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AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 18, No. 2 (2024), pp. 124-133 

 

 

124 

 

PROCESS RENOVATION: CASE STUDY OF A LIQUIDITY 

PLANNING PROCESS OF THE NATIONAL BUDGET IN SLOVENIA 

 

M. HORJAK, A. GARTNER 

 

Marjeta Horjak¹, Anja Gartner² 

¹ Ljubljana School of Business, Ljubljana, Slovenia 

https://orcid.org/0000-0002-4691-8234, E-mail: marjeta.horjak@gmail.com  

² Ministry of Finance, Ljubljana, Slovenia  

E-mail: anja.gartner@gmail.com  

 

Abstract: The constant development of new technologies and tools is forcing 

organizations to recast their processes. The paper examines the reengineering of the key 

processes in a public finance organization that cause bottlenecks and consequent 

ineffectiveness. The aim is to eliminate and reduce obstacles, as simulations and cash flow 

forecasts (reports) are prepared too slowly and are consequently reported late, certain 

operations are carried out manually and duplicated. This increases the chance of errors. 

Theoretical findings are presented for the case study of the liquidity planning process of the 

national budget. They present the renovation process and the effects of the improvements 

achieved using the Object-Oriented Method (TAD) approach, which is based on a tabular 

representation, and the Aris method for the graphic depiction of the model of the business 

process flow based on the BPMN standard for business process modelling. The renovated 

liquidity planning process of the national budget was found to be necessary. It proved to be 

50% quicker, saving 466 hours a year through the elimination of the hard work tasks. It 

provides added value in the further forecasting of cash flows that effect the liquidity of the 

national budget. 

Keywords: process renovation, TAD, ARIS method, BPMN, public finance 

organization, model, BPM 

 

INTRODUCTION  

We live in the age of globalisation, which is constantly introducing modern 

technologies and forcing us to recast business processes and adapt them to changes in order to 

keep up with the competition. Organizations are constantly looking for cost-effective 

improvements for their business processes (Wynn et al., 2013). Business Renovation (BR) is 

a useful method to help organizations cut operational costs and improve the quality of their 

processes. It provides organizations sustainable competitive advantage in the market (Bhaskar, 

& Singh, 2014). In order to be successful in business renovation, organizations utilize specific 

methodology for analysing and modelling the current state of the business process (AS-IS) and 

the effectiveness of the renovated process (TO-BE). This provides information regarding the 

executability of the process renovation, the weak points in the processes and resource 

bottlenecks, as well as suggests possible improvements.  

https://orcid.org/0000-0002-4691-8234
mailto:marjeta.horjak@gmail.com
mailto:anja.gartner@gmail.com


 

Marjeta HORJAK, Anja GARTNER 

 

125 

 

Approaches that focus on analysing the current state of the business process (AS-IS) 

and the effectiveness of the renovated process (TO-BE) are combined in the TAD method. As 

stated by Damij (2009), the TAD method is based on a tabular representation of the state of 

the analysing processes. According to Damij, N., Damij, T., Grad, & Jelenc, (2008), it provides 

a lot of new ideas for process modelling (development of a design model) and process 

improvements. 

The suggested method for business process modelling is the Aris method based on the 

BPMN standard for business process modelling (Ivandic Vidovic, & Bosilj Vuksic, 2003). 

This is a unique and internationally established method for the graphic modelling of a business 

process renovation (Scheer, 2000). Business process modelling has a number of positive 

effects, as it increases the model quality of the business processes (Hilt, 2007; Fettke &Loos, 

2007; Kirchmer, 2009 in, Indihar Štemberger & Kovačič, 2011), facilitates improvements, and 

provides the opportunity to increase competition on the market (Dantis, 2019). 

This paper presents a case study of the liquidity planning process of the Slovenian 

national budget. It details the procedure of the process renovation and the effects of the 

improvements achieved. Obstacles, i.e., bottlenecks (e.g., simulations and cash flow forecasts 

(reports) are prepared too slowly and are consequently reported late, certain operations are 

carried out manually and duplicated, leading to errors in the forecasts) are being encountered 

in the execution of the process, which in turn leads to the inefficiency of the liquidity planning 

process of the national budget. 

 

Business Renovation Approach 
Using the TAD method, the current state (AS-IS) and the renovated process state (TO-

BE) were analysed for the liquidity planning process of the Slovenian national budget. The 

process involved preparing the work processes for the proposed liquidity plan (PLP) and the 

confirmed liquidity plan (CLP), the adjusted liquidity plan (ALP), and reporting adjustments 

to the LP and cash flow (CF) management. The effect of the renovated process was also 

measured. 

The main goal of the renovation was to eliminate or reduce so-called bottlenecks. The 

data was acquired through interviews with 27 process users. The measurements of the current 

state of the process (AS-IS) and the renovated process (TO-BE) as recorded in the information 

system after the implemented improvements were both analysed. The process activities were 

evaluated according to the duration in minutes and the costs in EUR. 

Table 1 presents the analysis of the properties of the activities in the current process 

(AS-IS) and the renovated process (TO-BE) of preparing the PLP and confirming the LP along 

with the measured effect of the renovated process. 

 

 

 

 

 

 

 

 



 

PROCESS RENOVATION: CASE STUDY OF A LIQUIDITY PLANNING PROCESS OF 

THE NATIONAL BUDGET IN SLOVENIA 
 

 

126 

 

Table 1: Properties of the current and renovated process of the PLP preparation and LP 

confirmation and measurements of the effect of the process renovation 

 

Properties of the current PROCESS of PLP 

preparation and LP confirmation (AS-IS) 

Properties of the 

renovated 

PROCESS of 

PLP preparation 

and LP 

confirmation 

(TO-BE) 

Measuring the effect of the 

process renovation 

Activity 
Time in 

minutes 

Cost in 

EUR 

Time in 

minutes 

Cost in 

EUR 

Reduced 

time in 

minutes  

Reduced 

time in 

minutes 

Reduced 

costs in 

% (TO-

BE) 

Initialising PLP documents 5 0.61 0 0.00 -5 -0.61 -100 

Data review and preparation for 

PLP entry 

 

85 10.33 82 9.96 -3 -0.36 -4 

Entering and arranging a PLP 

document 
37 4.50 35 4.25 -2 -0.24 -5 

PLP rejection 10 1.22 5 0.61 -5 -0.61 -50 

Data import/export 10 1.22 0 0.00 -10 -1.22 -100 

PLP approval 5 0.61 5 0.61 0 0.00 0 

Storage of data in a BLMS 

(budget liquidity management 

system] database 

5 0.61 0 0.00 -5 -0.61 -100 

Transfer of data from PLP to LP 

and ALP 

 

10 1.22 0 0.00 -10 -1.22 -100 

Total 167 20.29 127 15.43 -40 -4.86 -24 

 

The analysis of the results from Table 1 indicates that the renovation process (TO-BE) 

eliminated 4 manual activities (initializing the process, importing and exporting data, data 

saving process, and the data transfer process). The TO-BE process execution was shorter by 

24% relative to the existing current state (AS-IS). 

We determined that the process of preparing the PLP and confirming the LP was also 

shortened by 40 minutes, constituting a lowered cost of EUR 4.86. It was also concluded that 

the process is carried out once a month, amounting to 12 times a year, which represents 8 fewer 

hours of unnecessary labour a year and EUR 58.12 lower costs a year as depicted in Table 4. 



 

Marjeta HORJAK, Anja GARTNER 

 

127 

 

Compared to the current AS-IS process, the information and data flow of information 

in the renovated process (TO-BE) runs between the process participants through the unified 

MFERAC information system (with new and expanded functionalities) and eliminating 

manual entries (as illustrated by Figure 1 – graphically depicted process model). The manual 

activities (starting the processes of initialization, importing, exporting, entry of data) have been 

replaced by automated service procedures that are simultaneously implemented with each 

change in the system, which consequently means that the number of activities for the 

participants in the process has decreased. These improvements in the renovated process have 

influenced their effectiveness as presented in Figure 1.  

The visualisation, i.e., the graphic process model, was created using the BPMN 

(business process management notation), which is standard for business process modelling in 

Aris. The main benefit of using BPMN is that it is allows for the flexible development of 

business processes (Rosing, White, Cummins, & Man, 2015). 

 

Figure 1 

Model of the renovated PLP process (TO-BE)  

 
 

Table 2 presents the analysis of the properties of the implemented activities in the 

current process (AS-IS) versus the renovated process (TO-BE) or communicating adjustments 

to the liquidity plan and measuring the effects of the process renovation. 

 



 

PROCESS RENOVATION: CASE STUDY OF A LIQUIDITY PLANNING PROCESS OF 

THE NATIONAL BUDGET IN SLOVENIA 
 

 

128 

 

Table 2: The properties of the current and renovated process of communicating adjustments 

to the liquidity plan and measuring the effects of the process renovation 

Properties for the existing LP adjustments 

reporting process (AS-IS) 

Properties of the 

renovated LP 

adjustment 

reporting process 

(TO-BE) 

Measuring the effect of the 

process renovation 

Activity 
Time in 

minutes 

Cost in 

EUR 

Time in 

minutes 

Cost in 

EUR 

Reduced 

time in 

minutes  

Reduced 

time in 

minutes 

Reduced 

costs in 

% (TO-

BE) 

Verifying data for preparing 

the ALP 

 

19 2.31 17 2.07 -2 -0.24 -11 

Oversight and arrangement 

of the ALP document for the 

PU 

 

20 2.43 10 1.22 -10 -1.22 -50 

Preparing the increase 

application 

 

5 0.61 3 0.36 -2 -0.24 -40 

Confirming the increase 

application 

 

5 0.61 5 0.61 0 0.00 0 

Review and documentation 

of the submitted corrections 
30 3.65 10 1.22 -20 -2.43 -67 

Data entry in the auxiliary 

BLMS database 

 

25 304 0 0.00 -25 -3.04 -100 

Data entry into the BLMS 

database 

 

10 1.22 0 0.00 -10 -1.22 -100 

Total 114 13.85 45 5.47 -69 -8.38 -61 

 

 

The analysis of the gathered results from Table 2 indicates that on average, the renovated 

process (TO-BE) is 61% shorter, which is an improvement of 15% from the analysis of the 

current process analysis (AS-IS). The shorter implementation time of the renovated process 

constitutes EUR 8.38 fewer costs. It was revealed that this process is executed daily, which 

sums up to EUR 175.98 EUR fewer costs a month and means EUR 2,111.76 EUR in cost 

savings a year (Table 4).  

The main change of the renovated process of communicating corrections to the liquidity 

plan (TO-BE) that can be discerned from the graphically presented model on Figure 2 is that 



 

  

129 

 

in comparison to the AS-IS process, the communication flow of data between the process 

participants runs exclusively through the MFERAC information system. The manual activities 

(manual entries, data import and export) have been replaced by automatized service procedures 

concurrently with each change in the system, which has consequently decreased the number of 

activities for the process participants. The renovated process (TO-BE) has also introduced 

smaller organizational changes, for example, that in contrast to the AS-IS process, users in the 

TO-BE process can communicate a change for the 1st of the month, no longer on the 10th of 

the month. This change was implemented in order to acquire the most precise possible data for 

the national budget manager who plans, monitors, and coordinates the executed cash flow of 

the national budget and the users have smaller disparities between the realized and the forecast 

payments at the end of the month. 

 

Figure 2 

Model of the renovated ALP process 



 

PROCESS RENOVATION: CASE STUDY OF A LIQUIDITY PLANNING PROCESS OF 

THE NATIONAL BUDGET IN SLOVENIA 

 

130 

 

Table 3 contains the analysis of the properties of implementing activities in the existing 

process (AS-IS) and the renovated process (TO-BE) of cash flow management as well as 

measurements of the effect of renovated process (TO-BE). 

 

Table 3: Properties of the existing and renovated process and the effects of the improvements 

to the renovated process of cash flow management 

Properties of the existing 

PROCESS of cash flow 

management (AS-IS) 

Properties of 

the renovated 

PROCESS of 

cash flow 

management 

(TO-BE) 

Measuring the effect of the 

process renovation 

Activity 
Time in 

minutes 

Cost 

in 

EUR 

Time in 

minutes 

Cost 

in 

EUR 

Reduced 

time in 

minutes  

Reduced 

time in 

minutes 

Reduced 

costs in 

% (TO-

BE) 

Data collection and 

overview 
30 3.65 15 1.82 -15 -1.82 50 

Data entry 20 2.43 5 0.61 -15 -1.82 -75 

Data import/export 10 1.22 0 0.00 -10 -1.22 -100 

Total 60 7.29 20 2.43 -40 -4.86 -67 

 

The analysis of the acquired results as displayed in Table 3 indicate that the renovated 

process (TO-BE) has shortened the process execution by 67% relative to the current state 

process (AS-IS). 

It was determined that the process is executed on a daily basis, which constitutes EUR 

102.06 fewer costs a month, i.e., EUR 1,224.72 fewer costs a year (Table 4). 

The key substantive change in the renovated process (TO-BE) is the database that has 

been established at the economic classification level. It is no longer organized at the level of 

liquidity items as it used to be in the AS-IS process. Additionally, the TO-BE process is 

implemented in the new online environment of the MFERAC information system, which 

provides the required and necessary functionalities and an adjusted manner of executing 

individual activities (as depicted by Figure 3 – graphically presented model of the process). 

These improvements in the renovated process have also impacted their effectiveness as 

presented in Table 4. 

 



Marjeta HORJAK, Anja GARTNER 

 

 

131 

 

Figure 3 

Model of the renovated cash flow (CF) process (TO-BE) 

 

 

Discussion: Measuring the effect of the process renovation 

Table 4 presents the effects of the renovated liquidity planning process of the national 

budget. Presented are the average values of executing individual work processes and the 

achieved impact – annual saving in hours and costs in EUR. 

 

Table 4: Annual impact of the renovated liquidity planning process of the national budget 

(TO-BE) 

 

Annual impact of the renovated Liquidity Planning Process of the National Budget TO-BE 

Process No. of 

executions 

Time 

change 

in min 

Cost 

change 

in EUR 

Cost 

change 

in %  

Annual 

savings in 

hours 

Annual 

savings in 

EUR 

Process of preparing 

the PLP and 

confirming the LP 

12 -40 -4.86 -24 -8 -58.32 

Process of 

communicating 

adjustments to the 

LP 

252 -69 -8.38 -61 -290 -2,111.76 

Cash flow 

management process 

252 -40 -4.86 -67 -168 -1,224.72 

Total 516 -149 -18.11 -51 -466 -3,394.80 

Source: Own (Gartner, 2020) 



 

PROCESS RENOVATION: CASE STUDY OF A LIQUIDITY PLANNING PROCESS OF 

THE NATIONAL BUDGET IN SLOVENIA 

 

132 

 

 

We have determined that the renovated process is executed 50% faster, consequently 

resulting in EUR 3,394.80 lower cost a year. It has been indicated that the renovated liquidity 

planning process of the national budget (including the new and expanded functionalities of 

MFERAC and in eliminating manual entries) saves 466 hours of time that had previously been 

dedicated to compiling the necessary analyses and preparing reports. The renovated process is 

executed 50% faster. The additional daily measurements of entry errors and discrepancies 

between the forecast liquidity plan and realized liquidity plan has also determined that the 

gathered data and information in the renovated process are 18% more accurate (which means 

18% fewer discrepancies between the planned cash flow and actual realization) and as much 

as 72% fewer errors. 

The renovation of the liquidity planning process of the national budget also provides 

added value for future cash flow forecasts and executing cash flow simulations by taking into 

account certain scenarios that can impact the liquidity of the national budget (Table 9). 

The analysis of the answers of the interviewed users of the renovated liquidity planning 

process of the national budget (TO-BE) confirmed the advantages of the TO-BE process: 22% 

of the users share the opinion that user support is well established, 19% of the users recognize 

the advantage of implementing the economic classification that has replaced the liquidity 

items, which also shortens the time users need to spend on the review, collection, and 

preparation of the data. 9% of the users think the automatic nature of coordinating the dynamics 

on the last day of the month is an advantage that shortens the processing time, 9% of the users 

think the renovated system in more transparent. Furthermore, 9% of the users also believe that 

the renovation has shortened the time needed for the process execution, 6% are pleased with 

the enabled function of reporting corrections to be set for the 1st of the month, no longer on the 

10th of the month as was customary in the AS-IS process.  

 

CONCLUSIONS  

This paper analysed the liquidity planning process of the Slovenian national budget. 

The core notion is that the process renovation has a significant impact in its efficiency. In 

practice, this means that the renovated process aims to eliminate and reduce the obstacles or 

so-called bottlenecks (i.e., simulations and forecasts (reports) of cash flows are prepared too 

slowly and are consequently reported too late, certain operations need to be carried out 

manually and are duplicated). This increases the chance for errors. 

The proposed business renovation approach using the TAD and Aris method on Press 

and hold BPMN standard for modelling has proven to be valuable for understanding the current 

process (AS-IS), the renovated process, and the effects of the improvements. 

The case study confirms that the renovated process is executed 50% faster. In addition, 

the data and information acquired through the renovated process are 18% more accurate 

(meaning 18% fewer discrepancies between the forecast cash flow and the actual realization) 

and present 72% fewer errors. 

Tables 1, 2, and 3 reveal that the activities of duplicated data entry, import, and export 

that were executed several times a day upon each change of data or upon errors in the manual 



Marjeta HORJAK, Anja GARTNER 

 

 

133 

 

data entry. In the TO-BE process, these activities have been automated or can only be executed 

only once when needed. 

Furthermore, the renovation process has proven to be useful since it enables a faster 

and more precise preparation of future cash flow forecasts. The reached conclusion was that 

the shortened duration of the process execution and the eliminated manual activities saves 466 

hours of labour a year that can be utilized in a more productive way for preparing different 

analyses and reports enabled by the renovated MFERAC information system. This constitutes 

added value for future cash flow estimates and preparing simulations by taking into account 

certain event scenarios that affect the liquidity of the state budget. 

The limitation of the study is that the renovated liquidity planning process of the 

national budget including the new and expanded functionalities of the MFERAC information 

system is still in the implementation phase. In the future, the effects of the renovated process 

are expected to increase further (decreased hours spent and costs). For this reason, further 

research of the process remains necessary and advisable.  

 

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1141. 

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4. Dantis, D. (2019). Benefits for the Implementation of a Business Process Model Approach 

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https://www.researchgate.net/publication/321502532_ARIS_Business_Process_Modeling

.  

 

 

 

https://www.researchgate.net/publication/321502532_ARIS_Business_Process_Modeling
https://www.researchgate.net/publication/321502532_ARIS_Business_Process_Modeling

