City Government Reduces Financial Reporting Time By 73% With GLSS
LOCATION
Texas
INDUSTRY
Government
FUNCTION
Finance
IMPROVEMENT
73%
PROJECT SUMMARY
- Business Case: Timely and accurate financial reports improve decision making ability of the administration and council.
- Root Cause Analysis:
- Outside vendor reporting delays.
- Not enough non-critical personnel are trained cross-functionally.
- Down-line staff are not explicitly trained to complete the entry and verification steps.
- Solutions Implemented:
- Cross-train current staff to complete and verify process steps before handoff to CFO.
- Project Result:
- Reduction in time necessary to produce and provide up-to-date financial position information to City Council and citizens.
- Better-trained and more motivated staff have a sense of pride in their roles and responsibilities.
- Outside stakeholders such as banks and rating agencies have up-to-date financial information.
SUMMARY
- The problem: This city government needed to tackle the persistent delays in completing monthly financial reports. These delays were causing significant issues for the administration, as they often had to make critical financial decisions without timely and accurate information.
- Using GLSS Green Belt Training & Certification, the time required to produce and provide up-to-date financial information to the City Council and citizens was significantly reduced from 25 days to 6.7 days—a 73% reduction!
THE PROBLEM
Timely financial reporting is crucial for effective governance and decision-making. The delays in completing monthly financial reports meant that the administration lacked the most current financial data, leading to decisions based on outdated information. This not only impacted the efficiency of the administration but also the trust and confidence of outside stakeholders such as banks and ratings agencies. Furthermore, the delays affected the City Council and citizens, who rely on accurate financial data to understand the city’s financial position.
THE ROOT CAUSES
The project team identified three primary root causes for the delays:
- Outside Vendor Reporting Delays: Dependence on external vendors for key financial data contributed significantly to the delays. These vendors often did not provide the necessary information promptly.
- Lack of Cross-Functional Training: There were not enough personnel trained cross-functionally to handle the various stages of the financial reporting process. This meant that specific tasks could only be completed by certain individuals, creating bottlenecks.
- Insufficient Training for Down-Line Staff: The staff responsible for the initial entry and verification of financial data were not adequately trained. This led to errors and inefficiencies, further slowing down the process.
THE SOLUTIONS
To address these issues, several solutions were implemented:
- Cross-Training Current Staff: The project involved cross-training existing staff to handle and verify process steps before handing them off to the Chief Financial Officer (CFO). This approach ensured that more team members were capable of completing various tasks, reducing bottlenecks and increasing flexibility.
- Enhanced Training Programs: Down-line staff received explicit training on completing entry and verification steps accurately and efficiently. This training aimed to reduce errors and improve the overall speed of the process.
- Vendor Management Improvements: Steps were taken to improve coordination and communication with outside vendors, ensuring that they provided the necessary data on time. This involved setting clear deadlines and establishing accountability measures.
THE RESULTS
The implementation of these solutions led to several positive outcomes:
- Reduced Completion Time: The time required to produce and provide up-to-date financial information to the City Council and citizens was significantly reduced, from 25 days to 6.7 days—a 73% reduction. This allowed for more timely and informed decision-making.
- Improved Staff Competence and Morale: Staff members who were cross-trained and received additional training felt more competent and motivated. They developed a sense of pride in their roles and responsibilities, leading to a more engaged and effective workforce.
- Enhanced Stakeholder Confidence: Outside stakeholders, including banks and rating agencies, now had access to up-to-date financial information. This improved the city’s credibility and could potentially lead to better financial terms and ratings.
CONCLUSION
This project successfully addressed the delays in the financial reporting process through targeted training and improved vendor management. By cross-training staff and enhancing their skills, the organization not only improved the efficiency of its reporting but also boosted staff morale and stakeholder confidence. This project underscores the importance of timely and accurate financial data in governance and demonstrates the value of investing in GLSS Green Belt Training & Certification.
*We value our clients’ confidentiality. While we’ve changed their names, the results are real.
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