Kansas Department of Administration 2006 Annual Report.pdf

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KANSAS
DEPARTMENT OF ADMINISTRATION
Administrative Services
Carol Foren1an, Deputy Secretary
January, 2007
OEPOSlTORY
KA NSAS STATE LIBRARY
3 0 0 SW 10tt AVE RM 343
TOPEKA. KS 66612- 1593
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KANSAS
DEPARTMENT OF ADMINISTRATION
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Organization~l Ctiar.t f..o
Department Qf: Admini
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Administrative
Services
Carol Foreman,
Deputy Seuclary
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Di visions
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Secretary's Office
Personne l Services
Accounts and Rep orts
Facilities Management
Purchases
Printing and Su rpl us Property
Legal
Ad ministrative Hear ings
\ Long Term Care Ombudsman 1
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Department of
Admin is tra t ion
Duane Gooss en,
Secretary
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Divisio n ofthe
Budget
Duane Goossen,
Director
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I nformation
Systems and
Communications
(DISC)
Denise Moore,
Director
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Administ rative Services
Division of the Budget
DISC
445
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180
Administrative Services
Department of Administration
$60,804,697
$107,013,908
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Shared Services, Shared Success
Kansas Department of Aclmin istr

While there are eleven total divisions within the Department of Administration, five are
most intimately involved with other agencies within the State ofKansas and are the key
divisions for implementing the D of A vision. These five divisions make up the majority of
the administrative services section.
The Department of Administration had long been known as a provider of services, and in
some cases the controller of those services, unilaterally making the decisions on who, what,
where, when, and how.
As previous reports have highlighted, the new relationship with the State ofKansas is one
of collaboration and cooperation. This relationship is the heart of our shared services
philosophy. The Department has identified its core functions, how those core functions
can serve the State of Kansas as an enterprise, and reached out to our customers, no matter
the size, to determine how best to deliver those core functions.
FACILITIES
• Leasing Shared
• Services Team
• Joint Tenants
Meetings
• Capitol Complex Plan
PRINTING & SURPLUS
Brand Image Campaign
Consolidate Central Mail
Improved Business
Practices
Collaborative Relationships
PRIMARY FUNCTIONS
~Facilities
~Printing & Surplus
~Purchasing
~Personnel
~Accounts & Reports
PURCHASING
Procurement Negotiating
Committees
Contract Development
Meetings
Statewide Contracts
PERSONNEL
Statewide Human
Resources Meetings
Job Classification Review
Regulation Review
Pay Plan Study
ACCOUNTS &
REPORTS
Financial Management
System
Policy/Procedure Manual
Review
Rather than diminishing the authority of the Department of Administration, this shared
services model has greatly enhanced our role.
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The D of A values, "Character, Commitment, Communication,
and Credibility," are keys to this change. One of the ways the
Department Leadership Team chose to put those values into
action was by changing the way they interacted with ASTRA, the
Agency STARS Rapport Association.
ASTRA provides a forum for state agencies to discuss statewide
financial management issues, as well as other issues which touch
on the management of state agencies, including purchasing,
facilities, and personnel.
Since its inception in 1991, the divisions of D of A have appeared
before ASTRA individually, often spread out across a day long
agenda. For instance, in February, 2006, the Division of
Facilities Management appeared first on the agenda, while the
Division of Purchases did not appear until the end of the day.
At the next meeting in May, however, the Department of Administration appeared as a
team. This not only eliminated the past problems involving questions from participants not
receiving complete answers from individual Directors, it also presented D of A as an
agency, rather than a collection of Divisions.
While this change may seem minor, it demonstrates the deep commitment D of A has to
breaking down barriers not only between the Department and other agencies, but between
individual divisions. Shared Services means each division works together, and decisions
don't just reflect the character or credibility of Personnel Services or Accounts & Reports,
but of the Department of Administration.
The process, described in previous annual reports, which began with individual divisions
making decisions in full communication with their customers, has become a part of the D
of A culture. Now, it is not divisions communicating with
agencies or making decisions on how best to deliver
services, it is the Department of Administration as a
whole.
As the decision making process has grown to touch all
divisions, Department of Administration employees have
seen their roles change, expanding to meet the new
challenges ofworking across agencies.
In 2006, the Department Leadership Team made the
decision to direct more focus onto D of A employees.
The change to a shared services organization, which had
been going on for three years, had meant several jobs
were vastly different from 2002. Making sure
Department employees understood the new vision and
were reflecting the Department's values was a key part of
2006.
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Several major projects occurred in 2006, all of which
were directed internally to Department of
Administration staff. The goal of each effort was to
reaffrim to the Department that a change had happened,
but that the value of Department of Administration staff
had not diminished.
The first outreach to employees came in the form of
Resepect in the Workplace Training sessions.
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The Diversity Committee, now known as the Workplace
Respect Team, is made up of employees from each
division and was put together to reach out to D of A
employees not only to teach them about diversity, but to
listen to their concerns about their workplace
enviromnent.
The Workplace Respect Team arranged for the Respect
in the Workplace Training sessions, which were held in
the first few months of2006. Each Administrative
Services employee attended a two-hour session which
included presentations, two shmi videos, and
small group discussion on the topics of respect
and diversity. Each training session had 20-25
employees and five employee trainers, from
different divisions, giving participants an
opportunity to meet employees from different
divisions. Part of the success was due to the
training being developed by the team itself.
This combining of Divisions was well-received,
and feedback fi·om the sessions led the
committee to sponsor the planning of an allemployee
appreciation picnic, held on the
statehouse grounds, featuring a picnic lunch,
decorations and games, and music presented in
part by our own employees. This winter, as
series of open houses, sponsored by each
Division, will give employees an opportunity to
visit other work areas and learn more about the
work of all Divisions.
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The first such open house was held at
the Division ofPrinting, and was a
great success. Future open houses
will be held throughout 2007, with
each Division taking a turn hosting
employees from across
Administrative Services.
To gauge the effectiveness of the
changes that had been put into place,
as well as to measure how engaged
Department of Administration
employees are, the Leaderhip Team
also undertook an on line survey in
2006.
Working with Momentum Business Group, Depmiment of Administration employees were
surveyed both online and in group session about their feelings towards their work, the
employers, and their fellow employees. Employees were asked about the Department's
vision and values, as well as their environment and their duties.
According to the consultant, work engagement occurs when employees' values, beliefs,
and goals are aligned with those of the organization such that the employee is personally
cotmnitted to contributing to the accomplishment ofthe organization's mission. The
results of the survey, as well as the analysis by Momentum Buisness Group, have been
analyzed both by the Leadership Team and the managers in each division.
Overall, Department of Administration staff are more engaged than the nonn, with the
strongest indicators coming in the area of work ethics and strong working relationships.
However, concerns such as job security and job equitywere discovered as part of the
process.
In 2007, the results of this survey will be used to build on the work done the past four
years. Follow through on this process is essential. The Department's vision, "The
Department of Administration will lead the enterprise towards a shared services
organization by modeling teamwork, cost-effective business practices, and quality
customer service," will be an important part ofthe connection between our values and our
day-to-day efforts for the State of Kansas.
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Even with all of the internal projects going on in 2006, the main focus of the Department
continues to be serving our customers. Putting the Shared Services model into action in
2006 meant building on the successes ofthe previous three years, while also reaching out
to more agencies and more customers to provide better services. Below are some
highlights from the year.
Reaching Out to Vets
First enacted in the 19 111 Century, Veteran's Preference has long
been a part ofthe State of Kansas hiring system. Since the
enactment ofthe Kansas Civil Service Act in 1941, veterans of
the Armed Forces have been given some degree of preference in
hiring. Veterans' preference laws do not guarantee the veteran a
job. Preference does not have as its goal the placement of a
veteran in every vacancy, but rather providing increased
opportunity in recognition of the economic loss suffered by
citizens who have served their country in uniform.
In 1995, the State Civil Service discontinued
certified rank lists of eligibles, but required "under no
circumstances shall veterans be accorded any less preference than
existed prior to July 1, 1995". In 2003, the Division of Personnel
Services modified K.A.R. 1-6-21 regulation requiring agencies to
interview all veterans who meet minimum requirements for the
class. This modification to the regulations gave veterans a better
opportunity to be hired into state classified civil service jobs, compared to what existed
prior to 1995. In addition, it gave veterans' preference in internal agency actions such as
promotion, transfer, reassignment, and reinstatement.
Recent statistics indicate veterans returning from service in the Middle East had a much
higher rate of unemployment than their peers. With that in mind, the Division ofPersonnel
Services increased its efforts not only in state hiring, but in assisting veterans in fmding
employment in the private sector.
The Veterans Employment Report outlines these efforts. Among new initiatives are
Helmets to Hardhats and Partnership for Youth Success. And, in keeping with the Shared
Services model, DPS has worked very closely with the Department of Commerce in
reaching out to veterans.
This was also part of DPS' 2006 Applicant Workshops, held this fall in Topeka, Lawrence,
and Kansas City. In addition, DPS has improved its e-mail outreach to applicants and
employers. All told, these new services are helping Kansans find not only state jobs, but
jobs in the private sector, a great example of Shared Services in action.
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Finding Savings Through Shared Services: The
Anatomy of a Procurement Negotiating
Committee
By statute, the Department of Administration has oversight over most procurement
functions for the State of Kansas. While the traditional concept of state purchasing has
been "low bid," the needs of a modem state government require more flexibility and
greater ability to fully bring to bear the purchasing power of a large organization.
The Negotiated Procurement process is based upon the concept of"Best Value" and
enables agencies to consider many factors in the evaluation of bid responses beyond cost,
including vendor qualifications, past performance, methodology, among others.
With this additional flexibility comes additional responsibility in terms of documenting
actions taken throughout the bid process, the task of evaluating technical and cost
proposals, and in preparing a written justification for actions taken and award
recommendations.
Many of the success stories of the past four years, as documented in prior annual reports,
have come to fruition thanks to usage of the Procurement Negotiating Cmrunittee (PNC).
The Division of Purchases, as with standard bid documents, is always responsible for
preparing a Request for Proposal (RFP). However, once the bidding process has ended, the
work of the PNC begins.
At bid opening, only the names of bidders are announced. The PNC then undertakes a
thorough review of first the technical proposals of a bid, and then the cost proposals of a
bid. After that review, one or more vendors are invited to negotiate.
Negotiations will include revised offers, as well as opportunity for discussion and Q & A.
Once a review of the final offers, both technical and cost, has been completed, a
recommendation is made for award, accompanied by full documentation for that
recommendation.
While more complex than simply opening and determining the "best bid," the Negotiated
Procurement process not only allows opportunities for lower costs, but also for better
services, through the review of both the cost and technical aspects of a contract.
As part of an effort in 2006 to fully develop the shared services model, the Division of
Purchases made an effort to increase personal connections with both agencies and vendors
to keep costs low, improve understanding of procurement laws and practices, including the
increased usage of Negotiated Procurement, and to increase understanding of D of A staff
of the procurement work performed by our clients, and the impact that D of A decisions
can have on those clients.
A major aspect of Shared Services for the Division of Purchases has been an expansion of
Contract Development Meetings to reach out to clients.
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Replacing STARS: the Financial Management
System (FMS) project
In 200 1, the State contracted with Accenture Company to provide a report on the possible
need to implement a new Financial Management System (FMS). Accenture recommended
replacement ofthe current system, STARS, as it was nearing 15 years old and was no
longer supported by a vendor.
In 2006, the State revisited the issue and asked Salvaggio, Teal and Associates (ST A) of
Austin, Texas to provide an updated Needs Assessment Study. A project team made up of
five representatives from D of A (three from A&R) worked with STA on the study. A
Project Steering Committee was also created with representatives from 13 different
agencies to oversee the progress ofthe study.
To receive input from agencies regarding their own needs, focus groups were created.
Over 200 individuals participated, representing 25 large agencies and outreach meetings 27
other agency representatives who may not have taken part in the meetings. Also, system
requirements were posted on the FMS project Web site for all agencies to review and
provide comments.
As a result of the study, ST A recommended the State pursue the acquisition and
implementation of an FMS for the following reasons:
• STARS is nearly 20 years old and without vendor support
• Need to move from an environment that focuses primarily on processing financial
transactions to one that also focuses on providing management information to
policymakers for use in making critical decisions about allocating the scarce
resources available for constituent programs and services
• Agencies have difficulty getting meaningful and historical reports from STARS.
As a result, many agencies have created "shadow systems" primarily for tracking
and reporting needed information all at an additional cost to the agency
• A new FMS will be Web-based and integrate all agencies regarding key financial
modules, which would include Accounts Payable, General Ledger, Purchasing and
Asset Management
• A FMS would also replace the current procurement system (Procurement Manager
Plus) and offer "eProcurement" which would include, among other functionality,
enabling State personnel to order goods/services from the negotiated State contracts
by shopping via a Web browser; also would enable vendors to be notified
electronically of bid opportunities for goods/services the vendor has registered with
the State as providing
• A FMS would also provide for a "Data Warehouse" that agencies could use to store
information and create ad hoc reports for their own needs
• With an integrated FMS agencies will be able to process information and
transactions more quickly and with less paperwork and redundancy of effort
• Agencies will be able to respond more quickly and with greater accuracy to
Legislators' requests for information to make decisions
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• The State could potentially realize an annual cost savings of nearly $5.5 million
after the FMS has been implemented as a result of eliminating "shadow systems"
and improved efficiencies
These are just a few of the many advantages of implementing an FMS for the State of
Kansas. The number of states that are implementing FMS type systems continues to
increase each year. Being able to manage financial and related data with a FMS will serve
the State and its taxpayers more efficiently and effectively for many years to come.
Because the Department of Administration, using the Shared Services model, reached out
across the State of Kansas in preparing the report for replacing STARS, we expect the new
FMS to be a tremendous success. The hours of work and outreach done in 2006 will pay
dividends for years to come.
Each day, employees throughout the Department demonstrate commitment to providing
shared services, improving business practices, and providing high quality customer service.
We sincerely appreciate the efforts they make and the outcomes achieved.
For additional information on the
Kansas Department of Administration, visit
Our vision
The Department of Administration will
lead the enterprise toward a shared
services organization by modeling
teamwork, cost-effective business
practices and quality customer service.
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