geoff noble cfo group - fsaa · - management, statutory and regulatory reporting and disclosure -...
TRANSCRIPT
Unified Financial
Performance
Management in the
Financial Services
Sector
GEOFF NOBLE
CFO GROUP
2014 The Year of Opportunity
AGENDA
• What we mean by Financial Performance Management
• Financial Performance Management needs in Financial Services
• Financial Performance Management systems and the pitfalls
• A unified approach to Financial Performance Management
• Benefits of a unified approach
• Some case studies
• Possible next steps and Q&A
What we mean by Financial
Performance Management
2014 The Year of Opportunity
FINANCIAL PERFORMANCE MANAGEMENT PROCESSES
Planning
Budgeting
Forecasting
Closing
Consolidation
Management Reporting
Statutory Disclosure
Regulatory Reporting
Scenario Modeling
Group / Corporate
Operations / Divisions
Financial Performance Management
needs in Financial Services
2014 The Year of Opportunity
WHAT CFOS IN FINANCIAL SERVICES HAVE TOLD US
General themes about the finance function:
- Drive to become business partner / advisor / catalyst / strategist
- proactively bring opportunities to the business
- Reduction in cost of finance
- streamline processes and off-shore mundane
- achieve or beat the top performer benchmarks for costs % revenue
- Increase regulatory attention
- Improve the quality and timeliness of information
…and automating Financial Performance Management supports all above
2014 The Year of Opportunity
WHAT CFOS IN FINANCIAL SERVICES TOLD US
Specific needs for Financial Performance Management:
- Group / Corporate consolidation of plans, budgets, forecasts, and actuals
- consistent reporting and analysis at the group / corporate level
- management, statutory and regulatory reporting and disclosure
- Operational planning, budgeting, forecasting, and reporting
- branch, region, product, customer segment
- Contract level detail to drive out revenue budget/forecast for existing portfolio
- each individual loan/deposit/policy
- Driver based budgeting and forecasting for new portfolio and costs
- Payroll, opex, capex and ICT budgeting
- Cost allocations and profitability analysis by product
Financial Performance
Management systems and pitfalls
2014 The Year of Opportunity
FINANANCIAL PERFORMANCE MANAGEMENT SOFTWARE
The software industry calls it xPM
FPM
CPM
BPM
PM
EPM
Large software vendors
2014 The Year of Opportunity
MANY SOFTWARE VENDORS HAVE BOUGHT MULTIPLE PRODUCTS
Planning
Budgeting
Forecasting
Closing
Consolidation
Management Reporting
Statutory Disclosure
Regulatory Reporting
Scenario Modeling
DisclosureManagementtools
Planning toolsConsolidation tools
Strategy Management tools
Business Intelligence tools
Closing tools
Data Warehouse tools
Data Integration tools
2014 The Year of Opportunity
PITFALLS OF MULTIPLE PRODUCTS
Multiple specialists
Too many cooks
Cost
Time
Complexity
Value
A unified approach to Financial
Performance Management
2014 The Year of Opportunity
2014 The Year of Opportunity
2014 The Year of Opportunity
HOW TO SIMPLIFY FINANCIAL PERFORANCE MANAGEMENT
• Put the right people on the job
• Ex-CFOs and technically-savvy accountants
• Talk finance, business and technology
• Have a passion for financial performance management
• Use unified software platforms
• One product is better than many
• Must be functional (for financial services) and scalable
• Finance friendly and not require extensive IT involvement
• Apply an outcome focused methodology
• Top-down from vision and goals to staged implementation and use
• One solution architect (and not too many cooks)
2014 The Year of Opportunity
2014 The Year of Opportunity
Businesslogic and financial rules
Data Model: Processes: Data Sources:Outputs:Goals:
Vision: Provide a unified system for financial performance management across the organisation
• Less effort and
pain to produce
the information
• More relevant
information
• More accurate
and consistent
information
• Transparent
rules and
assumptions
• More timely
delivery of
information
• Less costs to
own, maintain,
run and use
• Flexible platform
to meet future
needs
Statutory and Regulatory
Management-Group/Corporate
-Ops/Divs
Scenarios and Analyses
Ad Hoc and other outputs
Dimensions:
• Periods
• Scenarios
• Categories
• Currencies
• Accounts
• Entities
• Products
• Customers
• Other
Operational systems
Manual Input
Financial systems/ GL
Other sources
Plans
Management Actuals
Scenario Modeling
Plans, Budgets and Forecasts
Dimensions and
calculations to
support outputs
Statutory Actuals
Forecasts
Budgets
Existing portfolio
Benefits of a unified approach
2014 The Year of Opportunity
BENEFITS OF A UNIFIED APPROACH
• Successful implementations - on time, on budget, happy users
• Get the consistent numbers out faster to the people that need them
• With less pain and effort
• Reduce costs
• Increase staff satisfaction in both Finance and in the business
• Provide far more time for analysis…
Become the business partner introducing business opportunities
Some case studies
2014 The Year of Opportunity
Results/Benefits:
• Single chart of accounts to manage
• Improved auditability and decreased risk
• Integrated disclosure management
• Easy expansion to additional processes
• Competence center and lower TCO
• Shorter closing cycle
System Scope:
• Financial consolidation and regulatory
reporting
• Statutory and management reporting
• Budgeting and forecasting
• Segment reporting
• KPIs and executive dashboards
• Disclosure management
• Reporting for Chief Risk Officer
The Group
• Revenues €40 billion
• Global 500 #154
• Largest bank in Central-Eastern Europe
Financial Performance Management
system Size:
• 3,800 users
• 800 fully consolidated entities
• 9 sub-consolidation sites
• 300 participants in disclosure management
2014 The Year of Opportunity
CLOSE
From close to disclosure in Financial Services
> Local close
> Consolidation
> Intercompany reconciliation
> Journals and adjustments
> Controls and validations
> Financial reporting
> Management reporting
> GAAP, IFRS, XBRL
> Board books
DISCLOSURE
> Segment reporting
2014 The Year of Opportunity
>Bank-wide/Insurance company-wide
budgeting by company / operation /
region / product / customer segment
>Existing portfolio projections at the
individual loan/policy/contract level
>New business portfolio projection
>Driver based payroll, opex, & capex
> IT cost budget
>Cost allocations
>Budget consolidation
>Actual vs. budget reconciliation
Planning, budgeting and forecasting in Financial Services
Q&A and Possible Next Steps
2014 The Year of Opportunity
NEXT STEP TOWARDS UNIFYING FINANCIAL PERFORMANCE
MANAGEMENT AND BRINGING OPPORTUNITIES TO THE BUSINESS?
• Apply some of the methods covered today back at the office
• Informal meeting with us to discuss your situation
• Formal Financial Performance Management review
• Copies of Case Studies…email me for copies
• Opinion Leader Lunch Series…email me for details
• Q&A
THANK YOU