Change Management

Overview

• Why Change Management Matters

  A robust Change Management strategy ensures that organizations/First Nations can handle unexpected events while maintaining financial stability and community trust. By proactively planning for emergencies, managing risks, and implementing effective communication strategies, Boards, Chief and Councils can navigate challenges confidently, keeping the community informed and resilient. 

Available Resources

• Emergency Planning & Expenditures

  • Description: This guide outlines the process for managing unplanned expenditures arising from emergencies, such as natural disasters or health crises, and the necessary budget adjustments.

  • Purpose: Ensures that financial responses to emergencies are handled systematically, with procedures for tracking expenses, reallocating funds, and seeking reimbursement. 

  • Process Highlights:
    • Authorization for emergency expenditures by Boards or Chief and Council or Senior Administrators.
    • Immediate budget adjustments to account for emergency spending.
    • Application for supplementary funding and reimbursement from ISC (Indigenous Services Canada) when possible. 
  • Timing: Emergency adjustments should be made as soon as possible to reflect the community’s financial position accurately. 

• Risk Management Techniques

  • Purpose: Outlines methods to identify, assess, and mitigate risks that may disrupt financial and operational stability. 

  • Key Areas:
    • Risk identification and assessment frameworks.
    • Strategies for minimizing potential disruptions to community programs.
    • Planning for financial contingencies, such as setting aside reserve funds.

• Change Communication Strategies

  • Purpose: Provides best practices for communicating changes within the community and to stakeholders during times of disruption.

  • Key Areas:
    • Strategies for informing community members about emergency measures, financial adjustments, or program changes.
    • Considerations for handling sensitive information and ensuring accurate messaging.

• Crisis Management Framework

  • Purpose: Establishes a framework for handling crisis situations that require immediate and coordinated responses across multiple programs and departments. 

  • Key Areas:
    • Roles and responsibilities for Boards, Chief, Council, and program directors.
    • Procedures for rapid decision-making and resource allocation during a crisis.
    • Post-crisis evaluation to assess the response and improve future planning.

• Emergency Planning Framework

  • Description: Emergency Planning involves establishing an approved protocol that can be swiftly activated during unforeseen emergencies requiring resources not included in the regular fiscal plan. 

  • Purpose: Emergency planning recognizes potential risks that can impact financial stability due to unexpected events, including community fires, floods, epidemics, and other uncontrollable circumstances. While unpredictable and challenging to incorporate directly into regular fiscal planning, having a formalized approach to emergency situations is crucial. Essential actions include:
    • Passing a Band Council Resolution (BCR)/Board Motion to authorize a “State of Emergency,” crucial for obtaining reimbursement from Indigenous Services Canada/Local Government.
    • Developing and approving a comprehensive Emergency Preparedness Plan recommended by Indigenous Services Canada/Local Government, in consultation with the regional Emergency Preparedness representative.
  • Considerations: Various strategies can be employed to manage financial impacts effectively:
    • Delegation of signing authority to Senior Officials for emergency expenditures within established guidelines and pre-approved financial limits.
    • Strategic fiscal planning, clearly distinguishing mandatory and discretionary spending, and managing cash flows to buffer unforeseen expenses.
    • Setting aside a portion of funds specifically for emergencies, although caution is advised as it can inadvertently prompt non-essential expenditures labeled as emergencies.
    • Integrating flexibility into the fiscal plan to accommodate reallocations post-emergency.
    • Ensuring comprehensive infrastructure and housing insurance coverage to mitigate financial risk significantly. 

  Post-emergency follow-up is critical to evaluate and adjust established priorities, and robust record-keeping is vital for accurate reimbursement claims. Many funding agreements include emergency supplementary funding provisions, and provincial emergency funds may also be available.

  Process: 

  1. Develop and pass a Band Council Resolution/Board Motion for emergency measures.
  2. Collaborate with representatives such as Indigenous Services Canada Regional Office/Local Governments to develop a tailored Emergency Preparedness Plan. 

• Emergency Expenditures

  Emergency Expenditures, although unforeseen and not included in the original fiscal planning, must be integrated into the Budgetary Cycle through necessary adjustments to Program Work Plans. These expenditures should align with the established Emergency Preparedness Plan.

  Purpose: Unplanned and unbudgeted expenditures due to emergency situations, such as fires, floods, epidemics, or other critical incidents, must be accommodated promptly within the Budgetary Cycle. Immediate adjustments might be necessary depending on the scale and urgency of these expenditures.

  Process: 

  Initial Actions: 

  • Implement financial actions outlined in the existing Emergency Preparedness Plan.
  • In the absence of an existing plan, the Senior Administrator, alongside Chief and Council/Board of Directors, authorizes the expenditure. Subsequently, the Senior Finance Official manages the necessary actions to facilitate this spending.
  • Immediate contact with regional Indigenous Services Canada/Government officials is essential if seeking reimbursement for emergency expenses. 

  
  Tracking and Reimbursement:

  • The Senior Administrator and Senior Finance Officer document all expenditures and associated personnel time.
  • Applications for reimbursement from Indigenous Services Canada are submitted by the Nation/Organization.

  
  Budgetary Adjustments:

  • Upon receiving redirected funds from Indigenous Services Canada/Government, assess the financial impact on Budgets & Cash Management.
  • Significant financial impacts necessitate immediate preparation of an Expenditure and Variance Report, detailing the emergency expenditure.
  • Seek additional revenue through applicable funding agreements.
  • Adjust Budgets, potentially utilizing reserved funds, and implement strategic Cash Management actions.