Profile
Agent of Change
David Marshall, CGA, brings extensive public and private sector business experience to his role as a visionary leader in the federal government.
FROM: SEP-OCT 2006 ISSUE | BY PEGGY HOMAN
On an overcast August morning in Ottawa, as the sun is just beginning to peek through the cloud cover, David Marshall, CGA, deputy minister of the department of Public Works and Government Services Canada (PWGSC), and the deputy receiver general for Canada, sits in his 17th-floor office across the river from the sun-speckled and spectacular new façade of the Library of Parliament. Marshall came out of retirement from the banking industry to take on the dual role in June 2003 with a view to stabilizing and improving operations following the sponsorship scandal. Even for those well versed in public administration, the complexity of the department is astounding. PWGSC provides a wide range of services to other government departments. Its mandate largely comprises four main components: real property, procurement, and accounting, banking and compensation, and IT services. As the official custodian of the Parliament Buildings, PWGSC managed the extensive four-year Library upgrade that included the new roof. In fact, the real property group manages one of the largest property holdings in the country — approximately 6.7 million square metres of office space.
The procurement group oversees more than 60,000 contracts annually and purchases over a billion dollars a month in goods and services — including everything from flu vaccines and office supplies to defence equipment for Canadian troops in Afghanistan. While some purchasing is delegated to other departments, PWGSC manages about 80 per cent of the total value of goods and services purchased by the federal government, and is the country's largest public purchasing organization.
The third branch within PWGSC, the accounting, banking and compensation group, acts as the Reciever General of Canada and manages the 1.5 trillion dollar cash flow of the government. PWGSC is the only department authorized to operate bank accounts and payments out of the Consolidated Revenue Fund. "We prepare monthly financial statements and then annually, the Public Accounts of Canada on a full accrual basis to account for the government's revenues and expenses. This is a very important control mechanism. We are amongst the few countries who produce consolidated financial statements for the whole government, and have received unqualifed audit opinions for the last seven years" says Marshall.
Not surprisingly given the department's mandate, PWGSC is playing a paramount role in modernizing the federal government. Implementing the Federal Accountability Act, which is designed to strengthen accountability, is a key focus. Under Marshall's leadership, reforming and streamlining the procurement process is a top priority as the department strives to cut $2.5 billion over five years from the $13 billion in procurement contracts it dispenses each year. This particular initiative has proved to be a popular topic in the media of late.
As can be expected of a person in his position, Marshall handles pressure and criticism with a steady, skilled approach. He returned from his summer vacation to vociferous criticism of his department splattered across national news headlines. When asked about several articles questioning his department's strategy and spending on procurement reform, he serenely replies, "Bad press is all in a day's work when you work in the public eye. At times, misinformation makes the news, but I strongly believe in the media's role in holding government accountable; it is an important part of the democratic process." And so it seems Marshall is willing to shoulder inevitable criticism during the implementation of PWGSC's The Way Forward strategy, which was developed under his stewardship. Actions to improve efficiencies and slash costs are now underway.
Setting the strategy and vision for a department with 13,000 employees is a long way from his first job in Canada at the age of 20 unloading bags of mail at the Don Mills post office in Toronto. For a short time, he did freight logistics for CP Airlines, which he considers his worst job. "The freight had to be loaded in a certain way to ensure the safety of the plane, and I wasn't comfortable with that much responsibility for people's lives," he recalls. A concern for the well being of others is a theme Marshall touches on repeatedly, in addition to the importance of doing more than expected.
"Thinking back, 1971 was a very important year for me, as I became a Canadian citizen, obtained my CGA designation, and became a father," he smiles. "I'm very proud to be a CGA, and I still remember the evening I received my scroll at CGA Ontario's admission to membership ceremony; I had a tremendous sense of pride and achievement. The designation opened up a whole new world for me; it was the bedrock of my training and intellectual property and I pay my dues with pleasure each year," he continues.
Shortly after that evening, Marshall joined TD Bank as an auditor and began taking IT courses at night. He views the years of experience he gained as an accountant and auditor as invaluable. "During that time I learned the importance of checking facts, was challenged to be fair and balanced, and developed an ability to accept criticism." In 1977, he joined the public service and introduced computers and a new method of statistical sampling to a specialized unit of the office of the Auditor General of Canada. He rose steadily within the public service, eventually becoming the assistant auditor general of Canada and an assistant deputy minister (ADM).
Marshall offers clear and pragmatic career advice: "Everyone brings the boss problems. Those who bring solutions will be given more responsibilities, so always learn more than you have to and always bring solutions. The drivers behind my career have been to continually expand my knowledge, embrace risk, and constantly go beyond basic requirements of specific jobs to learn about emerging areas," he explains.
His ability to generate solutions and his commitment to ongoing learning has led to many opportunities. As the ADM of technology for Revenue Canada, Marshall was responsible for implementing the Goods and Services Tax. It was the largest computer-based project undertaken by the government at that time, and took eight months and $250 million to complete. "The project was on time, on budget, and the system worked effectively from day one," recalls Marshall. Taking on the project was an important career move, and he points out that the public service offers huge learning opportunities. "People are often given more responsibility much quicker than in the private sector and can gain invaluable experience," he says. "The public service is currently facing a severe shortage of qualified accountants, auditors, and finance officers, so this is a prime time for CGAs to join," he emphasizes.
While he has had many successes over the years, one of the accomplishments Marshall is most proud of is having managed global banking operations and IT for Bankers Trust New York Corporation, a company which became very profitable for its shareholders. He was recruited back to the corporate sector to take on the role of chief information officer and executive vice-president in the mid 1990s, and oversaw systems for managing the conversion of currencies totalling more than $300 billion a day. "My experience in New York proved that my Canadian education and training held up in the extremely competitive world of investment banking," he states.
He is a powerful man, yet remarkably unassuming. In a city where there is no shortage of ego and self-importance, Marshall exudes modesty, integrity, and the calm confidence that comes with success. This is indeed a man you would trust with your money. It is strikingly obvious that Marshall left retirement and a home in Provence to return to public service because he wanted to, not to prove anything to anyone. Clearly he is doing this particular job because he is passionate about making improvements in the federal government. All of which should be reassuring to accountants and taxpayers alike.
And despite his claim that he is a man of moderate drive, it seems he has anything but. "I regard myself as having average intelligence and average drive, and all I've done is put one foot in front of the other. I just kept moving forward steadily without being afraid," says Marshall. "Take a look at the reforms I'm introducing here; essentially, I came in as a retired senior executive from the banking sector, and I could have simply let the place take over. But anyone could see there was a need for changes to be made and I began the process without being afraid of the consequences of opposition or of mistakes," he continues.
When it comes to mistakes, Marshall says his worst business decision was a failed attempt to expand one of his financial projects (established in Canada) into the United States. At the time, he was the vice chairman, Retail Products, Technology and Operations for CIBC. "The expansion was a failure, but I learned a lot," he recounts. "In the private sector, you have to take risks and there are situations that don't work out."
Having held a range of high-level positions in both government and the corporate world, Marshall has a unique vantage point when it comes to the similarities and differences between business in the two sectors. "Risk and failure are viewed as valuable in the private sector, but frowned on and avoided in the public sector," he says. "Decision making is more cumbersome in the public sector, and the stakeholders are so numerous that balancing opposing views is challenging. Mistakes are not forgiven." He thinks government can learn important lessons from the private sector, and points out that extreme caution doesn't always provide the best value.
As the morning unfolds, the sun dances across the glass and steel constructs of the National Gallery of Canada — yet another building within Marshall's far-reaching influence. He is a member of the Board of Directors of the National Gallery of Canada Foundation, and, a big fan of Christopher Pratt's, he personally sponsored the Gallery's recent exhibition — both financially and through the loan of works from his private collection.
An avid traveller and reader, Marshall is always on the lookout for interesting art and sculpture to add to his collection, and a few select pieces adorn his office. More often than not, he reads historical fiction and non-fiction, such as his current selection, Maximum City: Bombay Lost and Found by Suketu Mehta. While on vacation, Marshall completely unplugs from work — a lesson he took to heart while part of the New York investment banking community, in which companies consider it mandatory for senior executives to take a minimum of one week off per year without connecting to the office. During his 2006 sojourn, he and his wife attended Vancouver restaurateur Umberto's cooking school in Tuscany, where Marshall's risotto was voted best in class.
When asked about his ideal job, he responds without hesitation: teaching. Specifically, he'd like to teach people to overcome their fears and anxieties about work. "I'd like to encourage people to take risks and step out of their comfort zones, and then help them see how to manage new and challenging situations. I'd also like to help small businesses thrive — potentially in the Third World; for example, in India, where I was born. Or perhaps assisting Canadian businesses that are attempting to expand overseas — I'd like to take my experience and make it available to those who might not otherwise have access to that sort of business expertise. I think that would be very gratifying."
There is a soft tap at the door as his assistant makes a successful attempt to keep a very tight schedule on track. And with that, Deputy MinisterDavid Marshall makes a gracious exit and heads off to his next meeting — steadily putting one foot in front of the other as he takes bold and deliberate steps toward reshaping the engine of the public service.
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Peggy Homan is associate publisher and editor of CGA Magazine.