Strategic Theme 5: Management Processes

Strengthen management processes to enable effective implementation of strategic themes, increase operating efficiencies, and reduce administrative burden.

Objective 5.1: Focus on enterprise issues.

Staff will work on enhancing operational processes that support effective implementation of strategic themes, increase operating efficiencies, and reduce administrative burden.

Accomplishments

• Completed the set-up of the Strategic Performance Office (SPO).

  • Established the SPO, developed the office's charter, and implemented policies and procedures.
  • Launched the SPO web page in April.

• Provide periodic reports on the achievement of strategic objectives to the Committee on Board Affairs (CBA), the Executive Committee of the Board (ECB), chief operating officer (COO), and chief financial officer (CFO).

  • Published on the public website the Strategic Framework 2012-15 in February, the Annual Performance Report 2012 in May, and the Annual Performance Plan 2013 in June.²
  • Provided the CBA and the ECB quarterly internal performance reports describing accomplishments against strategic goals and objectives.

• Seek opportunities for enhancing operational processes.

  • Travel staff redesigned their corporate website to provide greater access to information and make it easier to use.
  • Division of Financial Management (DFM) staff completed the renumbering of all positions within the HRIS system. The new numbering system will be more efficient when making personnel changes, including reorganizations, and provide an enhanced ability to track framework positions.

• Integrate an Investment Review Board (IRB) into the ongoing oversight and governance of large and significant strategic projects.

  • Established the IRB in July and developed a charter. The primary purpose of the IRB is to review projects deemed significant or new initiatives exceeding $1 million.
  • During the year, the IRB reviewed 11 ongoing projects and three new initiatives. The IRB chair provided the IRB's feedback to each presenting team.

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Objective 5.2: Strengthen financial planning accountability.

Staff will work with key stakeholders to develop and implement changes to the planning and budget process. Staff will also propose enhancements to financial performance reporting to focus on the Board's fiduciary responsibility as a trusted steward of public funds.

Accomplishments

• Provided quarterly financial performance reports to the CBA and the ECB. The reports provide updates on actual expenses versus budgets, position vacancies, and the status of compliance and other financial management activities.
• Conducted quarterly budget reviews with each division and integrated the results of these meetings into current-year and long-range budget forecasts.
• Provided summary tables, charts, and analysis of salary components and new initiatives for briefings and discussions with the ECB and CBA.
• Increased the level of account analysis and support for salary components and other significant line items for goods and services and capital.

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Objective 5.3: Reduce financial management administrative burden.

Staff will engage a variety of stakeholders to identify opportunities to reduce administrative burden in the planning and budget processes.

Accomplishments

• Formalized the process for evaluating strategic initiatives using quarterly meetings and other methodologies.

  • Held regular meetings with stakeholders involved with each of the strategic themes to evaluate progress toward implementing strategic initiatives.
  • Used the tracking tool rolled out early in the year to help monitor progress toward accomplishing high-level milestones for strategic projects.
  • Enhanced the tracking tool's capabilities to permit its use for operational projects.

• Formalize and document the annual budget process.

  • Division of Financial Management staff established budget guidance that included growth targets in the Board's base budget and objectives for growth in specific cost categories. The guidance helped ensure consistency across all divisions.
  • Delegations of Administrative Authority policy revisions were approved by the Board in December. Revisions include approval authorities that contribute to a more efficient budgeting process.

• Enhance automated tools for providing financial management information to division administrative staff and other key decisionmakers.

  • DFM staff developed the first version of the long-range budget forecasting tool.
  • Upgraded Oracle Financials to Release 12 to enhance functionality.
  • DFM staff developed reports to provide quarterly travel metrics to division administrative staff.
  • DFM staff developed reports and graphs to show trends in vacancies across each division, which were used to assist with the development of the 2014 budget.
  • DFM worked with the information technology group to enhance the Federal Reserve Board Budgeting System to allow for more user interaction throughout the process.

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References

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