Best in Class Finance Functions For Police Forces

Background

Police funding has risen by £4.8 billion and 77 per cent (39 per cent in real terms) since 1997. However the days where forces have enjoyed such levels of funding are over.

Chief Constables and senior management recognize that the annual cycle of looking for efficiencies year-on-year is not sustainable, and will not address the cash shortfall in years to come.
Facing slower funding growth and real cash deficits in their budgets, the Police Service must adopt innovative strategies which generate the productivity and efficiency gains needed to deliver high quality policing to the public.

The step-change in performance required to meet this challenge will only be achieved if the police service fully embraces effective resource management and makes efficient and productive use of its technology, partnerships and people.

The finance function has an essential role to play in addressing these challenges and supporting Forces’ objectives economically and efficiently.

Challenge

Police Forces tend to nurture a divisional and departmental culture rather than a corporate one, with individual procurement activities that do not exploit economies of scale. This is in part the result of over a decade of devolving functions from the center to the.divisions.

In order to reduce costs, improve efficiency and mitigate against the threat of “top down” mandatory, centrally-driven initiatives, Police Forces need to set up a corporate back office and induce behavioral change. This change must involve compliance with a corporate culture rather than a series of silos running through the organization.

Developing a Best in Class Finance Function

Traditionally finance functions within Police Forces have focused on transactional processing with only limited support for management information and business decision support. With a renewed focus on efficiencies, there is now a pressing need for finance departments to transform in order to add greater value to the force but with minimal costs.

1) Aligning to Force Strategy

As Police Forces need finance to function, it is imperative that finance and operations are closely aligned. This collaboration can be very powerful and help deliver significant improvements to a Force, but in order to achieve this model, there are many barriers to overcome. Finance Directors must look at whether their Force is ready for this collaboration, but more importantly, they must consider whether the Force itself can survive without it.

Finance requires a clear vision that centers around its role as a balanced business partner. However to achieve this vision a huge effort is required from the bottom up to understand the significant complexity in underlying systems and processes and to devise a way forward that can work for that particular organization.

The success of any change management program is dependent on its execution. Change is difficult and costly to execute correctly, and often, Police Forces lack the relevant experience to achieve such change. Although finance directors are required to hold appropriate professional qualifications (as opposed to being former police officers as was the case a few years ago) many have progressed within the Public Sector with limited opportunities for learning from and interaction with best in class methodologies. In addition cultural issues around self-preservation can present barriers to change.

Whilst it is relatively easy to get the message of finance transformation across, securing commitment to embark on bold change can be tough. Business cases often lack the quality required to drive through change and even where they are of exceptional quality senior police officers often lack the commercial awareness to trust them.

2) Supporting Force Decisions

Many Finance Directors are keen to develop their finance functions. The challenge they face is convincing the rest of the Force that the finance function can add value – by devoting more time and effort to financial analysis and providing senior management with the tools to understand the financial implications of major strategic decisions.

Maintaining Financial Controls and Managing Risk

Sarbanes Oxley, International Financial Reporting Standards (IFRS), Basel II and Individual Capital Assessments (ICA) have all put financial controls and reporting under the spotlight in the private sector. This in turn is increasing the spotlight on financial controls in the public sector.

A ‘Best in Class’ Police Force finance function will not just have the minimum controls to meet the regulatory requirements but will evaluate how the legislation and regulations that the finance function are required to comply with, can be leveraged to provide value to the organization. Providing strategic information that will enable the force to meet its objectives is a key task for a leading finance function.

3) Value to the Force

The drive for development over the last decade or so, has moved decision making to the Divisions and has led to an increase in costs in the finance function. Through utilizing a number of initiatives in a program of transformation, a Force can leverage up to 40% of savings on the cost of finance together with improving the responsiveness of finance teams and the quality of financial information. These initiatives include:

Centralization

By centralizing the finance function, a Police Force can create centers of excellence where industry best practice can be developed and shared. This will not only re-empower the department, creating greater independence and objectivity in assessing projects and performance, but also lead to more consistent management information and a higher degree of control. A Police Force can also develop a business partner group to act as strategic liaisons to departments and divisions. The business partners would, for example, advise on how the departmental and divisional commanders can meet the budget in future months instead of merely advising that the budget has been missed for the previous month.

With the mundane number crunching being performed in a shared service center, finance professionals will find they now have time to act as business partners to divisions and departments and focus on the strategic issues.

The cultural impact on the departments and divisional commanders should not be underestimated. Commanders will be concerned that:

o Their budgets will be centralized
o Workloads would increase
o There will be limited access to finance individuals
o There will not be on site support

However, if the centralized shared service center is designed appropriately none of the above should apply. In fact from centralization under a best practice model, leaders should accrue the following benefits:

o Strategic advice provided by business partners
o Increased flexibility
o Improved management information
o Faster transactions
o Reduced number of unresolved queries
o Greater clarity on service and cost of provision
o Forum for finance to be strategically aligned to the needs of the Force

A Force that moves from a de-centralized to a centralized system should try and ensure that the finance function does not lose touch with the Chief Constable and Divisional Commanders. Forces need to have a robust business case for finance transformation combined with a governance structure that spans operational, tactical and strategic requirements. There is a risk that potential benefits of implementing such a change may not be realized if the program is not carefully managed. Investment is needed to create a successful centralized finance function. Typically the future potential benefits of greater visibility and control, consistent processes, standardized management information, economies of scale, long-term cost savings and an empowered group of proud finance professionals, should outweigh those initial costs.

To reduce the commercial, operational and capability risks, the finance functions can be completely outsourced or partially outsourced to third parties. This will provide guaranteed cost benefits and may provide the opportunity to leverage relationships with vendors that provide best practice processes.

Process Efficiencies

Typically for Police Forces the focus on development has developed a silo based culture with disparate processes. As a result significant opportunities exist for standardization and simplification of processes which provide scalability, reduce manual effort and deliver business benefit. From simply rationalizing processes, a force can typically accrue a 40% reduction in the number of processes. An example of this is the use of electronic bank statements instead of using the manual bank statement for bank reconciliation and accounts receivable processes. This would save considerable effort that is involved in analyzing the data, moving the data onto different spreadsheet and inputting the data into the financial systems.

Organizations that possess a silo operating model tend to have significant inefficiencies and duplication in their processes, for example in HR and Payroll. This is largely due to the teams involved meeting their own goals but not aligning to the corporate objectives of an organization. Police Forces have a number of independent teams that are reliant on one another for data with finance in departments, divisions and headquarters sending and receiving information from each other as well as from the rest of the Force. The silo model leads to ineffective data being received by the teams that then have to carry out additional work to obtain the information required.

Whilst the argument for development has been well made in the context of moving decision making closer to operational service delivery, the added cost in terms of resources, duplication and misaligned processes has rarely featured in the debate. In the current financial climate these costs need to be recognized.

Culture

Within transactional processes, a leading finance function will set up targets for staff members on a daily basis. This target setting is an element of the metric based culture that leading finance functions develop. If the appropriate metrics of productivity and quality are applied and when these targets are challenging but not impossible, this is proven to result in improvements to productivity and quality.

A ‘Best in Class’ finance function in Police Forces will have a service focused culture, with the primary objectives of providing a high level of satisfaction for its customers (departments, divisions, employees & suppliers). A ‘Best in Class’ finance function will measure customer satisfaction on a timely basis through a metric based approach. This will be combined with a team wide focus on process improvement, with process owners, that will not necessarily be the team leads, owning force-wide improvement to each of the finance processes.

Organizational Improvements

Organizational structures within Police Forces are typically made up of supervisors leading teams of one to four team members. Through centralizing and consolidating the finance function, an opportunity exists to increase the span of control to best practice levels of 6 to 8 team members to one team lead / supervisor. By adjusting the organizational structure and increasing the span of control, Police Forces can accrue significant cashable benefit from a reduction in the number of team leads and team leads can accrue better management experience from managing larger teams.

Technology Enabled Improvements

There are a significant number of technology improvements that a Police Force could implement to help develop a ‘Best in Class’ finance function.

These include:

A) Scanning and workflow

Through adopting a scanning and workflow solution to replace manual processes, improved visibility, transparency and efficiencies can be reaped.

B) Call logging, tracking and workflow tool

Police Forces generally have a number of individuals responding to internal and supplier queries. These queries are neither logged nor tracked. The consequence of this is dual:

o Queries consume considerable effort within a particular finance team. There is a high risk of duplicated effort from the lack of logging of queries. For example, a query could be responded to for 30 minutes by person A in the finance team. Due to this query not being logged, if the individual that raised the query called up again and spoke to a different person then just for one additional question, this could take up to 20 minutes to ensure that the background was appropriately explained.

o Queries can have numerous interfaces with the business. An unresolved query can be responded against by up to four separate teams with considerable delay in providing a clear answer for the supplier.

The implementation of a call logging, tracking and workflow tool to document, measure and close internal and supplier queries combined with the set up of a central queries team, would significantly reduce the effort involved in responding to queries within the finance departments and divisions, as well as within the actual divisions and departments, and procurement.

C) Database solution

Throughout finance departments there are a significant number of spreadsheets utilized prior to input into the financial system. There is a tendency to transfer information manually from one spreadsheet to another to meet the needs of different teams.

Replacing the spreadsheets with a database solution would rationalize the number of inputs and lead to effort savings for the front line Police Officers as well as Police Staff.

D) Customize reports

In obtaining management information from the financial systems, police staff run a series of reports, import these into excel, use lookups to match the data and implement pivots to illustrate the data as required. There is significant manual effort that is involved in carrying out this work. Through customizing reports the outputs from the financial system can be set up to provide the data in the formats required through the click of a button. This would have the benefit of reduced effort and improved motivation for team members that previously carried out these mundane tasks.

In designing, procuring and implementing new technology enabling tools, a Police Force will face a number of challenges including investment approval; IT capacity; capability; and procurement.

These challenges can be mitigated through partnering with a third party service company with whom the investment can be shared, the skills can be provided and the procurement cycle can be minimized.

Conclusion

It is clear that cultural, process and technology change is required if police forces are to deliver both sustainable efficiencies and high quality services. In an environment where for the first time forces face real cash deficits and face having to reduce police officer and support staff numbers whilst maintaining current performance levels the current finance delivery models requires new thinking.

While there a number of barriers to be overcome in achieving a best in class finance function, it won’t be long before such a decision becomes mandatory. Those who are ahead of the curve will inevitably find themselves in a stronger position.

What Is An Online Business Manager, and Is It Time for You to Hire One?

Are you a successful woman entrepreneur whose multiple 6-figure business feels out of control?Are you stuck? Overwhelmed? Frustrated?Ever thought seriously about walking away because you’re so bogged down with business operations that you can’t follow your passion?If this sounds like you, it’s time to find an online business manager.What’s an Online Business Manager? According to Tina Forsyth, the author of Becoming an Online Business Manager, the official definition of an Online Business Manager (OBM) is:A virtually based support professional who manages online based businesses, including the day-to-day management of projects, operations, team members, and metrics.An OBM isn’t a virtual assistant who performs tasks. He or she is a professional business manager who runs the company’s daily operations to give the owner energy and time to focus on strategic growth. The OBM gives the owner permission to be the Visionary and serve her clients, plan the company’s growth and future, and use her gifts to their fullest potential.The OBM keeps all the balls in the air as the Integrator of the business. Gino Wickman and Mark C. Winters first defined the Integrator role in their book, Rocket Fuel: The One Essential Combination that Will Get You More of What You Want from Your Business. The Integrator harmoniously combines the major functions of the business (sales, marketing, operations, and finance), runs the organization, and manages day-to-day issues. This role is literally the glue that holds the people, processes, systems, and strategy of the company together.The Integrator creates space so the business owner, the Visionary, can fully step into the CEO role and do what she’s called to do-change the world.Finding an Integrator for your business would take a big load off your mind and off your plate, wouldn’t it?I help women business owners who need that time and space. For the past eight years, as an Integrator in my clients’ businesses, I’ve had the great honor of making someone else’s vision happen.You can’t do it all, and you don’t want to.When you started your business, you had to wear all the hats. You had to be the visionary and the manager. You knew it wasn’t your best fit, but you could do it until the business grew a little and you could hire help.Soon you hired someone to take care of the tedious work, but you couldn’t let go of much more. You still needed to lead and manage alone. You told your family (and yourself) that wearing both hats wouldn’t last much longer and you could handle it.Now, your business keeps growing and you spend way too much time managing and not enough time leading and serving. You don’t have enough time to decide where the business is going because you’re trying to keep up with managerial tasks you never wanted.You started your business to change the world and to have the freedom to enjoy life. At this point, you can’t do either because you can’t get out of that manager role long enough to catch your breath!Hitting the ceiling is inevitable. Every successful woman entrepreneur I’ve seen comes to the point where she’s exhausted and can go no farther – she can’t continue to manage and grow the business by herself. She needs online business management services so she can move into the CEO position and Visionary role to grow her company.Transform your business with an OBMYour business needs a Visionary and an Integrator to be successful, and you can’t be both for long and sustainable growth. As the Visionary, you need an Integrator to implement and drive your vision, and your Integrator needs you to lead the company’s direction and strategize its future.My specialty is working with multiple 6-figure clients who have hit that growth ceiling. They know they can’t continue being in charge of everything. I’m an Online Business Consultant, Certified Online Business Manager, and most importantly, a diehard Integrator in every sense of the term.My clients are high-achieving women entrepreneurs who want to change the world, and their visions are huge. They have proven business models that generate multiple 6-figure+ revenues. Their desire to build an empire is inspirational, and they’re ready to turn over the reins of management to a trusted professional who will move the business forward.Are you ready for your Integrator?Have you hit the ceiling in creating new growth? Feeling overwhelmed or frustrated with all the “DOING” in your business?

Nutritional Supplements – Should I Take Them?

Lots of people take nutritional supplements to bridge nutritional gaps in their diet or as proactive health measures against certain health conditions. Are you sure you are taking the right nutritional supplement specific to your health needs? Taking some time to assess your health needs can help you choose the best supplement for optimal health.But your question may be more basic: Do I really need to take nutritional supplements? We live in unique times. Stress, pollution, conveniently accessible processed foods, unhealthy eating habits and sedentary lifestyles overtime can take their heavy toll on our health. This may manifest itself in bouts of tiredness, unhealthy weight gain, digestive problems, insomnia, or a weak immune system. In addition to these common symptoms of poor health, each of us has uniquely individual health needs.Taking care of your body today is like investing in your health for tomorrow. Let’s address some common reasons why many people do not take nutritional supplements. And those who do take nutritional supplements may also discover that you can benefit by changing or adding nutritional supplements to your diet as you assess your individual health needs.Let’s begin with:
I don’t need nutritional supplements. I eat healthy and get enough nutrition through my diet.I would suggest you do a simple exercise to confirm whether your diet is meeting your nutritional needs. Note down everything that you eat for two weeks, including the quantity. Check a nutrition table and track the nutrient value of everything you eat. After two weeks, work out your daily average and check your daily rating against your RDAs. You may be in for a slight shock! Statistics show that most Americans don’t meet their nutritional needs.
Lack of protein, too many carbohydrates. You might find that your diet lacks protein but is too high in carbohydrates. This is very common in the American diet. Cutting down on the carbs and supplementing your diet with spirulina or chlorella (high-protein content) will help fill this nutritional gap.
Lack of fiber. Another common feature is lack of adequate fiber. Fiber supplements are available as an individual product or may be included as an ingredient in a whole food nutritional supplement. Fiber is known to bind toxins in your GI tract and help speed its transit through your digestive system, thus minimizing their absorption in the body. Fiber is also known to promote healthy cholesterol and blood sugar levels. If your diet falls short on many RDA counts, consider taking a superfood supplement which includes multi-vitamins, minerals, protein, dietary fiber, probiotics and enzymes for good digestion.
I have a busy life. I’ve tried taking them, but my schedule doesn’t allow me to be consistent. I travel a lot.If you lead a busy lifestyle, taking a nutritional supplement regularly will help you have the energy and concentration power you need to perform at your maximum best. You may be on the go all the time and miss out on meals. Nutritional supplements are available in convenient-to-carry individual packets. This is usually in powdered form to be mixed with water. You can carry packets with you any where you go, and use it any time you feel the need for an energy pick-up.It is important to attend to your health needs as a priority, in addition to the many other important demands in your life. A busy schedule can add stress to your life. Stress can increase the toxin levels in your body. Not only would your body need to be armed with B-complex, but nutrients like resveratol and omega 3s can help to increase your concentration and cognitive abilities. Green tea is also known to have soothing benefits for a tired mind.
I don’t know which nutritional supplement to take. Take some time to assess your health needs. The simple exercise mentioned above will help you find your nutritional needs. You can either adjust your diet to meet your needs or introduce supplements to bridge the nutritional gaps. If you are still unsure, seek the advice of your doctor before you take any supplement.However, everyone can benefit from taking a multi-vitamin supplement. An effervescent multi-vitamin formula is the best since it allows 99% bioavailability. Look for one from a reputed company.
I take a multi-vitamin. I don’t think I need to take anything else.As research on nutrition advances, there are more nutritional supplements available to strategically help you with specific health needs. Some might be formulated for health conditions you are facing or you may likely face because you are in a higher risk category for such diseases. These include:

High cholesterol levels. If your cholesterol levels test high, or you have a family history of coronary disease, then you should look for herbal supplements that can help you maintain healthy cholesterol levels. Omega 3 supplementation is advisable for improved heart health. Look for a pharmaceutical grade fish oil. Other nutrients for heart health include resveratrol, cocoa and green tea. Some products contain a combination of all 3 for powerful antioxidant power that promotes cardiovascular health.
Diabetes. Green tea is also known to help support healthy blood sugar levels. Green tea supplements are available in various forms.
Arthritis: Omega 3 fatty acids, along with other nutrients such as glucosamine sulfate, methyl sulfonyl methane (MSM), hyal joint have been well researched for their role in supporting joint health.
Stress Induced Conditions. Stress is known to cause poor immune health and a host of health issues such as premature aging due to free radical damage. Antioxidants also help to reduce free radical activity. Free radical activity is the unstable activity of cells which can lead to their malfunction and malformation. Antioxidants help maintain normal cellular growth and repair of cells.
I’m scared I may overdose.It is very unlikely that you will overdose from nutritional supplements. Nutritional supplements do not provide you your complete RDAs-just a portion of them. The rest you must get from eating a balanced diet.
Many health problems can be linked to nutritional deficiencies. For some this may mean that the road to better health may lie in improving nutritional habits. This is where nutritional supplements can play an effective role in supporting your health.Nutrition experts recommend that you get your nutrition from your diet as often as possible. Nutritional supplements are to be taken in addition to a well-balanced diet. A regular exercise routine can benefit your health as well. Discuss with your doctor about taking supplements that could strategically meet your individual health needs.