State finance leaders are embracing the new wave of government modernization

Insights from the 2024 NASC Annual Conference

Government leaders across the country are seeking opportunities to improve services and implement new technologies to modernize operations while remaining responsible stewards of tax dollars. This was evident at the annual conference of the National Association of State Comptrollers (NASC), where leaders met to discuss key topics and challenges and share best practices. Today, we’re sharing our top three takeaways from the conference and how government organizations can find success on all three fronts.

1. Organizational change management (OCM) MUST be prioritized during ERP modernization

A workforce open to embracing change measurably increases an organization’s chances of successful transformation. However, OCM and people-centric activities are usually the first items on the chopping block when state and local governments need to cut costs. Leaders, controllers, and comptrollers can mitigate the overall risk of ERP modernization by implementing a comprehensive OCM strategy. This strategy should include five key areas:

• Stakeholder management and executive alignment
• Dynamic internal and external communications
• Assessment of roles and responsibilities
• Updates to policies and procedures
• Adequate training

When developing a plan for multifaceted transformational change, leaders should clearly define the scope of work, accurately assess organizational change capacity, build OCM activities into the project framework, and make change personal to achieve successful digital transformation.

2. ERP system upgrades or replacements are complex and require adequate resources dedicated to the effort.

When implementing or upgrading an ERP system, being realistic about resource staffing and ensuring the budget includes backfills for staff redirected to the project is critical. An early assessment of anticipated resources for the project will assist in developing a plan to hire additional staff—either permanent or temporary—and which roles may be the most challenging to fill. Most government organizations rely on a few very experienced and knowledgeable subject matter experts, and their time is already in high demand. For those SMEs to contribute to a lean, fast-moving project, they must be freed from at least some portion of their daily work. Use this to build the skills and responsibilities of other potential rockstars waiting to shine. Some states also engage contractors for technical resources, project management, and testers, among other areas.   

3. Generative AI use cases for transforming government operations are emerging

Despite still being in its early stages, generative AI (GenAI) is gaining traction for its practical applications in government operations. From streamlining invoice processing to exploring dynamic discounting and enhancing fraud detection, state governments are cautiously exploring the potential GenAI holds for the future of governance. Nevertheless, to mitigate potential risks, states must exercise diligence in formulating their AI strategies and evaluating new AI solutions. Developing proper governance, adopting clear AI protocols, and implementing safeguards to ensure the responsible, ethical, and legal use of GenAI are critical elements of a modern AI strategy. 

Learn more about how CGI is driving modernization across government. Want to connect with a CGI government expert at an upcoming conference? Check out where we’re heading next; visit our Advantage Media Center.