Berhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Grant Thornton - CFO survey 2012
1. AGA’s Annual Federal CFO Survey July 2012
Charting
a Course
Through Stormy Seas:
The Chief Financial Officer in 2012
2. Table of contents
Executive summary 1
About the survey 3
Campaign to cut waste 4
Measuring performance 8
Strategy 11
Structure 14
Culture 16
People 21
Top challenges 25
Conclusion 28
About the Association of Government Accountants
The Association of Government Accountants (AGA), founded in 1950, supports the careers and professional development of public
finance professionals working in federal, state and local governments, as well as the private sector and academia. The associa-
tion has more than 15,000 members, including professionals in accounting, administration, auditing, budgeting, consulting, grants
management, fraud investigation and information technology. AGA has been instrumental in developing accounting and auditing
standards and in generating new concepts for the effective organization and administration of financial management functions.
The association conducts independent research and analysis of all aspects of government financial management. These studies,
including the 2012 AGA Chief Financial Officers Survey and more than 30 independent studies supported by the Corporate Partner
Advisory Group, make AGA a leading advocate for improving the quality and effectiveness of public fiscal administration and pro-
gram accountability. For more information, please visit www.agacgfm.org.
About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd. Grant Thornton International Ltd and its member firms
are not a worldwide partnership, as each member firm is a separate and distinct legal entity. In the U.S., visit Grant Thornton LLP at
www.GrantThornton.com.
Grant Thornton’s Global Public Sector, based in Alexandria, Va., is a global management consulting business with the mission of
providing responsive and innovative financial, performance management and systems solutions to governments and international
organizations. We have provided comprehensive, cutting-edge solutions to the most challenging business issues facing govern-
ment organizations. Our in-depth understanding of government operations and guiding legislation represents a distinct benefit to our
clients. Many of our professionals have previous civilian and military public sector experience and understand the operating environ-
ment of government. Visit Grant Thornton’s Global Public Sector at www.grantthornton.com/publicsector.
3. 1
Executive summary
The federal government and indeed every governmental agency’s leadership in selecting Priority Goals
unit in the United States has been surrounded by a required by the GPRA Modernization Act. They
are the collectors and keepers of performance
storm of financial turmoil for some years now. The data, and they indicate that they are proficient
storms continue, and the years ahead may prove to at capturing these data. However, they are not
be just as difficult at those they have just endured. always sure of data quality or the ultimate pur-
pose and use of the data.
It was in this environment that we surveyed federal
Chief Financial Officers (CFOs) and others engaged in CFOs have closely aligned their
offices with agency missions,
governmental financial management throughout the
but they want more
country. Our survey finds these financial professionals CFOs are not an easy group to please. While
engaged, hard at work and helping to guide their their offices are organized and strategically
aligned with the agency to achieve results, the
agencies through these perilous times.
CFOs still want more, especially in the areas of
analytics, program office knowledge and coop-
Reducing costs is a lot of work eration, and effective financial and performance
Many CFOs view the President’s Campaign to Cut systems. They want better assessment of risk
Waste as fairly typical of a new Administration. to improve results, but they know many in the
Every President has certain things that he wants to workforce are not yet aware of the uses and ben-
accomplish, and the Campaign emphasizes making efits of risk management.
agencies accountable for the use of taxpayer dollars
rather than reducing the deficit. The CFOs are CFOs and the workforce have
concerned that the requirements of the Campaign different views of leadership
sometimes divert resources that could have been and trust
better deployed elsewhere. Moreover, CFOs con- Most CFOs believe that they have the right
tend the Campaign did not strategically advance people in the right roles, including manage-
the mission of the agency and so offers little return ment positions, but that is not as common a
on investment, but they nonetheless endeavored to belief among those in the workforce. Everyone
implement the Campaign in a professional manner. generally agrees trust and teamwork are critical
The workforce saw it much the same way, but components of organizational success, but there
many lower level staff had much less involvement. are some differences of opinions here as well.
The fiscal storms hitting agencies have reduced
Performance management is how budgets, frozen pay and cut staffing, leaving the
agencies achieve results CFOs to pick up the pieces and find ways to
The CFOs are often the owners of the agen- continue to accomplish essential functions.
cies’ performance management function. They
have major roles helping agencies establish and The CFO culture is strong and
operate performance management frameworks, supportive
including performance measures, performance The CFOs believe their culture is com-
plans and performance reporting. They assist the mitted, talented, results-focused and
4. 2
workforce is more concerned about internal issues
such as leadership and management, and they are
expecting the CFOs to provide guidance to help
them manage through the tough times ahead.
CFOs have their work cut out for
them
The financial storms affecting agencies have
already created problems, and there is no relief
in sight. CFOs must continue to chart a course
for their workforce so that together they can
help their agencies achieve the program results
expected by the American people.
community-building, and they believe it has a Conclusion
very positive effect on achieving agency results. There is a storm out there. It is not a storm on
The CFOs have more confidence than the the horizon; it is already here. It is driven by
workforce that leaders are effective at communi- congressional budget cuts, the Campaign to Cut
cating and building culture. The CFOs also have Waste, the requirements of GPRAMA and the
a stronger belief that their culture is ready to continued poor performance of U.S. and global
weather the continuing fiscal storms. economies. It is a vicious cyclone, as budget cuts
drive staff cuts, which impact performance.
People are the key to success
CFOs believe they have good people; they want While every government executive bears some
to keep them and they want even more financial responsibility for the government’s response,
professionals so they can be even more effective. CFOs have a leading role because they are
They believe their people have the right mix functionally responsible for budgeting and
of technical skills and attitude to deal with the performance management. Continuing budget
challenges they expect over the next two years. cuts, pay freezes, late appropriations, the specter
They indicate the key to leadership is inspiring of sequester, trillion-dollar deficits and public
and motivating the workforce to look beyond denigration of civil servants by the media and
external distractions and keep their compasses their elected representatives make the CFO’s job
aimed at mission success. a difficult one. They know this.
Storms will continue Throughout this survey, however, we see CFOs
CFOs recognize that difficulties from external successful in spite of all that is thrown their
forces (e.g., the economy, the deficit and debt, way. Whether they are political appointees or
and Congress) will continue, and they have plans career civil servants, CFOs are working with
and contingencies to deal with them. They want their staffs to get the job done. Yes, it is tough,
to continue their focus on achieving agency but according to one CFO, quoting from “The
results for their customers and stakeholders. The Godfather Part II,” “This is the life we chose.”
5. 3
About the survey
The Association of Government Accountants (AGA), in financial community do not attribute thoughts
partnership with Grant Thornton LLP, has sponsored and quotations to individual financial executives
who were interviewed, and they do not identify
an annual government Chief Financial Officer (CFO) online respondents.
survey since 1996. We now produce two reports for the
Survey methodology
survey. This report focuses on the federal government. With AGA guidance, Grant Thornton devel-
A second report in August 2012 will look at state and oped online and in-person survey instruments
local issues in more depth, including timely financial that included closed and open-ended questions.
We conducted nonrandom in-person interviews
reporting and state systems and the cloud.
with 115 U.S. federal financial leaders and senior
leaders of oversight groups such as the Office of
Our goal for the survey is to identify emerging
Management and Budget (OMB). Sixty of these
issues in financial management and to provide a
interviewees had job titles of CFO or Deputy
vehicle that practitioners can use to share their
CFO; others were direct reports or other finan-
views and experiences with colleagues and policy
cial executives. We did nonrandom online inter-
makers. This is one way AGA demonstrates its
views with 521 AGA members. In this online
leadership in governmental financial manage-
version, 204 respondents indicated that they
ment issues. For this 2012 federal survey report,
worked for the federal government, and their
our focus is on the federal Campaign to Cut
input is reflected in this report. We augmented
Waste, measuring performance and an assess-
the federal in-person surveys with three breakfast
ment of CFO organizations using recognized
meetings of CFOs and deputy CFOs where the
elements of high-performing organizations:
participants discussed survey topics as a group.
strategy, structure, culture and people.
Copies of the in-person and online question-
Anonymity
naires can be found at www.grantthornton.com/
To preserve anonymity and encourage respon-
publicsector.
dents to speak freely, the annual surveys of the
6. 4
Campaign to Cut Waste
The Campaign to Cut Waste is a term applied to a variety of activities driven by Presidential
Executive Orders (EOs) and supplemental OMB guidance. The first salvo in the Campaign
was a Presidential memorandum, Accountable Government Initiative, dated September 14,
2010. This was accompanied by an OMB memorandum providing more detailed guidance
and expanding on the President’s themes. On June 13, 2011, the President issued EO 13576,
Delivering an Efficient, Effective, and Accountable Government. A number of other documents
followed over the next 12 months, as shown in Figure 1. Whether the subject was travel,
administrative costs or contractor costs, the consistent ongoing direction and guidance was
basically to reduce costs while continuing to produce program results.
Figure 1: While deficit reduction has been a major issue
Campaign to Cut Waste Documents influencing federal funding for some time, the
Campaign was ultimately about agencies being
Date Document Title accountable for the use of taxpayer dollars. The
14-Sep-10 Presidential Accountable Government Initiative Campaign had reduction targets for various
Memorandum categories of spending, such as travel and other
14-Sep-10 OMB Memo The Accountable Government administrative costs, but overall agency funding
Initiative - an Update on Our levels were set by Congress. As a result, agen-
Performance Management Agenda
cies were able to reprogram various savings into
13-Jun-11 Executive Order Delivering an Efficient, Effective, and direct program operations.
Accountable Government
28-Jun-11 OMB Memo Campaign to Cut Waste Roles
7-Jul-11 White House Accountability in Federal Contracting
Because of the pervasive nature of the Campaign
Forum over the last year, the survey began with some
20-Jul-11 White House Data Center Consolidation Initiative questions for the in-person interviewees about how
Press Release CFOs were responding to the guidance. Figure 2
17-Aug-11 OMB Memo Delivering an Efficient, Effective, and shows the roles that Offices of the CFO (OCFO)
Accountable Government were taking on to implement the Campaign.
21-Sep-11 OMB Memo Eliminating Excess Conference Over half the respondents selected each of the
Spending and Promoting Efficiency in
top three choices, making it clear that CFOs
Government
used a variety of approaches for implementation.
9-Nov-11 Executive Order Promoting Efficient Spending
This is not surprising because the Campaign
11-May-12 OMB Memo Promoting Efficient Spending to
included so many diverse aspects related to
Support Agency Operations
reducing costs.
A number of survey respondents made the point
that the Campaign was simply a continuation
of their ongoing efforts to deal with the smaller
7. 5
Figure 2: budgets given to them by Congress. They noted
What is your OCFO’s role in that the CFO’s responsibilities have always
implementing the Campaign to Cut Waste included rooting out waste and making agency
in your agency? (check all that apply) operations more efficient and effective. In this
respect, the Campaign was merely the latest
Percent effort by the President and OMB to direct agen-
OCFO Roles responding cies’ attention to specific issues. One respondent
Reducing and identifying 68% said, “We asked the employees for cost-cutting
alternatives to travel, ideas and got 15,000 of them.”
consultants and
administrative expenses The list of expenses that the CFOs examined
Targeting wasteful practices 53% included many of the predictable (or directed)
areas: travel, training, administrative expenses,
Active participation in the 51% improper payments and promotional items.
planning called for in the Then there were some items that were not as
EO "Promoting Efficient common: shared services, phone lines, enter-
Spending" prise licenses, relocation expenses, personal
Other 14% printers, motor pools, rent, late payment interest
My OCFO has no special role 4% and agency publications. Finally, there were a
in implementation small number of items that only a few respon-
Don't know/Not applicable 2% dents mentioned: employee parking, two-sided
8. 6
printing, color vs. black-and-white printing,
nighttime guard service, cash awards, replacing
types of light bulbs and “replacing higher-graded
employees with lower-graded employees.” One
respondent said, “We’re creating a constant cul-
ture of spending restraint.”
Progress
We asked CFOs what had been their progress
in implementing the Campaign, and Figure 3
shows their responses.
Considering that the Campaign has been
ongoing since September 2010 (officially since
June 2011), these responses are a little surprising,
especially with 19% having “just started” and
One CFO noted that she preferred focusing on “good
another 7% only at the planning stage or not
management vs. some OMB campaign” because good started. Part of this may be explained by the
management is always a priority but campaigns come and go. fact that the Campaign is an ongoing, evolving
exercise rather than a one-shot drill. The latest
Executive Order was dated November 2011,
and the last relevant OMB memorandum was in
Figure 3: May 2012. Especially for those requirements that
What has been your OCFO’s progress in need to be satisfied by quarterly reports, progress
your entity’s Campaign to Cut Waste? may be a relative term.
Percent On the other hand, a number of interviewees
Progress choices responding noted that they have been busy with these
activities since Congress began reducing their
Have been achieving good 45%
appropriations. Their responses here may relate
results from working on the
Campaign to the various reports to OMB required by the
Have just started 19%
Campaign, as opposed to the actual work of fig-
implementing or supporting uring out how to reduce expenses in the assigned
the Campaign categories. One respondent said, “We are doing a
Have been moving along 18% lot more than the Campaign asks of us.”
with the Campaign but little to
In the online version of the survey, where
report yet
respondents are primarily non-Washington, DC,
Other 11%
employees, we asked a question about whether
Have made plans for starting 4%
their agencies had recently conducted campaigns
Have not yet started or 3% to identify inefficiencies and waste. Figure 4
planned anything
shows the results. It is a little surprising that
9. 7
Figure 4: throughout their agencies. In most cases, the
Has your office recently conducted CFO was the agency lead in implementing the
campaigns designed to identify Campaign, including drafting specific guidance
inefficiencies and waste? to implement OMB direction in the agency
and establishing processes for data capture and
reporting. One respondent said, “The OCFO
does not have the ability to manage activities in
the program offices. We set targets and monitor.”
One CFO noted that she preferred focusing on
“good management vs. some OMB campaign”
because good management is always a priority but
69% 31% campaigns come and go. There clearly were many
Yes No
meetings associated with the Campaign over the
last year. One CFO noted, “We’ve spent more on
meetings about the Campaign to Cut Waste than
we’ve actually saved from cutting waste.”
almost one-third of online respondents con-
ducted no such campaign, which would indicate
that the Campaign to Cut Waste may have been
more of a headquarters, Washington, DC, event
than a total agency effort.
Execution and expansion
Next we asked the CFOs what they had done
to implement the Campaign within their own
financial functions. As expected, the CFOs took
their share of the various category reductions—
travel, other administrative expenses, hiring
freezes—but there is often little else in the CFOs’
budgets except labor costs and administrative
costs. One CFO noted that they “tried to set an
example in the Office of the CFO (OCFO) for
the rest of the agency to follow.”
The final question in this section dealt with
ways the CFOs could expand the Campaign
10. 8
Measuring performance
Since the CFO Act of 1990 and the Government Organization and roles
Performance and Results Act (GPRA) of 1993, GPRA did not specifically assign any duties to
CFOs, nor has OMB dictated which offices are
CFOs have been heavily involved in performance to be responsible for performance management
management. The GPRA Modernization Act (GPRAMA) within agencies. As a result, there is little consis-
of 2010 created new and expanded requirements tency in how agencies have organized to manage
performance, though it appears that many agen-
for those responsible for agency performance
cies include performance management in the
management. In addition, many of the requirements of CFO’s responsibilities.
the Campaign to Cut Waste also included provisions
To help determine how the CFOs were orga-
related to improving effectiveness and program results. nized for these responsibilities, we asked
respondents to describe their OCFO’s role in
performance management. The results cover the
spectrum, although most assigned major respon-
sibilities to the OCFO. Quite a few respondents
had responses similar to those who said, “The
CFO is the owner and champion of performance
management,” and “OCFO is in charge of
performance management,” and finally “We’re
all over it.”
However, there were other arrangements. Some
respondents explained that the OCFO “played
more of a supporting role.” Others mentioned
that performance management was in the
policy office, the Deputy Secretary’s office, the
Secretary’s office, or another office not under the
CFO. Finally, one stated that “the CFO has not
been heavily involved in setting strategic goals,”
and another admitted that he “was not familiar
with GPRA Modernization.”
Priority goals
GPRAMA did not assign any responsibilities
to the CFO, but it did assign responsibilities to
Performance Improvement Officers (PIOs), a
position codified in the new law. As we discov-
ered in our 2011 survey of federal PIOs, quite
a few of the PIOs were actually the CFO, the
budget officer or some other executive reporting
11. 9
to the CFO. One of the key new requirements to CFOs themselves. In-person respondents also
in GPRAMA was the development and use of said that the CFOs “own the process of setting
agency priority goals. These goals were selected priority goals.” CFOs “facilitated the conversa-
by the agency head from among the performance tion,” but they did not actually establish the
goals of the agency and reflected the agency’s goals. Program managers did that. One respon-
highest priorities. The survey asked how much dent indicated that her office ran the program;
the OCFO participated in helping to set priority they “could tell the program offices, ‘no’,” and
goals, and Figure 5 shows the results. they “decided what were good priority goals.”
However, it was the program offices’ responsi-
The response rates for both the in-person and
bility to identify the priority goals.
online respondents are remarkably similar.
Seventy-one percent of in-person respondents Data
and 67% of online respondents participated half Performance management is data-intensive, so
the time or more in helping to set priority goals. the survey asked how satisfied respondents were
with their current capabilities for capturing data
We saw from the responses that CFOs were often
relevant for performance management. Figure 6
responsible for agency performance management
shows the results. Much as we found with setting
programs. However, the nature of agency priority
priority goals, the results from the in-person
goals means that they would rarely be applicable
Figure 5:
How much does your OCFO participate in helping to set priority goals as
mandated in the GPRA Modernization Act?
In Person 2% 21% 8% 17% 46% 5%
Online 6% 19% 10% 33% 24% 8%
Never Seldom About half the time Usually Always Does not apply
Figure 6:
How satisfied are you with your OCFO’s current capabilities for capturing
relevant data for performance management?
In Person 2% 21% 25% 34% 14% 4%
Online 5% 15% 33% 37% 8% 3%
Very dissatisfied Dissatisfied Neither satisfied Satisfied Very satisfied Does not apply
nor dissatisfied
12. 10
respondents and online respondents were very Another noted that they did a good job of cap-
similar, with 48% of in-person respondents indi- turing performance information but not a good
cating that they were satisfied or very satisfied job of integrating it with financial information
and 45% of online respondents indicating these to produce actionable information for decision
values. The number of respondents selecting makers. Another said, “We are capturing a lot
“neither satisfied nor dissatisfied” is troubling. If of data, but we don’t know if it’s the right data.”
this middle choice is viewed as a surrogate for “I Another said, “I have more data than anyone in
don’t know/I don’t care,” it would appear that a the agency, but I am not satisfied with what we
quarter of the in-person respondents and a third do with it.”
A number of respondents identified systems
problems as the paramount issue in data collec-
A number of respondents identified systems problems as tion. They lacked systems to capture quality data
the paramount issue in data collection. They lacked systems routinely. One noted, “We have the authority to
to capture quality data routinely. One noted, “We have the collect the data but we lack the tools.”
authority to collect the data but we lack the tools.”
Another issue mentioned by a number of respon-
dents was the need for cost accounting or cost
management data to supplement the perfor-
of the online respondents do not really know (or mance data. If you are going to link performance
perhaps care about) their capabilities for cap- and financial information, there has to be some
turing performance management data. way to relate the data, something that cost man-
agement can do for agencies. As one respondent
A number of in-person respondents clarified
noted, “It is hard to track spending against stra-
the difference between capturing and using
tegic goals.” Another respondent said, “Everyone
data. One respondent noted that “We are good
wants to distill performance into a scorecard, but
at capturing data, but not so good at using it.”
it’s far more complex than that.”
13. 11
Strategy
Much of this year’s survey was built around the was to provide actionable information for deci-
specific, well-recognized drivers of high-performing sion makers. One respondent noted, “We have
no basic analytical tools. As a result, manage-
organizations: strategy, structure, culture and people. ment often makes across-the-board decisions
The survey’s strategy questions related to mission, rather than analytic-based decisions.” Another
budget, monitoring and risk. respondent said, “I want to show what value
we’re getting per dollar, the difference between
receiving $2 billion and $2.25 billion.”
Getting results
We began consideration of strategy by asking Another common theme related to program
what results the respondents wanted that they offices and the ability of the OCFO to sup-
were not getting. This was an open-ended ques- port program activities. Some of this discussion
tion rather than a scale or multiple choices, related to the lack of program knowledge in the
so the responses covered a lot of material. The OCFO staff, and some related to the need to
most common in-person responses centered on work cooperatively. One respondent noted, “I
analytics, supporting the program offices and want the program office to come to me for help
systems. with their problems on the front end, rather than
making mistakes and then coming to me to help
A number of respondents identified a lack of
clean up the mess on the back end.”
analytic ability in their staffs. They wanted
“better analysis,” “a more analytical and proac- The final common theme was about systems,
tive approach” and “greater analytic capability to especially the need for better financial and per-
inform decisions.” The need for more analytics formance systems. Some respondents indicated
14. 12
that they lacked the required automated tools or Alignment
were not making good use of the tools they had We asked respondents how aligned they were
to produce quality, timely data needed by deci- in assisting their agencies in achieving mission
sion makers. objectives. For in-person respondents, this was an
open-ended question, and for online respondents,
The online respondents had slightly different
it was a scale with an opportunity for comments.
responses, probably reflecting the fact that they
were typically in field operations rather than In-person respondents indicated that they were
headquarters. About 20% of these respondents not only aligned but also “very aligned,” “perfectly
indicated that results they were not getting were aligned” and “absolutely hand-in-hand aligned.”
incrementally different from those desired. Their Their answers often went on to explain that
responses often included words like better, greater, because the OCFO was responsible for the budget
increased and improved. The single most common and performance management functions, the
word in their responses was “more.” They indicated OCFO had to be in alignment with the agency if
that they were achieving some marginal level of the budget and performance plans were accurately
results, but not the level they really wanted. and effectively supporting the agency strategic plan.
While one or two in-person respondents indi- Over 73% of online respondents said their
cated that they were generally satisfied with offices were aligned, and only 9% said they were
the results they were getting, about 12% of the not aligned. Their supporting narratives were not
online respondents had no complaints. More nearly as effusive as the in-person respondents
than one respondent specifically noted, “We’re about the degree of alignment, perhaps because
getting the results we want.” they had already indicated a high degree of align-
ment on the scale.
Most of the other responses from the online
respondents indicated their desire for doing the Risk and performance
job correctly and effectively. One respondent Because the question of risk management
said, “Planning should drive budget and execu- is receiving increasing attention as agencies
tion, and yet it does not.” struggle to achieve results, we asked how satisfied
Figure 7:
How satisfied are you with the integration of risk management and performance
improvement in your agency?
0%
In Person 4% 20% 37% 32% 7%
Online 4% 14% 34% 33% 9% 5%
Very dissatisfied Dissatisfied Neither satisfied Satisfied Very satisfied Does not apply
nor dissatisfied
15. 13
respondents were with the integration of risk
management and performance improvement in
their agencies. Figure 7 shows their responses.
The scores from the in-person and online respon-
dents are very similar, with in-person respondents
being more dissatisfied and online respondents
having more ‘”does not apply” responses.
More revealing is that more than a third of each
group of respondents chose “neither satisfied nor
dissatisfied.” If this middle choice is a surrogate for
“I don’t know/I don’t care,” it would appear that
more than one-third of both groups do not really
know (or perhaps care about) the integration of
risk management with performance improvement.
Supporting this assumption, the narrative com-
ments from the in-person respondents revealed
a significant lack of knowledge about what risk
management was and how it was related to perfor-
mance management or performance improvement.
One respondent was quite clear, “I don’t know
what risk management means.”
Even though only 18% of online respondents “ e don’t have a formal process to manage risk, so
W
were “dissatisfied” or “very dissatisfied,” their employees perform risk management intuitively every
narrative comments were overwhelmingly nega- day as part of their jobs.”
tive. Much like the in-person respondents, many
did not understand the terminology or believe
there was any integration in their agencies. One
improper payments, revenue estimation, internal
respondent said, “There is almost no under-
controls and technology investments. Others
standing of risk management at my agency.”
dealt with structural issues such as the need to
In-person respondents had a final question do formal enterprise risk management, the need
about some ways that their agencies could use for better risk management information and
risk management information to contribute to the lack of a structure to manage risk formally
performance improvement. Some respondents at the agency level. One respondent said, “We
identified activities where risk management don’t have a formal process to manage risk, so
information could be useful, including process/ employees perform risk management intuitively
control documentation, grants management, every day as part of their jobs.”
16. 14
Structure
Structure is that driver of high-performing organizations that the problem was not the right people, but
that values leadership, the organization chart, trust rather the right number of people. Budget cuts
and hiring freezes were making it difficult to
and teamwork. It deals with issues of whether your maintain adequate staffing levels. Finally, a few
organization has a solid foundation and operates in a respondents specifically mentioned the shortage
way that fosters success. of qualified accountants.
Figure 8 shows that 46% of online respondents
Roles and people
were “satisfied” or “very satisfied,” but those
The first question under structure asked whether
who provided narrative comments were clearly
respondents were satisfied that their offices had
among the 54% in the other categories. A clear
the right people in the right role, including in
majority of the narrative responses were negative
management positions. This dealt with issues of
in nature, and 64% of all online responses were
whether the organization had defined the right
made by respondents who were very unhappy
roles, created the right positions and staffed
with their own or their agencies’ staffing and
those positions with the right people. While
staffing practices. Some of these were straightfor-
many of our questions in earlier sections had
ward negatives, such as “Our managers do not
similar response rates from in-person and online
have governmental experience and do not under-
respondents, this question evoked a clear differ-
stand accounting,” but many of the responses
ence. Figure 8 shows the responses.
were along the lines of:
In-person respondents were clearly satisfied,
• “Leadership is unprofessional and totally
with 65% choosing “satisfied” or “very satisfied”
inept.”
and only 17% choosing “dissatisfied” or “very
• “My office has an ingrained tradition of favor-
dissatisfied.” Their narrative comments were
itism in hiring, tasking and promotions.”
mostly positive, with a few explaining that they
• ”Our staff is almost completely misaligned for
had the right roles but not necessarily the right
the task.”
people, and others explaining that some of the
roles were filled with the right people and some The only other general online responses were some
were not. A number of respondents mentioned complaints about the high rate of turnover, while
Figure 8:
How satisfied are you that your office has the right people in the right roles,
including in management positions?
0%
In Person 7% 10% 18% 45% 20%
0%
Online 8% 21% 25% 31% 15%
Very dissatisfied Dissatisfied Neither satisfied Satisfied Very satisfied Does not apply
nor dissatisfied
17. 15
Figure 9:
Assess the level of trust and teamwork in your agency.
In Person 2% 14% 24% 46% 15%
Online 6% 13% 28% 38% 16%
Very low Low Neutral High Very high
others complained that some people stayed in the does trust or lack of trust affect your organiza-
job too long, making it difficult to bring about tional performance right now? We received many
organizational change or for others to advance. interesting perspectives, some about how trust
helps and some about how a lack of trust hin-
Trust and teamwork
ders. On the positive side, respondents said that
We asked respondents to assess the level of trust
trust enhanced collaboration, helped you find
and teamwork in their agency, and Figure 9
out about issues before they became problems,
shows the results.
encouraged people not to be afraid to give bad
Both in-person and online respondents had news, improved information sharing and contrib-
similar levels of responses, but online respon- uted to saving time and increasing efficiency. On
dents were somewhat more negative. Another the negative side, respondents said that a lack of
troublesome issue here is that about one-quarter trust led to duplication of effort, low morale, diffi-
of each group selected “neutral,” the middle culty in making changes, arbitrary restrictions and
choice that avoided an opinion. Most in-person mandates, an over-controlling atmosphere and less
respondent comments were mixed, which might information sharing. The CFOs clearly saw the
account for the high level of “neutral” selections. need for and benefits of trust in the organization.
One respondent said, “Trust is high at the man-
This section is a tale of two cities. The in-person
ager level but not so much at the senior levels.”
respondents generally believed they had the right
Another respondent said, “Trust is definitely
people in the right roles, and they see a high
there, but teamwork is much more difficult.”
degree of trust and teamwork in their own orga-
As opposed to the mixed in-person comments, nizations, if not throughout their agencies. They
most online comments were negative, though understood the importance of good people, trust
not as irritated as the comments above about the and teamwork to accomplish organizational
right people in the right roles. There were com- results. On the other hand, the online respon-
ments such as, “Leadership does not share, and dents were much more negative, with many
team members are out for themselves.” Another being very irritated. They were also less positive
respondent said, “Not everyone feels that they about trust and teamwork in their organiza-
are being treated fairly.” tions. Since most of the online respondents are
probably in the chain of command under the
The survey had a final question in this section
in-person respondents, there is some important
only for in-person respondents: In what ways
work ahead for CFOs and others.
18. 16
Culture
Culture is that driver of high-performing In discussing commitment, respondents described
organizations that envisions the level of engagement, their culture with words like dedicated, committed,
engaged, passionate and intense. One respondent
alignment and energy in the organization as vital said, “We are hard-working, passionate individuals
elements for success. A good culture can play a who strive to do what’s right.” Another said, “We
significant role in achieving strategic results. talk the talk and walk the walk.”
The comments about talent included words
Office culture like smart, expert, specialized and inspiring
Our first question in this section was an open- excellence. One respondent said, “Our culture
ended question that asked respondents how is sharing and transparent, and we are experts
they would describe the culture of their office, at what we do.” Another said, “The office is
and was it different from that of their agency. forward-looking, with a tendency to take on new
In-person respondents were overwhelming posi- challenges and initiatives.”
tive in describing the culture of their offices. The comments about results used words like col-
Their comments fell into four general areas: laborative, aligned with the mission, professional
commitment, talent, results and community. and making a difference. One respondent said, “My
A number of respondents mentioned how guys have a clear notion of what they need to do.”
their offices typically fared very well in various Another said, “We are a can-do organization that
employee surveys. wants to make a difference at the end of the day.”
19. 17
Comments about community included words Some online respondents mentioned the unique
like trusting, protective, cohesive, working closely problems created by telework and virtual
together and family. One respondent said, “We employment. They noted the difficulty of fully
have a small-town community culture that supports comprehending and participating in the office
fellowship and relationships with our colleagues.” culture when most of your contacts with col-
A couple of respondents mentioned “family,” leagues were via email and the telephone.
including one who said, “Our culture is like a family
We asked in-person respondents about the effect
that is trusting, open and inspiring excellence.”
of the OCFO culture on the performance of the
Most respondents did not deal with the second OCFO. Much like their comments about their
part of the question that asked whether the office office culture, the comments of most indicated that
culture was different from the agency culture. their culture positively influenced performance.
However, most who did mention it indicated Some indicated that in the current fiscal environ-
that it was different, including 32% of the in- ment where they are often understaffed and over-
person responses. worked, a positive culture brings the office together
as a team to get the job done on time with quality
The online respondents had more balance
products. One respondent said, “We have a perfor-
between positive and negative comments about
mance culture, so employees deliver good work and
their cultures. There were some like the respon-
the office delivers good products.”
dent who said, “We know the mission and we
are enthused to do a good job; that in itself is Staff alignment
reward enough.” But we also had comments like, Our next question was based on the assumption
“The fact that we now have a union says all that that, in an ideal world, a staff that is aligned has
needs to be said about our culture.” people who are focused, pull in the same direc-
tion, and understand core values. The question
As with the in-person respondents, few online
was, “How satisfied are you with the level of staff
respondents addressed the question of whether
alignment in your OCFO (office)?” and Figure
their office culture was different from their
10 shows the results.
agency culture. Of those who did address it,
most said that it was different, including 22% of There are similarities between the in-person
the online respondents. and online respondents in the categories “very
Figure 10:
How satisfied are you with the level of staff alignment in your OCFO (office)?
In Person 4% 10% 21% 41% 25%
Online 5% 16% 20% 43% 17%
Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied
20. 18
The online respondents also had many fewer
comments, but they were slightly favoring a
One respondent echoed a common tone when he said,
negative view. However, their negativity was not
“Too many people are about ‘me’ and not the organization or
nearly as forceful as what they demonstrated
customers.” Another said, “The OCFO has three directorates, in the “right persons in the right role” question
none of which trust each other nor have the same objectives.” earlier. One respondent echoed a common tone
when he said, “Too many people are about ‘me’
and not the organization or customers.” Another
said, “The OCFO has three directorates, none of
dissatisfied,” “neither satisfied nor dissatisfied”
which trust each other nor have the same objec-
and “satisfied.” However, more online respon-
tives.” There were a number of comments about
dents were “dissatisfied,” and more in-person
age and experience differences like, “The genera-
respondents were “very satisfied.” Once again,
tional diversity and corresponding differences in
the impact of 20% of each group selecting the
work ethic are problems” and “Many old hands
middle category is not easy to define.
who do not wish to embrace technology need to
The in-person respondents had many fewer com- retire or leave.”
ments for this question than other questions, and
Communicating and building
they were only slightly favoring a positive view.
culture
Perhaps they had already said their piece in the
The next question asked how effective senior
“right persons in the right roles” question earlier
managers and executives were at communicating
in the strategy section. There were comments
and building culture in the OCFO or office.
like “We are all working for the same goal” and
Figure 11 shows the results.
“Staff have a holistic understanding of how things
work.” But there were also comments like “There There appears to be a clear difference here, with
is a lack of interaction/cohesion/integration the in-person respondents more satisfied and the
between the various offices within the OCFO” online respondents less satisfied. Some of this
and “People don’t seem to know what my strategic might be accounted for by the fact that many
vision is and what goals we are pursuing.” of the in-person respondents are the “senior
Figure 11:
How effective are senior managers and executives at communicating and building
culture in your OCFO (office)?
In Person 3% 10% 27% 44% 16%
Online 6% 20% 25% 39% 10%
Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied
21. 19
Figure 12:
How satisfied are you that the culture of your OCFO (office) is appropriate for meeting
the challenges of the next two years? What about the culture of your agency?
IN PERSON
1%
My OCFO 4% 16% 59% 20%
1%
My agency 15% 26% 51% 7%
O n li n e
My office 5% 14% 20% 43% 19%
My agency 6% 13% 35% 40% 7%
Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied
managers and executives” about whom the ques- always management: “Though the communica-
tion asked. In fact, one respondent questioned her tions are clear, established employees are often
objectivity because she was senior management. resistant to change and do not comply.”
Many comments by in-person respondents were Meeting challenges
both positive and negative. One respondent said, The final question in this section dealt with the
“Senior-level people are doing very well; mid-level ability of the office culture to meet the challenges
people need to improve.” Another said, “Some of the next two years. The question also asked
senior managers are great, while others are not as about the likely ability of the agency culture to
effective.” There tended to be recognition that meet the challenges. Figure 12 shows the results.
communicating and building culture was manage-
The in-person respondents were clearly ready,
ment’s job, even when it was not getting done.
with 79% indicating “satisfied” or “very satis-
One respondent said, “There has been so much
fied.” They were apparently not so satisfied
putting out fires and jumping from one priority to
with the ability of their agencies to meet the
the next that I haven’t had time to do the culture
challenges, with 58% indicating some degree of
building that I would like.”
satisfaction and 42% indicating something else.
The online respondents’ comments tended to While 62% of online respondents were either
be negative; a number of them discussed the “satisfied” or “very satisfied” with the ability of
many changes that were going on in their offices their culture to meet the coming challenges,
and agencies and how that negatively affected 54% were less than satisfied that their agencies
culture building. One respondent said, “Techies were ready. Perhaps reflecting the fact that many
and accountants are not known for their people online respondents are in field operations, more
skills.” Another noted that the problem was not than one-third of them had no opinion about
22. 20
the readiness of their agency. Even among the
in-person respondents, more than a quarter had
similar, no-opinion responses.
The in-person comments were generally positive,
supporting the high level of satisfaction they had
indicated, but they recognized continuing problems.
One respondent said, “It’s difficult to tell people to
do more work with less money and no pay raises.”
Another said, “I’m concerned about burnout; we
need to move from trying to do more with less to
reducing operations to a more sustainable level.”
The online comments were generally negative,
though one respondent noted, “I previously
worked in private industry for 20 years, and
none of those business cultures was nearly as
good as the culture we have here.” However,
most responses were along the lines of the one
from a respondent who said, “I have just left
the office I’m rating on this survey, and I am
professionally and personally relieved.” And
finally, another respondent expressed his frustra-
tion with the whole financial situation and said,
“Does management know we get our wastebas-
kets emptied only three times a week? How is
that going to balance the federal budget?”
23. 21
People
People are the organizational driver that assesses the
selection, development and retention of the workforce.
Technical skills
The first question in the section asked whether
the respondents’ offices had the right mix of
technical skills to meet the financial challenges of
the next two years. Figure 13 shows the results.
The responses from both groups of respondents
are very similar, with the online respondents
noticeably higher in the “very satisfied” category.
In-person comments noted a number of catego-
ries where OCFOs had technical skills shortfalls,
including analytics (overwhelmingly noted),
systems analysis, technology and budget. The
online comments primarily noted skill shortfalls
in accounting and auditing. Both groups men-
tioned a lack of understanding of Excel by some hire, it was very difficult to find qualified people
of their older staff, and both mentioned the need who wanted to work in government.
for “problem solvers” and “creative thinking.”
Attitude
The in-person respondents noted that you Technical skills were very important for success, but
first needed skills assessments to identify your the workforce’s attitude also played a critical role
problems. Then, even when you knew your skill in achieving success. CFOs did not get to decide
shortfalls, you did not always have the ability to whether the workforce would get pay raises, but
address the problem because of turnover, staffing they were still responsible for motivating them.
cuts and budget cuts. And even when you could While the previous question addressed the right
Figure 13:
How satisfied are you that your OCFO/office has the right mix of technical skills
to meet the financial challenges of the next two years?
In Person 4% 17% 23% 45% 12%
Online 6% 18% 22% 35% 19%
Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied
24. 22
still willing to work hard.” The negative com-
Many comments noted the important role that recognition ments from the online respondents included one
plays in motivation. This might include simply highlighting staff who said, “Some people, including myself, are
giving up.”
accomplishments and cost-saving ideas at the all-hands meeting
or having social functions. Respondents noted that recognition Linking to agency objectives
does not have to be costly to be effective. The next question asked whether the respon-
dents’ staffs understood and linked the agency’s
objectives to their own work. Eighty-nine
percent of in-person comments were over-
mix of technical skills, the next question addressed whelmingly positive. One respondent said, “Yes,
whether the respondents’ offices had the right atti- absolutely!” and another said, “Yes, the staff sees
tude to meet the challenges of the next two years. and understands the connection.” Sixty-one
Figure 14 shows the results. percent of online comments were positive, not as
While these scores might look similar at first overwhelming as the in-person comments.
glance, the in-person respondents held a 13 per- For the in-person respondents, the survey had
centage point advantage in “satisfied” and “very a follow-up question about how they motivated
satisfied” scores, while the online respondents had their staffs to make the link between agency
a 13 percentage point advantage in “dissatisfied” objectives and their own work. Respondents
and “very dissatisfied” scores. In addition, 74% of provided a lot of information, and most of it
the in-person comments were positive, while 60% focused on four points: communications,
of the online comments were negative. In fact, recognition, experiencing mission work and
only about 6% of the online respondents chose performance plans. Many of the in-person
to make any comment, leaving us to wonder respondents emphasized the role of communica-
whether the 65% who indicated they were “satis- tions in motivating their staffs to make the
fied” or “very satisfied” were the ones who did linkage. One respondent said, “Leadership
not comment. Thirty-seven percent of in-person communicates frequently and holds regular
respondents chose to make a comment. meetings.” Communications also included
The positive comments from the in-person having managers provide feedback to employees
respondents included one who said, “People are about their performance.
Figure 14:
How satisfied are you that your OCFO/office has the right attitude to meet the
financial challenges of the next two years?
0%
In Person 2% 19% 57% 21%
Online 4% 11% 20% 47% 18%
Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied
25. 23
Many comments noted the important role that Once the agency planning process was complete,
recognition plays in motivation. This might include many CFOs were ensuring that, where appropriate,
simply highlighting staff accomplishments and their staffs had complementary items in their per-
cost-saving ideas at the all-hands meeting or having sonal performance plans. One respondent noted,
social functions. Respondents noted that recogni- “We show them the ultimate goal of the agency
tion does not have to be costly to be effective. and then explain how it relates to their job.”
A number of respondents indicated that they Work environment
linked agency objectives to their offices’ work by We next asked in-person respondents how they
having their staff visit mission locations, whether managed performance and created a work envi-
or not they needed to take a trip or go on a detail ronment within the OCFO that inspired and
to a program office. One respondent said, “I enabled their staffs to do their best. Over 80% of
want the staff to plan a trip to see the impact of respondents chose to provide comments to this
their work.” Another said, “We brought an agent question, and their comments could form a good
to the all-hands meeting and had him demon- work plan for anyone who wanted to motivate
strate how the new equipment, that we had justi- teams, including personal characteristics, positive
fied in the budget, would save lives.” behaviors, environment and prohibitions.
The final point noted by many respondents was First, there were personal characteristics that
ensuring that employee performance plans had a respondents thought were necessary, including
clear link to agency strategic goals and objectives. being open and listening, saying ‘thank you,’ and
26. 24
treating others as you would want to be treated. There was a lot of discussion of the skills that CFOs
Respondents then identified some important needed and whether current CFOs had them.
positive behaviors, including lead by example, Many thought CFOs basically needed the same
communicate often, protect your staff, delegate, skills that every executive needed. Others discussed
provide the big picture, set goals and objectives being technology savvy, analytic, understanding
and be creative with recognition. policy analysis, having experience in government
budgeting and accounting and understanding the
Respondents next identified the type of environ-
programs of the agency. One said, “The CFO
ment that they thought would inspire the staff to
needs to be a value driver for change.”
do their best, including an environment that was
A number of respondents believe the private
sector CFO model does not fit the needs of gov-
ernment. One respondent noted, “Government
A number of respondents believe the private sector CFO model
CFOs are about compliance; private sector
does not fit the needs of government. One respondent noted, CFOs manage money.” Other respondents men-
“Government CFOs are about compliance; private sector CFOs tioned that the government compensation level
manage money.” would probably keep many good people from
accepting government CFO jobs.
Quite a few respondents discussed political vs.
career CFOs. Some were concerned that political
supportive and respectful of staff, fostered staff
CFOs changed when administrations changed,
contributions, and created a family atmosphere
just when the need for leadership would be the
of trust and teamwork. Finally, respondents
greatest. Others noted that the vetting and
included a few prohibitions: “Don’t micro-
confirmation processes kept good people away.
manage” and “No BS.” One respondent summed
A number of respondents were convinced that
up taking care of your people with “Reward
CFOs needed “practical federal government
whenever you can; discipline when you have to.”
experience” if they were going to be effective.
CFO skills They noted that government experience takes
The final in-person question in this section asked years to obtain. However, one respondent noted
whether the government was attracting the right that political CFOs had a seat at the table with
personalities and skill sets to CFO positions. agency political leadership, something the career
About 90% of the respondents chose to com- CFOs did not enjoy.
ment on this question.
27. 25
Top Challenges
As is usual with our surveys, our last questions environment over the past few years. However, they
focused on the top challenges that survey did have different points of view. Some were trying
to figure out how to get more funding, while others
respondents faced. We asked them what their top were trying to determine how to live with less.
three challenges were and how they would focus their Some just said “resources” or “budget.” A number
limited resources to address them in the short term. of respondents had some variation on the expres-
sion, “do more with less,” but one respondent said,
In person “We have to get away from the phrase, ‘do more
The in-person respondents had a very wide range with less’; we need to choose.”
of challenges. Some were one-off responses like
Running a close second behind budget was
green management, IT security, and contractor
personnel, with more than half of all respondents
oversight, but most of the responses related to
also including this among their three challenges.
budget, personnel, systems, providing service,
This category included many associated phrases,
training and audits.
including recruiting, retaining, succession plan-
The most often mentioned challenge was the ning, people, skills, retirement, workforce and
budget, including increasing requirements, finding turnover. A lot of the personnel challenge was
more cost savings and dealing with continuing driven by budget, such as not having sufficient
reductions. Over half of all respondents included funds to hire staff or having hiring freezes
budget as one of their three challenges, which was because of funding shortfalls. Some was also
not a surprise considering the federal financial the result of the expected retirement tsunami as
28. 26
Baby Boomers, who make up a large portion of question, and those who did answer the question
government personnel, hit retirement age. And did not always provide a meaningful response,
finally, some was the result of problems with instead discussing “continue to support,” “find
hiring and retaining highly skilled people who a way” and “commit to communicating better.”
might be attracted instead by the compensation Some of the specific responses they did pro-
and working conditions in the private sector. vided included, “creative budgeting,” “prioritize
One respondent said, “I don’t have enough requirements,” “use a risk based approach,”
people to get the work done now, and they’re still “make smart investment decisions,” “close five
adding stuff to my plate.” regional offices,” “create a mentor program” and
“change our culture into a more cost-conscious,
About a quarter of the respondents identified
limits-based culture.” A number mentioned
an issue with providing OCFO services to their
using contractors to fill gaps on a short-term
customers and stakeholders. This included the
basis. Some were quite pessimistic; one said,
need to improve their processes and/or realign
“There’s nothing you can do about this.”
their business processes to reflect budget-driven
changes. Some discussed relationships with Online
customers and stakeholders, and others discussed The online respondents gave us quite a mix
meeting customer and stakeholder expectations of responses. Like the in-person respondents,
with reduced funding and staffing. One respon- many mentioned personnel (64% of respon-
dent said, “I need to balance working with less dents), budget (39%), training (25%), systems
resources while maintaining customer expecta- (24%) and audit (10%). Online respondents
tions and quality.” also mentioned communications (15% of
respondents) and processes and customers (9%
About 20% of respondents included systems
of respondents). However, the single largest cat-
among their three challenges. This included
egory for online respondents was management/
problems with existing systems, issues with new
leadership, mentioned by 95% of respondents!
system implementations and concerns about
This category barely registered among in-person
the need and funding for systems that were not
respondents, probably because they are the man-
yet even in the planning phase. One respondent
agement/leadership that was a challenge for the
said, “Our financial systems are antiquated and
online respondents.
cannot give us what we want. They’re going to
fizzle out soon and that’s a real challenge.” The specific topics mentioned as challenges by
the online respondents were varied and included
Training issues, both to keep employees current
with changes and to bring new employees up to • Educating the rest of the agency about our
speed, were mentioned by about 10% of respon- office’s services
dents, and about 8% of respondents saw challenges • Lack of clear direction from senior
related to financial statement and other audits. management
• Aligning our office efforts with senior manage-
Our question also asked respondents how they
ment’s vision
would use their limited resources to address these
• Lack of leadership and trust
challenges. Many did not answer this part of the
29. 27
• Rewarding hard work and dedication
• Replacing managers who do not engender trust These challenges [mentioned by online respondents] indicated
• Low morale and poor motivation (mentioned
an environment where the storm of budget cuts, hiring and pay
by numerous respondents)
freezes and increasing requirements have created a workforce
These challenges indicated an environment where worried about their own futures and the future of their agencies.
the storm of budget cuts, hiring and pay freezes and
increasing requirements have created a workforce
worried about their own futures and the future of
their agencies. This is something that CFOs and constraints to these solutions. They also had a
other agency leaders must address soon. number of responses that help to clarify what
their challenges were:
As with the in-person survey, our question also
asked respondents how they would use their • Convince leadership to leave alone what is not
limited resources to address these challenges in the broken
short term. More online respondents answered • Offer more telecommuting
this part of the question than did in-person • Prod top management to lobby with external
respondents, though, like the in-person respon- stakeholders on the staff’s behalf
dents, many of those who did answer did not • Stop wasting funds on under-qualified hires
always provide a meaningful response, instead dis- • Raise the energy level in the office
cussing various ways to continue current activities • Defend against more budget cuts
such as “continue to request resources,” “continue • Use a balanced scorecard to attach urgency to
to have follow-up sessions” and “continue to find results
efficiencies.” They also suggested “Figure out
As one might expect for field operations per-
how to do more with less,” “spend current dollars
sonnel, the challenges and responses of the
wisely” and “get by with what we have.”
online respondents were much more practical
Their solutions to management/leadership chal- and inward looking. The respondents were also
lenges were often to hire more staff or contrac- very interested in identifying their challenges and
tors and to provide training. Apparently, budget responses. Now it will fall to management/lead-
issues were not seen by online respondents as ership to determine how they can respond.