“When opportunity and planning come together, good things happen.” The statement is in line with the growing importance of effective resource planning. For a government, the achievement of national development goals depends on the effective management of limited resources. In today’s digital world this means that the effectiveness of a government is dependent on the effectiveness of its Government Resource Planning (GRP) system. By gathering, storing, organising, and interpreting data through a variety of integrated applications, a GRP system aids in the real-time management of government functions.
It is safe to say that GRP technology is critical to the sustainable development of countries around the world. In fact, one man is already making tremendous progress in this area. He is Manuel Schiappa Pietra, President and CEO of FreeBalance. Having managed businesses in the US, Canada, Europe, South Africa, and Latin America for more than 25 years, Schiappa Pietra is an experienced business leader.
THE INCEPTION
In 1984, the company developed a software suite designed to improve fiscal administration while avoiding overspending for the Government of Canada. The calculation of budget less commitments and actuals is known as the “free balance.” The company became so well known for its “free balance” system that it changed its name to FreeBalance. Since then the company has expanded internationally, now serving 25+ customer governments around the world and managing national budgets in excess of $425 billion.
The system, now known as FreeBalance Accountability Suite™, is the world’s first, global GRP solution. It’s a commercial off-the-shelf (COTS) solution created exclusively for government unlike Enterprise Resource Planning (ERP) systems used in the private sector, which is bottom-line driven. Profit as a construct is not relevant in Public Financial Management. Governments don’t have shareholders, they have citizens. And citizens expect their tax dollars to be spent efficiently, transparently and effectively to deliver public services.
The FreeBalance Accountability Suite™ is enterprise-class and designed to support whole-of-government implementations. It provides governments with predictability and control over budget execution, sound public finances and greater fiscal stability through improved transparency and accountability.
ADDRESSING CHALLENGES
The current geopolitical and geoeconomic volatility is good news for companies that are involved in promoting and supporting PFM reform – such as FreeBalance. Schiappa Pietra explained that PFM is budget driven in that the budget represents the legal embodiment of government intentions. Therefore, all systems within a government must be linked to the budget cycle. Over the last few years, he has seen a trend towards unified and integrated PFM systems such as the FreeBalance Accountability Suite™. Today, governments need the entire budget cycle to be covered by their Integrated Financial Management Information Systems (IFMIS) if they hope to meet their PFM objectives and deal effectively with the volatility of the times. Full automation of the budget cycle dramatically improves budget execution, enabling governments to deliver improved results.
Commenting on the state of the PFM industry, he noted the dramatic increase in the adoption of cloud technologies by governments. In this space he believes that GRP providers are winning the race. ERP cloud offerings are noticeably behind the curve while there has been an explosion of software designed for the public sector. Special cloud products for transparency and citizen engagement are also growing worldwide.
CUTTING-EDGE R&D AND TECHNICAL ARCHITECTURE
Schiappa Pietra believes that companies that are constantly innovating and improving their products or services are the ones that thrive in the long run. At FreeBalance, he prioritizes investment in PFM-specific research and development which he says has contributed significantly to their growth. FreeBalance’s exclusive focus on PFM has enabled the company to specialize in providing solutions to government needs. This PFM focus has resulted in the development of additional modules for the FreeBalance Accountability Suite™ as well as the migration from a PC-based system to client servers, to web-native and now to cloud deployment.
ESTABLISHING THRIVING RELATIONSHIPS
“We don’t just sell goods and services to governments; we forge relationships, we collaborate, and our clients are part of our community,” says Schiappa Pietra.
FreeBalance works with the full range of governments – from some of the world’s most fragile States to advanced economies like the USA and Canada. Customer-centricity is not just a buzz word for FreeBalance. Their customers truly are at the core of everything they do. Which is why they build their systems and solutions together with their government customers through the FreeBalance International Steering Committee (FISC). This interactive engagement helps the company to understand the future of government, puts governance and digital transformation in perspective, and ensures that there is alignment between the company and its customers.
LEADING WITH PURPOSE
Manuel Schiappa Pietra’s approach to leadership is to leverage information and staff insights to make decisions quickly, embracing diversity of thought from diverse backgrounds. He believes that communicating empathetically with customers, employees and partners, and adapting one’s communication approach based on the background and culture of the people one engages with, is critical. This approach has created a tight-knit team with many long tenured employees who have made a positive impact in PFM around the world.
He also encourages the team to stay true to their roots, often advocating for social impact projects in the markets his business operates in. His leadership style is one that combines determination and innovation with compassion and empathy. By leading from this perspective, he has created a culture of growth, learning and respect within his organization. He continues to innovate every day by challenging himself and his team to think outside the box and take calculated risks. His leadership style leads by example, motivating others to strive for excellence and reach their full potential.
GROWING BEYOND UNCERTAINTY
Part of the work that FreeBalance does with emerging countries is to help them design and implement their digital transformation journeys. Many observers see governments as digital transformation laggards, organizations burdened by old technology, high operating costs, and with high levels of change resistance. Yet, as he explains, many governments have been at the forefront of technology innovation. Governments have the strength of policy and regulation, and they have huge amounts of data.
These modernization projects can be truly transformational for a country. By leveraging technology and data, governments are able to improve service delivery and meet their national development goals.
MILESTONES ACHIEVED SO FAR
FreeBalance is a purpose-led organization dedicated to enabling PFM reform that matters. So it’s no surprise that Schiappa Pietra lists the many nation building achievements of his customers as some of his proudest moments. He and his team developed and delivered critical PFM solutions to customers across Asia, Europe, the Middle East, Africa, Latin America and the Caribbean, and contributed to statehood for some of the world’s newest countries such as Kosovo, Timor-Leste and South Sudan. And it’s not just a hollow boast. “Our clients have achieved an average 27% improvement in key PFM performance indicators according to independent Public Expenditure and Financial Accountability Secretariat (PEFA)”, explained Schiappa Pietra.
THE NEXT BIG THING
Even though Schiappa Pietra’s path has been promising thus far, he has his sights set on expanding his horizons. He aspires to keep creating unique, long-lasting solutions that help customers to improve the efficacy and efficiency of their financial operations. FreeBalance is constantly growing its team of PFM and GovTech experts who are all focused on helping developing countries advance towards smart prosperity.
A NOTE FROM THE CEO
“A successful business is all about having the right people and equipping them with the right resources to succeed. Also, creating a positive work environment where employees feel valued and continue to develop.”
FreeBalance on Social Media
Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.
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