Sustainable Public Financial Management

New Departmental Individual Standing Offer (DISO) provides Government of Canada with extended product choices and licensing options

FreeBalance, a global software company that helps governments leverage robust Government Resource Planning (GRP) technology to accelerate country growth, today announced it has renewed and updated its DISO for the Government of Canada. The FreeBalance DISO (E60ET-9-0010/001/ET) is a standing offer for software products negotiated with Public Works and Government Services Canada (PWGSC). The DISO provides a supply arrangement with standard pricing available to an estimated 350,000 computer users in the Government of Canada.

The FreeBalance Accountability Suite is designed specifically for public financial and human resource management. The GRP software provided by FreeBalance through the DISO covers the entire budget cycle including budget preparation and budget execution. FreeBalance solutions are built using technology that supports the unique and evolving requirements of government, including the support of modern Government Resource Planning (GRP), Government Performance Management, Government 2.0, Shared Services and Service Oriented Architecture (SOA) needs.

“We are very pleased to announce the new DISO pricing for the Government of Canada,” said Manuel Pietra, President & CEO of FreeBalance. “We’ve worked closely with our Government of Canada clients to ensure that the latest FreeBalance DISO provides the necessary pricing and deployment flexibility to move forward with the next generation of FreeBalance technology.”

The FreeBalance DISO is effective as of May 1, 2010. The FreeBalance DISO provides simplified categories for pricing and expanded product pricing options. FreeBalance is one of the few vendors in the market who offer a concurrent user license model. Canadian government organizations can combine named user, concurrent user and cloud pricing. Enterprise level pricing is also available. The FreeBalance DISO pricing is aligned with the expanded product choices available to the Government of Canada, including the web-based FreeBalance Accountability Suite Version 7. The DISO maintains the FreeBalance classic product offering with a firm commitment to continued support. The FreeBalance DISO also includes the ability for customers to transition to web-based products in a phased and hybrid manner.

The FreeBalance Accountability Suite is one of the most widely deployed financial management systems inside the Government of Canada. More than 60 government departments and agencies use FreeBalance software for enhanced public financial management. Twenty eight of these government departments and agencies, including the government of Nunavut, are members of the FreeBalance Government of Canada Cluster (GCC). The FreeBalance GCC meets regularly with special committees assisting specific product initiatives. FreeBalance works closely with the FreeBalance GCC to set product directions, review product specifications, provide beta testing and certify new versions of the FreeBalance Accountability Suite. 

Annual Conference in Miami to explore Public Financial Management in the Era of “The New Normal”

FreeBalance, a global software company that helps governments leverage robust Government Resource Planning (GRP) technology to accelerate country growth, today announced it is demonstrating its GRP solution, the FreeBalance Accountability Suite, at the ICGFM Spring Conference, May 17 – 21, 2010 in Miami, USA. The FreeBalance Accountability Suite delivers Government 2.0 functionality through providing government knowledge management and collaboration functionality integrated with budgetary and financial transactions. Government 2.0 solutions drive budget predictability through transparency, participation and collaboration. The ICGFM Miami conference enables public financial management (PFM) practitioners and development partners to share good practices. To register for the event, visit www.icgfm.org.

“The economic realities resulting from the worst financial crisis in 70 years are commonly referred to as the ‘new normal’,” said Manuel Pietra, President & CEO of FreeBalance. “Many budget preparation software applications used by governments are ineffective in handling financial crisis. Governments can use effective budget preparation, scenario planning and budget execution components of the FreeBalance GRP solution to identify the effects of financial crisis. This enables governments to react quickly with minimum disruption to government objectives.”

During the ICGFM Miami conference, presentations, blog posts, and other web 2.0 social networking tools will be available, including:

• Event blog: http://icgfm.blogspot.com/
• Picture gallery: http://www.flickr.com/photos/icgfm/
• Videos: http://www.youtube.com/user/icgfmconference
• Presentations: http://www.youtube.com/user/icgfmconference
• Documents and Journal Articles: http://www.scribd.com/icgfmconference
• Social Networking: http://www.linkedin.com/groups?gid=1677477
• Twitter: http://twitter.com/freebalance

The International Consortium on Government Financial Management (ICGFM) is a non-profit organization dedicated to improving public financial management so that governments may better server their citizens. The ICGFM provides knowledge transfer for good practices through conferences, forums and the publication of the International Journal on Government Financial Management.

FreeBalance is a Sustaining Member of the ICGFM. Other members include The World Bank; The International Monetary Fund; the United States Agency for International Development – Inspector General; the Association of Government Accountants (USA); Grant Thornton; and The Development Gateway Foundation. FreeBalance executives involved with the ICGFM include Manuel Pietra, a member of the Board of Directors, and Doug Hadden, a member of the Executive Committee.

FreeBalance customers span the globe and the user community includes public financial management professionals in 18 countries, including Namibia, Sierra Leone, Uganda, Southern Sudan, Timor-Leste, Afghanistan, Kosovo, and Iraq. FreeBalance operates in 15 customer time zones. FreeBalance has more than 60,000 users around the world. FreeBalance software manages a global civil service workforce of 1,500,000, and also manages a quarter trillion ($US) annual budgets worldwide.

FreeBalance President and CEO, Manuel Pietra, has been nominated for the for Peter Brojde Award for Next Generation Executive Leadership by the CATA Alliance.

How has Manuel achieved profitable and responsible growth for FreeBalance? Manuel has 3 lessons learned:

1. Decision-making tools
2. Customer-centricity
3. Social responsibility

Decision-Making Tools

FreeBalance leverages the “Six Thinking Hats” approach developed by Edward de Bono. The company was organized like most software companies when Manuel joined in March 2006.  The organization structure needed to adapt to better serve the market. And, the company needed to make numerous strategic decisions. Manuel assembled the management team. He provided training materials on the technique. He described some high level objectives. Then he left the room. Manuel believes that executives gain more control by relinquishing control.

The 6 Hats technique is used throughout the company and with customers. Members of the FreeBalance International Steering Committee leverage the technique when prioritizing product roadmap items.

Customer Centricity

Most software companies are not customer-centric.  Manuel realized that traditional operational processes used by software companies can result in inferior service and put barriers between  company and customer decision-makers. We reorganized the company and provided customer metrics as the main dashboard for success. We’ve written a lot about customer-centricity in the past.  Initiatives such as the FreeBalance International Steering Committee (FISC), support SWAT Teams and the FreeBalance Customer Exchange have improved support and products. This has aided our growth.

Social Responsibility

Many traditional business leaders believe that Corporate Social Responsibility (CSR) is company cost. Companies that engage in CSR risk profits. Manuel advocated the move to a For Profit Social Enterprise (FOPSE) where CSR is core to company decisions. We’ve talked about the benefits of this approach. We’ve even published a white paper on how to become a FOPSE.  The business media has been interested in this approach Manuel has explained how FOPSE companies are able to effectively achieve social goals and achieve growth.

The Government of Kosovo is committed to Public Financial Management (PFM) reform. PEFA or Public Expenditure and Financial Accountability provides a standard for assessingg public financial management. The PEFA Secretariat provides assessment training and publishes completed reports.  The Government of Kosovo PEFA assessments for 2007 and 2009 are available on-line.

International donors use the 28 government indicators when considering funding projects. (Donors are also assessed in PEFA). Scores range from A to D. Not all scores need to by high. The country context determines priorities.  For example, Norway achieved C or D on eight indicators.

The Government of Kosovo has shown remarkable improvement in PEFA scores from 2007 to 2009. 13 scores improved while only 7 scores decreased. 7 of the 13 improved scores were significant – increasing by more than 1 letter. The indicators roll up to six major measurements:

• A. Credibility of the budget
• B. Comprehensiveness and Transparency
• C(i) Policy-Based Budgeting
• C(ii) Predictability and Control in Budget Execution
• C(iii) Accounting, Recording and Reporting
• C(iv) External Scrutiny and Audit

A recent study, Taking Stock: What do PEFA Assessments tell us about PFM systems across countries, by Paolo de Renzio for the Overseas Development Institute, compared the measurements across 57 studies. Using the same methodology, the Government of Kosovo scores higher than average on the six major measurements.

Comprehensiveness and Transparency in the budget is particularly high in Kosovo. The government is aided by the use of the FreeBalance Government Resource Planning (GRP) software.  According to the 2009 PEFA report:

The strength of the existing PFM system in centred on the successful introduction and implementation of the Financial Management Information System.  This has ensured that commitment control is applied in budget execution and that reporting on budget execution is timely and meets the need of management for effective decision-making.

Of course, the financial management system is a tool. Software from companies like FreeBalance need to be effectively leveraged by governments. And, PEFA assessments rate government reform, practices and legislation. GRP software does not automatically provide PFM reform. This is a government activity and requires commitment. The Government of Kosovo is committed to improving these scores through the Public Financial Management Reform Plan (PFM RAP). This is clearly a Government of Kosovo achievement.

We have had the opportunity to discuss good practices with PFM professionals the the Government of Kosovo. There are numerous lessons learned – these lessons can help other countries to improve PEFA assessments. We will be publishing a full case study in the near future.

FreeBalance President & CEO nominated for Peter Brojde Award for Canada’s Next Generation Executive Leadership

 Ottawa, Canada (May 3, 2010) – FreeBalance, a global software company that helps governments leverage robust Government Resource Planning (GRP) technology to accelerate country growth, today announced that FreeBalance President & CEO, Manuel Pietra, has been nominated by the CATAAlliance for the Peter Brojde Award for Canada’s Next Generation Executive Leadership.

For over two decades, the CATAAlliance Innovation Awards Gala Dinner has been celebrating the best in Canadian advanced technology. These awards are presented in recognition of exceptional contributions made to the creation of science and technology-based industrial strength in Canada. The CATAAlliance encourages people to cast their votes on the CATAAlliance website. Winners will be announced at the CATAAlliance Innovation Awards Dinner on May 19, 2010 at the Telfer School of Management, University of Ottawa, Canada. 

“I am humbled to be nominated for a CATAAlliance Leadership award,” said Manuel Pietra, President & CEO of FreeBalance. “This award validates the positive changes the people at FreeBalance are helping to make around the world. Global citizenship at FreeBalance is about our commitment to international development, active participation in the global community, and corporate social responsibility.”

In mid-2006 following his appointment as FreeBalance President & CEO, Mr. Pietra initiated a new business strategy. The purpose of this change was to better address the global government market. Strategic goals were changed. The company re-organized. This new FreeBalance business model and planning process was based on the premise of “customers for life.” 

This strategic change to a For Profit Social Enterprise (FOPSE) software company has resulted in improvements in sales execution and operational efficiency. The evidence of this change has been an 18-20% per year annual growth. The industry has taken notice of the company’s successes as FreeBalance won the Canada Export Achievement Award for the Ontario region in November of 2009. 

As a FOPSE software company, FreeBalance contributes to customer country economies by forming local partnerships and hiring citizens to ensure independently sustainable implementations. FreeBalance GRP technology accelerates country growth and helps improve governance, demonstrate accountability in public finance and bolster citizen confidence through transparency. Public financial management reform is a key element of good governance and sustainable development. FreeBalance is also committed to supporting children’s programs in the developing world. FreeBalance has established partnerships with organizations such as SOS Children’s Villages to directly impact the lives of thousands of children.

FreeBalance customers span the globe and the user community includes public financial management professionals in 18 countries, including Namibia, Sierra Leone, Uganda, Southern Sudan, Timor-Leste, Afghanistan, Kosovo, and Iraq. FreeBalance operates in 15 customer time zones. FreeBalance has more than 60,000 users around the world. FreeBalance software manages a global civil service workforce of 1,500,000, and also manages a quarter trillion ($US) annual budgets worldwide. 

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