best practices – maintaining governance as a gpo nov 2014
TRANSCRIPT
Best Practices – Maintaining Governance as a GPONov 2014
Agenda
2
Standard Process
Organization
Metrics capture & analysis
Role of Process councils
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Mars Incorporated Overview
3
72,000 Associates
OverviewAt a glance
4
Private, family-owned company for more than 100 years
Annual net sales > $33 billion
74 countries - over 400 locations
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Our Brands & Segments
Diverse global business comprised of six segments: Petcare, Chocolate, Wrigley, Food, Drinks, Symbioscience
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5 Principles & Decentralized Organization
Quality, Responsibility, Mutuality, Efficiency & Freedom
Decentralized Organization
Improve efficiency & Controls in Financial Operations through Process Standardization and Regional Service Centers
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Process Standardization
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Golden Processes
Develop
2011: The Golden Processes are
developed
Principles:
• Independent of ERP’s
• Aspiration to be leading practice
• Standardization with zero tolerance for Deviations
• Centralization bias
• Clear and aligned objectives by processes (identifying tradeoffs between service, quality, cost and control)
• Measurable (metrics by process)
Golden Processes: Standard Global Processes for Mars Financial Operations, incorporating best practices covering 8 signature processes – General Accounting, Fixed Assets, Intercompany Billing, Management Reporting, Accounts Receivable, Accounts Payable, T&E and Payroll.
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Organization Structure
9
Global Process & Controls Team
An Organizational Framework that support ongoing Functional Expertise and Business Process Knowledge is required to maintain and enhance Operational Performance
“Level of competency varies by system but knowledge of ERP is generally low” *
“SAP capabilities are not being used to their full potential; no one is trying to drive this understanding” *
“Level of competency has continued to erode over time due to the lack of training that is received after Go-Live”*
“A number of gaps to the Golden Processes can be closed by better using our current ERP’s” *
Issue Management
Power User Nurturing
Continuous Improvement
GPO Global Process
Owners
BPO Business Process
Owners
RFE Regional Functional
Experts
SAP Governance
Knowledge Management
Continuous Improvement
Process Governance
Operational Processes
Continuous Improvement
Global operational efficiencies through
standard best practice processes
Globally consistent SAP template with materials
enhancing the understanding and efficient use thereof
Maximize the investment we have made in SAP by
creating highly skilled users effectively
supported by experts
Global Process & Controls Team
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Metrics
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Metrics
Periodic - Process Metrics within Service Centers
Quarterly - Critical Few Scorecard
Annual – Fit Gap Compliance
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Role of the Global Process Council
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The MFS Model defines the peer to peer interaction with key stakeholders : Business Units and Unit functions and Global MFS teams.
It supports the delivery of standardized services while
fulfilling the continuous improvement culture
The structure that enables this model includes five
interdependent Councils
Each council has a defined purpose and accountability
enabled with meeting protocols and council members
Mars Financial Services Governance Model
Global Process Council
Regional
Process Council
Customer Council
MFS Center Council
Global IT
Council
Busi
nes
s U
nit
inte
ract
ions
Finance Enablers Steering Team
MFS Governance Model
Global Process Council ObjectivesGlobal Proces
s Counci
l
AimsDrive standardization across the service centers (through the Golden Processes and consistent service offerings) as a foundation for continuous improvement
Prioritize Global initiatives for continuous improvement
Govern localization process Frequency
Bi annually following the Regional Councils
ObjectivesAlign consistent service offering across MFSC’s to the Golden ProcessesApprove sub processes to be implemented by the MFSC’sReview progress of global enabler development and deployment and recommend prioritization of future global activities Assess and respond to cross functional projects that impact the Golden processesReview metric scorecard for the MFSC’s to identify opportunities and best practicesReview process change requests submitted by MFSC’s , BU’s, Internal Audit and CorporateAlignment of LEAN initiatives across MFSC’sReview localization requests from both MFSC’s and BU’sHighlight training needs
MembersLed by: Global Process owners
Representation from:Center Process ManagersIT BPORFEInternal AuditOthers by invitation
EscalationInitial point of escalation: Global Financial Processes and Controls Director
Final point of escalation for MFSC related items: MFSLT
Final point of escalation for BU localizations: FEST
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Summary
17
Agenda
18
Standard Process
Organization
Metrics capture & analysis
Role of Process councils