Blending continuous improvement with periodic deep dives in financial management for improved business outcomes

In an era of emerging technologies and increasing levels of scrutiny from regulatory bodies, federal agency chief financial officer (CFO) offices are faced with very similar challenges in transformation and business improvement requirements.

Agency officials must balance the needs to improve operations, processes, and technologies effectively without overlooking hidden gaps. On this path forward, agencies are expected to adapt quickly, but there are undeniable risks from rushing ahead too quickly.  

This new business climate has created a paradigm shift. Once upon a time, agencies could conveniently implement transformation as a stand-alone project occurring at a fixed point in time. More recently, continuous improvement has demanded more of a primary focus. Today’s CFO office will find great value in a systematically designed approach that incorporates both agility and thoroughness. 

This systematic approach can be structured in tiers, where tier 1 represents detailed maturity assessments occurring regularly every two or three years, and lower tiers focus on constant process evaluations and improvements in more narrowly scoped, high-priority areas. 

Read further for some best practices to help create this virtuous cycle.

Beware of complacency

Remind yourself that there is always room for improvement, even in the best of departments. Internal auditing and ongoing evaluations of efficiency and effectiveness can reveal the highest priority areas for improvement day to day, week to week, month to month. 

Leverage emerging technology

Artificial intelligence, applied strategically, can be a powerful and resourceful aid. With its ability to sift and analyze large volumes of data quickly, an AI-powered tool can reveal patterns and anomalies to help you define and target problematic aspects of your operations. As technology continues to advance, stay mindful of how a given technology could strengthen your agency’s overall capabilities. 

Don’t be married to your roadmaps

Prioritize and expend your efforts where they will make the most important impact. As your continuous improvement projects reveal areas ripe for transformation, judiciously pursue initiatives with greater consequence and a justified return on investment. If you previously developed a roadmap that no longer seems optimal, revise it – or discard it and start over. In this era of rapid change, your five-year road map may become stale sooner than anticipated. Stay nimble and adopt a mindset of continuous improvement.

Be realistic about capacity

 Don’t try to do everything at once. You can’t focus on everything at all times, but improving operations segment by segment can yield remarkable benefits. If you’re not sure where to start, begin with the easiest projects for quick wins. Optimize, gain ROI and move on.

Cultivate continuous business process reform

Changing your ways of doing your work is a challenge for many offices. Business process reform is how you ensure new technologies and modernized systems are proving the greatest return, yet often agency leaders seem paralyzed by the sheer scope of the change required. This again is an area where ongoing, incremental adjustments are more likely to succeed than a sweeping one-time project. Stay nimble and apply changes all the time, periodically stepping back to assesses and refine. Change management techniques will help you ensure your teams embrace the new processes and practices.

Plan against budget

A key advantage of continuous improvement is that it spreads the costs out over a longer period of time. Rather than budgeting for a single large-scale transformation project to be paid over a short time, continuous improvement demands less funding commitment—ongoing, but relatively minimal compared to the big-bang kind of program. The end-result will also be friendly on the budget as greater efficiency lowers costs of operations, freeing additional resources for other priorities within the agency.

Monitor mandates

In addition to the same financial management laws and principles that all organizations have to observe, federal CFOs must factor in directives from the Office of Management and Budget and other government policymakers. Appointing a single person (with backup), whether an agency employee or contractor, to identify, analyze and develop compliance plans for those directives helps to ensure you remain in compliance with current rules. It allows you to anticipate coming rules and plan for compliance at a reasonable pace rather than scrambling at the last minute. 

Our CFO Advisory Services: A Blueprint for Financial Success

Looking to elevate your agency's financial performance? Our comprehensive approach offers tailored solutions to drive sustainable growth. By assessing your current practices, developing a strategic roadmap, and leveraging business agility, we help you

• Improve decision-making: Gain valuable insights to support informed strategic choices.
• Streamline operations: Optimize your processes for greater efficiency and cost-effectiveness.
• Enhance collaboration: Foster synergy between the CFO and CIO for effective technology planning.

Our expert consultants and change management practitioners work cohesively to ensure successful implementation of recommendations, driving long-term success.

Ready to unlock the potential of your agency's finances? Contact us today to learn more about our CFO Advisory Services.