Write an essay on the following: Challenges faced by Financial Managers in a Changing Economic EnvironmentYour essay should critically asses the challenges faced by financial managers due to changes i

Embrace change.

Establish a customer-centric view.

Develop a career success path and plan. By Sean Vineyard, David Fitz, Leroy Larkins and Amy Parker Reimagine the Financial Management Workforce for Success in an Age of Innovation WINTER 2020 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT 45 EmbracE c hang E Implementing a new program, initiative or effort that departs f rom the status quo is considered change.

The way organizations respond to change does not always reflect its benefits; therefore, change may not be perceived as good. A critical factor in the effectiveness and success of change is embracing the need for it and its subsequent outcomes.

While many employees fear the implementation of technolog y poses a threat to jobs, 1 it will not replace the traditional, human work force.

Rather, employees’ k nowledge and abilities will strengthen as they develop sk ills in non-routine cognitive tasks, such as analysis, and, perhaps, take on new positions that were non-existent before the introduction of innovations. As a result, ignoring the need for new technolog y threatens the work force more than adopting it. Choosing the proper approach to change management can make the process more relatable for the people involved. By leading their humans as the high-value assets they are, organizations will develop a work force more willing to accept change. To that end, insights and techniques f rom the LEAD Model are usef ul.

Understand Both Current and Future States To properly effect change, an orga - nization must understand the current state; therefore, a detailed analysis should be performed to understand the end-users or stakeholders and how organizational operations — namely people, processes and technolog y — f unction both as a system and as individuals contributing to the orga - nizational ecosystem. With the proposed change in mind, the end goal, the f uture state, must also be envisioned. To navigate the path f rom the current to f uture state, an organization should possess a defini - tive understanding of the way each existing variable (people, processes and technolog y) will operate in the f uture. Likewise, it must anticipate f uture needs for additional people, processes and technolog y. The preeminent variable in any change effort — and a cornerstone of the LEAD Model — demands managers understand the connection between the current and f uture states. An industr y best practice for navigating organizational change that merits review is the ADK AR ® Model developed by Prosci. An acrony m, ADK AR ® focuses on five actions and outcomes necessar y for successf ul individual change and, therefore, successf ul organizational cha nge:

Awareness of the need for change. Offer detailed examples of chal - lenges in using the current system.

Desire to support the change. Explain why collaboration is the best way to achieve desired results.

Knowledge of how to change. Develop the training process for the gap between the current and f uture states. Ability to demonstrate sk ills and behaviors. Share the importance of dual training opportunities; train with the new process; and align with policy in system training.

Reinforcement to make the change stick. Document the ways consis - tenc y in communication affects employees before, during and af ter implementation. An ADKAR ® Model Case Study It is important to remember that changing a process is simple. Instead, leaders must concentrate on the people involved and their response to change, which is far f rom simple. To be successf ul, leaders must adopt an agile change management strateg y to handle “overall change culture as well as the microcosms within various significant programs and offices.” 2 Implementation of the Veterans Affairs Time and Attendance Systems at the U.S. Department of Veterans Affairs provides a perfect case study of the practical application of the ADK AR ® Model. While this initiative involved putting a system in place, it yielded an opportunit y to convince thousands of reluctant stakeholders to accept, adopt and eventually champion change through deliberate techniques. Critical success factors included developing and executing communications, training, and change management strategies, as detailed in Fig ure 1 . Establish a c ustom Er - cEntric V iE w although the government is not a business, likenesses exist between the two. For example, both have customers outside and within organizations. success in change management depends on approaching employees as customers, with their perceptions and needs in mind. to incorporate a customer- centric view, employers should:

Dene the consumers of program - matic resources and relevant outputs to better understand their program customers.

Discover what motivates their people. learn and understand the dierences among populations of employees. since var ying factors f uel motivation in individuals, a unique mixture of techniques will propel an employe s driving force. take time to recognize this concept and to understand these intrinsic motivations. For example, get to k now the motivations among millennials, gen Xe s and baby boomers groups whose impe - tuses can diverge wildly.

understand what senior leaders seek in f uture leaders. create a customized development process to help employees better understand expectations, should leadership be their desired path.

capture, gauge and monitor individual success. Just as motiva - tion diers among employees, so does success. Develop a method to oversee individually dened achievement and create an atmosphere that better promotes success.

proactively request feedback f rom employees on all aspects of career activities and, where practical, integrate it into the process.

identif y and develop or procure the appropriate tools and inf rastruc - ture to support a customer-centric 46 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT WINTER 2020 Change Acceptance VATAS Implementation Outreach Direct, deliberate\g communication abou\gt the program \frst focused\g on employees\b concerns\g. Stakeholders were \gthen informed of objecti\gves, constraints and outcomes in real t\gime to allow them to prep\gare for the forthcoming cha\gnges.

They also gained be\gtter understanding of th\ge initiative and how\g they could support futur\ge implementations.

ADKAR ® Elements Enforced: Aw , D, K and R Content Relevant, meaningfu\gl training was approp\griately detailed for the en\gd user .

The message conveye\gd realistic expectat\gions by dealing openly with\g the impact of change in\g an effort to overcome \gfears.

T raining strategies \g were solely based o\gn stakeholders’ need\gs, feedback and soluti\gons, when submitted.

ADKAR ® Elements Enforced: Aw , D, K and R Timeliness Information was sha\gred in a timely manner \gto allow stakeholders\g to react. Responses fr\gom the program of\fce we\gre swift. Establishing\g the executive sponsor \gas the source of of\fcia\gl information was cru\gcial.

FA Qs were consolidat\ged in a database for t\ghe program of\fce, help \gdesk, workforce, \feld sub\gject matter experts, an\gd trainers.

ADKAR ® Elements Enforced: K and Ab Collaboration Key stakeholders were given ongoing opportunities and \g various mediums to\g ask questions and \g provide feedback on\g the initiative. F\grom blackboards to ema\gils, public forums and f\gocus groups, individuals\g felt comfortable sharing\g their concerns and\g success stories throughout the implementation process.

ADKAR ® Elements Enforced: All Medium T raining was develop\ged and delivered in e\gf\fcient, understandable, accessible formats.\g Use of technology was ke\gy to sustainable tra\gining delivery for a peri\god of months. Creating\g a central point for t\graining per user type yield\ged major bene\fts and eased the help des\gk\bs workload during eac\gh implementation ove\gr a two-year period.

ADKAR ® Elements Enforced: All Figure 1. LEAD Implementation at the U.S. Department of Veterans Affairs through the Veterans Affairs Time Attendance System (VATAS) benef icial is a clearly ar ticulated plan that binds all of the previously presented information. An effort of this magnitude would classif y as a program — and a program needs a plan, a clear path f rom point A to point B. A career plan has three objec t ives:

1 Establish expectations with a high level of transparency. Se t t i ng expectations is a communication technique for leaders to confirm and broadcast the sk ills, competen - cies and capabilities that should view. Inf rastructure will allow the organization to harness the time and energ y spent understanding customers by tailoring administra - tive, mundane or support tasks to suit abilities and needs. DEVE lop a c ar EEr succ Ess p ath an D p lan among the change management techniques used in the lEaD model, the aspect arguably considered by employees to be one of the more be exhibited by employees at the various levels of their careers.

by establishing expectations, employees gain the abilit y to understand what a role requires.

transparency in setting expecta - tions is vital to the communication process. Expectations are of ten conveyed in a vague or wavering way, but such a mindset will set up an organization and its employees for failure. a career success path and plan allow leaders to commu - nicate expectations ecaciously. WINTER 2020 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT 47 Three Themes in LEAD Three themes of ser vant leader - ship support the LEAD Model ’s three principles of action — Enhancement, Advancement and Development.

These three themes of ser vant leader - ship are:

Be Self-Aware — Ser vant leaders understand and work actively to update their understanding of who they are, how they lead, and how peers, team members and leadership perceive them. This self-awareness is used to leverage streng ths and build well-rounded teams while it also addresses weaknesses.

Put Others First — A primar y focus for ser vant leaders is the interests of others, including the organization(s) they support. While important, this theme is sandwiched between “Self- Awareness” and “Balance Results and Relationships” to ensure it does not become dominant. Ser vant leaders are not doormats or push - overs; instead, they are selfless, and their actions demonstrate k indness and courtesy.

Balance Results and Relationships — Results are important, but so are maintaining professional relation - ships. Ser vant leadership involves f inding a balance between the two. If results receive priorit y over relationships, teams become hardened and deadened, look ing for reasons not to come to work and not to work with others. Ultimately, they become unhappy and under - perform. With too much emphasis on relationships, too much time is spent listening to reasons why people say they cannot get things done, for example. By developing relationships and communicating expectations and results, high performance becomes natural. These three themes, woven throughout the principles of the LEAD Model, act as fibers in a rope.

Individually they can be reliable; however, as a group, they work in concert with one another and strengthen outcomes.

Three Principles of LEAD As stated earlier, the LEAD Model principles include enhancement, advancement and development.

Enhancement Functional enhancement of the work force involves increasing their understanding of current financial management through a program to build competency in respective fields.

Enhancement can take various forms, but it should include developing core expectations, evaluating the existing work force, and creating a strateg y to address work force gaps. Examples of government agencies work ing to accomplish this goal include the Department of Defense FM certifica - tion program and the VA’s FM Training Initiative. Regardless of the approach taken, this element of the LEAD model maintains that prior education and training be considered to avoid unnecessary retraining. Without the foundational understanding of the work force gained in this action, moving on to advancement and devel - opment becomes nearly impossible.

Advancement A focus on complementar y and supportive capabilit y progression is critcal. Consider competencies that are not required by a core f unction but would otherwise support it to form a highly effective multidisciplinar y team. Also, evaluating emerging technologies for various FM f unctions helps the FM communit y understand these advancement areas. For instance, data analy tics techniques and sof t - ware can signif icantly reinforce financial reporting; a combination of analy tics and R PA can boost internal control testing; and IA can improve budgetar y modeling for congressional budget justifications. Another aspect of advancement demands consistent, recurring guidance throughout the process, including shadowing, mentoring, coaching, and continuous learning opportunities. Because required sk ills will likely be new to the work force, this element of advancement plays a pivotal role in increasing the likelihood of success by providing a feedback loop.

Development Emphasize employees’ career journeys as f uture leaders and, in this instance, as f uture leaders who leverage emerging technolog y. This progression in the leadership devel - opment cycle involves improving leadership sk ills at various points, broken into three distinctive phases:

Self, Merging and Team Leaders.

First-Line Super visors.

Managers and Senior Leaders.

The initial phase relates to accountabilit y f rameworks, coaching f undamentals, and the basics of part - nering. The second phase, first-line super visor development, focuses on management essentials, strategic planning f rameworks, intermediate coaching sk ills, and decision-mak ing models. The f inal phase concerns influencing and negotiating, conflict resolution, political environment sav v y, financial and employee manage - ment, and master y of coaching sk ills. Understand the LEAD Model The LEAD Model is based on proven principles employed for decades. In his groundbreak ing 1970 essay entitled “The Ser vant as Leader,” Robert Greenleaf defined ser vant leadership as a “philosophy and set of practices that enriches the lives of individuals, builds better organizations, and ultimately creates a more just and caring world.” 3 Servant leadership is a central concept in developing the work force, and its principles underpin a f ruitf ul career journey.

48 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT WINTER 2020 2 Provide a platform to evaluate success. With expectations set, employees of ten desire to understand their career trajector y and what needs to happen to progress along the path.

Evaluations must occur at various points. By mapping a career path, organizations can determine the intervals at which assessments will take place and the criteria for success. Without such a plan, employees merely assume and estimate progress. 3 Give employees flexibility in their career growth direction, trajectory and speed. Career success paths and plans should offer multiple tracks f rom which employees can choose to best support their career visions.

One may want to become highly technical and support a myriad of initiatives, while another may want to lead large teams. Multiple tracks allow for that flexibilit y.

Additionally, consider moving away f rom the traditional annual performance evaluation process.

Employees do not achieve significant milestones ever y year, so performance measures should not be evaluated on that schedule. Several recent studies indicate f luid, objective- based performance reviews will help employees by rewarding them when they are performing at the next level, instead of months or even longer af ter meeting a goal. 4 By emphasizing the employee user experience, the LEAD Model provides a path to change that is intuitive. It creates an experience designed to meet the needs and desires of each employee rather than an outdated approach that is “one size fits all.” Organizations must balance employees’ desires for career devel - opment and how these wants assist organizations to achieve their objec - tives. The LEAD Model ser ves as the mechanism to manage the balance.

Endnotes 1. The 2019 Edelman Tr ust Barometer revealed that 47% of people worldw ide think technolog ical innovation is happening too fast and causing change that is not good; 59% believe they lack training or sk ills needed for a well-pay ing job in a tech env ironment; and 55% think innovations are tak ing away jobs. 2. Vineyard, Sean and Quimby Kaizer. “Enhancing Capabilities and Cult ure through Effective Coordination of Enter prise R isk Management and Internal Control.” In Stanton & Fletcher (Eds), Public Sector Enter pr ise Risk Management – Advancing Beyond the Basics. New York: Routledge Publishing, 2019; p. 89. 3. Greenleaf, Rober t K. The Ser vant as Leader . Cambridge, Mass: Center for Applied Studies, 1970. 4. Cappelli, Peter and Anna Trav is. “The Per formance Management Revolution,” Har vard Business Review , October 2016.

Sean Vineyard is a public sector par tner with 11th Hour Service and manages its advisor y and audit services por tfolio. With nearly 15 years’ exper ience in r isk, financial and management advisor y ser vices, he is a senior leader, educator, and published author in the ER M and FM fields and active in both communities. Previously, he worked for Kear ney & Company, Deloitte, and Computer Sciences Corporation. David Fitz, CGFM, CPA, PMP, a par tner in K PMG’s federal advisor y management consulting practice and leader of its federal corporate ser vices, is an executive fellow of K PMG’s Gover nment Institute with extensive exper ience in FFM, risk management, and enterprise resource planning system development and implementation. He has served numerous federal agencies through transformational change. Leroy Larkins, VA’s associate deputy assistant secretary for financial audit, leads development and implementation of cor rective action plans for the financial statement audit and has also led business process reengineering for VA’s Momentum FM system. Pr ior to this role, he ser ved as a VA senior policy advisor and worked for the U.S.

Depar tment of the Treasur y Office of Financial Innovation and Transformation. Amy Parker is executive director (ED) of VA’s Human Resources (HR) Enterprise Center and its chief learning officer, responsible for a diverse portfolio of HR, training, development and accountability ser vices. Pr ior to this, she ser ved the VA as ED of financial planning and analysis for the Office of Management and as director of prog ramming, analysis and evaluation, and she ser ved the Office of the Secretar y of Defense as deputy director of Total Force Planning and Requirements. WINTER 2020 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT 49 Copyright ofJournal ofGovernment FinancialManagement isthe property ofAssociation of Government Accountantsanditscontent maynotbecopied oremailed tomultiple sitesor posted toalistserv without thecopyright holder'sexpresswrittenpermission. However,users may print, download, oremail articles forindividual use.