Bloom Reports State of DFAS During PDI.

Editor's Note: At the time of publication DFAS hail unveiled a new architectural framework called the DFAS Business Evolution. The following article is provided to ASMC readership in place of a PDI service report.

"In today's environment of technological changes, the Defense Finance and Accounting Service (DFAS) must be a world-class provider of finance and accounting services with a strong corporate identity. We want to be your trusted, innovative financial advisor. We want to be the employer of choice, providing a progressive and professional work environment. Most importantly, we want to be competitive, offering the best value to our customers," said Thomas R. Bloom, DFAS director, in his keynote address at the Philadelphia PDI 2000.

Bloom set the tone for a series of DFAS presentations, highlighting the fundamental shift in the way DFAS, the world's largest finance and accounting operation, does business, and elaborated on his vision for the agency's future.

"We're an agency made up of great people, with a clear mission, serving America's best. Our goal is to provide responsive, professional finance and accounting service to the Department of Defense (DoD), and our success is defined by how well we support our soldiers, sailors, airmen, marines, civilians, retirees, and annuitants."

Change is an integral part of the heritage of the people of DFAS. Activated in January 1991, DFAS has consolidated over 330 DoD financial management field sites into just 26, eliminating redundancy, facilitating standardization, Improving and speeding up service to customers, and increasing productivity. Since 1991, through consolidation and reform, DFAS has saved almost $1 billion in operating costs.

Bloom announced that DFAS was now examining a new architectural framework to transform DoD financial management and business practices to better meet the changing needs of customers. To optimize DFAS service delivery to DoD customers, single senior-level points of contact will be named for each major customer and DFAS business line.

This architectural framework has been dubbed the "DFAS Business Evolution" (DBE), and is the fruit of a team effort by more than 150 DFAS staff nationwide. Under the DBE framework, responsible DFAS executives will focus on building solid relationships with their assigned customer, thus ensuring a clear understanding of the customer's specific financial and accounting needs. Similarly, each DFAS business line (e.g., Accounting Services, Military and Civilian Pay Services, and Commercial Pay Services) will be managed by a single responsible senior-level executive. This form of matrix management will add value and establish clear accountability for the finance and accounting services DFAS delivers.

According to Bloom, the DBE will ensure that DFAS listens to its customers and understands what they need. That information then will be used to develop and deliver products and services that truly answer those customers' needs. Inherent in the DBE architecture are many improvements to customer service including quicker responses to customer requests for service, support, or an inquiry. With DBE, implementing industry best practices to improve DFAS product delivery and reduce costs will be an easier job, affording customers the opportunity to benefit from the most upto-date business practices. (Note: The DBE proposal has been approved and implementation began in August 2000.)

"Improved customer service is key to the survival of DFAS. I want us to be customer focused," Bloom said. "We need outstanding direct communication with our customers.

Bloom's vision is to transform DFAS to be a true, trusted financial advisor. Strong partnerships, such as those created with U.S. Transportation Command and U.S. Special Operations Command, are building confidence in DFAS's ability to provide independent and objective financial advice and innovative financial management services.

DFAS must continually improve business practices if the agency wants to stay the best value for its customers, said Bloom. An example of the programs created to meet this goal is the Employee/Member Self Service (E/MSS), a paperless initiative. E/MSS allows customers to have more control over their pay accounts, letting them change such things as their federal tax withholding status and exemptions, change their correspondence address, and update their financial institution electronic fund transfer information online or with a pushbutton telephone.

Competitive sourcing is one tool to ensure that customers receive the best value, said the director. Following DoD policy and guidance, DFAS uses competition between government agencies and private-sector companies to improve services and save money. "We feel that we can compete against anyone and are not afraid of competition," Bloom asserted. "I think we're going to stack up pretty well against the private sector."

Three current studies in retired and annuitant pay, civilian pay, and security assistance accounting are expected to retool the programs to ultimately save significant dollars annually.

"Our ultimate goal is to provide better service at lower cost," said Bloom. "Calling upon the expertise of a senior-level working group of our business partners, we changed our solicitation process to encourage more fair competition." One such way the process was improved was that all pertinent documentation has been loaded on a compact disc and is mailed to interested parties rather than requiring them to sit in a government library and spend many hours reading and raking notes.

Bloom is keen on creating an atmosphere within DFAS that makes the agency an employer of choice. A 1999 organizational assessment survey showed that DFAS employees felt they did not have meaningful input and that their voices were not heard. There was also a strong belief that communication within the agency was inadequate.

These concerns are being addressed through making more training opportunities available, forming working partnerships with unions and offering more avenues to express opinions. Bloom said employees now play a bigger role. Overall communication has been improved through a variety of innovative media. For example, Bloom regularly e-mails video messages directly to each of the agency's 19,000 employees.

Bloom stressed that although DFAS has come a long way, there is still much to be done. His immediate priorities are forging strong customer relationships, developing improved finance and accounting systems while maintaining legacy systems, providing quality accounting information to DFAS customers, and training employees. The ultimate outcome will be the transformation of DFAS into a world leader in finance and accounting.