Modernizing Hawaii’s Financial Management System: A Comprehensive Approach to Change
Designing a new financial management system for the state of Hawaii is not just about technology; it’s about listening to the people who rely on it daily. Christine Maii Sakuda, Hawaii’s Chief Information Officer (CIO), emphasizes that the success of substantial modernization projects hinges on user adoption and usability. As she puts it, "success is based upon adoption and usability of the people, of the workforce, of the end-users, in service to the public."
An Urgent Need for Modernization
The state is currently in the midst of a Request for Proposals (RFP) process to modernize its financial management systems, which have remained largely unchanged for nearly half a century. The solicitation period for this $68 million initiative, known as the Enterprise Financial System Project, closes on June 12. The timeline is ambitious, with a full implementation expected to unfold over three years once a vendor is selected.
Challenges of Legacy Systems
The current state financial management system is a patchwork of outdated processes and workarounds. According to Sakuda, various shadow processes have formed around the legacy system, creating a confusing and inefficient operational setup. “Very few people know how the system works in totality,” she explains, highlighting the necessity for change. The urgent need for modernization stems not only from the system’s age but also from its cumbersome nature that complicates the workflow for state employees.
Importance of Human-Centric Design
One of the most critical aspects of implementing a new financial management system is ensuring it meets the needs of its end users. Sakuda refers to this human-centric approach as “change management.” Engaging with users from different departments enhances the understanding of their specific functionalities and pain points. This direct feedback will be integral to shaping the features of the new system.
The state has taken proactive steps by designating "change management advocates" within various departments. These individuals play a vital role in gathering input on current challenges and helping shape how the new system should function. “Nothing happens without the workforce buying into using this system,” Sakuda stresses.
Navigating Transition and Disruption
Transitioning to a new system inevitably brings disruption. State leadership is committed to transparency throughout this journey, giving employees a heads-up that initial phases may be challenging. Sakuda’s candid approach acknowledges the hurdles while affirming that state officials are dedicated to supporting the workforce. “We’re here, on the journey with them to help them,” she says.
Investing in Change Management
While the investment in technology is vital, Sakuda believes that a significant portion of the effort should focus on the human assets within the government. "We need to invest in them and help them help us implement modern systems," she asserts. This philosophy underscores the importance of not only introducing state-of-the-art technology but also ensuring that the workforce is adequately prepared and engaged in the transition.
A Broader Vision for State Modernization
Hawaii’s efforts to modernize don’t stop at the financial management system. The state is also examining plans for overhauling its unemployment insurance system, an initiative that faced delays due to the COVID-19 pandemic. Recent legislative efforts, such as House Bill 477, aim to enhance interactions between claimants and employers while laying a foundation for improvements.
Sakuda points out that many modernization projects are often initiated based on the age of existing systems. She argues that states frequently wait until systems become obsolete before addressing their infrastructure needs. This mindset poses challenges for efficient government operation and service delivery.
Setting Concrete Goals
Experts attending the recent FedInsider webinar, like Abe Rosloff from Datadog, highlighted the necessity of identifying specific goals before embarking on modernization efforts. It’s crucial to build a clear vision, not just a general aspiration to "move to the cloud" or "utilize machine learning." Sakuda and Rosloff agree that establishing concrete metrics for assessing success will be essential as the state moves forward with its modernization initiatives.
In summary, Hawaii’s journey toward a new financial management system illustrates the delicate balance between upgrading technology and fostering user engagement. By prioritizing the needs and experiences of its workforce, the state aims to create a system that not only functions efficiently but also serves the public effectively. The path ahead may be challenging, but with a solid foundation in change management and community involvement, Hawaii is poised to take significant strides toward modernization.

