p2p rethinking p2p process ownership alignment...her career has been focused on procure-2-pay,...

November 12-14, 2018 | Las Vegas

P2P Rethinking P2P Process Ownership Alignment

Judy Bicking

Her career has been focused on Procure-2-Pay, Order-2-Cash, and developing Shared Service Centers in the U.S. and Europe; earning high recognition for process improvement and major cost savings. She led the first departments to earn IOFM AP & AR Departmental Certification designation.

Today she is a Public Speaker, does consulting in P2P

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and O2C. She participated as co-founder and played a major role in writing and conducting certification training in these fields. She is a strong believer in “raising the bar” in these areas.

She also owns and operates a retail department store along with her passion in doing mission work at home and abroad.

Judy Bicking is a 27-year veteran of Johnson & Johnson , Global AP/P2P Director FBS

Learning Objectives


- How to break the siloed structure

- Keeping the organization structurewith new workflow structures

- Do you centralize or create a SSC

- Who does procurement and accounts payable report to?

- Can reporting be realigned?- How to achieve Mission & Vision

with or without changing the Organizational Chart

Procurement Dept

PROPRIETARY AND CONFIDENTIAL PAGE 4Slide 4

Why Change?

• The process is perfect !• Efficient• Effective• Accurate• Compliant

• Your C-Suite is completely satisfied• The organization follows the policy

and procedures• The audits confirm the process is

compliant


REALITY: Our process is chaotic, costly and non-compliant


Why Change?

• Are all suppliers OFAC approved?• Do you have maverick spend?• Are there mismatches?• Does the Controller have real-time data to manage the cash?• Is year-end “Auto-magical”?• Does your C-Suite constantly ask you to reduce cost? • Are you resolving the same errors, over and over again?• Does the organization see purchasing as a bottleneck?• Does the organization have a low opinion of the AP Team?• Do you get a discount on your purchases? Extended terms?• Are you paying for over-night deliveries?• How many preferred suppliers do you use?• Do you “mandate” the use of a supplier?• Are you issuing Rush Checks? Wires?• Is most of your payments, paper checks?

Ownership: I’m naming you VP of Revolution


“I’m naming you VP of Revolution, Action and Edgy Thinking…on one condition…. That you promise not to change anything!”

- Own P2P

- Run P2P as if it were a stand-alone business

- Total Cost of Ownership [a new definition]

Why look at ownership?


? Have you tried to make changes?? What was your success rate?? How many times did the executive over-rule the process? Does the CFO and CPO [or VP of Finance and VP of Procurement] have different goals.? Do you have a champion?? Different goals from each organization allows the company to do whatever they want

- Buy what they want… where they want… at whatever the costBenefits:- Real dollars saved, increase bottom line- Accurate, compliant Financial Statements- Commitment to support the P&P’s: NO work arounds- Align P2P, you align the organization

New Responsibilities or New Structure?


Procurement Dept

- VP of Finance or VP of Procurement or BOTH- CFO or COO or CPO or BOTH- VP of Global Financial Shared Services

(reports to CFO)

- Payroll- Accounts Payable- Accounts Receivable- Fixed Assets- Accounting- HR ……. Etc.

- Chief Procure-to-Pay Officer- P2P only

- Chief Process and Innovation Officer- Record-to-Report- Procure-to-Pay- Order-to-Cash

SILO’s

Breaking down silos must begin with aligning the process


Procurement Goal

Accounts Payable Goal

$ Support the organization$ Choose the right supplier$ Negotiate price, qty, term, etc

- Compliant- Accurate- Payments

Mission

Vision

Goals

Value

Bottom-Line

New Mission, Vision and Goals


To build a cohesive, collaborative relationship among procurement, accounts payable and suppliers to achieve a compliant, efficient purchasing strategy for acquiring and payment of goods and services to meet the needs of the organization while making a positive impact to the bottom-line, protecting the cash, supporting the

cash management strategy and providing timely, accurate data to the financial statements.

Start with new aligned process


- Overview: You have your:• New mission, vision, values and goals• Sponsor or Executive reorganization

- Now Map the current process• Representatives from each step• Including AR from supplier

- Then Map the new process based on: • Touch it once NO touch !!• World-class benchmark P2P organizations• 100% accuracy• 100% compliant• 100% timely: “Booked in the month Ordered ….. Received/Invoiced”

Build new jobs


- Review the new process map• Create the new roles that will carry out that function

• Internal Controls• Write new job descriptions with authority lines and goals

- Develop KPI’s• Individuals, Teams, P2P and Requestors,

Approvers, Receiving

- Develop a communication plan

- Don’t forget to celebrate milestones


• Where does the VMF reside?

– Purchasing and AP

– Purchasing

– Accounts Payable

• Why not a new Master File Team?

– VMF

– CMF

– Tables

• Why?

– True segregation of duties

– Accuracy, Timeliness

– Compare VMF to CMF: Don’t pay anyone who owes you money

– Compliance to laws and regulations

– ADD: Commodity Code

Win Win !!!


I’ll leave you with this final thought:

Contact Information and Q & A


Via: Linked-In, Judy Bicking

p2p rethinking p2p process ownership alignment...her career has been focused on procure-2-pay,...

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