nga hr introduction - deloitte.co.uk accounting 2.3 manage invoices ... business unit close and...
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The Leading Global HR Software and Services Provider
Stuart Ross, CFO, NGAHR
Vienna, 21 November 2017
We Make HR Work Better
NGA HR Introduction
3
NGA Makes HR Work Better
Transformation to
Digital HRFocus on HR and
Payroll
We solve critical business challenges of
cost, compliance & quality through HR software and
services founded on proprietary technology and
longstanding partnerships
In doing so, we make our clients better employers
and we make HR work better
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4
NGA HR by Numbers
3m+employees served by NGA HR
100+
Working with
5,700employees globally
1,000+HR system implementations
£300m188
Providing HR &
Payroll services in
5HCM platforms
on which NGA
can deliver HR
services
25+1 out of 5of Fortune 500 companies
countries
languages
supported in
our HR service
centers
4business lines
HR Technology
Consulting
HR Application
Maintenance
Payroll
Outsourcing
HR Outsourcing
HR BPO &
BPaaS
clients
35Offices & centres in
countries
Annual revenues
Organise to Win
6
6
Background, objectives and approachBackground
• Some foundations in place to transform the Finance function
• Migration to SAP and the transition to the Shared Service Centre (SSC) delivery model partially executed
• Need to focus on transforming Finance to better serve our Customers
Objectives
• Implement a Global process centric approach to process management and controls
• Better exploit the SAP platform
• Simplify the way in which we manage global deals
• Improve the quality and timeliness of information
• Increase productivity
Approach
• Carried out 10 Customer and 10 Finance Leadership interviews
• Facilitated the review of the current accounting model supporting Global Deals, or Enterprise customers
• Carried out the activity and benchmark analysis across the Global Finance organisation
• Assessed the maturity of the Cochin and Granada SSC
• Reviewed the Finance operating model
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Finance scope
7
X.x Manage quotations
2.2 Manage sales orders
3.2 Manage transactions &
project accounting
2.3 Manage invoices
2.4 Manage accounts
receivable (AR) & collections
Global Deal Management (Illustrative)
X.x Manage sales contracts
Le
ve
l 1
Le
ve
l 2
1.1 Maintain supplier master
data
1.2 Order goods & services
1.3 Manage accounts payable
(AP)
1.4 Manage expense
reimbursements
1. Purchase to Pay (PTP)
2.2 Manage sales orders
2.1 Maintain customer master
data
2.3 Manage invoices
2.4 Manage accounts
receivable (AR) and collections
2. Order to Cash (OTC)
6.3 Maintain fixed asset accounting
policies and data
6.1 Manage capital planning
6.4 Perform fixed asset accounting
6. Manage Fixed Asset Accounting
4.1 Develop tax policy and plan
4.2 Prepare tax returns
4.3 Handle tax payments
4.4 Manage tax controls and compliance
4. Manage Taxes
3.2 Manage transactions &
project accounting
3.3 Perform business unit
close and group consolidation
3.4 Perform financial reporting
3.1 Maintain policies and master data
3. Record to Report (RTR)
5.1 Manage capital markets &
funding
5.2 Manage cash & liquidity
5.3 Manage treasury
operations & settlement
5.4 Manage treasury & hedge
accounting
5. Manage Treasury
7.1 Manage financial budgets
7.2 Manage financial forecasts
7.3 Perform management reporting &
analysis
7. Planning & Management Accounting
7.4 Support decision making
8.1 Manage payroll
operations
8.2 Fulfil local obligations
8.3 Handle payroll enquiries
8. Manage Payroll
6.2 Perform capital project
accounting
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Executive summary: key findings# Topic Key Findings
1
Customer and
Finance
Leadership
interviews
Customers appreciate the talent and work ethic but are frustrated by the reporting complexity, lack of
financial transparency and limited commercial forward looking insight
Leadership believes the team has the right skills and business knowledge but is distracted from adding
value due to having to produce and validate large quantities of historical data
2
Global deals
accounting
model review
There is an opportunity to shift focus to overall contract profitability, optimise use of off-shore
resources and reduce internal conflicts between lines of business by taking more of a customer centric
view for global deals
A simplified trading model combined with a better approach to cost accounting and allocation should
improve transparency of contract profitability
3Activity and
cost review
A large number of people are working on transactional activities : we have productivity issues with 350
heads in Finance
Despite the resource, availability of information is poor
Not enough time is spent on value add activities due to having to collate, validate and consolidate the
numbers
4
Shared Service
Centre
capability
review
Good management and delivery capability exists with a focus on incrementally improving the processes
More time should be invested in building relationships with SSC customers to improve the quality of support
they receive and to increase confidence in the numbers
5
Current
operating
model
assessment
summary
Move to end-to-end process towers, clarify accountability and improve spans of control
Offshore delivery model is not fully exploited or consistently leveraged as most activity is duplicated in
each region / country
It costs too much to service the information needs of our customers who often request the same information
re-cut in different ways
Investing in technology to automate cost accounting, billing and contract analytics/reporting will simplify the
administration and reduce Finance costs
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9
Process activity analysis: key insights
We have a productivity challenge as too many
people work on transactional activities …
… and we have not fully exploited the offshore
delivery model as we still perform transactional
activities across the globe
As a consequence we do not spend enough
time on value add activities …
… and it costs too much to service the reporting
and information needs of our customers
We do not have the right mix of
people
x3 P2P FTEs
x3 O2C¹ FTEs
x4 R2R FTEs
259
7223
8824
Note: 1) Does not include
‘Manage Sales Orders’
UK SSC EU NA APJ
P2P
OTC
RTR
Taxes
Treasur
y
FAA
FP&ALegend
< 2 FTEs
2 < FTEs < 5
> 5 FTEs
1
2
3
4
5
Our percentage of FP&A labour
cost over revenue …X.X%
0.3%… compared to a benchmark
(bottom performers) of …
Local Support
Transactional
Business Partner
12%
68%
21%
5%
55%
40%
We have too many people
focusing on local support
… and on transactional activities
But not enough on Business
Partnering
NGA
NGA
NGA
Legend
Northgate
Best practice
10
10
Benchmarking analysis: key insights
More vendor invoices should
be processed by the Northgate
FTE when compared to
benchmark data
x4
P2P
% customer invoices
generated automatically
compared to a
benchmark of 87%
O2C
Number of natural, active
general ledger accounts
compared to a benchmark of 1k6k
R2R
Number of Northgate banks
compared to a benchmark of 6 32
Treasury
Number of business
days of the budgeting
process cycle compared
to a benchmark of 98
FP&A
Average number of forecast
iterations per final forecast
published compared a
benchmark of 4
5
FP&A
156
7%
Benchmark data refer to the bottom
performers
11
Dimension Limited Leading
11
Shared Service Centre maturity assessment
Strategy
Service Delivery
Organisation
Operations and
Technology
Potential Opportunities
• Mission/vision: articulate these and use to drive culture and behaviour across the organisation
• Scope of services: standardise scope & geography and move up value chain
• Location of services: reduce the use Granada for activity that requires non-English voice or close
• Business planning: define a three year strategy and updated annually
• Value: Clearly articulate SSC value and develop the SSC business case into a “living document” and
integrate into planning process
• Performance management: agree SLAs with customers and enhance KPI reporting so it is relevant
• Governance and issue mgmt.: manage issues proactively and hold the business to account
• Customer/Vendor relationship mgmt.: better align SSC to customers, improve communication with
them and invest in developing closer working relationships – seen as critical to future success
• Sourcing: review the strategy regularly and identify opportunities where outsourcing adds value
• Continuous improvement: formalise an approach, appoint a team leader and embed CI into culture
• Structure: move to end-to-end process towers, clarify accountability and improve spans of control
• People mgmt.: focus on offering higher value roles to enable retention of employees
• People development: improve ongoing training opportunities and define clear career paths
• Culture: improve etiquette and develop idea of being equal partner with business, embed culture in
managers / team leads
• Recruiting: focus to evolve to cover higher value roles
• Process: there is still significant standardisation and re-design required
• Technology: integration and/or consolidation of satellite systems into SAP is needed
• Controls: Risk management could be more formalised. There is an opportunity to expand BCP
• Programme management.: This could be expanded and the tools defined
• Recruiting: focus to evolve to cover higher value roles
• Facilities and infrastructure: explore leveraging delivery centre infrastructure
12
Finance vision and strategy
12
Provide financial leadership in working with our customers to determine strategic business
direction
• People empowered to do the right thing• Collaborative working environment• Open and honest culture
Provide our customers with the right information at the right time to make the right
decisions
Our vision (Where we want to be) Our mission (Why we exist) Our values (What is important to us)
i. Centralise / consolidate
and source activities efficiently and effectively across the finance organisation
ii. Apply a standard organisation structure across LOBs, segments and regions where practicable
iii.Ensure sufficient flexibility and scalability to support growth and changes in future business
requirements
i. Implement a robust and
consistent controls environment across all processes, automating wherever possible
ii. Apply an organisation wide governance framework to ensure a transparent approach to compliance
with company policy
i. Improve / optimise and,
where appropriate, standardise Finance processes
ii. Enable global best
practices and internal excellence across processes
iii.Establish clear end to end
accountability for Finance processes and performance improvement
i. Enable Finance to be an
effective business partner supporting decision-makers in delivering our business objectives, including:
• Improving EBITDA and cash flow
• Supporting profitable growth
i. Create group wide career
pathways and development opportunities that enable us to attract, invest in and retain top talent
ii. Work as one team to facilitate a culture of continuous improvement and innovation, with a
focus on increased collaboration
iii.Invest in and promote our future leaders from within
the organisation
• FTE per $bn of revenue
• Successful internal &
external audits• Regulatory compliance
Process compliance
• Transaction processing
KPIs
• Internal customer
satisfaction scores• Transparency of
performance
• Staff attrition
• Employee job satisfaction
1. Clear efficient structure with the right skills and ownership in
the right place
2. Robust compliance and controls
3. Re-engineer processes to deliver
value
4. Effective business partnering to support
our customers
5. Clear strategy to attract, retain and
develop the best people
i. Deliver world class
information and analysis to our stakeholders, available where and when needed to support improved data-driven
decision making
ii. Eliminate the need for manual intervention
through systems enablement and minimising local non-standard tools and technology
iii.Work with IT to deliver value for money IT solutions that seek to re-
use our existing capabilities
• Timeliness of
information• Level of automation
6. Systems that enable our people to be as
effective as possible
Critical components (What we need to do)
Strategic objectives (How we want to get there)
KPIs (How we measure success)
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13
• Standardise & automate core processes to improve productivity whilst maintaining a consistent overall approach
• Avoid duplication of processes and effort
• Single centrally managed budget with all Finance resources aligned to a global Finance Organisation
• "One Finance Function" with combination of specialists, shared services and regional representatives where appropriate
STANDARDISATION &
CENTRALISATION
FUNCTION & ROLE
CLARITY AND
ACCOUNTABILITY
END-USER SERVICE
& QUALITY
ABILITY TO DRIVE
INSIGHT
COST & SIMPLICITY
• Align Business Partner resources to support regions and product portfolios
• Highly transactional, administrative process moved into shared services
• Develop clear roles, responsibilities & objectives
• New model to enable us to focus on supporting cost efficiently
• Engage with global Finance stakeholders and customer groups during the design and sign-off of future model
• Local resource to pull on specialist advice
• Governance – regular check-in with the business via defined mechanisms
• Deliver self service solutions where available to drive efficiencies and enhance service delivery
• Reduce cost on transactional services through shared services, automation and process standardisation
• Relocate Finance activities to lower cost locations where possible
• Increase proportion of spend on higher value add services
• Enhance use of technology and process automation to reduce reporting effort
• Regular process reviews to standardise processes & reduce reporting time
• Structured approach to data management to drive increased data quality and one version of the truth
• Enhance reporting and management information to drive decision making
THEME PRINCIPLES
Finance transformation – design principles
14
Design approach: high level project timeline
14
Step 2:
Assessment and Initial Design
Step 4:
Roadmap Design
Step 3:
Detailed Solution Design
Step 1:
Planning and Scoping
July 2015 August 2015 September 2015 October 2015
• Final project scope and interview schedule determined
• Advice and recommendations formulated for management regarding key focus areas for the Finance target operating model
• Preliminary assessment of the current state of Finance and key challenges completed
• Results of stakeholder interviews documented
• Design principles refined• High level target operating
model options identified• Gap analysis completed and
high level hypotheses drafted
• Process taxonomy documented• End-state service delivery model
documented• Finance organisation chart
documented• Target Finance systems architecture
documented• Draft initiative inventory
documented with preliminary prioritisation
• Business case impact summary documented
• Implementation roadmap documented
• Risk/prioritisation assessment documented
• Project charters for key initiatives documented
• Programme governance structure documented
• Programme change management and communications plan documented
15
Plan on a page
15
Area Activity Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17
RtR ICBU Journal Template Change
RtR Cash Flow
RtR CoA, PC, CC, BL & Vert's (incl PLM)- Data
RtR Revenue Order Book
RtR Non-SAP TB upload
RtR Enhance Group Recociliation
RtR Payroll Integration (not OTW)
PtP Travel & Expenses - Concur
PtP Purchasing - Ariba
PtP Vendor Invoice Approval
PtP Digitising the Receipt of Vendor Invoices
Contract Mgt Contract Mgt
OtC Finance Portal
OtC Managing Billing Policy & Process
OtC Managing Collection Policy & Process
OtC Bad Debt provision (report + program to post)
CATS/MRS/CPM Time, Resource and Project Management
BPC Consolidation
BPC Budgeting & Forecasting
BW BW / BOBJ Reporting
R1 R2 R3 R4 R5
Structured into five releases to deliver the technology enablers that support the transition to the
new operating model and the underlying business case.
16
12 month headcount plan: region view
16
Future
State
Current
State
Total FTE 326 188
26
36
36
25
Finance Transformation
20
UK
Europe
North
America
APJ
Granada
Kochi 183
5
15
15
135
7
11
Salary costs 10.3m 5.7m
26
36
36
25
19
183
May
26
36
36
25
19
190
Jun
26
36
36
25
19
196
Jul
22
20
26
16
14
191
Aug
22
20
26
16
14
178
Sept
22
20
26
16
13
175
Oct Nov
16
6
18
7
11
168
Apr
26
36
36
25
20
183
26
36
36
25
20
183
Mar Jan
16
6
18
7
11
138
16
6
18
7
11
141
Dec
16
6
18
7
11
135
Feb Apr
15
5
15
7
11
135
May
15
5
15
7
11
135
325 333 338 290 276 272 225326326 195199 193 188 188
10.3m 10.2m 10.2m 8.9m 7.8m 7.7m 6.3m10.3m10.3m 6.0m6.0m 6.0m 5.7m 5.7m
16
6
18
7
11
135
Mar
193
6.0m
• Wave 1 – all OTC, PTP and RTR transactions and activities
• Wave 2 – BAU accounting activities
• Wave 3 - Complex Accounting and FP&A activities
• Waves are driven by level of complexity in processes and technology implementation plan
17
12 month headcount plan: process view
17
Future
State
Current
State
Total FTE 326 188
90
89
30
13
Finance Transformation
9
PTP
OTC
RTR
Treasury
Taxes
FAA
FP&A
Other
3
52
33
48
11
27
3
10
9
46
28
ELT+1 7 7
Salary costs 10.3m 5.7m
88
86
30
13
53
9
4
35
May
7
86
86
30
13
50
9
4
44
Jun
7
83
86
30
16
52
9
4
51
Jul
7
59
73
22
16
54
10
4
48
Aug
7
55
68
17
12
54
10
4
48
Sept
7
52
67
17
12
54
10
4
48
Oct
7
Nov
38
63
17
10
51
9
4
28
7
Apr
90
89
30
13
52
9
3
33
7
90
89
30
13
52
9
3
33
7
Mar Jan
30
48
11
10
51
9
3
28
7
33
48
11
10
51
9
3
28
7
Dec
27
48
11
10
51
9
3
28
7
Feb Apr
27
48
11
10
46
9
3
28
7
May
27
48
11
10
46
9
3
28
7
325 333 338 290 276 272 225326326 195199 193 188 188
10.3m 10.3m 10.2m 8.9m 7.8m 7.7m 6.3m10.3m10.3m 6.0m6.0m 6.0m 5.7m 5.7m
27
48
11
10
51
9
3
28
7
Mar
193
6.0m
• Centralisation and consolidation savings for transactional activities are realised as part of transitioning activity to GBS
• Standardisation and automation savings as realised according to the initiative implementation plan
18
18
Conclusions – so how did we do?
• Implement a Global process centric approach to process management and controls
• Better exploit the SAP platform
• Simplify the way in which we manage global deals
• Improve the quality and timeliness of information
• Increase productivity
• GBS established with Process towers for transaction processing, CoE for analytics, and governance
• SAP enhanced with integration of new systems, but full scope not yet realised
• On hold pending TP review -underway
• BOBJ and BCP implemented
• Onshore savings realised. Productivity improvements in GBS to be fully realised
Objectives Current state
Thank you
1
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