Description: Federal Auditor General Michael Ferguson released his latest report on Tuesday. One of the key findings seems to be around the relatively new department, Shared Services Canada, founded in 2012. Shared Services Canada has a mandate to consolidate various information services throughout the government’s 43 departments by 2020, but Mr. Ferguson’s work points out that cost savings do not appear to have materialized.
Date: Febuary 2, 2016
1) What’s your feeling about the Auditor General’s findings in this situation?
2) Why does it seem that major projects or reorganization like this sometimes fail to achieve their projected savings?
3) What managerial accounting techniques might help organizations like this project their cost savings?