The document indexing tools built into       between the branch’s clients, colleagues and
   OPTIC™ enables the branch to                  OPTIC™ simplify organizing and access-          partners. In the going public phase, for
improve its business process in a number of      ing information by enabling AEB staff to        instance, auditors and evaluators maintain a
ways. Since each project has its own record      link from a project record directly to key      dialogue with administration staff and
within OPTIC™, auditors and evaluators           documents such as proposals, contracts,         information managers on the preparation
are able to manage their workloads more          action plans, steering committee minutes,       of reports and later with the Treasury Board
effectively by concentrating on one project      and final reports for any given project.        Secretariat when the report is public. In the
at a time. OPTIC™ allows branch employ-          When a user clicks on the document link,        follow-up phase, auditors and evaluators
ees to stay ahead of the game by producing       the file is opened immediately by a reader      can provide assurance to senior manage-
info-bulletins, reminders, and status reports    program within the browser window. In           ment about action plan implementation by
on a regular basis. These reports provide an     this way, OPTIC™ provides AEB users             sending a status report to the Departmental
individual perspective on the responsibili-      with an interface to their shared drive, and    Audit and Evaluation Committee (DAEC)
ties of each employee and allow manage-          allows AEB to manage its corporate memo-        describing the nature of the follow-up, rele-
ment and staff to make informed decisions        ry with much more ease and consistency.         vant dates, parties, and so on. OPTIC™
more quickly. The system also maintains a           Another strength of OPTIC™ is how it         supports the AEB business process by auto-
Gantt chart that shows officer workload for      supports AEB’s business model by facilitat-     matically sending scheduled messages,
the fiscal year. This helps management to        ing communication and collaboration             reminders and database reports electroni-

20   FMI JOURNAL                                                                                                            VOLUME 14, NO. 2
                                                                                 INTERNAL AUDIT MEETS INFORMATION TECHNOLOGY

cally to users, clients, colleagues, and sub-     …Jones, from page 19                                Functionality. Business people use the
scribers and by providing relevant contact                                                         term to describe something that works: as
information for each project.                        Box. The technically illiterate never use     in, the new organization chart has proven
   In addition to supporting communica-           this term the way technologists do. Gener-       its functionality; meaning, it fulfills its pur-
tions, OPTIC™ also allows AEB to gener-           al managers need to hear words that they         pose. We are obtaining value for money. IT
ate important documents instantly with            can understand when they are making              professionals think of functionality in terms
up-to-the-minute accuracy. Using PDF-on-          funding decisions. And if they imagine for       of how a system works, or what a system
the-fly technology, the system generates          even a microsecond that the IT manager is        does - internally. “The national network is
annual plans of all the projects that are like-   talking about packing crates rather than         working at 83% functionality.” Consider
ly to be launched within the fiscal year in a     computers, a major opportunity may be            how each party then would describe and
professionally designed report format for         lost.                                            define “investment value” from a function-
printing and sharing with colleagues. This           Process. Means only a business process.       ality perspective. This is perhaps one of the
technology also permits AEB to prepare            It is the people, organizations and rules that   more serious of the comprehension gaps
agendas for upcoming DAEC meetings.               enable and support getting something             that one encounters on the interface.
   To date, OPTIC™ has received positive          done. Some elements of a business process
feedback from its users as a useful and effec-    are suitable for automation. Business peo-          Well, these are just some ponder illustra-
tive information management and commu-            ple tend to think of process in a holistic       tions for folks to chew on. If you agree that
nications tool. A presentation made to the        rather than linear way, whereas the technol-     there really is a problem at the technology-
DAEC in October was met with accolades            ogy model is more often than not                 business interface, and if you feel that dia-
and their full endorsement of the product.        input/output. In application development,        logue might help to rectify the situation,
OPTIC™ is becoming a key technology               more innovative opportunity may have             send a note to FMI Journal. We’d be
for the Audit and Evaluation Branch at            been lost because processes were deemed          pleased to pass on your comments to the
Industry Canada and will be available in          linear and fixed than any other single cause.    membership. ■
2003 for other organisations seeking infor-
mation management solutions. ■


                                         Samson & Associates                 is a management consulting firm
                                         specialized in proven management techniques.
                                                                     We have extensive experience in:
                                         ◆   Internal Audit and Review                    ◆ Management Consulting
                                         ◆   Facilitation & Learning Solutions            ◆ Evaluation and Special Projects
                                         ◆   Grants & Contributions                       ◆ Accounting
                                         ◆   Financial Services                           ◆ International Affairs

                                                          Our services are provided in both official languages
  Over the last decade, our management experts have developed a reputation for achieving the highest standards of
  excellence. The amount of repeated business we enjoy reflects the commitment of our consultants and the quality of our
  services. We are available to assist you in meeting your management objectives. The services of our professionals are
  offered at a reasonable cost while providing high quality service, response to clients needs, innovative solutions, and
  concern for human dimension.
             Our Management team:                                                                 Our Consultants
  ◆   Pierre Samson, M. Sc., FCGA, President                                   ◆ Stan Coolen, CGA        ◆ Marcel Nolet, CGA
  ◆   Louis Desrosiers, M. Sc. Vice-President Evaluation and Special Projects ◆ Martine Caron, CA, CPA ◆ Florent Paquet, B.A
  ◆   Luc Duciaume, CGA, BAA, Vice-President, Grants & Contributions          ◆ Jocelyne Charron, CMA ◆ Ted Pender, BAA
  ◆   Denis Fortier, MBA, Vice-president, Management Consulting               ◆ Fernand Charron, CGA ◆ Louise Perron, CMA, MBA
  ◆   Serge Lafortune, CGA, BAA, Director, Accounting services                ◆ Mark Dillon, CA          ◆ Mélissa Pesant,BAA
  ◆                                                                                                                                 .A.,
      Robert Lalonde, M.Sc. Comm, FCGA, Vice-President, International Affairs ◆ Sylvain Dompierre, CGA ◆ Claude Théoret, B.Comm, D.P M.A
  ◆   Marilyn Perron, Operations Manager                                      ◆ Monique Eady, MBA        ◆ Jerry Robbins, B.Sc., M. Ed.
  ◆   Daniel St-Onge, BAA, Vice-President Facilitation and Learning Solutions ◆ Glyden O. Headley, CMA ◆ Albiny Soucy, MPA
  ◆   Kathleen Simoneau, B.Comm, Vice-President, Financial Services           ◆ Pierre Lanthier, BAA     ◆ Yves Talbot, B.Comm
                                                                              ◆ Greg Milanovich, BAA     ◆ Ian Wood
                                                                              ◆ Richard Maheu, L.LL. D.D.N.

                                                      How to reach us :
       Samson & Associates, 60 Hôtel-de-Ville Street, Hull, Quebec, J8X 2E2, Tel : 819•772•0044 Fax : 819•595•9094
                               E-mail : samson@samson.ca        Web : http://www.samson.ca

WINTER 2003                                                                                                                  FMI JOURNAL 21
     How Natural Resources Canada
       (NRCan) is Looking at its
     Management Information Needs
                       Anne Grebenc and Shelley Senova
The Issue                                          agement and accountability) and the
   Your Department is faced with an infor-         inability of existing systems to readily
mation system environment that is complex          meet these needs;                                                Anne Grebenc
and diverse. Systems are managed independ-      • a complex and outdated system environ-          Anne Grebenc, BSC, CMA, is the Manager of Finan-
ently and in parallel resulting in a lack of       ment with escalating costs; and                cial Systems at Natural Resources Canada. Anne is
                                                                                                  currently working on the Integrated Management
integration and redundancy. While their costs   • lack of integration between existing            Information Project at NRCan. Anne is a past recipi-
are escalating, systems do not easily support      administrative systems resulting in prob-      ent of the FMI Journal Allen G. Ross Award (1997)
                                                                                                  for writing excellence. She can be reached at
integrated management reporting require-           lems with regard to the consistency and        agrebenc@nrcan.gc.ca
ments, and consistency and timely availabili-      timeliness of information.
ty of information are problems. Moreover,          The IMIP was led by the Corporate Ser-
managers are frustrated with the reporting      vices Sector (CSS) with the assistance of an
capabilities of existing systems. How do you    external consulting firm and an Extended
address this complex problem in a holistic      Project Team of sector representatives from
fashion and identify a departmental solution?   other areas of the department. The Core
                                                Team for the project was comprised of a
The Solution                                    Project Manager, four team members from
   NRCan’s response has been to launch a        CSS and three consultants. A “ consulta-
review aimed at identifying a departmental      tive” approach was used to define the
solution to integrate information from var-     Department’s administrative management
ious corporate systems and other sources,       information needs. The approach consisted
provide management with a seamless              of:
reporting solution, and generate useful         • one-on-one interviews with sector Assis-
information for decision-making. The               tant Deputy Ministers (ADMs) and key                             Shelley Senova
                                                                                                  Shelley Senova, CA, is a senior consultant in the
review was undertaken through the Inte-            sector management representatives;             Ottawa Office of IBM Business Consulting Services.
grated Management Information System Pro-       • focus sessions with Finance and Human           Shelley leads the federal government Modern Comp-
                                                                                                  trollership practice of IBM Business consulting Ser-
ject (IMIP). The scope of the Project              Resource (HR) specialists, budget man-         vices and has extensive experience in managing capac-
focused on administrative information con-         agers, project managers and administra-        ity assessments and advising on the development of
                                                                                                  associated action plans. She can reached at shelley.sen-
sisting of the following categories: Finance,      tive officers from headquarters and four       ova@ca.ibm.com.
Human Resources, Procurement/Contract-             regions; and
ing, Real Property, Assets, Grants and Con-     • review and validation of findings/results       need or no need (i.e, information is cur-
tributions, Projects and Performance Mea-          with the Core and Extended Project             rently available). The ratings were analyzed
sures.                                             Teams throughout every stage of the            and consolidated to produce a comprehen-
   The IMIP was initiated at the request of        project.                                       sive snapshot of the Department’s informa-
the Departmental Management Coordinat-             The information obtained through inter-        tion gaps in the ten areas identified as criti-
ing Committee (DMCC). The key drivers           views and focus groups was complemented           cal to managers. The result was a com-
of the project included:                        by document review and consolidated into          pelling case for the conclusion that the sta-
• the desire to eliminate stand-alone fund-     an “Information Model”. The Model                 tus quo is not a sustainable long-term
   ing requests for systems projects from       detailed ten information areas (e.g., finan-      option. The Project revealed that less than
   different sectors/groups within the          cial management, asset management, risk           half of managers’ information needs were
   Department;                                  management, Human Resources manage-               being met through existing departmental
• the emergence of new information needs        ment, project management, etc) and man-           systems. In response, the Project proposed
   through internal (e.g., departmental pri-    agers’ requirements in each area. The Model       five levels of information integration rang-
   orities, long-term capital planning, col-    was used as a basis of comparison with the        ing from maintaining the status quo (with
   laboration with partners) and external       current environment and to identify gaps in       some quick wins) to implementing a fully
   initiatives (e.g., modern comptrollership,   each information area. Each gap was rated         integrated Enterprise Resource Planning
   HR modernization, results-based man-         as a critical need, significant need, potential   System (figure 1).

22   FMI JOURNAL                                                                                                                VOLUME 14, NO. 2
                                                                                             NRCAN MANAGEMENT INFORMATION NEEDS

   At the departmental level, the IMIP has          Each level will have varying impacts on people, processes, systems and information
been providing the catalyst for the develop-                    Level 1 –       Level 2 –         Level 3 –       Level 4 –        Level 5 –
ment of an integrated management infor-                        Status Quo      Status Quo          Leverage       Leverage        Integrated
                                                               Plus Quick      with Limited        Systems/        Best of           ERP
mation vision and a single departmental                           Wins             Data           Enhanced         Breed
solution. The IMIP has been dovetailed                                         Warehouse             Data
with a concurrent departmental study on                                                           Warehouse
Science and Technology (S&T) activities at                         Least Costly to Implement              Greatest Degree of Integration
NRCan to broaden the focus beyond
administrative information. Similar to                                Sector-Based                                    Department-Wide
                                                   Strategy            Perspective                                      Perspective
IMIP, the S&T study found that the
department lacked systematic and compa-                            Minimal Cultural                                  Significant Cultural
                                                   People              Change                                              Change
rable information on its S&T activities and
recommended the development of an S&T                               Minimal Process                                    Adoption of Best
information system. As a result, the Depart-       Process              Change                                            Practices
ment decided to bring the two initiatives
                                                   Systems     Complex to Maintain with                           Simpler to Maintain with
together as a means of taking a more holis-                      LImited Functionality                             Increased Functionality
tic approach to determining the adminis-
                                                 Information          Inconsistent                                      Standardized
trative and program-related information                               Information                                        Information
required to support decision-making.
                                                 Figure 1.      This figure shows the impact of each of the five levels of information
   The IMIP has also been instrumental in
                                                                integration that were evaluated. (Deloitte Consulting)
breaking down the traditional “organiza-
tional “ or one dimensional view of infor-         Benefits at the manager and staff level            greater willingness to consider common
mation. It has led the Department to rec-        include:                                             systems for the sake of better horizontal
ognize that, to be optimally useful, infor-      • greater appreciation of the importance of          coordination and integration; and
mation needs to be viewed from a number            and need for integrated information;             • a more critical assessment of the value of
of different perspectives such as by activity,   • the realization that separate systems (e.g.,       various types of information and the
geography (e.g., province, region, city) and       for project management) are not required           resource investment required to generate
purpose (e.g., goals, priorities, outcomes).       for each Sector of the department and               …see Natural Resources Canada, page 33


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WINTER 2003                                                                                                                   FMI JOURNAL 23
      The Importance of Prices in the
      Evolution of Local Government
            Service Production
                                       Robert L. Bish


D
          uring the past half-century the way      were “contract” cities that relied on contract-
          local governments obtain services        ing-out for virtually all of the services provid-
          for their citizens has been slowly       ed to their citizens.                                                 Robert L. Bish
changing from predominantly in-house                  Robert Warren, who did most of the               Dr. Bish earned his Ph.D. in Economics from Indiana
production to obtaining services from other        empirical work on Lakewood Plan cities,             University in 1968 and served in departments or
                                                                                                       schools of economics, public affairs, public adminis-
organizations. In this article I will describe     went on in 1964 to describe the emerging            tration and urban studies at the universities of Wash-
the emergence of systematic thinking and           “Market” for municipal services that had            ington, Southern California and Maryland before
                                                                                                       joining the School of Public Administration at the
examination of greater diversity in service        emerged in Southern California.4 By 1971,           University of Victoria in 1981. Dr. Bish has
production arrangements, supplement those          a paradigm which provided a comprehen-              researched, consulted and published on local govern-
                                                                                                       ment in both the U. S. and Canada. his major works
observations with some information on              sive approach to examining local govern-            include The Public Economy of Metropolitan Areas
actual trends, and place this evolution into       ments within this framework was provided            (1971); Understanding Urban Government: Metropoli-
the longer run context of increasing produc-       by Warren, Bish and others.5 This frame-            tan Reform Reconsidered (1973) with Vincent Ostrom;
                                                                                                       Financing Government (1973) with Harold Groves;
tivity and more efficient resource use             work has continued to inform much of the            Urban Economics and Policy Analysis (1975) with
through specialization and trade that has          research on local government organization           Hugh O. Nourse; Local Government in the United
                                                                                                       States (1988) with Vincent and Elinor Ostrom, Indi-
occurred in the rest of the economy over           and service production. One of the most             an Government: Its Meaning in Practice (1989) with
past centuries.                                    important observations in this approach was         Frank Cassidy and Local Government in British
                                                   that public versus private was not the most         Columbia (1987, 1990, 1999 (with Eric Clemens)).
                                                                                                       In 1999 Dr. Bish was commissioned by the British
Thinking About Local Governments and               important variable in promoting efficient           Columbia Ministry of Municipal Affairs to review of
Their Services                                     service production; the critical variable was       British Columbia’s regional district system, Regional
                                                                                                       District Review-1999: Issues and Interjurisdictional
   Prior to the 1950’s, almost all research on     competition versus monopoly. Government             Comparisons, and the C.D. Howe institute published
local government organizations focused on          producers were just as efficient as private         his review of evidence on amalgamations in North
the issue of economies of scale in the pro-        ones when competing to produce services             America in Local Government Amalgamations: Dis-
                                                                                                       credited Nineteenth-Century Ideals Alive in the Twenty-
duction of local services. In general, this        for other organizations just as private             First. Dr. Bish recently returned from Guyana where
research supported the ideal of metropoli-         monopoly producers were very expensive to           under and Inter-American Development Bank project
                                                                                                       he supervised new activity based budgeting systems
tan governments for metropolitan areas.1           purchase from. Warren also noted that the           for municipalities. It was working in Guyana where he
   In 1956 Charles Tiebout issued the first of     buying and selling of services by govern-           realized how important it was to get the prices of local
                                                                                                       service production right if productivity was to be
several challenges to this focus on production,    ments also required improvements in infor-          improved and higher living standards achieved.
arguing that smaller governments with more         mation on the cost of producing services,
homogeneous populations would be able to           including supervision of selling govern-               With the exception of policing, he has
adjust their kind and quantity of public serv-     ments to assure that they were not pricing          been able to obtain sufficient information
ices more closely to their preferences, and        below costs and subsidizing sales with taxa-        to compare alternatives, with the most
hence be more efficient, than larger more het-     tion of their own citizens.                         detail being available on solid waste collec-
erogeneous governments.2 While Tiebout’s                                                               tion, land fill management and recycling
first piece was very abstract, in 1961 he joined   Subsequent Research                                 programs. His results are consistent with
with Vincent Ostrom and Robert Warren to              Since initial developments in the 1960’s,        previous research in North America and
describe how small local governments could         there has been extensive research on alterna-       Europe. Two observations on this research
and did obtain local services through con-         tive ways to produce services. The most exten-      are especially important.
tracts with other governments and private          sive research in Canada has been done by Dr.           First, very few local governments kept
firms to be both efficient at representing their   Jim McDavid of the University of Victoria.6         their accounts in a manner that let man-
citizens and efficient in obtaining produc-        Dr. McDavid is the only scholar who has con-        agers or councilors know what an activity
tion.3 Their example was “Lakewood Plan”           ducted detailed national surveys of local gov-      actually cost. There was inconsistent treat-
cities in Southern California. These cities were   ernment service production since the 1980’s.        ment of overhead items such as facility
largely incorporated in the early 1950’s with      His surveys have included solid waste collec-       maintenance, depreciation, employee fringe
boundaries similar to those of homogeneous         tion, land fill management, recycling pro-          benefits and even supplies such as fuel for
land uses specified in the Los Angeles County      grams, fire protection, policing, and how local     vehicles. To sort out such inconsistencies
land use plan for unincorporated areas. They       governments obtain services in general.             for comparative purposes required ques-

24   FMI JOURNAL                                                                                                                     VOLUME 14, NO. 2
                                                                           EVOLUTION OF LOCAL GOVERNMENT SERVICE PRODUCTION

tionnaires of 30 to 40 pages per service and       ization and trade. By becoming specialized            If we want to have an increasingly higher
a national survey with 300 completed ques-         in production, individuals and organizations       standard of living, we must increase the
tionnaires probably cost the Local Govern-         became more efficient, but such specializa-        efficiency with which we use our resources.
ment Institute at least $80,000.                   tion required that they be able to trade with      Because government is such a large propor-
   Second, while in general private produc-        others to obtain the range of goods they           tion of the economy, we cannot expect all
tion was less costly than public, competi-         needed. Furthermore, he observed that inno-        productivity increases to come from the
tion was verified as a more important vari-        vations in production were most likely to          private sector. Specialization and trade in
able than public versus private.                   come from individual producers and that            the public sector is and should continue to
   In addition to research on costs, McDavid       competition among producers provided the           contribute to the same end. Financial man-
and Clemens undertook a survey of just             incentive for them to try to provide their         agers, by improving our pricing informa-
what was being contracted for by local gov-        customers with better products and/or lower        tion, have a major contribution to make
ernments in British Columbia.7 They asked          prices. He also observed that businessmen          toward this end. ■
about 314 different activities because,            did not actually like competition and would
increasingly, very specific “activities”, not      collude with each other and government to          References
entire functions, are obtained through alter-      obtain monopolies for themselves.                  1. A brief description of this tradition along with
native service delivery instead of in-house.          Subsequent to Smith, economists study-              additional references is provided in Robert L.
Thirty-two percent of the activities were          ing markets observed that one of the most              Bish, Local Government Amalgamations: Discredit-
                                                                                                          ed Nineteenth-Century Ideals Alive in the Twenty-
contracted out by B.C. local governments,          important elements of well functioning                 First, C.D. Howe Institute Commentary 150,
with regional districts contracting-out            markets, in addition to competition, were              March 2001. (http://www.cdhowe.org ).
                                                                                                      2. Charles Tiebout, “A Pure Theory of Local Gov-
slightly more than municipalities. Regional        prices that reflected all costs and benefits of        ernment Expenditures,” Journal of Political Econo-
districts, themselves, have also become an         production and consumption. Prices were                my 64 (October, 1956): 416-424.
organization for municipalities to transfer        in fact so important than many economics           3. Vincent Ostrom, Charles Tiebout and Robert
                                                                                                          Warren, “The Organization of Government in
service production arrangements when there         texts labeled the study of markets as “price           Metropolitan Areas,” American Political Science
were benefits from producing the service on        theory”. It is precisely the existence of prices       Review 55 (December 1961): 831-842.
                                                                                                      4. Robert Warren, “A Municipal Services Market
a larger scale than a single municipality.8        that permits the extensive decentralized               Model of Metropolitan Organization,” Journal of
   The observation that most alternative serv-     coordination that exists in a modern econ-             the American Institute of Planners 30 (August
ice delivery is for activities within functions,   omy, of which governments are a very large             1964): 193-204. The full history is provided in
                                                                                                          Government in Metropolitan Areas: A Reappraisal
and not entire functions, is consistent with       part. Furthermore, unless the productivity             of Fractionated Political Organization, Davis, Ca.:
trends elsewhere in North America. Further-        of local government service production can             University of California, Institute of Governmen-
                                                                                                          tal Affairs, 1966.
more, while the Local Government Institute         be increased along with productivity else-         5. Bish, The Public Economy of Metropolitan Areas,
has not been able to undertake systematic          where, local government services will                  Chicago: Markham/Rand McNally, 1971. Robert
research on policing in Canada, what exam-         become so expensive that there will either             L. Bish and Robert Warren, “Scale and Monopoly
                                                                                                          Problems in Local Government Services,” Urban
ples we can find are similar to research find-     be taxpayer revolts and cutbacks or govern-            Affairs Quarterly 8 (September 1972): 97-122.
ings in the United States.9 The most effec-        ment services will absorb a larger and larger      6. The most recent survey results by James C.
                                                                                                          McDavid are available as research reports from the
tive police departments are relatively small       share of the economy until growth ceases.              Local Government Institute at the University of
departments that specialize in police patrols         What has actually been happening in the             Victoria at http://web.uvic.ca/lgi. Those publica-
                                                                                                          tions include references to the many journal arti-
(where there are diseconomies of scale) but        production in local government services is a           cles reporting earlier studies.
with the patrol oriented department nested         continuation of the same processes that            7. James C. and Eric G. Clemens, “Contracting Out
in larger systems where larger departments,        have led to enhanced productivity else-                Local Government Services: The B.C. Experi-
                                                                                                          ence,” Canadian Public Administration (Summer
including county sheriffs and state police,        where in the economy: specialization and               1995): 177-193.
produce the overhead services. Policing is         trade. Demand may be articulated by a              8. Most regional district activities are not “regional.”
                                                                                                          They are sub-area agreements for specific activities
provided more efficiently in these mixed           municipal council on behalf of a group                 within functions. See Robert L. Bish, “Accomodat-
systems than in either small departments           consisting of the citizens of the local gov-           ing Multiple Boundaries for Local Services: British
that try to be self-contained or in large          ernment (instead of by individuals making              Columbia’s Local Governance System,” available as
                                                                                                          a working paper at http://web.uvic.ca/lgi/ .
departments where supervision of patrol            separate purchases), but increasingly these        9. Roger Parks, “Metropolitan Structure and Sys-
ends up costing much more. The policing            councils examine alternative ways to obtain            temic Performance: The Case of Police Service
                                                                                                          Delivery,” In Kennneth Hanf and Theo A. J. Too-
research emphasizes what has been discov-          production.10 Such an examination and                  nen, eds., Policy Implementation in Federal and
ered with other functions of local govern-         comparison of alternatives, however,                   Unitary States. Dordrecht, Netherlands: Martin
ment: no single organization is the right size     requires accurate prices to contribute most            Nijhoff, 1985.
                                                                                                      10. Local governments are not subject to the same
to produce all of the activities comprising a      to increased productivity in society. This, in         kind of competition as are private firms but pres-
major local government function efficiently.       turn, requires financial management sys-               sure from taxpayers and comparisons with adja-
                                                                                                          cent local governments does provide pressure to
                                                   tems that allow managers to cost out                   improve performance. Research indicates that the
The Bigger Picture                                 increasingly specific activities within func-          more local governments (including school dis-
                                                                                                          tricts) that are close by the better a local govern-
  In 1776, Adam Smith in The Wealth of             tions. This is one of, if not the most, impor-         ments performance. This research is reviewed in
Nations made the observation that economic         tant challenge facing finance officials today,         Bish’s previously cited monograph Local Govern-
welfare was being increased through special-       and its importance is increasing over time.            ment Amalgamations.


WINTER 2003                                                                                                                         FMI JOURNAL 25
    Steering by Remote Control:
Planning, Performance Measurement,
    Accountability and Learning
                                    Paul G. Thomas


I
     want to offer my perspective on how         ists predict that all organizations will never
     the six big ideas in my title have been     again face calm waters with only occasional
     interpreted and applied within govern-      storms; instead, what the future holds is                           Paul G. Thomas
ments over the past several decades. Rather      permanent white water. Organizations and           Paul G. Thomas is the Duff Roblin Professor of Gov-
than keep you in suspense—after all this is      people will have little chance to absorb the       ernment at the University of Manitoba where he has
                                                                                                    taught since 1969. He has authored numerous books
not an Agatha Christie thriller—let me           impacts of one wave of change, before              and articles and is a frequent consultant to federal and
state my main argument at the outset. The        another wave crashes down upon them. In            provincial governments. He was Editor of the Canadi-
                                                                                                    an Public Administration journal from 1993 to 1996
argument is that the obstacles and disap-        the fascinating new book, The Clock of the         and he has served as a Senior Fellow at the Canadian
pointments involved with moving these            Long Now: Time and Responsibility, Stewart         Centre for Management Development since 1995.
ideas into practice reflect two problems.        Brand (inventor, designer and author)
The first problem is the tension between         describes this condition as “continuous, dis-      slower pace of change. Moreover, I do not
our perennial search for greater rationality     continuous change.” Life becomes a perpet-         agree with the false, negative stereotype that
in public management and our deepening           ual transition with no resting point in sight.     public bureaucracies have always resisted
suspicion of politics as an activity necessary      There is no doubt some hyperbole                change. When there was clear political
for good government. Secondly, many of           involved in much of the writing on the             direction and commitment to change, pub-
the leading ideas of the recent public serv-     speed, breadth, depth and impacts of               lic bureaucracies have usually delivered—we
ice reform movement were derived from            change processes on government. Often              can think of two World Wars, the creation
private sector experience and there has been     what captures organizational attention are         of the post-war welfare state, or the applica-
insufficient recognition of the contradic-       the more visible, immediate and threaten-          tion of restraint and downsizing beginning
tions and paradoxes involved with applying       ing developments which take place; we are          in the 1980’s after several decades of public
those ideas in the distinctive context of the    much slower at recognizing and reacting to         service growth. In serving “the public inter-
public sector. In reflecting on the recent       longer-term trends. Stewart Brand writes           est,” governments represent a source of sta-
evolution of public management theory            that: “As history accelerates, people become       bility, predictability, continuity, transition
and practice, I hope to offer some insights      fast learners, and that’s good, but it is also a   and conservation within society. The role of
into why central agencies have had difficul-     problem. Fast learners tend to track noisy         the public service as a counterweight to
ty conceptualizing and operationalizing          signals too closely and to confuse them-           rapid change-for-the-sake-of-change has
their future roles, both individually and        selves by making changes before the effects        become very important in a world which is
collectively.                                    of previous actions are clear.” (p.138)            accelerating into the future.
   It has become a cliché, but is nonetheless       This tendency towards instantaneous and            It is within this context of accelerated
true, that we live in an era of rapid, wide      constant change is more pronounced in pri-         change and amidst the rhetoric of reinven-
ranging and intense change. Predicting the       vate sector firms than within governments.         tion that I wish to discuss the six “Big
future is difficult and consciously designing    Governments have been urged to emulate             Ideas” of Steering, Control, Planning, Per-
the future is probably impossible. The           the private sector; to become more flexible        formance Measurement, Accountability
Israeli theorist, Yehezkel Dror, has observed    and agile, to take risks, to innovate more         and Learning.
that in the turbulent environments of con-       continuously and in general to break out of
temporary government “there is a high            the bureaucratic habit of resisting change.        Steering
probability of low probability events.” On a     Writing in their 1997 book, Banishing                 The concept of steering goes way back to
worldwide basis governments are said to be       Bureaucracy, David Osborne and Peter Plas-         the time of the Greek city state. For Plato
undergoing transformation and transi-            trick warned that “public organizations            and other philosophers, the term “gover-
tion—although transition to what is far          which cannot change fast enough are                nance” was used to refer the knowledge and
from clear. In fact, there is something false-   doomed to failure.” (p. 38) The hyperbole          skills of wise navigation required to steer
ly comforting about the idea of transition.      of such statements should not go unchal-           the ship of state through the squalls that
It implies that, if governments survive the      lenged.                                            blew over the sea of society. In the Greek
current waves of change, they will arrive at        In my view, different organizations with-       city state, politics and governance were syn-
a new condition of relative stability and        in society need not adopt the same pace of         onymous and both were highly respected
consensus about their roles. But most futur-     change. Governments are meant to follow a          activities.

26   FMI JOURNAL                                                                                                                  VOLUME 14, NO. 2
                                                                                                        STEERING BY REMOTE CONTROL

   Jump forward to the early 1990’s and we         This is dangerous stuff. It undermines         of public servants in the governance process
have the runaway bestseller Reinventing         political control of the bureaucracy and          becomes more openly acknowledged and
Government, (by David Osborne and Ted           democratic accountability to the electorate.      even promoted. However, properly under-
Gaebler) adopting Plato’s ship of state         Dressed up in new language, the reinven-          stood, successful governance depends more
metaphor. You will recall that the first of     tion approach resurrects the “zombie              on strong political institutions, effective
the ten principles of reinvention was that      idea”—long thought to be laid permanent-          political processes and capable political
governments should concentrate on “steer-       ly to rest—that politics and administration       leadership than it does on good manage-
ing” and leave the “rowing” to others. This     can be neatly separated in practice. “Get-        ment. Also, in a democracy, issues of legiti-
metaphor conveyed the idea that govern-         ting politics” out of government and mak-         macy, the rule of law, fairness, representa-
ments need only ensure that certain activi-     ing it operate in a more “business-like”          tion and accountability have to be consid-
ties took place, they did not necessarily       manner is an inappropriate and futile goal.       ered when evaluating governance arrange-
have to design and deliver programs them-       Politics is an essential activity within socie-   ments.
selves. In addition to their belief that pri-   ty. At its best, politics involves the develop-
vate organizations and quasi-market type        ment of greater public understanding of           Control
organizations would operate more efficient-     issues and the mobilization of consent for           In an era when all the talk has been about
ly than traditional departments of govern-      certain kinds of actions. It entails persua-      the necessity of change, empowerment, the
ment, Osborne and Gaebler also believed         sion, negotiation, conciliation, compromise       freedom to manage and the need to elimi-
that reinvention required entrepreneurial       and the creative accommodation of differ-         nate the rigidities of bureaucracy, control
public managers finding some way to get         ent interests and values, as a means of           has become one of the last dirty words. A
around the constraints of the political         reaching workable solutions to the collec-        decade ago the Office of the Auditor Gen-
process.                                        tive problems of society.                         eral published a chapter entitled, “Change
   At page 247 in Reinventing Government,          Although its origins are ancient, the term     and Control in the Federal Government”.
Osborne and Gaebler observed that they          “governance “ has become a popular buzz           It’s purpose was to examine the impact of
were “writing about governance, not poli-       word today. It refers to direction setting. It    reforms on various levels of control
tics,” implying that the two activities could   involves the identification of goals and the      throughout the public service. The report
and should be separated. The authors            selection of means to achieve them. Gover-        concluded that “there are a number of
described numerous success stories of entre-    nance takes place at all levels throughout        important steps that the government needs
preneurial managers who heroically over-        the political and administrative system.          to take—urgently—to ensure a safe transi-
came the constraints of the political           Individual organizations have governance          tion to an empowered public service.”
process: “The new public entrepreneurs are      processes, but increasingly governance is an      (Office of the Auditor General of Canada,
not making their revolution through the         inter-organizational phenomenon. Govern-          Annual Report, 1992, p. 137) Writing in
conventional channels…. Indeed, conven-         ments are no longer at the pinnacle of soci-      1996, a leading academic, Alasdair Roberts,
tional politics stands in their way…. Some      ety setting directions—more and more gov-         identified what he called “the control
have developed quite sophisticated strate-      ernance for society as a whole involves           lobby” and analyzed how the Auditor Gen-
gies to overcome the political and bureau-      shared responsibility, shared power and           eral, the Treasury Board Secretariat and
cratic obstacles.” The authors did not seem     shared risks.                                     others had blocked, slowed or modified
troubled by the implications for democracy         We now have plural modes of gover-             institutional reforms designed to eliminate
arising from their advice that public ser-      nance, relying on hierarchy, markets and          excessive controls and to create a more
vants find ways to circumvent the political     networks simultaneously. There are now            innovative culture within the bureaucracy.
process.                                        multiple linkages among governments and           (A. Roberts, “Worrying about misconduct:
   This anti-politics theme is even more        between governments and civil society.            the control lobby and the PS 2000
explicit in the follow-up book by Osborne       There are the formal structures of authority      reforms”, Canadian Public Administration
and Plastrick, Banishing Bureaucracy: The       for governance purposes within particular         39, 4, 1996) This debate raised the funda-
Five Strategies for Reinventing Government      organizations, but these structures operate       mental question of how to exercise ade-
(1997). There, the reinventing government       within the context of complicated, dynam-         quate control over organizations and people
promoters tell public managers that “they       ic and shifting governance networks among         who are otherwise encouraged and required
do not have to wait for permission before       a wide range of organizations. Steering is        to be flexible, innovative, risk-taking and
they reinvent,” they can “change their          less and less about hierarchy and com-            entrepreneurial. Can adequate control sim-
organizations without the politicians”, and     mand-and-control; it is more about part-          ply be achieved by hiring good people, cre-
“politicians must learn to live with managers   nerships and power sharing.                       ating the right incentives and hoping for
taking actions they do not like as long as         These new patterns raise fundamental           the best? Is more than this required in pub-
managers are acting ethically and producing     questions about what ought to be the rela-        lic organizations when there are rising pub-
results”. (p. 39) Managers, it is even sug-     tionship between elected politicians and          lic expectations regarding efficiency, fair-
gested, can “clear the decks of unnecessary     appointed public servants within a demo-          ness, transparency and accountability?
functions, although they may have to get        cratic society. When politics becomes a              Let me attempt an answer to these ques-
the permission of elected officials”. (p. 53)   widely discredited activity, the participation    tions by first saying a brief word about the

WINTER 2003                                                                                                               FMI JOURNAL 27
STEERING BY REMOTE CONTROL

concept of control. There is no single, con-     trol also became less procedural and more        approach being recommended in the busi-
sistent definition of control for organiza-      normative, that is, it relied less upon rules    ness best-sellers at that time. It is also sig-
tions. In the narrowest sense it means           and procedures and more on adherence to          nificant that, when the deep cost-cutting
ensuring that specific rules and procedures      core values and key purposes. The new            exercise called Program Review began in
are followed. In the broadest sense, control     approach also sought to set boundaries or        1994, departments were given the freedom
means creating the conditions that lead to       parameters for decision-making that would        to make the tough choices of where to
the achievement of objectives. Control is        avoid the more high-risk activities.             reduce spending and program activities.
both restricting and enabling, an apparent          In the financial management field, the           In 1997, TBS officials told the Public
paradox. It restricts to protect against         result was that the administrative policy        Accounts Committee of the House of
unwanted events and it is enabling by pro-       branch of the Treasury Board Secretariat         Commons that they were not in the busi-
viding the context in which authority and        began during the mid-1980’s to delegate          ness of monitoring departmental perform-
responsibility are delegated in order to         more authority to local managers and to          ance; that was the job of the deputy minis-
achieve objectives.                              raise the financial thresholds requiring cen-    ters. The Auditor General complained that
   In a positive way, control provides organ-    tral approval. Increased Ministerial Author-     the right balance between centralization
izations with the means:                         ity and Accountability (IMAA) sought to          and decentralization had not been found.
• to limit the accumulation of error;            give ministers and senior managers more          In his farewell report, Denis Desautels
• to adapt to environmental change;              flexibility in return for more direct, person-   wrote that: “The government had not
• to cope with organizational complexity         al accountability for the achievement of         thought through and determined which
   and to achieve coherence and coordina-        results.                                         controls were essential and how it could
   tion; and                                        After 1990, PS 2000 gave another push         manage without the rest.” Not all depart-
• to improve performance, to reduce costs        to decentralized control to lower manage-        ments were ready to assume greater respon-
   and to increase output.                       ment levels and to the regions. Richard          sibility, many did not meet accountability
   Control is practiced on many levels with-     Paton and Christiane Dodge of the TBS            standards and no one was reviewing pro-
in organizations: strategic, legal, financial    wrote a paper (“Reinventing administrative       gram performance. (Reflections on a
and operational.                                 policies for the 1990s”, International Jour-     decade of serving Parliament, February,
   Both formal and informal controls exist       nal or Public Sector Management, 1995) that      2001, p. 22) “With the era of command
within all organizations. For public organi-     documented the significantly reduced             and control over,” wrote Desautels, “the
zations the inventory of formal controls is      number of transactions which required            new era of active monitoring requires that
lengthy: laws and regulations, organization-     approval centrally—either at the Board           the Treasury Board quickly equips itself
al structures, plans and budgets, policies       level or at the Secretariat level. The adop-     with good radar.” Once again, we have the
and procedures, information reporting and        tion of Single Operating Budgets and the         metaphor of controlling at a distance. The
auditing, rewards and sanctions. And this is     “unlocking” of person-year controls was an       disclosures involving grants and contribu-
not an exhaustive list. Informal controls        important step towards greater managerial        tions at HRDC prompted a reverse swing
exert their influence on behaviour through       freedom.                                         of the pendulum back towards centralized
the culture and climate of public organiza-         A consultation paper drafted in the Trea-     control. But because central agencies had
tions: the leadership style, the values and      sury Board Secretariat in September, 1995        not escaped staff reductions during Pro-
ethics, the levels of trust, the motivation of   (titled “Accountability for Good Manage-         gram Review—as they had during earlier
employees and the degrees of commitment          ment in the Federal Public Service: The          restraint exercises—there is now a question
to organizational goals.                         Relationship Between Departments and the         of whether they have the organizational
   The reform slogan, “let the managers          Treasury Board) observed that “an era of         capacity to monitor and evaluate perform-
manage,” first was heard prominently way         rapid change and continuing resource con-        ance. This is where planning and perform-
back in the 1962 Glassco Royal Commis-           straints” required a “cooperative and pro-       ance measurement come in.
sion Report on Government Organization.          ductive relationship” with departments.
Later, during the 1980’s when financial          “The relationship,” it went on to say,           Planning
hard times arrived, it was revised to            “means allowing a more independent oper-            During the 1980’s strategic planning
become, “make the managers manage.”              ation of departments to carry out their          began to take hold within the public sector.
More recently, all the rhetoric has involved     unique mandates, but at the same time it         This is not to say that other forms of plan-
the empowerment of managers, especially          means reinforcing commonly held values           ning, such as policy planning and budget-
of those closer to the front line where pro-     and principles for good management               ary planning, had not been attempted pre-
grams are actually operating and services        throughout government.” For many                 viously. But strategic planning was intend-
are being delivered to clients.                  observers—and no doubt for many public           ed to be a systematic approach to the align-
   Over the years there was gradually less       managers—the phenomenon of simultane-            ment of the organization and its resources
reliance upon control defined in negative        ous centralization and decentralization at       with the anticipated future conditions to be
terms as preventing mistakes, and more           first seemed contradictory and a sign of lack    found in both its external and internal envi-
emphasis on control defined in positive          of consistency in management philosophy.         ronments. The aim was to incorporate fore-
terms of making good things happen. Con-         But the approach reflected the “tight-loose”     sight and anticipation into decision-making

28   FMI JOURNAL                                                                                                           VOLUME 14, NO. 2
                                                                                                       STEERING BY REMOTE CONTROL

and to shift more of the focus on to trends       come down absolutely on either side of the       In short, “business planning” was meant
and developments taking place beyond the          strategic planning versus groping along       to be about more than simply submitting
boundaries of the organization. Managing          debate. The real question should be: What     business plans as part of the expenditure
from the “outside in” rather than the             should be the relative reliance on planning   management system. The business planning
“inside out” became the slogan used to            versus improvisation given the tasks and      system presumed that ministers on the Trea-
describe this shift in orientation. Ironically,   circumstances of particular organizations?    sury Board would be willing to be involved
twenty years after its adoption by leading        Usually a good process is more important      in a more pro-active “management board”
firms in the private sector and at a time         than a good plan. Given the enormous dif-     role. However, only a minority of ministers
when many firms were reducing their               ficulty of forecasting the future of public   had enthusiasm and commitment to such a
expectations and reliance upon strategic          organizations, less time should be spent on   role. The system also implied that the Trea-
planning, the public sector embraced the          attempts at skillful prediction and more      sury Board Secretariat had the capacity to
approach with almost missionary zeal.             should be spent on problem identification,    assist and to challenge departments and
   Experience has proven that, for a number       defining strategic issues and the promotion   agencies and to develop a “whole-of-govern-
of reasons, planning in the public sector is      of continuous learning.                       ment” perspective. After the downsizing of
more difficult than for individual private           Greater realism about broad strategic      Program Review, it is questionable whether
firms. Studies of public sector planning          planning and the desire to integrate plan-    TBS has this capacity.
reveal that in practice it more resembles         ning with budgeting, led to the introduc-        In terms of external review and account-
strategic improvisation than the compre-          tion of Business Planning during the          ability, the availability of first business plans
hensive, orderly and rational process of          1990’s. The business planning process had a   and somewhat later performance reports
adaptation to change implied by the text-         number of aims:                               has not done much to improve the extent
book models. I like the metaphor of “man-         • to provide the Treasury Board with an       and the quality of parliamentary surveil-
agement by groping along” (MBGA)                     overview of government programs;           lance of the financial and management
invented by Robert G. Behn to describe the        • to identify and address emerging issues     processes of government. The reasons for
change process in most public organiza-              from a strategic perspective;              this are too numerous to discuss here. I dis-
tions (Journal of Policy Analysis and Man-        • to improve the horizontal and vertical      cussed the problems at some length in a
agement, Vol. 7, 4, 1988). MBGA is a con-            integration of reporting systems to sup-   1997 report for the TBS with the catchy
ceptual cousin of “management by walking             port government priorities;                title “Why MPs are More Interested in Vin-
around” a phrase made famous in the               • to ensure that programs and the public      dicators Than Indicators.”
1980’s bestseller In Search of Excellence.           service are well managed and striving to      The second part of this essay dealing
MBGA involves the adoption of an oppor-              improve; and                               with Performance Measurement and Per-
tunity seeking mentality. It consists of          • to improve the quality of reporting to      formance Reporting, Accountability,
experimentation and a sequential process of          Parliament and to interested members of    Learning and Lessons Learned will be pub-
adaptation in pursuit of vaguely specified           the public.                                lished in the Spring 2003 fmi journal. ■
goals. Reflective practitioners of the art of
MBGA learn managerial behaviour that
can be applied to different situations. The
best among them are able to recognize mis-                                                 Salary budgeting and
taken directions sooner rather than later                                                  forecasting with SMSTM
and are prepared to try new approaches.
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                                                                                                 vative long-term solutions to
mote learning within their organizations.
                                                                                                 help organizations manage their
   Several studies have been conducted to
                                                                                                 resources more efficiently.
determine whether successful public sector
change depends more on planning than on
groping along. Sandford Borins analyzed
award winning entries to public sector
innovation competitions in Canada and the
United States and concluded that most suc-
cessful projects were the result of a formal
planning process. In contrast, Olivia Gold-            See further and more clearly!
en studied reforms to social service pro-
grams in the United States and found that
the vast majority of them relied upon                 www.influatec.com
MBGA. In my view, it is not necessary to              888/(819) 595-1794

WINTER 2003                                                                                                               FMI JOURNAL 29
        Performance Management:
       The British Columbia Context
           Focusing on Results
                           Beth James and Brenda Eaton
“People and their managers are working so         on implementing performance manage-
hard to be sure things are done right that they   ment and outlines some of its recent inno-
hardly have time to decide if they are doing      vations. We hope that by sharing this infor-                         Beth James
the right things.”                                mation we may provide ideas to other pub-         Beth James is the Assistant Deputy Minister, Corpo-
                                 Steven Covey     lic sector managers and that, in turn, we         rate Planning reporting to the Deputy Minister to the
                                                                                                    Premier. In this role she is responsible for long- and
                                                  may receive input and feedback.                   short-term corporate strategic planning and perform-
Introduction                                                                                        ance measurement. Prior to assuming this position she
                                                                                                    was Director of Corporate Projects reporting to the
   Accountability, transparency, performance      Performance Management: The Theory                Deputy Minister to the Premier, and held several
management. These have been defining                 Governments and public sector organiza-        management positions at the University of British
                                                                                                    Columbia.
words for both private and public sector          tions are inherently mandate driven, in
organizations over the last two decades. Lead-    contrast to the profit-driven motivation of
ing-edge organizations and governments            private businesses. Their desired outcomes
throughout the world are increasingly realiz-     usually centre on the ability to deliver nec-
ing the value of performance management           essary, cost-effective services for citizens.
systems to facilitate efficient operations,       Fiscal challenges throughout all levels of
deliver quality programs and services, and to     government have required that govern-
encourage transparency and accountability         ments be much more careful about the
all through the organization. In the public       choice of policies and strategies. A major
sector, much been said about these concepts,      contribution of performance management
and some have made progress toward the use        is its focus on achieving results.
of performance management systems as a               Performance management systems focus
tool for improving business practices.            on all dimensions of organizational per-
   Doing the right things and doing things        formance as reflected in the organization’s
right is a balancing act. For most public sec-    ability to manage and execute its business                          Brenda Eaton
tor organizations, the last two decades have      strategy. Achieving this overall goal requires    Brenda Eaton is Deputy Minister to Premier Gordon
                                                                                                    Campbell, with responsibility for corporate planning
seen increasing pressures to reform business      several ongoing activities, including identi-     and restructuring. She has previously served as
practices and improve performance. These          fication and prioritization of desired results,   Deputy Minister in several ministries including
                                                                                                    Finance, Energy and Mines, Treasury Board and
pressures mandate that organizations con-         establishing a means to measure progress          Social Services.
tinually worry about executing good strate-       toward those results, tracking and measur-
gy well, at the same time that they worry         ing progress toward results, periodically         In order to support this result, the manage-
about running their operations efficiently.       reviewing progress, reinforcing activities        ment processes within government need to
Given ongoing fiscal pressures, today’s pub-      that achieve results, and intervening to          be aligned in support of performance as a
lic sector organizations need to be both          improve progress where needed. Organiza-          major objective. See Figure 1.
strategically and operationally excellent.        tional performance and accountability are           This schematic sets out how govern-
Reform initiatives at all levels of govern-       enhanced through regular public reporting         ment’s primary management processes
ment are placing more emphasis on                 of actual results against desired outcomes.       function in the performance management
accountability and results to enhance orga-                                                         system.
nizational effectiveness and meet citizen         Organizational and Functional Alignment
expectations for public services. In recent         For performance management to be suc-           Performance Management: The British
years, governments in British Columbia            cessful, government’s primary management          Columbian Context
and other jurisdictions domestically and          processes must be aligned with the per-
internationally are beginning to see tangible     formance management system. Indeed, the           The Early Days
results from their performance manage-            overall goal of performance management is           Some organizations within the Govern-
ment systems.                                     to ensure that the organization and all of its    ment of British Columbia began to imple-
   This article provides background on the        processes are working together in an opti-        ment performance management frame-
Government of British Columbia’s progress         mum fashion to achieve the desired results.       works beginning in the late 1980s and early

30   FMI JOURNAL                                                                                                                 VOLUME 14, NO. 2
                                                                                                                  PERFORMANCE MANAGEMENT

1990s. This shift toward performance man-
agement systems became more systematic                                                    Strategic Planning
                                                                                          Policy Development
in 1996, with the joint sponsorship by the                                                Throne Speech
Auditor General and Deputy Ministers’                                                     Sectoral Goals
                                                          Electoral Process                                              Business Planning
Council of the development of a more                      Compensation                           Clear                   Program Design
comprehensive accountability framework                    Funding Decisions                    Objectives                Policy Development
intended to guide the whole of government                 Delivery Mechanism                                             Budget Speech
                                                          Program Adjustment                                             Estimates
in reporting more fully on its performance.
   The Auditor General and the Deputy                                      Real                                    Effective
                                                                       Consequences                                Strategies
Ministers’ Council published two joint
reports focussed on enhancing accountabil-
ity for performance in the British Columbia
public sector, as well as a proposed imple-
mentation plan. The reports outlined three
key goals and responsibilities:                                                 Performance                  Aligned
                                                                               Measurement                  Management
• the Deputy Ministers’ Council would                                          and Reporting                 Systems
   lead improved performance measure-                        Performance Agreements
                                                                                                                  Budget Development
   ment in the public sector;                                Performance Measurement
                                                                                                                  Information Systems
                                                             Program Evaluation
• the Auditor General would support                                                                               Human Resources
                                                             Public Accounts
                                                                                                                  Administrative &
   improved accountability to the Legisla-                   Annual Reports
                                                                                                                    Financial Controls
                                                             Sectoral Reports
   ture; and
• the all-party Public Accounts Committee       Figure 1.
   of the Legislature would strive to
   improve the relevance and utility of the     accountability for results. This results-based        the name, emphasis is on the services the
   debate on spending Estimates in the Leg-     orientation led to the implementation of a            public receives. The Budget Transparency
   islature.                                    variety of new performance management                 and Accountability Act provides that each
   The overall plan recommended that gov-       processes.                                            ministry’s annual service plan must:
ernment establish accountability frame-                                                               • include a statement that the responsible
works for all its organizations. These frame-   Premier’s Letter                                         minister is accountable for the basis on
works were to focus on improved account-           Shortly after appointing the Executive                which the service plan is prepared and for
ability for performance by requiring man-       Council, the Premier sent a letter to each               achieving the specific objectives in that plan;
agers to set out their plans, and then report   Minister and Minister of State which out-             • cover the ministry and other appropria-
on actual results. The second component of      lined the key corporate strategic priorities,            tions of the responsible minister;
the implementation plan was a recommen-         as well as specific key priorities for which          • be made public by the responsible minis-
dation that government make changes to          each Minister and Minister of State is                   ter by the third Tuesday in February each
the main processes that determine how the       responsible. A list of key projects for each             year (i.e. Budget day);
business of government is planned and           ministry was appended to the letter. The              • address the upcoming fiscal year and the
managed. This involved the development          relevant mandate and strategic priorities                following two fiscal years;
of multi-year business plans which set out      were incorporated into each ministry’s per-           • be consistent with the current govern-
direction and provide a basis for assessing     formance plan.                                           ment Strategic Plan; and
performance, development of a compre-              The purpose of these letters was twofold:          • include a statement of goals, specific
hensive system of strategic direction to        to clearly communicate expectations to                   objectives and performance measures.
guide government programs, and review of        Ministers and to align the performance                   The service plans are high level docu-
management and administrative regula-           objectives of elected representatives with            ments which detail the core business of
tions to ensure that they do not unnecessar-    ministry staff. These letters can be viewed at        each ministry, the resources it employs and
ily impede performance. It also included        http://www.gov.bc.ca/prem/down/prem_ltr               the results it expects to achieve. The strate-
preparation of a strategic plan for govern-     .pdf.                                                 gies and performance measures are suffi-
ment and creation of a limited number of                                                              ciently high level as to be useful to the pub-
pilot project Special Operating Agencies.       Ministry Three Year Service Plans and                 lic in understanding the ministry’s service
                                                the Estimates Process                                 goals and targets, and enable British
Recent Enhancements and Innovations               One of the first legislative initiatives of         Columbians to hold government account-
  In mid-2001 there was a change of gov-        the newly elected government was the                  able for its decisions and actions. At the end
ernment in British Columbia. Concomi-           introduction of the Budget Transparency               of each fiscal year each ministry prepares a
tant with this change was a renewed com-        and Accountability Act. This Act requires             service plan report which describes actual
mitment on behalf of the political leader-      that all ministries and Crown agencies pre-           accomplishments for the year, including a
ship to performance management and              pare multi-year service plans. As reflected in        comparison of planned and actual results

WINTER 2003                                                                                                                      FMI JOURNAL 31
PERFORMANCE MANAGEMENT

from both a financial and performance             for achieving the goals assigned in his letter   performance on these indicators will be reg-
measure perspective.                              to them, but also for meeting the govern-        ularly compared against the performances
   The multi-year service plans are also          ment’s corporate goal of balancing the           of other provinces in Canada and Washing-
intended to realign government processes          budget within a given timeframe. Ministers       ton State, Oregon and California. The
to focus on results, particularly as it relates   do not receive performance pay if their          Progress Board’s report can be viewed at:
to debates around Government Estimates            Ministry goes over budget.                       http://www.bcprogressboard.com/.
and the work of Legislative Committees.
Estimates debates in British Columbia, as         Individual Performance Plans                     Results-Based (Forest Practices Code,
in many other jurisdictions, have tended to          While the initial implementation of per-      Aquaculture)
focus on micro issues rather than issues of       formance management was focussed on the             The government’s commitment to results
substance. This is hardly surprising, when        senior level of government, work has begun       extends to its public policy framework. Initia-
very little performance data was made pub-        on the development of a corporate-wide           tives such as a results-based forest practices
licly available. It is our hope that multi-year   approach to performance management.              code and new performance-based aquaculture
service planning will enable the Legislative      Tools to support a performance manage-           waste control regulation shift emphasis from
Assembly to focus on the financial and            ment cycle of planning, focusing and             management by legislation, which sets out
non-financial performance of ministries as        reviewing that incorporates work, compe-         process requirements, to the establishment of
it relates to their stated performance goals.     tency and personal development goals and         legal standards which sets out for practitioners
Ministry Service Plans can be viewed at:          links the employee performance manage-           what they are expected to achieve. Govern-
http://www.gov.bc.ca/prem/popt/service_p          ment cycle to the organizational and corpo-      ment will measure practitioner performance
lans/default.asp.                                 rate goals are being developed. By 2004, all     against the legal standards.
                                                  managers in the British Columbia public
Government Strategic Plan                         service will have individual performance         Joint DM/OAG General Rating
   The government also developed a three-         and personal development plans.                  Principles Project
year Strategic Plan which articulates the                                                             Another performance management ini-
government’s key priorities and serves as the     BC Progress Board                                tiative government has embarked upon is to
umbrella document for ministry service               The BC Progress Board was established         work with the Auditor General on the
plans. It defines the core values that guide      in July 2001. It is an independent advisory      development of public performance report-
the government of British Columbia; the           board that comprises 15 British                  ing principles and criteria that should be
goals, objectives and key strategies to           Columbians with a wide range of experi-          used for British Columbia’s public sector.
achieve the goals and objectives; and per-        ence. The Progress Board has two broad           This work has not yet been finalized, but
formance measures. The Plan assigns min-          mandates:                                        the proposed principles and criteria are
istry accountability for achieving specific       • To provide advice on whether and to            largely drawn from the work of the Canadi-
targets, and sets out economic, social and           what extent the province is improving its     an Comprehensive Auditing Foundation,
environmental benchmarks and targets to              competitive position and quality of life      which has just released their report, Report-
be achieved over the three-year timeframe.           by benchmarking and tracking British          ing Principles - Taking Public Performance
Twenty-five measures of performance are              Columbia’s performance over time and          Reporting to a New Level. Once adopted, the
being tracked. As with the ministry service          relative to other jurisdictions.              principles and criteria will be used to guide
plans, at the end of each fiscal year a strate-   • To identify issues of importance to the        the preparation of ministry service plans
gic plan report is prepared which compares           province’s future economic prosperity         and annual service plan reports, to inform
planned and actual results.                          and advise the Premier on policies and        those who use the reports, and to assist in
   The Strategic Plan is designed to com-            actions necessary to increase the econom-     assessing the quality of public performance
municate clearly to all public servants the          ic and social well-being of British           reporting in British Columbia.
broad objectives of government and to                Columbians.
make clear the role each ministry will play          The first report of the Progress Board was    Where to from here?
in support. The Strategic Plan can be             released in February 2002. This report              While performance measurement has
viewed at: http://www.gov.bc.ca/prem/             established a set of challenging measures to     been developing in the Government of
popt/service_plans/StrategicPlan/.                evaluate the economic and social progress        British Columbia for many years, the com-
                                                  of the provincial government. It outlines        plete alignment associated with a fully
Performance Pay                                   core targets and performance indicators          operational performance management sys-
   Consistent with government’s new focus         that will be tracked over time and will pro-     tem is more recent. Work remains to be
on performance, a performance pay system          vide both the government and the public          done but we believe important strides have
was instituted for Ministers and Deputy           with an objective assessment of the              been made. Further refinement will be
Ministers that is intended to help align          province’s progress in key areas. Twenty-six     required, which will be facilitated by the
their performance goals with those of the         measures of performance on the economy,          adoption of corporate principles and crite-
organization. The Premier informed Minis-         innovation, education, environment, health       ria to be used in the development of service
ters that they will be responsible not only       and social condition are being tracked. BC’s     plans and service plan reports.

32   FMI JOURNAL                                                                                                            VOLUME 14, NO. 2
                                                                             PERFORMANCE MANAGEMENT

  The organizational structure has yet to evolve to be more aligned
with the performance management and measurement. Presently only
the senior management level and the Executive Council have per-
formance plans; however, by the end of the next fiscal year all employ-
ees throughout government will have performance development
plans. This initiative will facilitate increased corporate focus on per-
formance management initiatives.
  Another significant factor to enhance performance management in
British Columbia will be an increasing use of the results of govern-
ment’s performance in the budget process, thereby directly aligning
our fiscal and management resources on the areas where the greatest
good can be achieved. At the end of the day, consistent year-after-year
adherence to these principles will be required.

Why do we care?
   The successful application of performance management drives
improvements and enables the organization to successfully translate
strategy into action. It is an integral part of the management process
by providing essential support to decision-making, program and man-
agement improvements and public accountability. In addition, public
reporting against results can be a powerful force in promoting a bet-
ter understanding about performance and how it can be improved. In
turn, this can contribute to a better system of governance and a foster
greater public confidence in the government. Ultimately, it helps us
do the right things well. ■




…Natural Resources Canada, from page 23

   the information (i.e, do we really need the information and what is
   the level of effort required to obtain it?)
   A critical factor in the success of the IMIP has been the extensive
consultation process to identify information needs at every level of the
department, ranging from those of ADMs and Directors General
(DGs) to project managers and administrative officers. The consulta-
tive approach contributed significantly to the credibility of project
results. In addition, the project was cast as an exercise in identifying
“information” as opposed to “system” requirements. As such, the par-
ticipants’ expectations were carefully managed and they were made
aware at the outset of the project that the aim, at this stage, was not
to arrive at a systems solution but rather an overall strategy to meet the
Department’s information needs.
   The approach of focusing on information needs rather than system
requirements provides a performance measure and a critical success
factor for the project. The focus now encompasses not only successful
system implemention, but more importantly, the degree to which the
system(s) supports our management information needs; something
which the Auditor General has identified as lacking in many system
implementations.
   Currently, the Department is planning a phase II of this project
where it will look in more detail at issues such as implementation
options, their affordability, departmental readines and time lines. ■

WINTER 2003                                                                           FMI JOURNAL 33
news
FREDERICTON CHAPTER




                                 Fredericton

T
         he Fredericton Chapter’s 2002-          off a financially successful year, we were in
         2003 program is well under way          a coveted position, so we wanted to know
         and as memories of the Christmas        our exact financial status and plan accord-
break fade, our energies are renewed to          ingly. A new Board, with a mixture of new
move forward with the second half of our         faces, journeymen and seasoned veterans,
program. For myself, as the incoming pres-       started taking shape. Planning our program
ident of the Fredericton Chapter, I would        for the year is a key element in the success
like to share a little of what I have encoun-    of any Chapter. Did we listen to the feed-
tered in my initial few months in this posi-     back from our members and the ideas of
tion.                                            our Board and Honorary Members? (We
   Taking on the role as president has been      are very fortunate to have as honorary          National Board Meeting in Ottawa in
a real eye opener. The challenges of leading     members the Comptroller, the Auditor            November and I found out that our local
a Chapter that has just completed one of its     General and the Minister of Finance for         team has an extended family with experi-
most successful year in its 11 year history,     N.B and we do solicit and receive their         ence and insight that is ours just for the ask-
with membership at new highs, and having         input on a yearly basis.)                       ing. Did I mention that this position is a lot
staged an enormously successful PSMW                After staging four events prior to Christ-   of work but also a lot of fun! We may or
last spring - maybe this is going to be a        mas, we are again as a Board looking back       may not meet all of our objectives for the
cakewalk. Or maybe the Chapter would             at what we have done to date and trying to      coming year, but if we don’t it won’t be
encounter the dreaded PPSMWS. (Post              incorporate these experiences into our          from lack of effort.
Public Sector Management Workshop Syn-           remaining program for the year. Are we             Hats off to our Board comprising of:
drome)                                           where we want to be at this point? Not yet!     Yvonne Samson, 1st Vice President; Trisha
   Is the challenge to maintain the status       But we have identified what we think will       Fournier-Hoyt, 2nd Vice President; Ryan
quo? Can we expect the success and               help us attain our goals. In our case we are    Bourgeois, Secretary; Annie Gagniere, Trea-
momentum from last year to allow us to           targeting two areas. Are we getting to all      surer; Heather Silver, Past President; Peter
slide through this year? (I would expect         our potential membership (exposure) and         Wolters, Director; Murray Lambert, Direc-
anyone who has worked as a Board member          for the ones we are reaching are we using all   tor; Terry Loughead, Director; Ajit Gau-
of a Chapter, whether it be FMI or any           the tools necessary to draw their attention     tam, Director; Veronique Mercier-Dickens,
other group, would know the answer to            to what we have to offer as we compete for      Director, Pat Tozer, Director.
this.)                                           their time and energy (marketing)?                 I am very proud to work with such a
   Every year is a new year and the success-        Did I mention teamwork and its impor-        wonderful and talented group of people.
es or not so great successes are behind us. So   tance – our executive, members of our
first we re-examined what worked last year,      Board, committees and of course, our              Mike Gagnon, President
what didn’t work, and asked why? Coming          members. And then I attended my first




34   FMI JOURNAL                                                                                                          VOLUME 14, NO. 2
news
QUEBEC CITY CHAPTER




                   Quebec City Chapter

O
           ur 2002-2003 season commenced           Our second luncheon conference was
           with a happy hour at the Cercle de   held on November 6 with 432 persons in
           la Garnison de Québec, a             attendance. Our speaker, Alain Dubuc,
prestigious club in Old Quebec, with more       chairman and editor of the Quebec City
than 125 guests present.                        daily, LE SOLEIL, presented his views on a
   Louise Rheault, president of the             topical subject: “Common Currency with the
Chapter, took the opportunity to introduce      United States: Is it Feasible?”
a new governor, Doris Paradis, acting              The half-day conference on December 3,
Auditor General of Quebec. The president        2002, attended by 330 people, was
also unveiled our program for the new year      organized in cooperation with the Groupe
and reported on what’s new. A promotion         d’action en gestion financière (GAGF) on the
campaign in the region’s universities was       theme “Management Control: Update on
announced, involving the awarding of two        Implementation.” The guest speakers and
$2,500 scholarships in 2002, recognizing        their topics (in brackets) were as follows:
creation, innovation and leadership in the      Danielle-Maude Gosselin, Assistant
public sector.                                  Secretary for Public Management
   As chair of the marketing committee,         Modernization (“The Principles Involved in
                                                                                                 Left on photo, Sonia Boucher, who is
Serge Boisseau presented this year’s new        Management Control”), Pierre Kyer,               completing her Bachelor’s degree in
promotional tool: a post-it with a business     Director of Management Systems, Royal            business administration (finance major) at
card holder. In addition, a very special        Canadian Mounted Police (“Modernization          Laval University, receives her $2,500
event will be held next April to celebrate      of the Comptroller Function at the Royal         scholarship from Louise Rheault, president
our 15th anniversary as a Chapter. This         Canadian Mounted Police”), Sylvie Barcelo,       of the FMI Quebec City Chapter.
activity is being organized by the 15th         Vice President, Organization Services,
Anniversary Celebration Committee, under        Régie des rentes du Québec (“The Experience
the chairpersonship of Roland Letarte.          of the Régie des rentes in Risk and Control”),
Finally, the board of directors retained the    Jean-Noël Thériault, Senior Audit
services of a communications professional       Manager, Vérificateur général du Québec
in order to organize all of our 2002-2003       (“To Be or Not to Be”), and Éric Lavoie,
activities and offer a higher-quality product   President of Lemieux Nolet (“Demystifying
to our members.                                 Risk Management and Controls.”)
   Our 2002-2003 recruiting activity was a         We took advantage of this half-day
success, resulting in a grand total of 429      conference to present at lunch time two
members. This success is due mainly to the      $2,500 scholarships to the previously
efforts of a very active canvassing             introduced competition winners (see
committee under Renée Brassard, the             photos).
excellent representation and follow-up of          To obtain more information on our
all directors, and our membership’s             Chapter, its board of governors and board
excellent loyalty to the organization.          of directors and to view various photos
   Our first luncheon conference was held       taken at each of our activities, please visit
at the Quebec City Hilton on October 2,         our website at www.igfquebec.com.
                                                                                                 Andréanne Lachance, who is completing
2002, with 418 persons in attendance. We           Serge Boisseau
                                                                                                 her Bachelor’s degree in business
had the honour to welcome Louis L.                 Secretary                                     administration (accounting major),
Rocquet, president and chief executive             Quebec City Chapter                           receives her $2,500 scholarship from
officer of the Société des alcools du Québec       FMI                                           Bernard Garnier, Dean of the Faculty of
(SAQ), who spoke on a fascinating topic:                                                         Science and Administration, Laval
“Innovating in the Public Enterprise.”                                                           University.

WINTER 2003                                                                                                            FMI JOURNAL 35
                           Season Opener                                Lancement
                        September 25, 2002                              25 septembre 2002

                  How Government works                                  Le fonctionnement du gouvernement
                        October 22, 2002                                22 octobre 2002

     Professional Development Workshop                                  Atelier de perfectionnement professionnel
                        November 6, 2002                                6 novembre 2002

           Modern Management Practices                                  Les pratiques de gestion moderne
                       January 23, 2003                                 23 janvier 2003

  Risk Management, Audit and Evaluation                                 Gestion du risque, vérification et évaluation
                       February 12, 2003                                12 février 2003

  Planning and Performance Management                                   Planification et gestion du rendement
                        February 26, 2003                               26 février 2003

      Technology: A Financial Perspective                               Technologie : le point de vue financier
                          March 26, 2003                                26 mars 2003

      Beyond Number Crunching: Ethical                                  Au-delà des chiffres : Questions d'éthique
Considerations & Efficient Communications                               et communications efficaces
                             April 30, 2003                             30 avril 2003

                  Annual General Meeting                                Assemblée générale annuelle
                             May 7, 2003                                7 mai 2003




                                                  Capital Chapter
                                              www.fmi-cc.ca
                                               Section de la Capitale
                                              www.igf-cc.ca
                       PSAB PERSPECTIVES
  Keeping Up to Date on Public Sector Accounting Standards
                 Beyond Annual Results
  PSAB wants financial statement readers to look at more than
         just a government’s annual surplus/deficit

                               Martha Jones Denning


I
     t was an historic moment on October         reporting model approved by PSAB in                         Martha Jones Denning
     22, 2002 when PSAB approved a new           1997 (“the 1997 model”), a compromise           Martha Jones Denning is a Principal with the Public
                                                                                                 Sector Accounting Board (PSAB) of the Canadian
     reporting model for the federal, provin-    model that was six years in the making.         Institute of Chartered Accountants (CICA). She is a
cial and territorial (senior) governments.       Some governments had stayed with the old        Chartered Accountant and has been with the CICA
                                                                                                 since March 1991. Prior to joining the CICA, she was
The new model includes four statements           pure net debt model and some had adopted        an audit manager with KPMG, Toronto. The public
that provide a comprehensive look at a gov-      a commercial model, and most that were          sector web page of The Canadian Institute of Char-
ernment’s financial position and results. It     planning to change their reporting were not     tered Accountants is at www.cica.ca/PublicSector.
retains many of the key features of the          expecting to adopt the 1997 model. Com-
model that it replaces in that it continues to   parability between jurisdictions was            some governments had moved to a com-
require that net debt and the change in net      impaired and there was no consensus in the      mercial model of reporting.
debt be reported. It also provides new infor-    government community on what model                 However, some in the government com-
mation about the annual costs and non-           might be more acceptable than the 1997          munity strongly disagreed with moving
financial assets of a government.                compromise. PSAB was not satisfied with         away from an expenditure based measure of
   Because the new model provides a more         this situation and agreed to take a second      annual results because of the potential for
complete picture of the state of a govern-       look at how senior governments should           run-away spending facilitated by a move to
ment’s finances, October 22, 2002 will be        report their financial position and results.    an expense-based annual surplus/deficit.
considered a turning point in the annals of         Three years later, with the agreement of a   For some governments, the depreciation
government reporting in Canada. But the          majority of the preparers and legislative       charge on their capital assets would be
approval of the model was marked by              auditors of the senior governments, PSAB        much less than their normal capital spend-
solemnity rather than exuberance – a reflec-     approved a conceptual framework and a           ing. And, with an expense-based operating
tion of the considerable change in mindset       new reporting model that is detailed in         statement, governments could spend on
that is needed if this model is to ultimately    FINANCIAL STATEMENT CON-                        new capital and the effect of the spending
be a success.                                    CEPTS — Federal, Provincial & Territori-        on the annual surplus/deficit would be
   And just what is that change in mindset?      al Governments, Section PS 1000, FINAN-         spread over the lives of the new assets. The
This new model represents a mindset              CIAL STATEMENT OBJECTIVES —                     debt incurred to pay for this spending on
change on at least two levels.                   Federal, Provincial & Territorial Govern-       new capital would, however, show up as a
• Governments will now be asked to focus         ments, Section PS 1100, and FINANCIAL           liability right away and the affordability of
   on costs, rather than spending, and there     STATEMENT PRESENTATION — Fed-                   future services could be impaired.
   can be enormous operational implica-          eral, Provincial & Territorial Governments,
   tions of this change in focus.                Section PS 1200.                                A new paradigm for reporting and
• And, even more importantly, readers of            The Sections were issued in January          understanding government finances
   financial statements, legislators and gov-    2003, and the new standards are effective          Government budgets focus on annual
   ernment managers will have to move            for all fiscal years beginning on or after      results and budgets are considered a key fis-
   beyond the narrow, one-dimensional            April 1, 2005.                                  cal accountability document for govern-
   focus on the “almighty” annual sur-              Some in the government community             ments. Most financial statement users,
   plus/deficit and recognize that govern-       agreed to this new model because it repre-      including the legislature and the media,
   ment is too complex for its annual suc-       sents the greatest consensus the community      focus primarily on government annual
   cess or failure to be assessed on the basis   has yet reached on what the government’s        results as the sole determinant of whether
   of just one number.                           summary financial statements should look        the government has done a good job in the
                                                 like. Others agreed because they were better    year.
Background                                       satisfied with how this model incorporates         On the other hand, a government’s net
  A rocky road led to the approval of the        tangible capital assets than the 1997 model     debt and gross debt are clearly liens on the
three Sections that together comprise the        did. Still others agreed because net debt and   government’s ability to provide future serv-
new senior government reporting model.           the change in net debt are still given promi-   ices. An increase in gross or net debt is not
The project was started in 1999 because          nence in the new model, indicators that         necessarily bad, but it might indicate that
very few governments were using the              were felt to be at risk of being lost because   the government’s flexibility and spending

WINTER 2003                                                                                                                  FMI JOURNAL 37
PSAB PERSPECTIVES

room to provide future services have been            Figure 1         Government of X
impaired. And what about a government’s                               Consolidated statement of financial position
                                                                      as at March 31, 20X2
cash position and its sources of cash? If issu-
ing debt is a primary source of cash, and                                                                20X2                           20X1
taxes and user fees are secondary, and this                                                                       (in $ 000,000’s)
situation persists over more than one year,          Financial assets                                  10,912                        10,348
then the sustainability of government pro-           Liabilities                                       18,262                        19,171
grams might be called into question. The             Net debt                                          (7,350)                       (8,823)
annual surplus/deficit alone will not pro-
vide this important information.                     Non-financial assets                                7,360                          7,457
   A 1998 speech by the then Chairman of             Accumulated surplus(deficit)                            10                      (1,366)
the Securities Exchange Commission
(SEC), Arthur Levitt was called “The
                                                     Figure 2         Government of X
Numbers Game” and it focused on earnings                              Consolidated statement of operations
management in the private sector. Mr.                                 for the year ended March 31, 20X2
Levitt stated that “Increasingly, I have
                                                                                                         20X2              20X2                20X1
become concerned that the motivation to meet                                                                         (in $ 000,000’s)
Wall Street earnings expectations may be over-                                                          Budget            Actual           Actual
riding common sense business practices. Too
many corporate managers, auditors, and ana-          Revenues                                          14,277            16,322            16,854
lysts are participants in a game of nods and         Expenses                                          14,249            14,946            14,303
winks. In the zeal to satisfy consensus earnings     Annual surplus                                          28           1,376                2,551
estimates and project a smooth earnings path,
wishful thinking may be winning the day              Accumulated deficit at beginning of year          (1,366)           (1,366)           (3,917)
over faithful representation. As a result, I fear    Accumulated surplus/(deficit) at end of year      (1,338)               10            (1,366)
that we are witnessing an erosion in the qual-
ity of earnings, and therefore, the quality of
financial reporting. Managing may be giving         obvious move for a standard setter is to                 assets) of the government. Non-financial
way to manipulation; Integrity may be losing        develop a robust, informative reporting                  assets, such as capital assets, are used pri-
out to illusion.”                                   model and encourage those concerned with                 marily to provide future services. These
   Like private sector companies who feel           government finances to look beyond the                   assets are added to net debt to calculate
pressure from the markets to meet or exceed         one number when evaluating them. That is                 the net assets indicator. The extent of a
earnings targets, many senior governments           PSAB’s game plan.                                        government’s net assets is an indication
are now faced with balanced budget legisla-                                                                  of its ability to provide future services.
tion and pressure to avoid actual deficits. A       The new “five-message” model                             See Figure 1.
number of provinces currently have stabi-              Just as earnings-per-share does not pro-           3. The government’s annual surplus/deficit
lization funds. Other jurisdictions are             vide enough information about the finan-                 measures, in money terms, whether a gov-
actively considering the use of such funds.         cial health of a business, one annual results            ernment has maintained its net assets in
   The genesis for these stabilization funds        number is also insufficient to explain                   the year. It also shows whether the revenues
is the need to align the budgetary pressures        whether a government has had a good year.                raised in the year were sufficient to cover
associated with a balanced budget and actu-         Government financial statements prepared                 the costs of that period. See Figure 2.
al financial results. Transferring to and from      using the new reporting model give readers            4. The government’s change in net debt in
these stabilization funds (or reserves) has         five messages about the state of a govern-               the year is a measure of whether the rev-
been a fund accounting feature that contin-         ment’s finances:                                         enues raised were sufficient to cover the
ues to be prevalent in local government             1. The government’s net debt position is                 spending of the government in the year.
accounting. On consolidation, however,                 often called its “future revenue require-             An increase in net debt means that more
these transfers should be eliminated. Never-           ments” because the indicator provides a               future revenues will be needed to pay for
theless, these transfers, potentially, could be        measure of the future revenues required               the effects of past transactions and events.
shown as sources or uses of funds. This                to pay for past transactions and events.              And, if a government is spending on cap-
could result in a different “bottom-line” for          Net debt is calculated as the difference              ital, the statement of change in net debt
budget and actual results than that required           between financial assets and liabilities. It          will highlight this activity in comparison
by the CICA Public Sector Accounting                   provides an indication of the affordabili-            to planned spending. See Figure 3.
Handbook.                                              ty of additional spending. See Figure 1.           5. The government’s cash flows in the year
   So, if focusing exclusively on one number        2. The government’s accumulated sur-                     are reported on the cash flow statement,
encourages the management of results and               plus/deficit position represents the net              which shows the change in cash in the
facilitates overspending on capital, the               recognized economic resources (net                    year as well as highlights the sources and

38   FMI JOURNAL                                                                                                                         VOLUME 14, NO. 2
                                                                                                                              PSAB PERSPECTIVES


Figure 3         Government of X                                                                        at a government’s gross and net debt posi-
                 Consolidated statement of change in net debt                                           tions and the sources and uses of its cash in
                 for the year ended March 31, 20X2
                                                                                                        addition to its annual results. Only then
                                                   20X2              20X2             20X1              will they truly understand whether the gov-
                                                               (in $ 000,000’s)                         ernment is doing a good job in managing
                                                  Budget            Actual           Actual
                                                                                                        the resources they have entrusted to it or
Annual surplus                                          28          1,376             2,551
                                                                                                        whether their future is being mortgaged to
                                                                                                        support the present.
Change in net carrying value of capital assets*        (68)               (3)            77

Change in net carrying value of other                                                                   New information about costs
non-financial assets                                      0              100          (242)                The new reporting model is also just the
(Increase)/decrease in net debt                        (40)         1,473             2,386             beginning of a change in focus from spend-
                                                                                                        ing to costs. Audited financial statement
Net debt at beginning of year                     (8,823)          (8,823)         (11,209)
                                                                                                        information provides overall accountability
Net debt at end of year                           (8,863)          (7,350)          (8,823)             for costs, but is at too high a level to be
                                                                                                        meaningful for management purposes. It is
* The spending to acquire capital assets is required to be reported here.                               just a starting point.
                                                                                                           Over and above its accountability value,
Figure 4         Government of X                                                                        information on an expense basis for the
                 Consolidated statement of cash flow                                                    whole government reporting entity has real
                 for the year ended March 31, 20X2                                                      value to the government. A government
                                                                20X2                   20X1             receives the full benefit of this cost infor-
                                                                        (in $ 000,000’s)                mation if it is developed, recorded and used
                                                                                                        at the departmental and/or activity level
Cash provided by operating transactions                         1,119                 3,146             for:
Cash applied to capital transactions*                           (248)                 (178)             • understanding the cost of using and
                                                                                                           maintaining assets in the period;
Cash provided by(applied to) investing transactions              129                  (258)
                                                                                                        • managing costs in the period through
Cash applied to financing transactions                          (789)               (2,481)                service delivery choices, cost reduction
Increase in cash                                                 211                   229                 initiatives and other tools;
                                                                                                        • setting fees for services to be provided in
Cash at beginning of year                                       1,366                 1,137                the period;
Cash at end of year                                             1,577                 1,366             • benchmarking activities and assessing
                                                                                                           performance;
* The spending to acquire capital assets is required to be reported here.                               • improving accountability for the alloca-
                                                                                                           tion and use of government resources;
   uses of cash in the period. Capital activi-         will see is that under the new model they           and
   ties, including the use of cash to acquire          are able to get more stuff and still show a      • planning for asset maintenance and
   capital assets, are highlighted on this             surplus. After all, as a former Chairman of         replacement.
   statement. See Figure 4.                            the US House of Representatives finance             Government managers will have to
   The standards have been issued and now              committee once said, “You get gold stars for     change the way they manage and think,
PSAB’s task is to begin the communications             giving it away, black marks for taking it        about all of their operations and about cap-
and education needed to facilitate and                 away, and nobody gives a damn if you mort-       ital in particular. Education across govern-
encourage the change in mind set to a “five-           gage the future.” But legislators, media and     ment will be required because of this
message” model a reality.                              taxpayers should care and PSAB is promot-        change in focus from spending to costs to
   The communications and education task               ing this broader perspective.                    ensure that the new mindset is communi-
facing PSAB will be an uphill battle. People              Education is needed so that users under-      cated and applied. The information will
don’t want to know the bad news (like debt             stand that an annual surplus on an expense       have great value to governments, but gener-
increases) and taxpayers want their govern-            basis does not mean that the government          ating and using it requires nothing less than
ment to provide for them. Some politicians             has profits or cash that it can now spend. A     a revolution in government accounting.
will see the new model as an opportunity to            change in how a government measures its
make political capital by increasing their             annual results does not generate cash or         The road ahead
spending to do just that – take care of the            open up spending room. The landscape has            Governments across Canada that do not
constituents who elected them. Unless leg-             remained the same, but the picture is just       already prepare their books or report their
islators, media and taxpayers look beyond              being taken from a different perspective. In     financial position and results on an expense
the annual results of government, all they             order to get the full picture, users must look   basis are working to meet the deadline for

WINTER 2003                                                                                                                     FMI JOURNAL 39
PSAB PERSPECTIVES

adoption of the new model. They are edu-                  The key message in all of these commu-                   ic context. Still other work of PSAB will
cating people across government to make                nications is:                                               develop guidance for financial and non-
sure the front-line staff that manage gov-                Government is too complex for its annual                 financial performance reporting.
ernment resources are up to speed on the               success or failure to be assessed on the basis of              But the change starts here – with the new
new requirements.                                      just one number. Look beyond annual results                 reporting model and looking beyond annu-
   PSAB started the communications                     and question the government’s debt position                 al results. When taxpayers look at only one
process for the new model with a press                 and its cash flow too. Ask if government                    number and allow governments to tout
release when the new standards were issued             spending is affordable and its services sustain-            their success based only on this one num-
in January 2003. Brochures that explain the            able.                                                       ber, they are doing themselves and their
new model and new mindset are being pub-                  PSAB’s current project, Financial State-                 descendents a disservice — because spend-
lished and they will be distributed to key             ment Discussion and Analysis, is developing                 ing must be affordable, and services must
individuals responsible for evaluating, ana-           guidance that will help governments better                  be sustainable, and debt levels must be
lyzing and communicating government                    explain their financial statements to users.                manageable both in the eyes of Canadians
financial results. PSAB will speak to Cana-            A subsequent project will look at indicators                and the international community. Just like
dian accounting educators about the new                of government financial condition that will                 chickens always come home to roost, debt
model at their conference later this spring.           explain government finances in an econom-                   always eventually comes due. ■




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40   FMI JOURNAL                                                                                                                                VOLUME 14, NO. 2
CICA ANNOUNCES A NEW RESEARCH REPORT
                                                With the billions of dollars invested in Canadian infrastructure, it is crucial that any
                                                government, particularly those at the local level, understand the associated responsibilities and
                                                costs. But financial information about infrastructure and its use and maintenance (or lack
                                                thereof) is, in many cases, just not available. The need for specific financial information about
                                                infrastructure was underscored in two reports prepared in the late '90s which estimated over
                                                $13 billion was still needed to upgrade the National Highway system and $40 billion to repair
                                                municipal infrastructure systems to an acceptable level.



  ACCOUNTING FOR
  INFRASTRUCTURE IN THE
  PUBLIC SECTOR
AN OBJECTIVE OF this Research Report is to explore the extent                              Seven Comprehensive Chapters
to which accounting and financial reporting for infrastructure                             1. Introduction
could assist in closing the infrastructure financial information                           2. Infrastructure and the Financial Information Gap
gap, as well as to examine what and how the information about                              3. Filling the Financial Information Gap
infrastructure and its use should be accounted for and reported.                           4. Reporting Financial Information about the Stock and Use of
                                                                                              Infrastructure
This Research Report provides a comprehensive analysis of:                                 5. Assessing the Methods of Accounting for the Stock and Cost
• The alternatives for accounting and financial reporting of                                  of Infrastructure
  infrastructure as assets.                                                                6. Measurement Alternatives
• The information gap that currently exists between the                                    7. Infrastructure Condition Assessments, Deferred Maintenance,
  financial information needed to manage these vast stocks and                                and Infrastructure Management Plans
  the information being provided.
• The financial and non-financial information that could be                                Plus Glossary of Terms and Bibliography.
  provided to help elected officials, regulators, management and
  other users better understand the condition and needs of                                 Accounting for Infrastructure in the Public Sector should be of
  infrastructure.                                                                          interest to financial professionals who manage, account for, and
• The value of undertaking infrastructure condition                                        report on infrastructure, as well as anyone who has a concern
  assessments.                                                                             about the lack of financial information that is currently being
• The information relating to deferred maintenance that should                             provided about infrastructure.
  be provided.                                                                                                                       Order your copy today!
               AC C O U N T I N G F O R                                                        Return to:
               I N F R A S T RU C T U R E I N   THE   PUBLIC SECTOR                            Order Department
                                                                                               The Canadian Institute of Chartered Accountants
               ORDER FORM                                                                      277 Wellington Street West, Toronto, Ontario, M5V 3H2
                                                                                               or Call: (416) 977-0748 (Toronto)
                                                                                               1-800-268-3793 (rest of Canada)
                                                                                               or Fax: (416) 204-3416
   Yes, please send me______copy(ies) of                                                       or www.cica.ca/order
   ACCOUNTING FOR INFRASTRUCTURE IN THE                                 Name
                                                                                                                                                                    01/03




   PUBLIC SECTOR #02590
                                                                        Firm (if part of address)
                                       @ $40.00 ea. $ ____________
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            Plus 10% Shipping and Handling $ ____________                                                                 City
                                      Taxable Total $ ____________      Province                                          Postal Code

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                                                                        Check one:        Payment enclosed                 Bill me             VISA    MasterCard
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   Information and Productivity Resources Catalogue, or contact                        Expiry Date
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   No Risk Guarantee: If you are not completely satisfied with your
   order, return it within 14 days to receive a full refund.                           Signature
                                                                                                                                                              211
     PERSONAL FINANCIAL PLANNING
                                                                                                                       Ron Ashworth
      Budgeting: The Foundation of a                                                                 Ron Ashworth is the National Manager Financial
                                                                                                     Counselling System for SISIP Financial Services, a

     Successful Personal Financial Plan                                                              division of the Canadian Forces Personnel Support
                                                                                                     Agency. Together with a team of 19 financial counsel-
                                                                                                     lors, financial counselling services are provided to the
                                                                                                     current serving members of the Canadian Forces and
                                       Ron Ashworth                                                  their families on 17 CF Bases throughout Canada,
                                                                                                     and through deployed operations worldwide. Ron
                                                                                                     joined SISIP Financial Services after 20 years working
                                                                                                     in the Insolvency Community in Ottawa and 10 years
                                                                                                     in the banking industry in Montreal.




O
          ld habits die hard – which is why        but there is more to the process than earn-          and needs, set financial goals both short-
          it is so important to initially estab-   ing money and paying bills on time. A                term, medium term and long-term; set
          lish a healthy relationship with         budgeting routine does not need to be elab-          priorities by actually creating a budget.
your money. It is easier to find yourself in       orate – or even computer generated; it does          There is a difference between wants and
debt than to prevent it; and increasing your       not have to be a chore, let it be a fun effort.      needs, list them and prioritize them.
debt is much easier than getting rid of it.           When creating a budget, remember that          • Control: curb impulse purchases and
The easiest way to develop this healthy rela-      it is a tool that can be better used to control      avoid using credit cards as a cash-flow
tionship is by creating a budgeting routine.       income and achieve goals, keep these points          tool. Don’t pay till 2005 events, when
   To budget and live within your means            in mind:                                             scrutinized, will often show deferral costs
allows the taking control of your money            • Stay and think positive, don’t let yourself        and a very high interest rate on the pay-
rather than letting the money control you.            get stressed, stay calm.                          ments required at the end of the term.
   Many times, people don’t realize where          • Begin your calculations based on your              Don’t be fooled, read the fine print.
their money goes. To get a better idea of             net monthly take home pay (after tax).         • Evaluate your progress: make changes to
monthly spending habits, try keeping a             • Itemize essential expenses: food;                  your budget if necessary. Achieving
money journal that tracks daily expenses              rent/mortgage; transportation; personal           short-term goals shows progress and will
over the course of a month. This is espe-             and household items; contributions to a           ultimately result in financial independ-
cially helpful when trying to teach children          savings account; and, creating an emer-           ence.
how to manage their money. Also encour-               gency fund for unexpected costs like car          Following these guidelines when creating
age children to set a spending limit before           repairs.                                       a budget should help to develop a healthy
going shopping. This helps them resist             • Divide annual and semi-annual expenses          relationship with money. Remember to
impulse purchases and teaches them the                into monthly amounts.                          include your partner or spouse in the
importance of comparison-shopping.                 • Make room for rewards (going out to a           process, needs and wants vary and one list
Exposing children to the budgeting process            movie, ordering pizza).                        is necessary if household income is pooled.
early reinforces good spending (and saving)        • Make a realistic goal. Whether it be to            For more detailed information, and other
habits. These habits will hopefully remain            save enough to put a down payment on a         tools for the budgeting process, banks and
with them until adulthood when they may               house, take a trip without using credit        credit counselling agencies are always avail-
share a household and raise a family.                 cards, or just to increase your savings, a     able for advice. There are also many helpful
   In this age of computers and on-line               goal is essential. Don’t be afraid to change   sites on the Internet.
access to banking transactions, it is easy to         your goal as you budget, but stay organ-          Future articles in this new series will
download or print out a monthly bank                  ized and focussed.                             cover a mix of personal financial planning
account history to provide a visual snapshot       • Create files or folders to keep all receipts    and counselling topics. Potential topics
of the actual monthly expenses and incor-             and bills in an orderly fashion.               include RRSPs, Mutual Funds, and the per-
porate that data in the budgeting program.            There are three main stages in creating a      sonal bankruptcy process in Canada. ■
   Making a budget and sticking to it              working budget.
sounds like an extremely simple practice,          • Planning: determine your values, wants,




42   FMI JOURNAL                                                                                                                   VOLUME 14, NO. 2
      PROFESSIONAL DEVELOPMENT WEEK 2002




                                                                 Co-chairs Mark Huard and Nicole Campeau.




                                                                   Honourary LIfe Memberships PD Week, November 28, 2002
                                                                 Back row (left to right): Bruce Jamieson (2002-03), Ron Sweetman
                                                                 (1980-81), Any Macdonald (Honourary Life Member), Rick Neville
                                                                 (1983-84), Ray Dubois (Honourary Life Member), William Beau-
Professional Development Week 2002 Committee                     doin (1982-83), Peter Hall (1981-82), Pat Nephin (1987-88), Ger-
Thanks to a dedicated team of Volunteers!                        main Tremblay (2001-02).
Mark Huard (co-chair), Nicole Campeau (co-chair), Gisèle         Front row (left to right): Denis Kingsley (1997-98), Paul Gauvin
Dallaire, Fran Correa, Lucie Leclerc-Cowell, Christine Lorenz,   (1977-78), Eva Plunkett (1995-96), Cheryl Munro (1999-2000), Bev
Dennis Doucette, Gerry Matthews, Anne Gagné, Darlene Kenney,     Lepine (1989-90), Alan Ross (1976-77), Paul Ward (1978-79)
Catherine Caule, Cheryl Driscoll, Dena Palamedes, Manon
Demers, Ann Collinge, Jim Quinn, On Yee Yam, Wendy Tessier,
Dominique Ledain,
Elaine Taylor, Bruce
Meredith, Louise
Villeneuve, Gilles
Vézina, Ron Harvey,
Greg Patterson, Tom
Ritchie, Les
Plumadore, and Jim
Randall.
Absent: Sylvain
Allaire, Joanne
Stedman, Linda
Coperman, Mary
Enesaks, Sue
Stimpson, Tony
Marcantonio, Bill                                                Left to Right: Roland Sheperd, Deputy Comptroller of Accounts,
Mathews and Martin                                               Trinidad and Tobago, Isaac Anthony, Accountant General, Ste.
Pacheco.                                                         Lucia, Joanne Steadman, Administrator, FMI National, Margaret
                                                                 Sivers, Accountant General, Barbados.
                      Auditor General of Canada Sheila Fraser

WINTER 2003                                                                                                   FMI JOURNAL 43
                                                                                Financial Management Institute of Canada
                                                                                      Public Sector
                                                                                      Management
                                                                                     Workshop 2003
                                                                           Victoria Conference Centre, Victoria, BC
                                                                                 W O R K S H O P
                                                                                  P R O G R A M
                                                                                    Please note that this is a preliminary schedule
                                                                                               and is subject to change.



Sunday, June 1, 2003                                                                   • Another panelist – (To be announced)
6:30 pm      Registration desk opens                                                     Moderator – Arn van Iersel, Comptroller
                                                                                         General of British Columbia
7:00-8:00    Conference opening and reception.
                                                                                     • Public/Private Partnerships
             Light refreshments will be served.
                                                                                       • Al Sakalauskas – CEO, Partnerships BC
Monday, June 2, 2003                                                12:00-1:30     Lunch
7:30-4:30    Trade show open                                                       Terry Wright – VP Bid Development and Operations,
                                                                                   Vancouver 2010 Bid Corporation
7:30         Registration desk open
             Coffee and muffins available                           1:30-2:30      Concurrent sessions
                                                                                    • Environmental Accounting
8:15         Opening session
                                                                                      • John Morgan – Executive Director Financial
                Welcome and opening remarks by
                                                                                        Management and Accounting, TB Secretariat
                President FMI Canada.
                                                                                      • Kit Chapman – Office of the Comptroller
8:30         Keynote address                                                            General of BC
9:00         International Waves – the Impact of Global change                      • The Alberta Experience in Government
             on Accounting and Auditing                                               Restructuring – Lessons Learned
               Panel discussion                                                       • Tim Wiles – Comptroller General of Alberta
               • Stephenie Fox – CICA                                               • Restructuring Municipal Service Delivery
               • Don Gordon – Executive Director, Listed                              • Dr Bob Bish – Professor Emeritus, University of
                  Companies Association                                                 Victoria
               • Doug Pearce – Chief Investment Officer, BC                           • Paul Battershill –Chief, Victoria Police
                  Investment Management Corporation                                     Department
               • Moderator – Wayne Strelioff – Auditor General of   2:30-3:00      Refreshments and networking
                  British Columbia
                                                                    3:00-4:00      Combined session – keynote speaker and panel
10:30        Refreshments and networking                                            • Managing Change
11:00-12:00 Concurrent sessions:                                                      • Pat Jacobson – CEO, Translink
             • New Directions in E-Commerce                                           • Ken Dobell – Deputy Minister to the Premier
               • Bob Berniquez - Director Financial                                     of British Columbia
                 Management Policy, Treasury Board Secretariat                        • Moderator – Robert Emond – ADM Finance,
             • Changing Government Accountability -                                     Department of National Defence
               Implementation of the BC Municipal Charter           4:15-5:00      Annual general meeting – FMI Canada
               Provincial/Municipal panel:
                                                                    6:00           Pre-dinner reception (Crystal Garden)
               • Bob de Faye – Deputy Minister (Ministry of
                 Children, Aboriginal and Women’s Services)         7:00 - ??      Banquet and entertainment (Crystal Garden)



44   FMI JOURNAL                                                                                                           VOLUME 14, NO. 2
Tuesday, June 3                                                               PSMW 2003 Registration Information
                                                                              • On-line registration (www.fmi.ca/psmw/registration) will
7:30-4:30    Trade show open
                                                                                begin on Monday, March 17, 2003.
7:30         Registration desk open                                           • Registration fees:
             Coffee and muffins available                                       • FMI Members (before 5 p.m., EST, Friday, April 18,
                                                                                   2003), $425
8:15-8:30    Welcome and opening remarks
                                                                                • Non-Members (before 5 p.m., EST, Friday, April 18,
8:30-9:00    Keynote address                                                       2003), $475
                                                                                • FMI Members (beginning April 19, 2003), $475
9:00-10:00   Managing Risk
                                                                                • Non-Members (beginning April 19, 2003), $525
             Phil Grewar – Director, Risk Management Branch, BC Ministry
                                                                                • Registration is only available for the full two-day con-
             of Finance                                                            ference (i.e., registrations for one-day will not be
10:00-10:30 Refreshment break                                                      accepted).
                                                                              • Registration deadline: Monday, May 19, 2003. After this
10:30-12:00 Concurrent sessions                                                 date, registration will only be accepted at the Workshop
             • Debt Management                                                  venue.
               • David Morhart – ADM, BC Provincial Treasury                  • Government of BC employees who will be applying for
               • Steve Berna – Executive Director, Municipal Finance            funding through BC Employee Learning Services must
                 Authority of BC                                                complete and submit a PSERC4 form to the FMI. Regis-
             • Audit and Assurance for Performance Measurement                  tration for Government of BC employees will be consid-
               • David Fairbotham - Office of the Auditor General of BC         ered to be complete and valid upon receipt of the com-
               • Mike Macdonnell – Office of the Auditor General of BC          pleted PSERC4. This form must faxed to FMI (613-569-
             • Organizational Performance Management                            4532) within 24 hours of registration. In order to qualify
               • Geoff Gruson – DG Strategic Policy and Planning, RCMP          for the early-bird registration fees, the BC Government
               • Brenda Eaton – Deputy Minister to the Premier of British       Training Form PSERC4 must be received by the FMI by
                 Columbia                                                       Friday, April 18, 2003. Form is available at
               • George Morfitt – former Auditor General of British             http://www.pserc.gov.bc.ca/els/registration/procedures.ht
                 Columbia                                                       m
                                                                              • GST. Where a provincial government will be paying for a
12:00-1:30   Lunch
                                                                                delegate’s registration fees, the invoice will be GST-
             Bob Elton – Executive VP, Finance and CFOe, BC Hydro               exempt.
1:30-2:30    Concurrent sessions                                              • Substitutions: The registrant may be substituted with
              • Revenue Management                                              another individual from the same organization. Requests
                • Chris Trumpy – DM,BC Ministry of Provincial Revenue           for substitutions must be made by e-mail to
                • Howard Thomas – Executive Director – Special Projects,        national@fmi.ca. Substitutions will be accepted up until
                  BC Ministry of Provincial Revenue                             Monday, May 19th.
              • Identifying Risks – major capital projects                    • Cancellations: There will be no refunds of registration
                • Colin Smith – President and Project Director, Rapid           fees after April 18, 2003.
                  Transit Project 2000 Ltd                                    • Hotel information: limited rooms have been reserved at
                                                                                the Chateau Victoria Hotel (1-800-663-5891) and at the
              • Integrated and Shared Services
                                                                                Executive House Hotel (1-800-663-7001). For further
                • Jim Libbey – Executive Director, Shared Systems, Treasury
                                                                                information on each of these Hotels, see FMI website
                  Board Secretariat
                                                                                (www.fmi.ca/psmw/conference links).
                • Catharine Read – DM, BC Ministry of Management
                                                                              • Inquiries regarding purchase of additional dinner/dance
                  Services
                                                                                tickets can be made at the Workshop venue on Monday,
                • Liz Gilliland – ADM, Office of the Premier of British
                                                                                June 2, 2003.
                  Columbia
2:30-3:00    Refreshment break                                                • For further information or registration assistance, please
                                                                                contact:
3:00-4:15    Keynote speaker
                                                                                  FMI
                 • Arthur Black                                                   Telephone: 613-569-1158         Fax: 613-569-4532
4:15-4:30    Closing remarks and adjournment                                      E-mail: national@fmi.ca

WINTER 2003                                                                                                          FMI JOURNAL 45

				
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